...Thailand is an export-dependent country. The Thai economy relies mainly on its products’ quality, manufacturing efficiency, and logistics competence. Moreover, ASEAN Economic Community (AEC), commencing in 2015, will intensify the future competitive atmosphere. In this upcoming regionalization, Thailand’s betterment depends on being well prepared in the logistics area. Thus, Thai businesses should develop their logistics capability especially in terms of business cooperation, business information synchronization, and logistics skilled labors. In this context, good business cooperation means multiple companies in the supply chain jointly operate in order to meet their goals effectively. It could not only help increase the revenue, but also to reduce their cost in several perspectives. For instance, a global carmaker such as Toyota usually coaches their automotive part suppliers regarding their successful Lean Manufacturing concept which would help these suppliers to operate with more efficiency and effectiveness. At the same time, these suppliers share their knowledge concerning the part production methods, conditions, and common difficulties to Toyota, so Toyota would learn and comprehend more in feasibility of each part’s manufacturing and can design their automotive parts more practically. From this example, useful business cooperation may result in mutual benefits for many stakeholders. Furthermore, business information synchronization, particularly information technology...
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...Executive Summary Many companies are looking for third party logistics providers to help them so they can focus more on their business development. PKT is one of the Malaysia successful third party logistics company. PKT was established and founded by Dato’ Michael Tio’s father in 1974 and they provide freight forwarder services. The company has branches in Malaysia and other countries like Korea and Taiwan. PKT’s head office is located at Shah Alam and it is a large building called “One Logistics Hub”. The warehouse can be separated into The Ship, The Waves and The Lighthouse. Different warehouses have different functions. PKT use different transportation modes to deliver goods to specific destinations, including road, air and sea. Various communication technologies are used to manage and exchange information, such as computerized system, RFID, EDI system and satellite vehicle tracking system. I strongly believe that PKT will successfully achieve its target and expend its marketplace to provide more international trade services. Introduction Inbound logistics refers to the transport, storage and delivery of goods coming into a business. It is the primary process of logistics. The company concentrates, purchase and arranges the flow of raw materials or finished goods from suppliers to manufacturing plants, warehouses and retail shops. Outbound logistic refers to the same for goods going out of a business. It is a process that related to storage and movement of finished...
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...freight takes center stage Contents Snapshot The challenge The solution The rollout Issues encountered Results Logistics finally catches up with ‘lean’ 1 2 3 4 4 5 5 Share this case study Tweet about this case study Follow Viewlocity on Twitter Share this on Linkedin Connect to Viewlocity on Linkedin Share via email Inbound freight takes center stage | Page 1 Snapshot Ford Motor Company Key challenge To balance inbound freight costs for thousands of parts across hundreds of suppliers with the high frequency of deliveries needed to support just-in-time (JIT) automobile manufacturing. Solution Ford deployed the Inbound Planning Engine from Viewlocity Technologies that considers multiple factors and constraints necessary to meet lean manufacturing requirements at the lowest possible cost. Factors considered included: • • • • • • • • Load sequencing across suppliers Quantities per load Trailer capacity Load configuration Dock schedules and capacities Production schedules Target plant inventory levels Return of part containers to suppliers Upon consideration of all of these factors, the Viewlocity Inbound Planning Engine was used to determine the plan for the right quantity and delivery frequency for every part at the lowest possible cost. The Viewlocity Inbound Planning Engine was first employed by Ford Materials Planning and Logistics Group to support the launch of the company’s best selling F-150 pickup. Results Fewer transport miles, better trailer...
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...branding through dyadic logistics partnership success (LPS): The case of the Malaysian automotive and logistics industry Nor Aida Abdul Rahman a,⁎, T.C. Melewar b,1, Amir M. Sharif c a b c Universiti Kuala Lumpur, Malaysian Institute of Aviation Technology (UniKL MIAT), Lot 2891, Jalan Jenderam Hulu, 43800 Dengkil, Selangor, Malaysia The Business School, Middlesex University London, The Burroughs, Hendon, London NW4 4BT, United Kingdom Brunel Business school, Brunel University, Uxbridge, Middlesex, UB8 3PH, United Kingdom a r t i c l e i n f o a b s t r a c t Logistics partnerships across dyadic and triadic relationship networks have been the basis of extensive research in the extant literature. It is well understood that competitive advantage within logistics and distribution and within supply chains are driven by value-adding aspects of not only the core competencies of each tier in the network, but also via tangential supporting factors. It is also well understood that there is a strong relationship between logistics and distribution and marketing functions, particularly in product-based organisations. In addition to deepening our understanding of how successful partnerships throughout the source– make–deliver continuum can be optimised, this research also seeks to identify how a supporting element in terms of industrial branding and marketing can lead to relational sustainability. Hence, this paper outlines the relationship between logistics partnership success...
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... Content 1. Introduction………………………………..3-9 1.1 overview of Menlo and logistics industry………..3-7 1.2 Research Topic, question, objective…………..7-8 1.3 Research Rational/Contribution…………..8-9 2 Research Methodologies………………………..10 2.1 How to conduct paper search……………10 2.2 Research Limitation……………10 3. Presentation and discussion of research find……..11-22 3.1 What is the JIT system in the Menlo? ……………11-13 3.2 How to Menlo use JIT system in the operation? ……………13-17 3.3 What are the key challenges Menlo facing when use the JIT system? ……………17-20 3.4What are the advantages of using the JIT system? ……………20-22 4 Conclusion: ……………23-24 4.1 Summary……………23 4.2 Implication: ……………23-24 4.3 Further research opportunities: ……………24 5.Reference List…………………………….25 1. Introduction: 1.1Overview of the company: Menlo logistics was originally formed in the late 1980s. Its initial plan was to create an organization which offers customer warehouse, inventory and transportation management. On October 26, 1990, Menlo was officially formed and started as third-party logistics (3PL) services provider. The company achieved profitable growth after 1990.( http://www.con-way.com/en/logistics) Menlo Worldwide can provide a wide range of services and technical expertise, business involved in the global supply chain management and transport unparalleled. As a global logistics company, transportation, freight forwarding, customs clearance and supply chain management...
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...CASE STUDY Ford Motor Company Ford Motor Company, one of the world’s largest automotive manufacturers, has worked with Penske on several Six Sigma initiatives. As its lead logistics provider (LLP), Penske’s quality team of associates are trained in Six Sigma practices and work closely with Ford to streamline operations and create and maintain a more centralized logistics network. Together, they uncovered several areas for real cost savings as a result of reducing inbound carrier discrepancies, eliminating unnecessary premium costs and reducing shipment overages. Plus, Penske implemented accountability procedures and advanced logistics management technologies to gain more visibility of its overall supply network. Six Sigma initiatives streamline operations Penske Logistics began its relationship with Ford as lead logistics provider (LLP) for Ford’s assembly plant in Norfolk, Va. At the time, each of Ford’s 20 North American assembly plants managed its own logistics operations. A decentralized approach provided total control of logistics at the plant level, but presented costly redundancies in materials handling and transportation. Ford conducted studies to determine the benefits of transitioning the company’s decentralized logistic operations to a centralized approach. The decision was quickly apparent – centralization of the company’s logistics operations would increase both velocity and visibility throughout the network, as well as reduce supply chain costs. Shortly thereafter...
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...CASE STUDY Ford Motor Company Ford Motor Company, one of the world’s largest automotive manufacturers, has worked with Penske on several Six Sigma initiatives. As its lead logistics provider (LLP), Penske’s quality team of associates are trained in Six Sigma practices and work closely with Ford to streamline operations and create and maintain a more centralized logistics network. Together, they uncovered several areas for real cost savings as a result of reducing inbound carrier discrepancies, eliminating unnecessary premium costs and reducing shipment overages. Plus, Penske implemented accountability procedures and advanced logistics management technologies to gain more visibility of its overall supply network. Six Sigma initiatives streamline operations Penske Logistics began its relationship with Ford as lead logistics provider (LLP) for Ford’s assembly plant in Norfolk, Va. At the time, each of Ford’s 20 North American assembly plants managed its own logistics operations. A decentralized approach provided total control of logistics at the plant level, but presented costly redundancies in materials handling and transportation. Ford conducted studies to determine the benefits of transitioning the company’s decentralized logistic operations to a centralized approach. The decision was quickly apparent – centralization of the company’s logistics operations would increase both velocity and visibility throughout the network, as well as reduce supply chain costs. Shortly thereafter...
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...2001). The subsequent steps are followed in the corporate planning process before a corporate logistics plan can be created. 1. Evaluation of the consumer and potential target markets Consumer evaluation is prompted by namely: change in customer buying patterns, new products being introduced to the market, inadequate market performance, and profitability. Furthermore in evaluating consumers management must first determine if it will be able to meet the needs of large consumer segments (Stock and Lambert, 2001). Imperial Logistics has created a large customer base in almost every industry from: retail, construction, mining and minerals, technology, chemical, automotive, FMCG, to petro-chemical and agriculture and forestry. Imperial logistics has diversified customer list with reputable brands such as Woolworths, Tiger Brands, Heinz, BAT, Brandhouse, Distell, Nampak, Mondi Packaging, Tetra Pak, CONSOL, PG Group, Mittal, Shell, Sasol, Lafarge, Toyota, BMW, Porsche, ABSA and Standard Bank (Imperial Logistics, 2010). 2. Evaluation and Selection of Target Markets: The goal should be to select target markets that promise to generate the highest returns per segment. The selection of which must take into account the strengths and weaknesses of the company (Stock and Lambert, 2010). Imperial Logistics, values customers’ businesses as much as they do. As a strategic out-sources logistics and supply chain partner, they multi-disciplinary specialists develop market and future oriented...
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...environmental and social dimensions. http://www.greenmanufacturer.net/publication/green/issue/9 A sustainable supply chain is one that includes measures of profit and loss as well as social and environmental dimensions (Carter and Rogers 2008; Linton, Klassen, and Jayaraman 2007). For example, in July 2009, retail giant Walmart announced the creation of a sustainability index,which will be rolled out in three phases including a sustainability index for suppliers, a life cycle analysis database, and a labeling system to provide the consumer with the environmental measurement of the product they are purchasing (Bustillo 2009; Walmart n.d.). An example of environmental sustainability is Pretty Products, a manufacturer of floor mats for the automotive industry, was recently featured in Green Manufacturer Magazine (June 10, 2011;www.greenmanufacturer.net/article/machinery-andequipment/ eco-strategies--drive-mat-makeras-u-turn, based in LaGrange, Georgia, was able to use sustainability as the foundation of an innovation and growth strategy to turn the company around and become a leader in the industry. The company was reducing waste by ensuring that half-empty vehicles do not get sent out in addition to a broad range of activities, including employee wellness programs, solid waste reduction, product development, and other areas. The most well-known supply chain redesign is McDonald’s with its switching “from polystyrene foam to paper-based wraps for its sandwich packaging, providing...
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...external factors. Demand Risk Demand risk is the downstream equivalent of supply risk and is present on the demand/outbound side of the supply chain. It may be due to an unexpected increase or decrease in customer demand that leads to a mismatch between the firm’s forecast and actual demand. Increase in customer demand leads to depletion of safety stocks, resulting in stock-outs, back orders, and the need to expedite. A fall in customer demand leads to increased costs of holding inventory and, inevitably, price reductions. Other sources of demand risk are dependence on a single customer, customer solvency, and failure of the distribution logistics service provider. External Factors To deal with the large scale disruptions of global auto supply chains caused by the external environment, three critical avenues are open to automotive OEM’s are: 1. Challenging suppliers to develop disaster plans so that they can make provisions to move to alternate sites for production, in the event that they are unable to produce product at their main plant. 2. Eliminating sole-source suppliers, and developing the capabilities of additional companies. Having one supplier is probably too few, but having five suppliers is too many in terms of achieving economies of scale. One strategy would be to give 80% of the work to the primary supplier, and 20% to a secondary vendor that is located in another country. Part of contingency planning should include provisions for ramping up production...
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...Distributors and car dealers Customers 6) And finally the consumer market 7) Car buyers go to the dealers stock lot, test drive and chose the automobile they want 1. b) What are the different firms involved in the supply chain? - Suppliers Suppliers supply the basis raw materials needed for the automotive supply chain -Manufacturers There are different levels of manufacturers. Some manufacturers produce components which feed in to the next level of manufacturing in the supply chain - Warehouse and distribution centers Warehouse and distribution centers play the critical role of maintaining and storing the inventories of the intermediate or the final parts used in the automotive supply chain * Logistics management Logistics management is the part of supply chain management that plans, implements, and controls the efficient, effective, forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer's requirements * dealers A car dealership sells new or used cars at the retail level. Dealership is the last downstream link in the automotive supply chain. 1.c) What are the objective of these firms? Suppliers: Suppliers supply the basis raw...
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...OOIL has focused on principal business activities: container transport and logistics services, ports and terminals, and property development and investment. (*): Source: http://www.ooilgroup.com/corporate/aboutooil Also listed on The Stock Exchange of Hong Kong, OOCL is one of the leading international carriers serving China, providing the full range of logistics and transportation services throughout the country. It is also an industry leader in the use of information technology and e-commerce to manage the entire cargo process. OOCL is highly appreciated in the industry because of its reputation for offering customer-focused solutions, a quality-through-excellence approach and continual innovation. At present, OOCL is also one of the world's leading container transport and logistics service providers, with more than 230 offices in 58 countries around the world and it is a member of the Grand Alliance with more than 150 vessels providing fast, regular services covering the Asia/Europe, Asia/Mediterranean and Asia/North America trades(*). 2.1.2 Overview on OOCL Logistics Line Ltd. (Vietnam) OLLL Vietnam has been offering supply chain management services in Vietnam since 1994 and is one of the pioneers integrated logistics services in the country. Its key strength is the ability to offer international integrated logistics solutions for specific industries such as footwear and apparel, automotive and hi-tech. Currently, OLLL has...
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...GLOBAL SUPPLY CHAIN Term Paper : Proton Supply Chain Challenges Table of Contents 1.0 Company Background 1-4 2.0 Problem Statement 5-7 3.0 Significant of Study 8-10 4.0 Proton Supply Chain Weaknesses 11-18 5.0 Recommendation 19-29 6.0 Conclusion 30 7.0 References 31-32 1.0) Company Background First national car, Proton Saga project was formed embark from the Look East Policy. Perusahaan Otomobil Nasional Sendirian Berhad (PROTON) was formed in 1983 as a company of national car to manage the operation of the national car project. "The Proton Saga is more than just a quality automobile. It is a symbol of Malaysians as a dignified people" quoted by Tun Mahathir Mohammad during the launched of the first model of national car, Proton Saga in 1985. Anyhow, PROTON facing the downfall when Perusahaan Otomobile Kedua Sendirian Berhad (PERODUA) launched in 1993, producing minicars and superminis models which target the different market segments as Proton. For example in 2002, Proton become the 1st of the car supplier in Malaysia, acquired 49.43% of the market share. Anyhow, in 2006, Perodua overtake Proton as the 1st car supplier in Malaysia with 42% of market share, and Proton was 10% behind it. This trend maintain consistently until latest statistic in 2011, Perodua still become the 1st supplier in Malaysia acquired 34% of the market share while Proton maintain the 2nd place with 33% market...
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...THE RESILIENCY CHALLENGE: CONSTRUCTING THE AGILE SUPPLY CHAIN FOR HEAVY INDUSTRY June 2014 By Lisa Harrington, President, lharrington group LLC and Associate Director, Supply Chain Management Center, Robert H. Smith School of Business, University of Maryland 2 The resiliency challenge The engineering and manufacturing sector (E&M) is the definition of diversity. The companies that make up the sector manufacture everything from jet engines and drilling rigs to simple fasteners and filters. Broadly speaking, though, E&M firms fall into a number of sub-sectors including Aerospace and Aviation and Industrial and Construction Equipment. The overall sector, like all industries, faces a myriad of issues around volatility, including dealing with natural disasters and supplier disruptions. But these issues aren’t the only ones that keep sector executives up at night. E&M CEOs also worry about how to transform their frequently large and conservative companies into agile enterprises capable of meeting new competition and opportunity head on with faster, leaner and more resilient operations. Global market dynamics are driving the need for transformation. As emerging markets grow and new markets emerge, demand is dispersing geographically. Demand is also fragmenting as a result of increasingly complex requirements from customers both for new product customization and post-sale support and service. Customers want – and expect – more choice on configuration...
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...A Project Report on “A Distribution Channel of Gati Logistics Ltd.” In partial fulfillment for the requirements of Legal Aspects of Business course in the Two Year Full-time Master of Business Administration Programme, Gujarat Technical University SUBMITTED BY: Clifford Dsouza | NR13035 | Royston Dsouza | NR13036 | Mittal Patel | NR13098 | Atit Sakhidas | NR13125 | Akash Shah | NR13130 | Manali Sharma | NR13145 | Tejas Vasani NR SUBMITTED TO: Dr. Jasmin Padiya N.R. INSTITUTE OF BUSINESS MANAGEMENT BATCH 2013-2015 * Industry Overview The Indian logistics industry was valued at an estimated US$ 130 billion in 2012-13. It has grown at a CAGR of over 16 per cent over the last five years. The industry comprises the following main segments: * Freight and passenger transportation via road, rail, air and water * Warehousing and cold-storage. The contribution from the movement of goods including freight transportation and storage is about 90 per cent. Aggregate freight traffic is estimated at about 2-2.3 trillion tonne kilometres. Road dominates the mode of freight transport mix and constitutes about 60 per cent of the total freight traffic. Rail and coastal shipping account for about 32 per cent and 7 per cent, respectively, while the share of inland waterways transportation and air is less than 1 percent. Warehousing comprises industrial and agricultural storage...
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