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[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

Source: World Bank for GDP data. Various sources for logistics costs. There is a relationship between the level of economic development (as measured in terms of GDP per capita), the composition of a national economy, and logistics costs. While logistics costs can amount to 25% of delivered costs in some

Source: adapted from McKinnon, A. “The Effects of Transport Investment on Logistical Efficiency”, Logistics Research Centre, Heriot-Watt University, Edinburgh, UK. Total logistics costs consider the whole range of costs associated with logistics, including transport and warehousing costs and inventory carrying, administration, and order processing costs. Administration and order processing costs

Freight distribution is characterized by asynchronous behavior, implying that supply and demand are never perfectly matched in time and space. A temporary buffer is thus required to bring a level of synchronism, particularly in light of the four main forms of asynchrony that challenge freight distribution: Production and consumption (time