Guidelines for selecting logistic concepts

Logistics guidelines

J Eckhardt & A Permala VTT

This study aims at clarifying the complexity of supply chain decisions and offering guidelines for selecting strategically important logistics concepts.  Also the roles of ports in different logistics concepts are described. A short sea shipping case study and a case study using maritime back-up solution are presented.
Globalization, sustainability, transport chain, replenishment lead-time, product, and demand are the factors affecting the selection of a logistics concept.

·   Replenishment lead-times and predictability/variability of demand, in addition to the nature of the product and its lifecycle, are the key dimensions.
·  Lean concept works well where demand is relatively stable and variety is low.
·  Agile system is demand-driven and able to match supply and demand in turbulent markets.
·  Leagile approach combines lean and agile principles and suits for long lead time products with unpredictable demand.
Supply chain concepts create different roles for ports for better integration to supply chains and for improvements in terms of cost reduction, delivery quality and shorter cycle time.