Importance of logistics in procurement and supply

  1. Transportation cost rose rapidly due to increase in fuel prices.
  2. Production efficiency was reaching a peak.
  3. Fundamental change in inventory philosophy.
  4. Product line is increased.
  5. Computer technology. Increased public concern of product of several new large retail chains or large merchandise with large demands.
  6. Growing power of retailers.
  7. Reduction in economic regulations.
  8. Globalisation.
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