Tuesday, October 5, 2010

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Challenge of networks, the key point

is recommended to build customer-focused organizations and with better service, analyze the market thoroughly and find the right partner. A more mature distribution network is the key logistics business.

When the economy fell into recession, the catastrophic decline in sales forced most companies to drastically restructure their supply chains, through staff reductions, reduced inventories and closing locations. Currently, many companies still struggle with the effects of economic crisis, they still have excess inventory and dissatisfied customers.
As the global economy works its way slowly to a recovery in the midst of fundamental changes in social values \u200b\u200band global markets, it is clear that managing a supply chain is responsible and flexible essential for competitive advantage in a "new and unknown reality."
logistics operations represent the backbone of the supply chain, to manage the flow of materials, information and other resources, including energy and people, between the point of origin and the point of consumption to meet requirements and customer needs. The integrated logistics information, transportation, inventory, warehousing, material handling and packaging.

The reduction of life cycle of products requires more aggressive sales strategies to greater volume, to ensure they reach more customers more quickly. That happens with the demand for consistent quality of the articles while consumption becomes more global, supply chains must be designed so that a consistent product anywhere in the world, increasing trade.

companies face significant challenges in managing their logistics operations, and must consider all possible influencing factors to address different market challenges presented to them through a distribution model that allows them to operate efficiently in order to meet service level requirements at the best cost possible, consistent with its strategic objectives in the short, medium and long term.
The distribution and logistics are a more influential factor in the cost of the supply chain and thus considered key business areas to determine the success of the company.
According to a study of trends developed logistics PWC, transportation costs will continue in the future a dominant criterion in determining where to locate production sites, and minimizing power consumption will be a vital criterion in the overall design of the supply chain. It also should take into account energy costs and carbon emissions related to logistics processes.

Finally, in the future there will be a reversal of globalization, but many supply networks will be established at regional level. As globalization continues and the population grows, supply chains will have more and more significant pressure, as the capacity of transport infrastructure.
In many regions, the capacity of transport infrastructure is already inadequate, overloaded or obsolete. Thus it is very questionable whether the investment will be sufficient to meet demand in the future

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