David Walters, Professor, Logistics and Supply Chain Management, ITLS, University of Sydney, Sydney, Australia

The characteristics of the “Flat World” aka “New Economy” have been variously described.  Advances in technology management, the realisation that knowledge management contributes to competitive advantage, the development of manufacturing and process management together with unprecedented changes in relationship management have facilitated the development of a number of innovative business models. The changes in the business environment landscape has had a major impact for organisations on what value is, how it is created, produced, delivered and how it is serviced.   This article discusses the impact of “Flat World/New Economy” business models on the role of logistics management.

Design/methodology/approach – A review of the developing concepts underlying the new business models and of the role of logistics is explored.

Findings – The role of logistics remains one of coordinating the flows of materials/products, information and cash; however the increasing application of virtual structures to business model structures places an emphasis on policy advice and coordination on logistics management given the distance and dynamics of the new models.

Practical implications –It is arguable that all businesses require a robust infrastructure based on the principles of logistics management.  This article identifies the need for this infrastructure and develops a logistics based planning model for use with the emerging business models.

Originality/value – The research suggests there to be an awareness of change and the responses that are currently appearing.  It proposes structures for exploring these changes and for developing a response management system.