Logistics and Distribution
Transforming Logistics
Increasing globalisation is driving change in the industry through greater competition, cost pressure and consolidation. Historically significant focus has been given to the cost of products with lesser consideration of the cost and agility of transportation. The fundamental challenge facing L&D organisations is how to provide an efficient and cost effective service within capacity constraints through increased use of innovative operational and technological solutions.
Two other major factors must be central to L&D providers’ strategy. As a major contributor to the global carbon footprint, L&D providers must deliver an economical but sustainable distribution solution managing fuel costs and minimising environmental impact – a key tenet of their strategy. Also a Providers’ ability to implement technology to both improve efficiency and quality of service (through integration) is mandatory if they are to grow with the cost constraints in the industry.
Furthermore, the competitive landscape continues to evolve and present a further strategic challenge. The UK market opening to greater competition has resulted in significant pressure on prices, emphasising the need for businesses to differentiate on service to improve long term viability. This coupled with their clients seeking more technology driven ways of minimising L&D costs has had a double impact. Internationally, as freedom of trade increases and trade flows shift to the developing world businesses are forced to redress their geographical footprint to position for growth.
