Change Triggers

Logistics planning has been now more in focus due to various triggers which due to changes in international business, have been felt. The factors or triggers for change and logistics planning becoming more relevant are

• a significant improvement in communications systems and information technology, including such developments as enterprise resource planning (ERP) systems, electronic point-of-sale (EPOS) systems, electronic data interchange (EDI) and of course the internet;
• increasing customer service requirements, especially where the levels of service that logistics can provide are oft en seen as the competitive edge between companies and their products;
• a shortening of product life cycles, particularly for high-technology and fashion products;
• the need for improved financial performance at a time when companies and economies are under severe pressure;
• the development of new players with new roles in channels of distribution – this includes the growth of third-party service providers and their move to offer global and pan-European operations and to develop supply partnerships;
• the never-ending pressures to reduce inventories and their associated costs – through depot rationalization and the adoption of JIT concepts;
• the need to adopt a wider supply chain perspective when planning and redesigning logistics operations.