Source: Logistics Management & Distribution (1999); T. Hsu, FedEx (1998).

Logistical Improvements, Manufacturing Sector, 1960s to 2000s

While cycle time requirements substantially decreased from the 1960s through the 1980s, it came at the expense of growing logistics costs, notably inventory. From that point on, the major achievements were related to productivity gains in distribution, accompanied by a reduction of cycle time requirements, but as importantly, of inventory costs. In some highly efficient facilities, the warehousing function went down as far as 15 minutes' worth of parts in inventory. Service functions such as wholesale and retail are also experiencing a diffusion of logistical management where inventory in stores are kept at a minimum and re-supplied on a daily basis.

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