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The logistics industry has enjoyed a relatively successful growth for a good number of years. Regardless of how inefficiently run, companies have grown and been able to make substantial profits. A number of changes have emerged in recent years. A shift in the industry due to an increase in outsourcing, has brought about pressures and concerns not experienced before, as well as legislation and increased operating costs. New legislation such as drivers working hours and sharp rises in fuel prices have driven a vast amount of manufacturers and retailers to outsource their logistics operation to escape these concerns. Not only are they ridding themselves of the pressures, they are also dictating pricing and standards therefore increasing the heat amongst the logistics operators. The shift in the market is also coming from distribution companies seeking new markets to diversify into. No longer do they want to remain a traditional haulier, they are offering a wider range of services, cashing in on the outsourced contracts. The changes in the industry are starting to have an impact on the way logistics companies are run. Increased orders mean manual systems cannot cope and inefficiencies can no longer be tolerated due to the pressure to deliver at lower prices. Those who act early enough to adopt lean logistics will see the results as others who have not acted begin to fall away. |