Logistics

Abstract

This article is dedicated to the analysis and assessment of different dimensions in the system of logistics and material flows, to identify their outcome on physical distribution and freight transport, and to determine their particular geographical significance. Logistics comprises materials management and physical distribution within and among firms. Once, it mainly consisted of transport and warehousing activities. More recently, logistics developed as a response to the rising complexity (e.g., division of labor) and increasing scale (globalization) of economic activity. It now includes a wide array of activities such as order processing, production planning, scheduling, and even some manufacturing tasks such as packaging and labeling. Technological change, particularly new information and communication technologies, allowed for a comprehensive analysis, management, and control of information and goods flows. Major characteristics of modern logistics are the functional integration of supply, manufacturing, distribution, and recycling of materials in the concept of supply chain management, also the establishment of large-scale logistics networks. Both have substantially changed the way goods merchandise is being processed, in terms of magnitude, frequency, or location. Logistics networks consist of flows and nodes, thus representing the geographical manifestation of the system. Whereas the overall volume of freight transport has increased for decades, particularly for the road and air modes, freight distribution is also subject to dynamic changes, in terms of technology, size, and location.