As a result of globalisation, networks tend to become expansive and complex and this, in turn, leads to longer lead times and increases in stock and inventory holdings.

The logistic activities involved need to be operated as a system to provide a countervailing or compensating force. Most importantly the service needs of internationally dispersed customers must drive the design and implementation of the logistics system.

To service global markets, Supply chains and their logistics networks have become larger and more complex. Therefore the need to plan and manage has become the main drivers for a complete and integrated system.

Therefore, the major logistical and supply chain implications of globalisation are:

• Extended supply lead times,
• Extended and unreliable,
• Consolidation,
• Increased freight modes,
• Production with local added value.