According to the study form BVL “the single most important strategic initiative, both today and in the next five years, will be talent management, which includes the need to fill critical gaps that exist in the logistics workforce in the next decade.”
Agility
A major logistical trend, which aims at creating supply chains that are more responsive to specialised customer requirements, is called agility. Agility is defined as “the ability of a supply chain to react quickly to unexpected or rapid shifts in supply and demand”. Agile supply chains are becoming prominent in various industries characterised by high volatility, low predictability and short life-cycles. Supply chains need to develop deep intelligence into market trends and characteristics and be efficient in undertaking changes in supply chain architecture to cope with the sudden changes in demand. Along with agility, the adaptability of supply chain architecture design to produce the right product for the right customer at the right time is also proposed as a characteristic of high-quality supply chains.
Multimodality/intermodality
Multimodal transport chains involve more than one mode of transport (rail, sea, inland waterway, air and road), while intermodal transport chains – specifically in freight transport – imply the transport of freight within an intermodal load unit. Consequently, freight itself does not inevitably need to be handled when changing modes.
Reverse logistics
Reverse logistics means logistics processes such as planning, implementing and controlling the return of the products and materials from their final destination for the purpose of (re-) capturing value or proper disposal. Remanufacturing and refurbishing activities may also be included in the definition of reverse logistics.
Reverse logistics are of importance within production as well as transport processes. The transport part of reverse logistics can be organised in different ways. In integrated returns network the retailer uses the distribution transport fleet to bring back products from the store to the distribution centre (DC) by using e.g. backhauling. Reverse logistics activities are done by the DC. In non‐integrated returns network logistics activities are done in a separate warehouse to which products are returned to from the store by a third party organisation. Under the scheme return to supplier an agreement between retailer and supplier allows products to be returned to the supplier by sending them back directly. Reverse logistics responsibility lies with the supplier. Third‐party return refers to the fact that all reverse logistics processes are outsourced to a third party contractor.
The production part of reverse logistics can be organised in different ways. Remanufacturing is considered to be the process of disassembly – building a product from product components reclaimed from returned products. The term reuse is reserved to indicate the use of products or some of its components for the same purpose for which they were originally designed or another purpose. Reuse includes different activities such as: refurbishing, or upgrading a whole product to its original specification or beyond. Recycling is the reprocessing in a production process of a product or its components with the aim of using parts or extracted material streams for their original purpose or for other purposes, excluding energy recovery (e.g. steel production).
Use of ICT in logistics
ICT is relevant in many social and economic sectors. Information is – aside from transportation – one of the most important elements in a competitive market for logistics service providers. With the current state of traffic en route it is important to schedule deliveries through the timely and accurate flow of information across the supply chain to facilitate the coordination of operations among supply chain partners.
The relevance of ICT and its expected prevalent future usage in the logistics sector is evident. Nowadays, these technologies are already part of almost each single segment of the supply chain. ICT has an impact on the capacity, efficiency and reliability of a transport mode. ICT influences the mode-shift and supports more environmental transport modes, such as rail and IWW as ICT can help to improve their competitiveness. These two modes mainly suffer from inflexibility which can be reduced with the help of ICT. Thus, new technologies can make intermodal transport solutions a more considerable option for companies and better decision-support can be provided through real-time information about the status of the freight and the transport system.
Source: ProgTrans, mainly based on LogMan (2011), BE-Logic (2009), Handfield, Straube, Pfohl, Wieland (2013).
The following table provides an overview of the 14 logistic strategies identified above and their links with impacts on logistic indicators. Values in brackets [ ] show the results from the online survey and reflect the experts’ estimation on the likely development of the importance of the individual logistic strategies/trends in the upcoming 15 years (up to 2030), ranging from a strong decrease (-2) to strong increase (2). Thus, the figures represent the average of estimations regarding the importance of strategies, followed by average estimation of development up to 2030.
According to the study form BVL “the single most important strategic initiative, both today and in the next five years, will be talent management, which includes the need to fill critical gaps that exist in the logistics workforce in the next decade.”AgilityA major logistical trend, which aims at creating supply chains that are more responsive to specialised customer requirements, is called agility. Agility is defined as “the ability of a supply chain to react quickly to unexpected or rapid shifts in supply and demand”. Agile supply chains are becoming prominent in various industries characterised by high volatility, low predictability and short life-cycles. Supply chains need to develop deep intelligence into market trends and characteristics and be efficient in undertaking changes in supply chain architecture to cope with the sudden changes in demand. Along with agility, the adaptability of supply chain architecture design to produce the right product for the right customer at the right time is also proposed as a characteristic of high-quality supply chains.Multimodality/intermodalityMultimodal transport chains involve more than one mode of transport (rail, sea, inland waterway, air and road), while intermodal transport chains – specifically in freight transport – imply the transport of freight within an intermodal load unit. Consequently, freight itself does not inevitably need to be handled when changing modes.Reverse logisticsReverse logistics means logistics processes such as planning, implementing and controlling the return of the products and materials from their final destination for the purpose of (re-) capturing value or proper disposal. Remanufacturing and refurbishing activities may also be included in the definition of reverse logistics.Reverse logistics are of importance within production as well as transport processes. The transport part of reverse logistics can be organised in different ways. In integrated returns network the retailer uses the distribution transport fleet to bring back products from the store to the distribution centre (DC) by using e.g. backhauling. Reverse logistics activities are done by the DC. In non‐integrated returns network logistics activities are done in a separate warehouse to which products are returned to from the store by a third party organisation. Under the scheme return to supplier an agreement between retailer and supplier allows products to be returned to the supplier by sending them back directly. Reverse logistics responsibility lies with the supplier. Third‐party return refers to the fact that all reverse logistics processes are outsourced to a third party contractor.The production part of reverse logistics can be organised in different ways. Remanufacturing is considered to be the process of disassembly – building a product from product components reclaimed from returned products. The term reuse is reserved to indicate the use of products or some of its components for the same purpose for which they were originally designed or another purpose. Reuse includes different activities such as: refurbishing, or upgrading a whole product to its original specification or beyond. Recycling is the reprocessing in a production process of a product or its components with the aim of using parts or extracted material streams for their original purpose or for other purposes, excluding energy recovery (e.g. steel production).Use of ICT in logisticsICT is relevant in many social and economic sectors. Information is – aside from transportation – one of the most important elements in a competitive market for logistics service providers. With the current state of traffic en route it is important to schedule deliveries through the timely and accurate flow of information across the supply chain to facilitate the coordination of operations among supply chain partners.The relevance of ICT and its expected prevalent future usage in the logistics sector is evident. Nowadays, these technologies are already part of almost each single segment of the supply chain. ICT has an impact on the capacity, efficiency and reliability of a transport mode. ICT influences the mode-shift and supports more environmental transport modes, such as rail and IWW as ICT can help to improve their competitiveness. These two modes mainly suffer from inflexibility which can be reduced with the help of ICT. Thus, new technologies can make intermodal transport solutions a more considerable option for companies and better decision-support can be provided through real-time information about the status of the freight and the transport system.Source: ProgTrans, mainly based on LogMan (2011), BE-Logic (2009), Handfield, Straube, Pfohl, Wieland (2013).The following table provides an overview of the 14 logistic strategies identified above and their links with impacts on logistic indicators. Values in brackets [ ] show the results from the online survey and reflect the experts’ estimation on the likely development of the importance of the individual logistic strategies/trends in the upcoming 15 years (up to 2030), ranging from a strong decrease (-2) to strong increase (2). Thus, the figures represent the average of estimations regarding the importance of strategies, followed by average estimation of development up to 2030.
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