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1.2.3 The total logistics concept

In most Western economies, the 1970s saw major changes in consumer behaviour as new forms of retail outlets (supermarkets, regional shopping centres, etc) evolved. Relative 'power' in marketing channels and channels of distribution shifted from individual manufacturers to the large retail chains. Economic pressures forced manufacturers and retailers alike to look not just at sales, but at the costs associated with achieving those sales.

Paralleling these changes, computers were becoming more powerful and the cost of ownership was now within the reach of most medium-sized enterprises. It was during this period that the benefits of coordinating manufacturing activities more closely with those of sales and marketing were first widely articulated. Computers provided the means to cost-effectively process the mass of raw data necessary to make such coordination feasible.

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