TRENDS OF

LOGISTICS
M. Sc. (Eng.) Jorma J. Imppola

Seinjoki University of Applied Sciences

2015

1. BACKGROUND

Distribution chains demand nowadays

more wisdom and cleverness in order to
manage and control complicated chains.
Distribution
chains
are
gettin
increasingly longer, yet sometimes more
direct
Increasingly specialized goods
Different IT solutions and e-systems are
required
Active
and
real-time
information
exchange
require
confidential
relationships and leads into tightening of
buyer-supplier relationships

2. TIME

The significance of time and punctuality

are emphasised in logistics, because in
multi-phased delivery chain aven a small
time saving may have a significant impact
on functionality and outcome.
Reliability
and
transparency
are
emphasised
Real-time monitoring is common practise,
so information must travel with products
and handling phases
Delivery chain efficiency requires less
intermediate
storage
and
more
outsourcing

3. SAFETY

Terrorism is predicted to increase by year

2020
Increasing unstable areas and technology may
cause problems
Natural disasters (Iceland ashcloud, Japan
zunami) demonstrated the vulnerability of
modern logistics in a problem situation; for
example as Japan is a major world supplier of
industrial machines and components the
effects of logistics problems are global
The risk of pandemic diseases is ever
increasing and such event can parallyze large
areas for prolonged time periods.

4. TRANSPORTATION
FORMS

Because of higher energy costs, CO 2emission cutdowns and intercontinental

transportation needs the popularity of
ship transportation will increase
Trains will increase their significance in
land transportation
Transito traffic is increasing if ports,
storage areas and traffic routes are able
to meet the demand
Rapid structural change of the world
economy favoures routes, which are
able to change flexibly and relialibly.

LOGISTICAL TRENDS AT MATERIAL

TRANSPORTATION
E-TRADE AND
-BUSINESS

CUSTOMER
ORIENTATIO
N

RECYCLING
CITY
LOGISTICS
DISTRIBUTIO
N
IMPROVEME
NT
LIFE SPAN
THINKING

LOGISTICAL
ALTERNATIVES

ACTIVITY
SEGMENTATIO
N
KNOWLEDGE
CENTRALISATI
ON
NETWORKIN
G
OUTSOURCIN
G

CUTTING DOWN
ITEM AND
SUPPLIER
AMOUNT

ROI
IMPROVEME
NT

5. QUALITY AND
ENVIRONMENTAL
SYSTEMS

Companies must have these existing

and certified in order to be accepted
by internatioinal companies
Quality and environmental awareness
is required from both companies and
their employees
Do not do more, do better =>
quality is an efficient way to holistic
cost saving
Quality and environmental issues are
everyones task

6. CUSTOMER SERVICE

Supply chain reputation is crucial

there is no room for errors
Automatized
and
IT-integrated
transportation units (e.g containers)
are required; customers require online monitoring of transportation
status
Money and information are transferred
electronically and the information of
orderer and manufacturer are joined
on transportation
With parcels goes also information
about
route,
destination
and
transportation conditions (RFID)

BUYER-SUPPLIER,
BUYER-BUYER
AND SUPPLIERSUPPLIER
RELATIONSHIPS
NEW SUPPLY
SOURCES

NORTHERN
SEA ROUTES
LONG
SUPPLY
CHAINS

LOGISTIC
S TRENDS

JOINT
PURCHASE
S

CORE
COMPETENC
E
NEW
TECHNOLOGICAL
SOLUTIONS

RESPONSIBILITY

SPECIALISED
PRODUCTS

PRODUC
T/SERVIC
E
COMBINATION

LOCATION

7. BUYER-SELLER
RELATIONSHIPS

Long-term cooperation in for

example innovations and product
development
Purchasing cooperation and
supplier alliances
Joint distribution solutions
Locations of suppliers, supply
sources and inventories
New big shopping malls nearby big
cities and population centres =>
traffic needs in both customer
accessibility and supply chains