Going from local to global (logistics)

• Main Author: Liew, Elizabeth Qianlin.
• Other Authors: School of Civil and Environmental Engineering
• Format: Final Year Project
• Language: English
• Published: 2012
• Subjects: DRNTU::Engineering::Maritime studies::Maritime management and business
• Online Access: http://hdl.handle.net/10356/48963
• Institution: Nanyang Technological University

Logistics is defined, by the Council of Logistics Management in 1991, as the part of a supply chain process that plans, implements and controls the bi-directional flow of goods and information effectively and efficiently, from the point of origin to the point of consumption in order to fulfill the requirements of a customer. An international logistics operator provides services in several countries, operating supply chains across continents from the Far East to Middle East to Europe to United States and vice versa. In the twenty-first century, development of the logistics industry is largely attributed to the drive of companies in enhancing their business competitiveness and in offering value-added services to their customers. Liner companies are look upon to cater a through transit service with optimum routes and competitive rates for their clients, where traditional seaport-to-seaport operations are no longer sufficient for companies competing in the international trade environment. This research paper is concentrated on the development of logistics in liner shipping and whether liner-related logistics business contributes to their liner business counterpart in achieving and maintaining a global status. A general study was made on logistics to give an overall understanding on its development in relation to containerization and globalization. Later analyses based on findings reveal that logistics plays a part in sustaining the international status of a liner company, more so than a strategy by liner companies to expand globally. Firstly, the nature of liner shipping is global in itself. Secondly, logistics is largely viewed as a supporting function for liner trade and is predicted to remain so even in the years to come. However, this research paper identifies a potential for liner-related logistics business to mature into a pure logistics player.