Very Important Final Paper-7pages

LOGISTICS  AND  DISTRIBUTION

9.2  INTS  2370

Definition  and  Structure

Nature  of  the  Industry • Intermediary  between  buyers  and  sellers • Complex  flows  of  goods  and  information  across  vast  distances • Obstacles,  political  and  physical,  are  barriers  to  movement

Globalization  of  the  Industry • Growth  of  logistics  market  related  to  growth  of  economy • System  is  driven  by  the  consumer • Lean  production  stimulates  lean  systems  of  distribution

Traits  and  Trends Industry  Players • Transportation  companies,  logistics  service  providers,  wholesalers,  trading  

companies,  retailers,  e-­‐tailers • Blurring  boundaries

Consolidation  of  the  Industry • Increasing  acquisitions  and  mergers  (bigger/  fewer  players) • Different  types  of  logistics  companies  

- Traditional  transportation  and  forwarding  (waning) - Asset-­‐based  logistics  providers  (Maersk) - Network-­‐based  logistics  providers  (DHL) - Skill-­‐based  logistics  providers  (Accenture,  GXS)

Retailers  and  the  State Retail  Industry • Strong  domestic  orientation  yet  sourcing  is  global • Acceleration  in  transnational  activities • Transforms  retail  supply  and  logistics  networks • Emergence  of  disruptors  (e.g.  Amazon)

Role  of  the  State • Regulatory  systems  provide  a  significant  obstacle  to  logistics  (e.g.   regulation  of  airports,  less  so  with  telecom)

• Try  to  protect  domestic  retail  markets • Regional  economic  blocs  (e.g.  EU,  NAFTA)  remove  obstacles  to  distribution