Furthermore, the deregulation effects of lower transportation
rates have begun to subside and further reductions in
transportation cost will need to come from better
management of logistics systems. The logistics environment
is also being affected by companies reacting to increased
domestic and international competition by becoming marketdriven
and inventory-conscious and by expecting higher levels
of logistics service in terms of consistency and adaptability.
This is particularly evident for firms adopting just-in-time
production systems[4].