This article discusses the trends in business logistics and how they are affecting U.S. world competitiveness. It begins with an explanation of what business logistics is, then looks at the costs associated with U.S. business logistics for 1989. The key components of logistics costs are pointed out. These include inventory costs and transportation costs, with trucking costs being eight times greater than rail and more than three times greater than all other transportation modes combined (including rail). Attention is then focused on U.S. world competitiveness. It is stated that if the U.S. is going to improve world competitiveness, attention must be paid to performance within its own borders. Transportation issues are how much investment in capital equipment and human resources is needed to efficiently distribute materials consumed by our economy. Topics discussed include the effect of rate compression on railroad revenues and the existing overcapacity in the trucking industry during the 1970s. The question then addressed is: How have transportation carriers and logistics services positioned their investments in human and capital resources in response to competition? A strategic mapping model is presented and the competitive positions of companies are reviewed. Finally, a leading example of a world-class business logistics system in the U.S. economy is discussed.

Media Info

  • Features: Figures; Tables;
  • Pagination: p. 19-41
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00603235
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jan 31 1991 12:00AM