Controlling the Logistics Pipeline

One of the outcomes of the fiercely competitive business environment of the late 1980s and early 1990s has been the increasing attention which has been paid to logistical issues in many types of business. The demands of the customers of manufacturing concerns for greater flexibility, faster reaction and greater reliability in respect of delivery times and quality levels have forced producers to act. And their action in most cases has involved the search for more effective ways to manage material flows. Meanwhile, retailers have become increasingly aware of the competitive edge which they can gain by exerting greater control of the input to their businesses. As a result it is now quite common, for example, for retailers to require their suppliers to deliver goods within a one hour ‘window’ on a specified day. In addition, the most powerful have required their major suppliers to become E.D.I. (Electronic Data Interchange) connected with them.