Logistics Development Aspects

Universidad Nacional Autónoma de México
Postgrado en Ciencias de la Administración
Maestría: Administración de Negocios Internacionales


Profesor: M.A. Francisco Javier Estrada Serafín
Alumna: Ana Rosa Luna Hernández
Materia: Logística y Distribución Internacional
Tarea 3: LOGISTICS DEVELOPMENT ASPECTS

Tabla de contenido
1. Introduction 2
2. Development 2
2.1. Factors inLogistics Development: 2
2.2. OUTSOURCING 3
2.3. THIRD PARTY LOGISTICS 4
2.4. FREIGHT FORWARDERS 5
2.5. INTERMODAL MARKETING COMPANIES (IMC) OR SHIPPER’S AGENTS. 6
3. Conclusion 6
4. Bibliography 6

Introduction
The purpose of this document is to identify the trends that have contributed on logistics development to become what it is today. This also includes description of specificconcepts used frequently in logistics field and how these help logistics to be optimized.
Development
Factors in Logistics Development:
As we already know, logistics was associated with the military. But this was ignored at the postwar, until recession of the 1950s where managers had to revise their physical distribution networks. Because of this recession, the effective cost control was apriority. But at the same time firms realized that physical distribution and logistics were not studied, thus they focus their attention on these. Eight tendencies can be identified:
Factor | Impact | Change |
Transportation cost rose rapidly| | Traditional distribution methods became more expensive. | Management became aware of the need of control |
| In the 1970s these factors became morecritical with fuel prices soaring.Transportation was not a stable factor in the business planner’s equation. | Higher level management had to become involved in transportation-related aspects of logistics, to adapt to the rapid changes in all transport areas. |
| In late 1970’s deregulation of common carrier transportation changed many of the rules of the game that had governed shippers. | Newoperating and policy level decisions had to be made to take advantage of new laws. |
Production efficiency was reaching a peak. | It was difficult to generate additional cost saving as fat had been taken out of the production. | Physical and logistics were relatively untouched from an efficiency perspective. |
There was a fundamental change in inventory philosophy. | Retailers heldapproximately half of the finished product inventory, and wholesalers and manufacturers the other half. | In 1950’smore sophisticated inventory control techniques reduced amount of inventory. Proportion changed from 10 percent held by retailers and 90 percent by distributors and manufacturers. |
Product lines proliferated | Stock keeping units SKU, or line items inventory (each different type or packagesize) exponentially increased | Direct marketing result which stated to give each customer the exact product desired. |
Revolution in computer and communication technologies | Management of approach logistics involved a tremendous amount of detail and data. Such as: * Customer Location * Size order * Location of warehouse and distribution center. * Transportation costs. * Availablecarriers and SLAs offered * Suppliers location * Inventory levels currently availableAll previous per each one. | This huge amount of information analysis was virtually impossible to handle manually. These were improved with the use of computer and communications. |
Increased the use of computers throughout business | Even if a specific firm does not use computers, its suppliers (vendors) andcustomers do. Then became possible to measure the quality service received from suppliers.Many firms were able to pinpoint suppliers who consistently offered standard levels of service. | Many firms understood the need to upgrade their distribution systems.As manufacturing firms shifted to JIT systems, their material delivery requirements placed very exacting demands upon their parts suppliers...