The Role of Logistics and Transportation Sector

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Czech University of Life Sciences Prague
Faculty of Economics and Management

World and European economy

The role of logistics and transportation sector

Authors:

2011 CULS

TABLE OF CONTENTS
Introduction
1. Logistics and transportation in global and individual economies 1.1 Major channel drivers
1.2 Competitive global marketplace of logistics and transportation 2. Logistics contribution to the economy
2.1 The close relationship between economic growth and logistics 3. Logistics and internationalization
Conclusion

Introduction
With the increasing globalization of economic activity and rapid development of Information and Communication Technology, businesses are seeking to develop and organize strategic, efficient and world-wide networks. These networks, which are often referred to as global logistics, focus on integrating product sourcing, production and distribution. In order to promote such global logistic networks, which are also compatible with sustainability objectives, governments need to develop and implement cohesive transport policies both individually and collectively. New strategic uses of logistics will continually alter the nature and culture of operations in companies; governments will have to match these changes. However, it is important for governments to fully understand concepts of logistics and to stimulate economic competitiveness to achieve positive economic development. At the same time, governments need to reduce any negative impacts, so as to achieve a more balanced approach to economic growth, including sustainable development. This report discuss the importance of logistics and transportation sector in the global world economy for the economic development process; identifies the major contributions of logistics and transportation to an economic development with the reference to specific examples; makes an overview of provision of logistics infrastructure.

The importance of logistics and transportation in the world. The term logistics means -“the process of planning, implementing and controlling the efficient flow and storage of goods, services and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.”  Logistics has been called by many names, including the following: Business logistics, Channel management, Distribution, Industrial logistics, Logistical management, Materials management, Physical distribution, Quick-response systems, Supply chain management, Supply management. What these terms have in common is that they deal with the management of the flow of goods or materials from point of origin to point of consumption, and in some cases, even to the point of disposal. The Council of Logistics Management (CLM), one of the leading professional organizations for logistics personnel, uses the term in logistics management to describe: the process of planning, implementing and controlling the effective flow and storage of goods, services, and related information from point of customers’ consumption requirements. This definition includes the flow of materials and services in both the manufacturing and service sectors. The service sector includes entities such as the government, hospitals, hanks, retailers and wholesalers. In addition, disposal, recycling, and reuse of the products need to the considered because logistics is becoming increasingly responsible for issues such as removing packaging materials once a product is delivered and removing old equipment.  Logistics is relevant to all enterprises, including government, institutions such as hospitals and schools, and service organizations such as retailers, banks and financial organizations. Some of the many activities encompassed under the logistics umbrella, which illustrates that logistics depends upon natural, human, financial, and information resources for input. Suppliers provide raw materials which logistics manage in the form of raw...
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