Comparing the Logistics Hubs of Worldwide Markets Research Paper

Comparing the Logistics Hubs of Worldwide Markets - Research Paper Example The potential for logistic hubs are studied, gaps in the logistic system are identified and recommended measures are suggested. The various trend and innovations in the logistics industry are considered in this report and suitable recommendation is given as to the strategies that the logistic hubs should take up to maintain their position in the fast-evolving logistics industry. Keywords The following keywords are used: logistics management, globalization, logistic hubs, logistics technologies, outsourcing. Introduction The advent of globalization, innovations in technology, mergers and acquisitions, consolidations and the boom of outsourcing have led to a huge growth in the logistics industry throughout the world. The logistics service providers are designing and implementing new services and capabilities to meet the new demands and expectations of the customers. With the evolution of a sophisticated logistics framework, the major logistics hubs in countries like Singapore, Hong Kon g, and New York are focusing on strategic approaches based on information rather than on the goods oriented commoditized approach. The customers are looking for all the services integrated into one point so as to avoid the complexities of involving a number of parties across the supply chain process. A single point of contact is preferred in today’s logistics market. The logistics market all around the globe has started adopting new models and new technologies to address the changing requirements of the market. The models are based on the levels of assets, collaborations, Information technology capabilities, and the scope of the services offered across the supply chain. The logistics model has evolved to a specialized function to fourth party logistics and Fifth party logistics. The third party logistics model has added capabilities and integration of the different operations in their model. The first party logistics and the second party logistics handle the storage of the as sets. Thus, they have higher asset intensity levels and lower barriers to entry. The fourth party logistics is an integrating model that puts together all the capabilities, resources and technologies to design and implement an enhanced supply chain service. The factors that create the highest opportunity for the logistics service providers are as follows: management of complex supply chains, comparatively high-value products, increased spending on logistics processes, decentralized logistics management, time sensitivity of the supply chain process and logistics management across multiple modes. The status of the logistics industry has considerably improved over the last few years. This improvement has been done due to the proper recognition of the following factors impacting the industry: High level of competition for both the users and the service providers which drives the continuous improvement in the operations. Increase in logistics opportunities and costs driving huge savings. Innovation in operational processes such as total quality management (TQM), just in time (JIT), time compression, flexible processes etc. (Carlson, 1989, p. 315). Growing need for adopting new technologies in order to identify and track goods.