Reduced need for personnel

Reduced transportation and distribution cost

Improved customer service

Improved cycle time

Freed-up capital in manufacturers  & marketers  non-core areas

We hope this primer will add to your understanding and appreciation of the remainder of our website and of the mission of IWLA.

Integrated Logistics

International Logistics

Domestic Logistics

Manage large portions of a customer s supply chain

Manage import/expert process

Manage inland transport/distribution logistics

Information technology, breadth of services

Market knowledge

Market knowledge

20%

15-20%

15-20%

Outsourcing, margin expansion

Global trade

Outsourcing

HIGH

HIGH

HIGH

Ryder Integrated Logsitcs, Penske Logistics

Fritz Companies, Deutsche Post

Exel Logistics, Tibbet & Britten Group


Logistics ?A Dynamic Industry

Definition: Logistics is the process of strategically managing the movement and storage of material or products and related information from any point in the manufacturing process through consumer fulfillment.

Global Marketplace: In 1998, the global marketplace for logistics was $3.8 trillion U.S. dollars, or approximately 3.8 times the size of the U.S. domestic market

Logistics Market: It is estimated that by the end of the year 2000, total logistics expenditures will reach $1 trillion. $100 billion of this amount will be outsourced to third-party logistics providers.

Components of the Domestic Supply Chain Costs: Of the total estimated $1 trillion dollars in logistics expenditures, the breakdown is as follows:

Warehousing: 8% ($80 billion)

Logistics Administration 4% ($40 billion)

Transportation 58% ($580 billion)

Other Inventory Carrying Costs 30% ($300 billion)

Growth of the Third-party Logistics Industry: Gross revenues for the third-party industry were at $6 billion U.S. dollars in 1991. It is estimated that gross revenues will reach $69 billion by the year 2001.

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