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supply chain management, logistics, supply chain

Cost-effective logistics capabilities to meet today’s supply chain challenges

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09 Apr 2005 | (News)


Today’s supply chain models increase logistics demands

Today’s decentralized supply chain models and tighter trading partner collaborations demand expanded logistics capabilities—more stocking locations, more frequent ordering, smaller order sizes, more costly modes of transportation, multichannel distribution capabilities, the ability to configure to order, personalization and distributed responsibility. With the availability of improved visibility and fulfillment tools, the logistics function has become a key component of supply chain operations, helping to combat inefficiencies in warehouse labor, transportation and space utilization; and inaccuracies in inventories and customer shipments. Organizations now spend an average of 8–12 percent of sales on logistics, and this trend is increasing.

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