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Logistics and Supply ChainLogistics Logistics?is the flow of funds, goods and information between origin and consumption.?Logistics?involves information, material handling, production, packaging, inventory, transportation, warehousing and often security.Supply chain operationsSupply chain operations?include the systems, structures and processes to plan and execute the flow of goods and services from supplier to ponents of Logistics:Forward Flow Logistics has been defined as that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point-of origin to the point-of-consumption in order to meet customers’ requirementsReverse Flow Logistics has been defined as the movement of product or materials in the opposite direction for the purpose of creating or recapturing value, or for proper disposalInventory controlInventory management is to keep enough inventories to meet customer requirements, and simultaneously its carrying cost should be lowest.It is basically an exercise of striking a balance between the customer service for not losing the market opportunity and the cost to meet the same.WarehousingWarehousing is the storing of finished goods until they are sold. It plays a vital role in logistics operations of a firm. The effectiveness of an organization’s marketing depends on the appropriate decision on warehousing.TransportationFor movement of goods from the supplier to the buyer, transportation is the most fundamental and important component of logistics.When an order is placed, the transaction is not completed till the goods are physically moved to the customer’s place. The physical movement of goods is through various transportation modes.Material handling and storage systemThe speed of the inventory movement across the supply chain depends on the material handling methods. An improper method of material handling will add to the product damages and delays in deliveries and incidental overheads.Insurance This provides?coverage?against physical damage or loss of goods during shipping, whether by land, sea or air or even during storage.Activities involved in supply chain operationstransformation of natural resources – This involves the extraction of raw materials from the earth and preparing of these raw materials to be converted to inputs for the manufacturing process.movement and storage of raw materials – This involves the movement of raw materials from the point of extraction to warehousing facilities where it can be stored and used at later time in the manufacturing processprocessing of raw materials and components into finished goods – The final product is eventually made from the conversion of the raw materials to final product eg. Bakery products such as cakes and desserts.storage of work-in-progress and finished goods – After the goods are made they must be stored before they can be distributed to wholesalers or retailers.delivering the finished product from point of origin to the point of destination – this involves getting the final product from the manufacturer through the distribution chain to the consumer. THE DISTRIBUTION CHAINIntermodal?– is the movement of cargo from origin to destination by several modes of transport where each of these modes have a different transport provider or entity responsible, each with its own independent contract.. Multiple carriers contracted to fulfill?a single journey.Multimodal?– is the movement of cargo from origin to destination by several modes of transport where each of these modes have a different transport provider or entity responsible, but under a single contract. A Single carrier contracted to fulfill a single journey.Simply put, the key functions of both terminologies are the same, but the differentiation lies in the contract and responsibility of the movement.MODES OF TRANSPORT AND THEIR SUITABILITY FOR DIFFERENT GOODSAir Advantagesdeliver items quickly over long distancesgive high levels of security for sensitive itemsbe used for a wide range of goods Disadvantages? air transport can involve higher costs than other options, and is not suitable for all goods? flights are subject to delay or cancellation? there are taxes to be paid in each airport? fuel and currency surcharges will usually be added to freight costs? further transportation may be needed from the airport to the final destinationRAILAdvantagesRail transport is a cost-effective and efficient way to move goods.Disadvantagesroutes and timetables available can be inflexible, especially in remote regionscan be more expensive than road transportmechanical failure or industrial action can disrupt services ROADAdvantages Low costExtensive road networksPossibility to schedule transport and tracking the location of goodsSafe and private deliveryDisadvantageslong distances overland can take more timethere can be traffic delays and breakdownsthere is the risk of goods being damaged, especially over long distancestoll charges are high in some countriesdifferent road and traffic regulations on some countriesMARINE (CRUISE AND CARGO) Advantages? possibility to ship large volumes at low costs? shipping containers can also be used for further transportation by road or railDisadvantages? shipping by sea can be slower than other transport systems and bad weather can add further delays? routes and timetables are usually inflexible? tracking the goods’ progress is difficult? port duties and taxes? further transportation overland might be needed to reach the final destination? basic freight rates are subject to fuel and currency surchargesPIPELINE Advantages of Pipeline:1. They are ideally suited to transport the liquids and gases.2. Pipelines can be laid through difficult terrains as well as under water.3. It involves very low energy consumption.4. It needs very little maintenance.5. Pipelines arc safe, accident-free and environmental friendly.Disadvantages of Pipelines:1. It is not flexible, i.e., it can be used only for a few fixed points.2. Its capacity cannot be increased once it is laid.3. It is difficult to make security arrangements for pipelines.4. Underground pipelines cannot be easily repaired and detection of leakage is also difficult.DIGITAL DELIVERYThis is the delivery or distribution of?digital media?content?such as?audio,?video,?software?and?video games.[1]?The term is generally used to describe distribution over an online delivery medium, such as the?Internet, thus bypassing physical distribution methods, such as?paper,?optical discs, and?VHS?videocassettes.TRANSPORT DOCUMENTSIMPORT LICENSES BILL OF LADING STRAIGHT BILL OF LADINGORIGINAL - NOT NEGOTIABLEBill of Lading Number: FORMTEXT ?????FROM: 1. Shipper / Generator Location2. Shipper / Generator Mailing Address (if different)A Top Generator 567 Oak DriveCarterville, MI 48222Phone No.: FORMTEXT ?????Emergency Response Phone: FORMTEXT ?????Generator ID (if applicable): FORMTEXT ?????TO:3. Consignee / Facility Name and Address4. Consignee / Facility ID#Best Disposal123 Main StreetSmithtown, MI 48333Phone No.: FORMTEXT MIK233214569. Notes: FORMTEXT ?????DELIVERED BY:5. Carrier/Transporter Name and Address6. Carrier Transporter ID#:A Great Transporter123 ElmJonesville, MI 48222Phone No.: FORMTEXT MIK9877899877a.HM7b.BASIC DESCRIPTIONUN or NA number, Proper Shipping Name, Hazard Class, Packing Group (if any)8. Containers9. TotalQuantity10.UnitWt./Vol.11.other No.Type Antifreeze40DM2200 gGallon2.3.4.18. Special Handling Instructions and Additional Information:By signing below, Shipper hereby declares that the contents of this consignment are fully and accurately described above by the proper shipping name and are classified, packaged, marked and labelled/placarded, and are in all respects in proper condition for transport according to applicable governmental regulations. As shipper, I hereby certify that the liquid industrial by-product(s) are fully and accurately described on this shipping document, in proper condition for transport, and that the information contained on the shipping document is factual.SHIPPER (Print Employee Name)Sam ReddingSignature Sam ReddingXMonth5Day16Year16Carrier / Transporter (Print Driver Name)John James DoeSignatureJohn James DoeMonth5Day16Year16Consignee / Facility Acknowledgement of Receipt (Print Name)Jane SmithSignatureJane SmithMonth5Day26Year16White Copy: Consignee/Facility Original ● Yellow Copy: Consignee to Shipper ● Pink Copy: Carrier/Transporter ● Green Copy: Shipper Initial Copy AIRWAY BILLSOn Next pageROLE OF TRANSPORT IN MARKETING; 1. Physical Supply of ProductsTransportation carries necessary raw materials to factory for production of goods and supplies finished goods to consumers. It creates place and time utility of goods by transporting from one place to another. It easily carries finished to the hands of those who need and use them. This significantly increases aggregate sales of goods. In fact, transport is such a key of marketing, which helps in carrying goods to the scattered consumers in different places, narrows the gap between producers and consumers and facilitates to distribute goods to the consumers at minimum cost and time.SpecializationTransportation facility encourages division of labor and specialization on geographical or regional basis. Transportation cost highly affects localization of industries. Production of goods may center at such place where the environment is the best and production cost is minimum. This makes maximum utilization of local resources possible, which is both economically and socially necessary.Mobility of Labor And CapitalTransportation facility provides mobility to labor and capital. If more labor force is available at any place, transport helps to carry it economically to necessary place. The means of transport carry labors from one place to another. This encourages labor and capital to use and invest in more productive sectors.Stabilization in PriceTransportation helps to bring stability in price of different products. It transports goods from more supplied places to scarcely supplied areas. This establishes coordination between demand and supply, and brings stability in prices. It helps to supply necessary goods regularly to the consumers. Besides this,?consumers?get necessary goods at lower prices, because it encourages competition among producers and makes mass production at lower cost possible.Importance of transport in domestic, regional and foreign trade.Beside economic importance, transportation has also social, political and cultural importance. It establishes social and utility by narrowing geographical distance. It consolidates social and cultural utility and strengthens national integration. It helps to establish relationship with foreign countries. Transportation also helps widen knowledge and skill in different sectors. In this way, it helps establish social utility, uniformity and integrity and strengthens national security.IDENTIFY ADVANTAGES AND CHALLENGES OF SUPPLY CHAIN OPERATIONS; Advantages: better quality of life; wealth creation; new and innovative job opportunities including entrepreneurship, for example, telemarketing. Expanded sourcing opportunities. A world market offers businesses opportunities to secure a diverse selection of workers, materials, and products. This larger selection of goods and services often means the opportunity to select higher-quality or lower-cost options.The opportunity to reach new customers in new markets. Just as globalization offers more materials and laborers, it also offers new customers in new locations with new needs.More room to grow. New?technologies?and a shrinking globe mean that it is easier for companies to grow generally: to produce more, offer more, and sell more. Expanding borders also means expanding businesses and corporations.?More opportunities to save money. Globalization’s biggest benefit is that increases options: options for source materials, options for workers, and options for transportation. More options mean more chances to save on spending and increase profits.Disadvantages: globalization, counterfeiting, product complexity, rapid product obsolescence, regulatory complexity, management blunders, changing market conditions, natural disasters, and political instability. Large-scale management issues. ?The opportunity to grow business goes hand-in-hand with the issue of greatly increased supply chain complexity when it comes to management. Companies must scale up all aspects of their business as it grows across borders, which can cause problems that stretch the globe. Inventory issues and distribution issues are high on the list of problems encountered by going global.Greater risk. Having materials, factories, and customers all over the world means being at the mercy of global events, from natural disasters, to port closures, to political uprisings. Globalization requires that supply chain managers have detailed risk management plans in place and that they are prepared when disaster strikes.?Global competition. You are not the only entity with access to supplies, products, and labor around the world –?you now have a lot of competition scattered across the globe. Globalization necessitates that supply chains are highly efficient and and well-run in order to stay competitive in a global market.?Information collection challenges. With different aspects of your supply chain scattered around the world, and with an increasingly complex process for getting products to customers, data collection and oversight can be huge new challenges. While big data analytics is helping some supply chain managers tackle the issue of information collection, it is still a large problem that has emerged alongside globalization.?Legal issues. Operating across borders means operating in countries that very likely have different laws and regulations. For example, secret product details may not be safe in China, where they have less stringent intellectual property laws. In another example, a country where you have a factory may have very different employment laws than another where you have an identical factory.?IMPACT OF LOGISTICS AND SUPPLY CHAIN OPERATIONS ON THE COMPETITIVENESS OF BUSINESSHere are a number of solutions that if used will help a company gain the competitive advantage:Shipper Associations / Consortiums: By being a part of a shippers association, a business can benefit from lower transportation rates due to the competitive negotiations and economies of scale.Transportation Management Systems (TMS): Such platforms allow a business to manage their data flow more efficiently and allows for visibility of performance and cost. ?Keeping an eye on costs, transit times, delivery performance, freight claims, and compliance will allow for strategic thinking and put a company a step in front of its competitors.Auto-Tender Functionality: This feature allows freight to be tendered directly to carriers, greatly reducing the time spent scheduling a shipment. ?When set up using a least cost carrier, the savings combined with the efficiency gain provide a great advantage.Advanced Tracking: Visibility and transparency are becoming more and more important in business. Advanced tracking features have been adopted to give customers real-time information on where their goods are.2PL - A second-party logistics provider is an asset-based carrier, which actually owns the means of transportation. Typical 2PLs would be shipping lines which own, lease or charter their ships; airlines which own, lease or charter their planes and truck companies which own orlease their trucks.3PL - A third-party logistics provider provides outsourced or 'third party' logistics services to companies for part or sometimes all of their supply chain management functions.4PL - A fourth-party logistics provider is an independent, singularly accountable, non-asset based integrator who will assemble the resources, capabilities and technology of its own organization and other organizations, including 3PLs, to design, build and run comprehensive supply chain solutions for clients.IDENTIFY THE PROBLEMS LIKELY TO BE ENCOUNTERED IN DISTRIBUTION;availability of airport, harbor and docking facilities Delayed shipment, spoilage, misdirection of goods, inadequate warehousing facilities, lack of proper security measures, industrial unrestIneffective communication.OUTLINE MEASURES TO MITIGATE PROBLEMS IN DISTRIBUTIONGovernment intervention. Communication network including use of the internet. Insurance. Selecting the most appropriate channel of distribution based on product. Use handling services with good reputation. Careful labelling and documentation. Avoid holding large stocks. Employing Security Company, use of security cameras.IMPACT OF INFORMATION TECHNOLOGY ONLOGISTICS AND SUPPLY CHAIN OPERATIONS.Global Positioning Systems (GPS) Logistics management, when distracted driving is an issue, helps fleets locate vehicles to update vendors and customers regarding shipments. Updated GPS systems are able to?accurately direct a driver on a safe route, without showing roadways that don’t really exist or roadways that are not complete.Geographic Information System (GIS)GIS as a tool can be used to map manufacturing, warehouse locations, clients, supplier locations and distribution centers, showing product supply or manufacturing facilities. Geographic Information Systems helps in analyzing and representing the information visually, allowing for greater understanding of the operating environment around the corporate. GIS can be used to analyze the routes. Route analysis helps us to generate the most efficient route (best route / shortest route) that the vehicle should take between the company and it supply chain link. Alternative routes can also be generated and analyzed. Alternative routes help in rerouting of the supplies in case of problems (either man –made or natural) on one route. GIS helps in identifying the locations of new depots and warehouses based on the factors like source of incoming materials and the target market to which the stocks will move that is the different links in the supply chain.PortnetThe National Single Window for Foreign Trade Procedures, this is a computer tool which enables the e-processing of authorizations, permits, certificates, customs documents and other deliveries by the competent organizations of the State, to undertake specific import and export operations. The developed system guarantees the technological and legal security of different documents upon the integration of a digital signature and e-payment.Benefits of PortnetIncreasing the efficiency of the logistics chains of economic operators and public and private service providers. Speeding up cross-border movement of exported and imported goods Providing an environment favorable to the competitiveness of economic operators with the possibility to deliver just in time. Reducing uncertainty regarding timeframes and logistic costs. Improving business climate, good governance and increasing transparency in company-administration relationships. Simplifying and speeding up procedures and formalities of the entry and withdrawal of goods.Improving the traceability of operations at any time, anticipation and planning capacities due to the quality and good flow of information.Saving paper costs. · Saving costs of transports and archiving documents. · Telemarketing, e-commerce Increasing transparency into all operations through the internet and mobile devices.Omni channel retailing, keeping customers involved in management decisions and reducing downtime by using all the resources of the company to fill more orders.Enhanced reverse logistics, increasing customer service and giving warehouse managers a means of handling returns regardless of their origin.Automated inventory systems, ensuring stock levels are appropriate, and self-optimizing slotting systems that can tell warehouse managers what needs to be moved, as well as when and where.Global logistics providers such as Fedex, DHL, and Amazon LogisticsGlobal logistic providers now allow for logistical services to be provided at a much lower cost than in previous decades and encourages businesses to outsource their logistic needs to these global providers. These firms have enhanced their technically capabilities and economies of scale to offer global logistical services at competitive rates. They have also utilized efficient systems that would for large scale, complex logistical task to be undertaken with relative ease.Logistics HubA?Logistics?Centre is the?hub?of a specific area where all the activities relating to transport,?logistics?and goods distribution – both for national and international transit – are carried out, on a commercial basis, by various operators.Logistics hubs, for example, Jamaica is a premier logistics node within the Americas set up to capitalize on the trade and business opportunities that will emanate from the expansion of the Panama Canal. With strategic investment and global partnerships, the Jamaica logistics hub will include:maritime and air cargo logistics hubs;strategic storage, handling and processing points for bulk commodities;expansive special economic zones facilitating assembly, warehousing, sorting, distribution and other value-added services, particularly for industries catering to time-sensitive and high-value cargo;aviation-related maintenance repair and overhaul, ship repair and dry-docking;a robust digital network to support efficient global value chain tracking and tracing as well as e-commerce operations. ................
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