...GLOBAL LOGISTICS CASE STUDY COASTAL LOGISTICS INC. ESTABLISHING THIRD-PARTY (3PL) LOGISTICS SERVICES ‘’We declare that the material contained in this project is the end result of our own work and that due acknowledgement has been given in the bibliography to ALL sources, be they printed, electronic or personal. ‘’ Contents Introduction 2 Overview of the organisation 3 CLI’s 3PL service provision objectives 4 Main issues raised 5 1. The need for an effective and successful sales pitch 5 3. High spot-rate cost of boat leasing 6 4. Delivery route and shore base operating costs 6 5. Resource requirements for 3PL service 6 6. Establishment of a trusting and reliable partnership 7 Approaches to issues raised 8 1. “AS IS” process documentation and operation analysis 8 2. The Morgan City Benchmark Study 8 3. Cost comparison and utilization of long-term vs. spot-rate leases 9 4. 2 months, 24 hours activity log book 9 5. Drawing of support and expertise 9 6. Information sharing and in-depth study of operational and cost data .…………………………….………………………………………………….………………….…………….…………..10 Effectiveness of approach adopted 10 Recommendations 13 1. Provision of a consolidated logistics service 13 2. Delivery route and shore base operation costs 13 3. Establishment of a trusting, reliable partnership 14 4. Customer Service Audit 15 References 19 Introduction With increasing global competition and the streamlining of the supply chain management...
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...Topic: When a distributor is a dominant player in a supply chain it faces many risks. Discuss the potential strategies that a dominant distributor might implement to a) retain its position of dominance and b) benefit the total supply chain. Supply Chain Management – Distributor’s risk and strategies to retain dominance whilst value adding to the total supply chain Introduction The supply chain is made up of many key players; from the top we have the suppliers which provide raw materials (or finished parts) to the manufacturers who carry out required assembly to produce the products the market demands. The distributor collects these finished products from the manufacture and provides a logistical link to the retailers who sells at the local market and provide convenience to the consumers. At every stage of the supply chain the each player carries out activities that add values to the product until it reaches the end user (Porter, 1985). The key players are linked together and are interdependent on each other (both upstream and downstream) as they rely on each other not just for profit but to achieve the overall effect of the supply chain to meet consumer demands. However the level of an organisation’s dependency on one another varies from relationship to relationship within the supply chain. As a result dominant players within a supply chain can greatly influence the other players to achieve perpetual dominance and/or mutually benefit all players, (Maloni et al....
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...Master of Science in Logistics and Transport Management Master Degree Project No. 2011:72 Supervisor: Ove Krafft ACKNOWLEDGEMENT I would like to express my enormous gratitude and appreciation to all those who supported me and contributed to complete this thesis successfully throughout the entire research process. My special thanks go to the Logistics and Transport Research Group within Graduate School, the University of Gothenburg, for giving me the great opportunity to commence this thesis in the first instance. I am also thankful to my supervisor Ove Krafft, whose stimulating suggestions, guidance and encouragement helped me all the time in the research and writing process of this thesis. Special appreciation is further devoted to all the respondents in the interviews, for their openness and patience in taking time to answer the questions and providing me with relevant and essential information for my study. Without their contribution, it would have been inconceivable to make this thesis a success. Particular appreciation goes to Suning Appliance. In additional I am also grateful to my classmates in Master Programme of Science in Logistics and Transport Management, especially those who opposed on my work and posed their constructive suggestions for further improvements of this thesis. Last but not least, I would like to give my immense thanks to my family for their love and patience. Göteborg, May 2011 Wei Yin I Master Degree Project in Logistics and Transport Management...
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...What is logistic? The total management of the key operational function in the supply chain which is procurement, production and distribution. Procurement includes purchasing and product development. The production function includes manufacturing and assembling, while distribution function involves warehousing inventory, transport and delivery. The range of activities involved are: 1) Freight forwarding 2) Customs brokerage 3) Freight auditing and payment 4) Vehicle control and communication 5) Product identification and tracking 6) Information system (optimization in management) 7) Transportation services / brokerage 8) Transportation equipment / leasing 9) Private fleet assets / management 10) Warehousing 11) Order management and fulfillment 12) Cross docking 13) Value added, assembly and configuration 14) Site location Transport principles in logistic The larger the capacity transportation vehicles are less costly per unit of freight than smaller capacity vehicle in economy of scale. In the economy of distance the decrease of transportations coast per unit of weight as distance increase. However, to maximize the size of load and the distance being shipped while still meeting the customer expectation. Land logistic Land logistics is a very important link in logistics activities. It extends the delivery services for air and maritime transport from airports and seaports. The most positive characteristic...
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...PROFESSIONAL DIPLOMA IN INTEGRATED LOGISTICS & SHIPPING MANAGEMENT DECLARATION OF ORIGINAL WORK I, RAJU A/L NALLO (NRIC NO: 810523-10-6053), student Matrix No: PX110511TS619 declare that the project paper title is “A STUDY ON IMPROVING AND CONTROLLING THE RISK OF INJURY TOWARDS EMPLOYEES AND TO REDUCE THE AMOUNT OF MANUAL HANDLING WORKS IN IKEA HANDEL SDN. BHD.” is the result of my own research except as cited in the references. The project paper has fulfilled the requirements as needed by University Teknologi Malaysia – SPACE. Thank you. Yours sincerely, …………………………. Raju A/l Nallo (NRIC NO: 810523-10-6053) ACKNOWLEDGEMENT Praise to mighty God. I have managed to complete this research successfully. I wish to express my sincere gratitude to all individuals who have supported me at every stage of my graduate schooling here at University Technology Malaysia-SPACE. Foremost, I am deeply indebted to my adviser Mr. Soomasundaram for the continuous support during my Diploma study and research, for his patience, motivation, enthusiasm and immense knowledge in the subject. His guidance helped me all the time during my research. I could not have imagined having a better mentor for my Diploma’s program. The stage I have grown today is fully attributed to my adviser without whom I might have encountered many troubles in pursuing my stay at UTMSpace and surely wouldn’t have done this fruitful research and practical experience. I have really enjoyed those long...
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...1 a) Give three different examples of how sustainability has been introduced in a supply chain through product redesign (for example changes to packaging and labeling, etc). [10 points] Environmental Sustainability is not only important but it has become a business imperative—part of the "triple bottom line" comprising economic dimensions (profits) as well as 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...
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...PART 1 EXECUTIVE SUMMARY Sport Obermeyer must maintain and for that matter increase our hold on the skiwear industry. For that objective to be met it has been determined that changes must occur on a couple of fronts. First an improved forecasting technique must be implemented. Having hot items stock out causing potential customers to purchase competitors product is unacceptable. Taking each buying committee members forecast into account to create an average demand forecast has created a good starting point With the addition of our preferred retailers at the table I feel we would have an even better grip on the customer demands. I would also implement an electronic data communication at the point of sale. This would provide us with real time numbers, numbers that we presently don’t have during our November meetings this would only aid us in our forecasting, as well as during the season we would be able to see which items are selling well early in the season. The second issue is production planning, with long lead times on materials, large minimum orders, a short product life cycle (less than 1 year), and a very large planning cycle (2 years). We must seek out partnerships with raw material providers to facilitate shorter lead times. We must reduce the number of vendors we use. Work with Chinese facilities to reduce minimum orders. With these changes we will see a better understanding of customer demand and the ability to react to demand in a more timely fashion, this is imperative...
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...ALIGNING INCENTIVES IN SUPPLY CHAINS AGENDA OVERVIEW OF ARTICLE MODEL OF ANALASYS (CLASS DISCUSSION) CONCLUSION QUESTION / ANSWER PERIOD CISCO (Mad Monday April 16, 2001) The world’s largest network equipment maker shocked investors when it warned them they would soon be scrapping $2.5 billion of raw surplus (almost 50% of quarterly sales) - which is one of the largest inventory write-offs in US history. How could Cisco misread demand by $2.5 billion, almost half as much as its sales in the quarter? Many experts believed it was due to forecasting errors, or forecasting software problems, or even mismanagement from top executives But were they right in their assumptions? CISCO (What really happened) The truth is Cisco ended up with much more inventory (subassembly boards and semiconductors) then demand required due to supply chain partner’s behaviour in the 18 months leading up to Mad Monday Cisco did not have a manufacturing plant and subcontracted out to multiple third parties who mass produced the components because demand for Cisco products usually exceeded supply Cisco compounded the problem by offering incentives to suppliers who delivered quickly, which gave the suppliers incentives to build buffer stocks. The suppliers also boosted profits by buying in bulk from component suppliers. This turned out to be a win/win situation for the subcontractors and the component suppliers alike. Demand began to...
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...less than its competitors because it benefits hugely from low costs from its suppliers. DVD for less has now outsourced its warehousing and storage activities to an external firm, this firm is called Baselio Logistics who is charging them $500,000 annually for the warehousing of their inventory. This strategic move is going to have a positive impact on the business overall because their costs will decrease drastically. These costs that will decrease include the warehousing costs, average inventory costs and the carrying costs. Previously DVD for less was paying $1.46 million for warehousing and had an average inventory of $5 million of which the carrying cost was $1.25 million. Also under these circumstances their order fill rate was 97% and of the other 3% of the customers, 1% would cancel their orders and 2% would be unhappy but wait for the second delivery all these customers would also be compensated for the company’s mistake with a $35 coupon towards any of their products. Every late order would also have a handling fee of $20 per order so this would be a waste of $55 per customer for every customer that received the incorrect order. This is another extra cost that the company would need to pay. After the company’s warehousing and storage was handled by Baselio Logistics their total costs went down by approximately $2.635 million and their order fill rate jumped up to 99%. The costs that they are now saving on are warehousing (they only pay $500,000 compared to the $1.46million)...
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...Warehouse by Ed Acker Steven Winter Associates, Inc. Last updated: 04-23-2008 Overview Warehouses, defined here, are facilities that provide a proper environment for the purpose of storing goods and materials that require protection from the elements. Warehouses must be designed to accommodate the loads of the materials to be stored, the associated handling equipment, the receiving and shipping operations and associated trucking, and the needs of the operating personnel. The design of the warehouse space should be planned to best accommodate business service requirements and the products to be stored/handled. The economics of modern commercial warehouses dictate that goods are processed in minimal turnaround time. The different types of warehouses include: * Heated and unheated general warehouses—provide space for bulk, rack, and bin storage, aisle space, receiving and shipping space, packing and crating space, and office and toilet space; * Refrigerated warehouses—preserve the quality of perishable goods and general supply materials that require refrigeration. Includes freeze and chill space, processing facilities, and mechanical areas; and * Controlled humidity (CH) warehouses—similar to general warehouses except that they are constructed with vapor barriers and contain humidity control equipment to maintain humidity at desired levels. Special-designed warehouses meeting strict requirements can also provide liquid storage (fuel and nonpropellants), flammable...
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...Executive Summary Barilla SpA, an Italian pasta manufacturer is experiencing problems in manufacturing and distribution systems caused by fluctuations in demand. To eliminate these difficulties Giorgio Maggiali, the Chief of Barilla’s Logistics Department, has been trying to implement the Just-In-Time-Distribution, further referred as JITD, system proposed by his predecessor Brando Vitali. JITD can be called a remake of popular “Just-In-Time” manufacturing concept. Although Maggiali has been trying to convince his consumers that the JITD would definitely work, he has not made much progress. The program was met with significant resistance by the distributors and Barilla’s own Sales and Marketing organizations. Now Maggiali is looking for possible solutions of the problem. In the following analysis we will provide recommendations, which will help Barilla to successfully implement the JITD system and thus decrease its costs, increase efficiencies and its profits. Introduction Barilla SpA was founded in 1975 by Pietro Barilla. From a small shop in Palma, Italy, it became a large, vertically integrated corporation with mills, plants and factories located throughout the Italy. Barilla’s success highly depended on its’ quality of product and innovative marketing programs, which created strong brand name. The company was sold to Grace Inc. in 1971, because the building of a huge plant in Perdignano drove the owners “deeply into debt”. Grace brought additional capital investment...
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...Mgt 215 UMT University Assignment 1 MGT 215. Operations, Logistics and Supply Chain Management November 25, 2012 1) Select a technology from 1850 to the present. Describe how it has affected productivity A technology that comes to mind is server virtualization. We use them every day in the government as we work toward going green, lower cost, increasing productivity. Since the migration to the virtual servers we were able to cut paper files by ¾. We use a digital contract file now instead of a 6 pile folder with hundreds of page. Another reason the army has choosing to go this way is so it can spread the cost of maintenance and repair across several customers with shared servers. This results in a lower price per base. Then there is the Virtual conference, which saves millions of dollar. Now you’re asking how this affect productivity does well with virtual contract files any base has access to them with save on efficiencies, be abilities to collaborate with like minds to gain more knowledge, also to form comradely. (2) Identify the transformation that takes place in a restaurant. In a restaurant you are buying a meal but also the environment and the service. In many cases the value of inputs is measured in financial terms, which is say that organizations aim to make a profit like the Hard Rock Café. To increase efficiency managers are always seeking ways of producing more with the same level of inputs or producing the same amount with fewer inputs. Some...
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...LOGISTICS MANAGEMENT - INTRODUCTION Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective, forward and backward (reverse) flow and storage of goods, services and information between the point of origin and the point of consumption in order to meet customers' requirements rather to the customers’ delight. A professional working in the field of logistics management is called a logistician. Logistics, as a business concept, evolved only in the 1950s. This was mainly due to the increasing complexity of supplying one's business with materials, and shipping out products in an increasingly globalized supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time at the right place for the right price and to the right target customers (consumer); and it is the science of process having its presence in all sectors of the industry. The goal of logistics work is to manage the fruition of project life cycles, supply chains and resultant efficiencies. Logistics is concerned with getting (or transmitting) the products and services where they are needed or when they are desired. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of...
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...How can design for logistic concepts be used to control logistic costs and make the supply chain more efficient? The three components for design for logistics are: 1. Economic packaging and transportation 2. Concurrent and parallel processing 3. Postponement/delayed differentiation By packaging the product so that more products can be shipped and stored more efficiently will lower transportation costs and storage costs. Concurrent and parallel processing focuses on modification of the manufacturing process with the desired out come of shorter lead times, improved forecasting and reduction of safety stock requirements. Design for delayed differentiation can be used to address the uncertainty in final demand, even if forecasts cannot be improved. What is delayed differentiation and can Hewlett-Packard use delay differentiation to address the problem described in the case? The Institute of Supply Management’s glossary of key supply management terms defines delayed differentiation as: The strategy of producing and shipping generic products as far down the supply chain as possible before customer-required customization is added. This process would help lessen lead time and the amount of safety stock required by the European DC. By shipping a generic product and allowing the DC to assemble the appropriate power supply module and package it with the working printer and manual in appropriate language, would allow the European DC to have the appropriate inventory...
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...Andri Wicaksono Jl Bendi Raya Blok B2 No.43 Tanah Kusir, Jakarta Selatan 08567861166 e-mail: ngkong_andri@yahoo.com OBJECTIVE To obtain a position as a Marketing Assistant Manager that utilizes my 2 years of marketing and promoting product experience, my experience founding and managing a small business, and my bachelor’s degree in management. PROFESSIONAL SUMMARY Experience with successfully managing all aspects of a large distribution center including implementing automated distribution systems; selecting, managing and training staff; developing and managing the departmental budget; establishing and monitoring productivity goals; and leading cross-functional teams on key projects. Have designed the layout, organization, processes, and procedures for a distribution facility. Proven leadership skills gained from managing a large distribution center as well as founding and managing a multi-million dollar business. EXPERIENCE General Manager, Distribution ABC Companies, Any City, Any State, 1989 – 1999. • Reporting to the Executive Vice President of Operations, responsible for managing all aspects of operations for a 270,000 SF distribution center with a 94-person staff and a $3.4 million budget. • Processed 8 million units annually while managing 5,700 SKUs to supply appropriate product to over 500 different locations during off-peak times and...
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