Value chain strategies of - A Logistics industry

Essay by yswong1668University, Master'sC-, May 2004

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Industry value chain - Market Trend

While international commerce and cross-border transport steadily increase, customer needs are becoming more extensive as well as more specific at both the national and international levels. Correspondingly, in the Group's dynamic environment, only those who recognize the general economic trends and convert them into innovative solutions, can be successful.


Globalization continues to advance in production and in distribution - industry and trade increasingly act globally. The resulting international interconnection of procurement and sales markets is motivating companies to concentrate increasingly on their core competencies and to employ external specialists for numerous services. The best example of this is logistics.


In the meantime, targeted outsourcing has become a significant competitive factor in almost all industries and on all continents. For this reason, a large range of offerings and a global presence are increasingly decisive factors for the "accompanying" services, such as logistics, as well.

The obvious reason: Whoever delegates services that do not belong to his core business wants to do that completely and without friction; therefore he needs a single contact, who offers him everything from a single source.

One-stop shopping

This can only be offered fully by a large and comprehensive service provider. The example of the logistical value-added chain makes it clear how comprehensive the services of a well-positioned provider in our industry can be: In addition to the "classic" logistical services

of procurement and distribution, as well as warehousing, the so-called value-added services gain increasing significance in this area. This includes services such as order processing, as well as exactly fitting offerings across the entire actual logistical and value chain process (an extremely current example: financial services).

Freethinking has been a must in the logistics industry for some time now. There is already some thought of integrating production into...