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Supply chain

In the past, logistics tended to focus on transport and warehousing aspects, while supply chain management took into account both the source and final distribution. This made it more difficult for manufacturers to manage supply chains, and companies preferred to outsource all their logistics activities and activities to third parties. The influence of logistics readiness is growing exponentially if you look at the role of the logistics industry as a whole and not just as a component of a manufacturer's business. Logistics work has a significant and lasting impact on a company and cannot simply be tied to just a subset of a supply chain.

Consumers - who face transportation logistics - have already seen the rise of platforms like Uber and Deliveroo. Business-to-business logistics presents different challenges, but you can look at the logistics business at a high level and work your way into the areas that bring the greatest benefits to your customer's organization and develop a customer-centric supply chain at will. Whether you are dealing with a well-funded start-up or a large multinational, you should be able to explore what you can do to address these unique challenges while scaling up your logistics businesses. When building global logistics scenarios, a relevant question arises: Will freight and IT systems be a real competitive advantage or will they become part of your business model in a future scenario?

Impact

Increasing technological innovation is making waves in the industry, and supply chains could be one of the sectors most affected. This is made even more complex by the growing discrepancy between production, distribution and consumption, which implies the need for more efficient and cost-effective supply chain management. Creating a central key-to-account structure is critical if you want to become a leading logistics provider and sell global integrated solutions. As strategic value must be, this presents a challenge for a global logistics company, especially when it comes to digital transformationLogistics leaders DSV and Kühne & Nagel, for example, have different organizational structures. Logistics is a part of the supply chain that mainly involves the movement of goods within the supply chain. It has a distinct geographical dimension, expressed as a combination of two models: Model 1 and Model 2 and a standalone optimization model. DSv uses Model 1, a "stand-alone" optimization, while Kuese & Agel uses Model 2, a "geographically based management."

International logistics is characterized by long transport times, which has become clear in recent years and led to a significant increase in orders for logistics services in e-commerce. Many of the largest logistics companies today primarily fulfill e-commerce orders by outsourcing warehouse corners for B2B operations. Online giants are expanding some of their internal logistics and slowly expanding into other areas, but this wrinkle is a challenge for those who need to build their own logistics capacity

Today we can assume that the logistics company we interviewed plays an important role in the international logistics process, seeks a strong relationship with its partners and offers its customers vertically integrated logistics services that give them access to their services and their connections to other logistics companies.