A conceptual and analytical framework for management of integrated knowledge based logistics providers

Driven by increasing competitive forces and the business transformation brought about by internet-based technologies, the structure and landscape of the logistics industry has changed drastically in the last few years. A new breed of logistics service providers is emerging, who has developed and adopted a new operating model which we term Integrated Knowledge Based Logistics (IKL). An IKL is characterised by its complete shift in focus, from the asset intensive operational aspects of moving goods to a variety of knowledge-based tasks such as synchronising activities between various parties in the supply chain, and ensuring supply chain continuity even in the face of disruptions. In this paper, we present the structure of such an entity, discuss its attributes and identify critical factors that impact its success. We also show how mathematical modelling tools can be employed to solve some decision problems the logistics companies face in synchronising various activities across the network.