Challenges in Logistics

The challenges surrounding movement of goods from origination to destination are not new, but have merely been intensified by the current competitive logistics environment and the need to provide better service despite competitors who are operating at increasingly lower margins. Three factors that are intensifying demands placed on the logistics manager are shorter product lifecycles, complex global supply chains and shrinking margins.
Short product life cycles

Increased global competition has shortened product life cycles and compelled companies to release products as quickly as possible. As we enter into what can be increasingly viewed as an era of zero-time, zero-space, zero-cost logistics, windows of market opportunity are shrinking. Obviously, every stage of distribution must be coordinated seamlessly with the next. There is a growing need for real-time visibility to support order and service needs, providing key data, such as available-to promise and delivery status in real-time.
Complex Global Supply Chains

Online information networks have expanded awareness of products and availability, creating a climate in which high demand can be generated beyond traditional regional market boundaries. In a sense, the world has grown smaller for manufacturers, distributors and retailers resulting in a need for complex supply chains spanning the globe. The growing prevalence of outsourced manufacturing and logistics services have made it more difficult to get a clear picture of whats happening in the supply chain.
Low Margins

The need for accurate immediate information regarding the business is only intensified by the low margins that so many enterprises must accept to maintain competitive pricing. Shrinking margins are driven in part by large mass-merchandisers who strive to squeeze costs across the entire supply chain and will stop at nothing to create optimal scale and efficiency. Logistics managers and the IT systems that support them must enable processes that are coordinated and fail-safe, to avoid sudden and unpredicted expenses affecting profitability
The five key issues of Logistics Effectiveness are core to Supply Chain Management-

l and external, both organizations and systems Challenges & Concern Lack of end-to-end asset visibility

even interoperability, among information systems

definitions -offs between organizations

logistics enterprise

Increased risk to warfighting effectiveness Longer lead times

stockpiling

systems rformance measurement