Statistics Canada
Symbol of the Government of Canada

Finding the fastest route: Logistics R&D

Warning View the most recent version.

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

Success in today’s freight and transportation industry depends on being more efficient and faster than competitors. In the increasingly global community, companies demand that their products be delivered on time and in an organized manner. To meet these demands, the transportation industry is placing more emphasis on logistics services.

Logistics specialists strive to develop the most efficient and cost-effective way to get goods from one place to another. This involves combining transportation, storage and distribution activities to reduce shipping and warehousing costs and to improve the quality and timeliness of their services. Logistics is especially important for intermodal transportation, which switches among different modes of transportation on the way to the final destination.

Development of new technology, especially information and communications technologies, has been a major focus of recent logistics research. Two major technologies are transforming transportation: global positioning system (GPS) tracking lets customers track the location of their goods, while wireless application protocol (WAP) allows communication between dispatchers and drivers so that they can instantly track, sequence and modify deliveries.

Chart: Research and development in transportation and storageTo win competitive advantage, transportation and storage services companies increased their investment in research and development (R&D) of logistics by an average 11% per year from 1998 to 2002, to $34 million.

In 2002, the entire services sector invested over $52 million in logistics R&D. Clearly, freight and transportation companies are making such investments because the best logistics can reduce costs, improve service and gain market share.