This page contains a Flash digital edition of a book.
Economics


increased asset utilisation, faster service and greater transparency throughout the supply chain. Some technological developments have


had a particularly significant impact, such as tracking technology. Vehicles are now linked to their base via


satellite using GPS and radio data system technology, while vehicle status information is constantly exchanged between the business and the customer, maximising vehicle utilisation and maintaining competitive unit costs. Over the last 40 years, the world has


unfortunately witnessed a number of events that have impacted the logistics sector. Preventative anti-terrorist measures have become the norm in the industry with potential threats unlikely to disappear in the near future. As with many other


sectors, logistics has seen its fair share of consolidation over the last 40 years. The globalisation of the supply chain has necessitated


logistics sector will develop more expertise to manage the impact of these events on the supply chain, and develop more robust risk- mitigating strategies. With environmental issues increasingly high


on the agenda, it is likely that the environmental impact of logistical operations will become ever more scrutinised. Logistics companies will therefore need to develop an integrated green strategy in line with their corporate strategy. Technological developments will continue


Trade flows are likely to significantly alter, with Europe and


to drive efficiency and information flow, such as tracking/GPS technology and provide instant information to management and customers. The future is also likely to see existing technologies rolled out on all levels of the supply chain as well as being fine- tuned


the US possibly scale


enlargement for many logistics businesses in order to remain competitive. From the chilled logistics


losing importance, while the BRIC countries and Africa are destined to become


market to the parcel distribution sector, there are now only a handful of major players operating in the UK market. Looking forward to the next 40 years, trade


major trading routes


to


customer-requirements. In order to guarantee


robust supply chains in an ever-rapidly changing world, increasing levels of collaboration and integration between logistics companies and customers is likely to emerge, both on an operational and managerial


level. Over the last 40 years, the structure of the logistics industry has been significantly altered, with new technologies and the globalisation of trade being the


main transformational forces driving change. As a result, the logistics sector today is


flows are likely to significantly alter with Europe and the US possibly losing importance while the BRIC countries and Africa appear destined to become major trading routes. This will impact logistical requirements and logistics companies will have to re-focus their strategies to fully capitalise on these growth markets. In light of geopolitical developments and natural disasters, it is probable that the


typified by ongoing cost management, increasing operational efficiency-levels, globalisation and service reliability. Will the next few decades bring further


change to the sector – the answer will surely be yes if we use the last 40 years as the precedent.


Rob Riddleston is Head of Transport & Logistics at Barclays Corporate


19


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40