Industry Analysis & Industry Trends
The Integrated Logistics sector provides door-to-door transport, storage and distribution services. It includes transport operators such as trucking and railroad companies, storage facilities, freight forwarders, customs brokers and infrastructure operators. Integrated networks have developed steadily since the late 1980s, when medium and large operators began purchasing other companies in the supply chain. This growth was supported by the implementation of automation and tracking technology across the supply chain, which has increased the potential for participants to realise economies of scale and scope. These technologies have allowed the sector to keep pace with major markets, which have adopted increasingly lean inventory practices over the past decade... purchase to read more
Industry Report - Industry Investment Chapter
The sector exhibits a medium level of capital intensity, with variations between segments. Overall, the sector spends $5.57 on labour for every dollar spent on capital. Areas of sector activity, such as airline and shipping operations, railroads, port operations and even warehouses, require large capital investments. At the other end of the scale, road freight, customs brokerage, professional and consultative services, and freight forwarding require low levels of capital investment.
The level of capital intensity has been increasing steadily over the past five years. The sector has invested in complex communication, stock tracking and monitoring systems, and automated picking systems... purchase to read more