Logistics Of Logistics And Transportation

1304 WordsNov 25, 20146 Pages
Role of Logistics and Transportation Kevin D. Walden Park University Ms. O’Quinn 29 November 2014 Logistics contributes to and moves the entire economy. Economic developments in recent years have led to the creation of complex company networks and systems of goods flow – in the process, the globalization of procurement, production and sales as well as the division of labor have increased. In addition, the complexity of international logistics systems in many sectors has grown as a result of increasing product variations and differentiation. Another factor is that many companies are concentrating on their core skills and are reducing their vertical integration. The efficient management of the resulting global flows of goods has boosted both the business and economic significance of logistics. The creation of large economic regions gives rise to international, cross-border logistics systems (The Macroeconomic, 2008). The close relationship between economic growth and logistics is parallel. The rapid growth of economics will inevitably bring about the huge demand of logistics. The increase of logistics demand will inevitably lead to the increase of logistics investment demand, thereby increasing the logistics supply capacity (Wang, 2010). New ways of doing business has entered the marketplace and seems to be at the minimum a workable prospect – clustering. Governments around the world have been investing in the creation and development of clusters dedicated to
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