Transport & Logistics Developments

   Review of logistics concepts adopted in the last decade


Evolution of logistics concepts

D2211 Review of well known logistics concepts adopted VTT 29Jan10.pdf
D2211 Review of well known logistics concepts adopted VTT 29Jan10.pdf

Jenni Eckhard and A Permala

The study is based on literature and presents logistics concepts related to inventory and supply chain management trends. In addition, transport chain and general logistics trends are presented. Maritime freight transport, shipping and ports sector trends are included in the study.


Reducing stocks is the main trend in inventory management.  The economic order quantity (EOQ) and ABC-analysis are concepts used to avoid excess inventories,

optimize inventory cost and take into account product characteristics.  Supply chain management trends are related to increasing co-operation, transparency, and efficiency.

Concepts supporting these trends include just-in-time (JIT), quick response (QR), efficient consumer response (ECR), continuous replenishment (CR), collaborative

planning, forecasting and replenishment (CPFR) and vendor managed inventory (VMI). Push, pull and push-pull systems including postponement are strategies that promote the objectives of supply chain management trends. Also the positioning of order penetration and value offering points are important factors in optimizing supply chain efficiency. 


Transport chain trends pursue for efficiency and improved services.  Increasing use of logistics service providers (LSP) and the growth of container traffic are characteristic for present transport chains. General logistics trends include the increasing use of information technology (IT) and e-commerce, globalisation and companies increasingly paying attention to sustainability. The trends in sea freight are related for example to growing vessel size, trade imbalance, and increasing cost control and service level.

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