From this complexity we can see that there is a direct conflict between national logistics thinking and global logistics thinking.
There are three important areas for global logistics:
- Focused factories,
- Centralised inventory,
- Postponement and localisation.
These allow global companies to focus their attention on the manufacture of fewer items. In this way they can rationalise their production making best use of reduced costs and location. This focus allows the company to take the best cost options. Examples of this would be that a single item is made and then sold around the world.
The centralisation of the goods into single control, if not single locations, means that the best use of the goods can be made and in the process, possibly reduces holdings as well as capital costs. Examples of this are large regional distribution centres.

My Account