Transport Logistics

iii) Need to develop policies based on full understanding of logistics

It is important for policy makers to understand concepts of logistics and current practices.

Identification of advanced logistics thinking is important in determining best practices. Only then can

the macro-impact of logistics management be fully assessed.  However, policy makers should be

aware of the danger of extrapolating an individual company’s best practices, which occur at the micro

level, into policy decisions at the macro level.

With the restructuring of supply chains, the value density of products is changing along with

logistics reach. At the same time, material density is shifting towards information density.

Communication and information systems for tracing and tracking the movements of freight, data

processing for customs formalities and managing systems for determining inventories at warehouses

and yards are required for efficient globalised logistics operations. This shift has led and will continue

to lead to major shifts in distribution patterns: the number of shipments will increase while their size

decreases. This, in turn, may have major impacts on the development of dedicated infrastructure.

Gaining accurate information on the deployment of logistics will identify those elements sensitive

to policy reform, and enable the development of policies for securing the efficiency and reliability of

freight transport associated with globalised production and logistics.