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The main value-added logistics activities are part of what can be generally referred to as warehousing, which can involve a wide array of activities: Simple storage, distribution, and order picking are part of the inventory management systems of manufacturers, distributors, and retailers. Quality control (inspection) and testing of products before

Logistic zones offer advantages (value proposition) related to their geography, particularly in terms of land availability and accessibility, and related to their operations, such as economies of agglomeration: Geographical advantages. The core geographical advantage of a logistics zone is the provision of a real estate base available on the market

Photo: Dr. Jean-Paul Rodrigue, 2013. The grocery sector is characterized by a particular set of challenges for freight distribution. Demand is constant and of high volume, but since each store meets a local demand (different incomes and preferences), distribution centers of large grocery chains must meet complex orders of hundreds

[Note: This image has been extensively plagiarized and appears on several commercial web sites without attribution]. Cross-docking supports the timely distribution of freight, a better synchronization with the demand, and more efficient use of transportation assets. The distribution center essentially acts as a high throughput sorting facility for several suppliers

The setting of large distribution centers, often part of distribution clusters, has been a dominant trend, particularly among major retailers. Suburban and exurban sites offer lower-cost locations with high levels of road accessibility. A core driver is to establish a system of distribution centers allowing to read a lead time

Freight distribution has undertaken a paradigm shift between “manufacture-to-supply” (inventory-based logistics or “push” logistics) to “manufacture-to-order” (replenishment-based logistics or “pull” logistics). The paradigm is shifting from maintaining inventories aimed at approximately satisfying the demand (forecasted) to a comprehensive data collection system ensuring, mainly through on-demand transport, that supply matches closely

The evolution of supply chain management has been characterized by increasing integration of separate tasks; a trend underlined in the 1960s as a critical area for future productivity improvements since the system was highly fragmented. Although logistics tasks have remained relatively similar, they initially consolidated into two distinct functions related

Freight facilities are fixed nodes used to support freight transportation and distribution systems. They have a wide variety of sizes and serve a combination of three standard functions, each having a respective degree of importance: Fabrication. Involves assembling goods out of parts, fabricating parts out of raw materials, or performing

Source: Adapted from Logistics Management & Distribution. Manufacturing has become an increasingly efficient and cost-effective activity. A share of these improvements can be linked with productivity improvements such as for labor (e.g. outsourcing or offshoring) and capital (e.g. equipment). Another share is linked with the improvement of the supply chains

Source: Adapted from Armstrong & Associates Inc. Logistics costs are the summation of all expenditures undertaken to make a good or service available to the market, mainly to the end consumer. Global logistics expenditures represent about 10-15% of the total world GDP but vary significantly according to the level of