A study on challenges facing the warehousing and distribution industry

Abstract

Nowadays, the key element in logistics chain is the transportation system, which inter-connects activities involved in warehouse and distribution industry. However, in the meantime, the increasing fuel cost is becoming a challenge to the warehousing and distribution industry. To gain a competitive advantage over their rivals, logistic companies should be able to find a better tradeoff between driving down the cost and adding value to customers’ satisfaction. The increase in fuel cost certainly distorts the original tradeoff balance and needs the companies to re-construct their strategies or find ways to minimize the impact on the transportation cost.