© Peter Dicken 2015

‘Making the Connections, Moving the Goods’: Logistics and Distribution Services Global Shift Chapter 17

Review Concepts to Review – Transport and communications technologies, resource extraction, buyer-driven industry, clothing, agro-food and automobile industries, key nodes Key Words – Distribution, business-to-business/business- to-consumer delivery, RFID, e-commerce

Logistics and Distribution: Definition and Structure Nature of the Industry – Intermediate between buyers and sellers – Involves complex flows of both goods and information across vast distances – Obstacles, political and physical, provide barriers to movement Globalization of the Industry – Getting things from point to point is a fundamental problem – Growth of logistics market related to growth of economy – System is driven by the consumer – Lean production stimulates lean systems of distribution

Traits and Trends Industry Players – Transportation companies, logistics service providers, wholesalers, trading companies, retailers, e-tailers The boundaries between these are slippery Consolidation of the Industry – Trend towards consolidation and concentration through acquisition/merger – Different types of logistics companies traditional transportation and forwarding asset-based logistics providers network-based logistics providers skill-based logistics providers

IT and Logistics/Distribution Technology – Time is the basis of competition – Three key elements electronic data interchange bar code systems and RFID distribution centres E-commerce – Two types dominate business-to-business business-to-consumer – Rise of ‘infomediaries’ – Different types of shipment models – The Internet is difficult to regulate

Retailers and the State Role of the State – Regulatory systems provide a significant obstacle to logistics – Try to protect domestic retail markets – Regional economic blocs (e.g. EU, NAFTA) remove obstacles to distribution Retail Industry – Strong domestic orientation sourcing is increasingly global – Acceleration in transnational activities – Transforms retail supply and logistics networks