• 0ective logistic networ's can reduce cycle%time to move quic'ly from suppliers to transporters, distriutors, retailers and stores. 3ompanies will lose their customers if the logistics networ's are ineective.
Marketing logistics networ's dier according to the type of product and the industry. !n uilding its value delivery networ', a company has to manage a whole community of suppliers, assemlers, resellers and others who must wor' together eectively.
Gültekin Kuyzu is an Assistant Professor in the Department of Industrial Engineering at TOBB University of Economics and Technology. He received his B.S. degree in Industrial Engineering from the University of Pittsburgh in 2002, and his Ph.D. degree in Industrial and Systems Engineering from Georgia Institute of Technology in 2007. Prior to joining TOBB ETÜ, he worked for four years at Agility, a leading global third party logistics company, where he developed optimization based decision support systems and other supplychain solutions for internal and external customers around the world. His research interests lie in computational optimization with applications in collaborative logistics, transportation procurement auctions, inventory routing, and production planning.
SEEC’s certificate program covers all areas of supplychain and logistics management. This program is unique – it provides comprehensive content, a wide-ranging skill set and practical real-world solutions, delivered with cutting-edge program design. On completion of the course, you will be a better-equipped, more effective supplychain and logistics leader.
St. Lawrence College is establishing a name for itself in educating people looking for careers in Canada’s supplychain and logistics sector. It has established a Logistics and SupplyChain Management graduate course that will be oﬀered on the College’s Cornwall campus. Over three semesters, students will study all facets of logistics and supplychain management from both a theoretical and practical perspective. Students will beneﬁt from hands-on experience and an integrated ﬁeld placement during the program.
Demand visibility is one building block for build-to-order. Customer’s need must drive the entire value chain.
Therefore, demand visibility must be communicated to all units in the supplychain. In the current system, order banks operate in batch mode, and orders wait a day at each batch operation before being sent to scheduling. For build-to-order, the actual order must be communicated to each unit in the chain in real time without any distortion or delay. The automotive industry can use a direct order booking system to deal with demand. Available capacity becomes the number of free slots. Once the dealer assigns a customer a build slot, the stability of that order in that slot helps avoid information distortion in supplier schedules. Then, suppliers will know exactly how many components will be needed in the assembly plant. In addition, logistics companies plan and optimize their loads based on the complete date of production from locked assembly slots. There are two advantages for a direct booking system. Firstly, the dealer can give the customer a reliable delivery date at order entry. Secondly, order banks, scheduling and sequencing will be merged into one system which reduces the processing time. Because direct order booking locks in the build sequence once it is set, demand stays stable and visible to suppliers and logistics service providers.
predicts the impact of changes to supplychain processes, such as supplychain redesign, modifying inventory safety stock levels, or integrating health commodities. In 2010, the Ministry of Health in Tanzania modeled the impacts of various supplychain decisions on their distribution network in order to assess supplychain changes needed for their future growth, including studying the use of a new direct delivery model. Through supplychain modelling, they discovered that there would not be enough warehouse or transport capacity to manage the growth of programmes without significantly affecting availability. They also found that the expected costs for direct delivery were much higher than budgeted, suggesting that changes in network structure or outsourcing to a third-party logistics provider must be considered, in addition to increased investment (15) .
For the sake of developing a theoretical framework to support factors a firm can con- sider before outsourcing some of its activities to third party logistics service providers, the author of the thesis briefly discusses transaction cost analysis, resource base theo- ry and network theory. The transaction cost analysis simply refers to the cost of physi- cal and human resources incurred in the course of exchange of goods and services (Bolumole et al., 2007; Zacharia, Sanders & Nix, 2011). According to the transaction cost theory, firms do exist to maximize profit by reducing their transaction costs; out- sourcing to third party logistics service providers helps to minimize a firm’s costs be- cause as they grow in their capability they offer services at lower costs to their clients (Bolumole, et al., 2007). It is generally accepted that transaction cost analysis is useful for assessing and taking a decision concerning outsourcing in logistics (Andersson, 1997). According to Zacharia et al. (2011) resource-based theory refers to both physi- cal assets such as plants, equipment, location, and intangible assets such as knowledge and expertise. Firms need resources to be able to survive and improve their opera- tions, and resources give a competitive advantage to them (Bolumole, et al., 2007; Zacharia et al., 2011). Resource-based theory is good for assessing outsourcing in logis- tics, and it serves as a strategy for the firm to have access to valuable resources pos- sessed by the third party logistics service providers (Hakansson & Snehota, 1995; Zacharia et al., 2011). As the third party logistics service providers grow they are able to offer more resources to their customers (Zacharia, et al., 2011). With regards to network theory, outsourcing firm’s supplychain can be managed as a single entity via relationship and network coordination (Hakansson & Snehota, 1995). According to network theory, through interaction with other firms, a firm can enjoy the efficiency of the entire network. As third party logistics service provider is growing, and rendering services to more members of the supplychain, it increases its ability to offer greater network interactions (Zacharia et al., 2011).
tion channels need different logistical platforms. Different companies with different resource bases and business policies also need different logistics organizational strategies. In today’s China, a lot of companies actually take a middle road between the above two models. In this paper, these three different types of logistics sourcing strategies in supplychain design are described, the theoretical background for the development of these strategies is analyzed, and then conclusions are made about what factors drive companies to select different logistics sourcing strategies. The focus is on China’s electric household appliance (EHA) industry. The reason for selecting the EHA industry is that logistics issues are becoming the key com- petitive factor for the companies in this industry. In China, the EHA industry is facing the most competition ever because the supply is in surplus compared to demand. The “price wars” force companies in this industry to reduce costs. It is perceived that there is no more opportunity to reduce materials and labor costs, so therefore logistics costs are becoming the last profit source for these companies. Recently, many companies have tried to reposition their logistics sourcing strategies. We will explore the key factors that companies consider when they select logistical strategies by analyzing two cases in this industry. Finally, some management insights are discussed.
Our findings have shown a similar trend in Sweden and France on the outsourced logistics activities; mainly transportation and custom brokerage respectively at 80% and 60% are outsourced. According to the responses obtained from the survey, these activities tend to influence supplychain management and its strategy. As for example in Sweden, outsourcing transportation tends to initiate a need of organizational collaboration for an effective supplychain. The following functions such as warehousing, inventory control, order processing, product assembly, reverse logistics and information technology are less outsourced. However we noticed an increase in their use and importance on supplychain management. This can be explained by the recent and significant developments in the field of Information Technology, as well as the growing importance of sustainability for firms. For example for Swedish organizations, outsourcing order processing seems to lead to a focus on responsive supplychain, to use of postponement strategies and an importance in collaboration across the supplychain. Results are different for companies in France as the main influence of outsourcing logistics activities is more on seen the supplychain as a whole with a great importance in partnership and an interest in standardization of method and re-engineering the supplychain as well as in a sustainable way.
About Suttons Group
Suttons Group is a leading international logistics and supplychain specialist, focused on delivering products and services to the gases, chemicals, fuels and food sectors. We aim to provide our customers with a competitive advantage through the breadth and quality of services we provide, a determined focus on how we can add value and increase efficiency together with industry leading standards of safety, health,
John Gattorna (Australia), is one of the most respected thought leaders in the world. He has spent a lifetime working in and around supply chains, in many different capacities – line executive, researcher, consultant/adviser, teacher and author. He is passionate about the subject – some might say obsessive. In the late 1980s, John became disenchanted with the lack of conceptual depth in the logistics field. So he started a search for a new SupplyChain framework that would better satisfy customers and
ABSTRACT: This research is part of an ongoing project, BioREF (Biorefinery for sustainable Reliable Economical Fuel production from energy crops). BioREF is intended to develop, in a dynamic way, a bench-mark for future integrated and sustainable bioenergy production systems that will contribute to enhance Denmark’s position in the bioenergy production. The objectives of the work described in this paper are to optimize the harvest and logistics for the transport of oilseed crops and suitable agricultural residues to production facilities and return the process residues for agricultural use as part of the overall biomass feedstock infrastructure. In this regard, the supplychain must comprise optimized steps of harvesting the crop, collecting residues, storing and transporting.
The aim of the article was to develop a model for managing logistics processes in the supplychain. The use of process analysis and integration of logistics processes in the supplychain enabled the continuity of power in the process of supply and in the production process and it also enables the effective and efficient distribution process management. Basing on the developed map of logistics processes author of the article described the place in the process where one can apply optimization methods of quantity and quality. By using statistical quality control it was possible to shorten the duration of the adoption process of delivery to the warehouse, thereby lowering the cost of quality control. Integration of supply processes and production logistics in the supplychain enabled the continuity of power of parts in the production process, however thanks to the combination of methods DRP (Distribution Requirements Planning), Kanban, VMI (Vendor Managed Inventory) and CPFR (Collaborative Planning, Forecasting and Replenishment) we obtain the effective and efficient distribution process management.
Decisions in supplychain design happen not only due to energy cost but as a consequence of a variety of factors.
Future action fields for supply chains
Deal with logistics as a crucial ressource (e.g. transport routes) Improve information transparency
Journal of Operations Management, Journal of SupplyChain Management, SupplyChain Management: An International, Journal of Cleaner Production, International Journal of Physical Distribution & Logistics Management, SupplyChain Forum: An International Journal, European Business Review, Journal of Purchasing & Supply Management,
This article deals with management of supplylogistics in automotive industry. There are also some actual trends in automotive and supply sector based on flexibility principles. Section 1 presents the scope of automotive supplychain characteristics, provides an overview of component suppliers’ structure and focuses on Just-in-Sequence way. Next part relates to application of build-to-order supply management and the example is presented in conditions of automotive plant with direct customer purchase impulses. The closing part of the paper presents a reason for the need of using support information technologies tools to control suppliers’ production and logistics processes in flexible car assembly line for continual material flow.
produce cement. It is used in the construction of roads, bridges and also in building houses and towers. The effectiveness of the logistics system in the cement industry is of importance to the sustainability and execution of many building projects. The main target of this research was to find out why only trucks were used as the major means of transportation in the cement industry in Nigeria and also to use the findings of this research to minimize or eliminate the likely hazards that may occur when using trucks alone as a logistics system. Hazards such as, high accident rate on the road, product wastages, and traffic congestion on the highways are common in Nigeria. According to the survey questionnaire sent to different cement companies in Nigeria; it was found that 73.3% of the respondents still preferred to use the road link logistics system. The reason was that, though there is a railway infrastructure from one point to another, even from the factory to some towns far and near, the rail system logistics could not be used due to the obsolete infrastructure of the railway. To bring this back into operation, new infrastructures would have to be put in place. Furthermore, there are some works to be done concerning the logistics system which included collaboration with the government and to have the knowledge of how the modern rail logistics system is very significant in the world today. The use of only trucks for logistics in Nigeria is not only applicable to the cement factory alone but to other factories and companies like the sugar companies, breweries and petroleum companies. Proper orientation and information about the logistics and supplychain should be given to people in order to improve the logistics and the supplychain activities.
20 as a “microcosm” of the wider SCM domain, with its focus on balancing cost and service objectives. This reflects a strong unionist perspective. Other FG3 participants also broadly agreed that, in addition to the materials and inventory management focus of logistics, the management of money and information flows were important in the wider SCM context. The intersectionist view found expression in the context of FG3’s discussion on the respective roles of strategic and tactical SCM. The participant holding the most senior position (from a US-headquartered life sciences company), and the only participant with responsibility across most elements of his firm’s supplychain asserted that SCM is first and foremost a strategic issue. He further stated that if not treated as such – i.e. if the focus is mainly tactical or operational – then this inevitably results in “fire-fighting” and crisis management throughout the supplychain. These sentiments found strong resonance among all other participants. However, all FG3 participants expressed a degree of frustration with their lack of involvement in the more strategic dimension of the subject and many acknowledged that their roles had a narrow logistics focus (i.e. rather than the broader role associated with SCM). The group’s conclusion was that SCM needs to be highly proactive with a strong focus on strategic issues. Logistics can then focus on the execution of this strategy. This thinking is wholly in line with the intersectionist perspective. Similar unionist and intersectionist thinking was evident in the discussions of FG1 and FG2. These findings clearly highlight the importance of distinguishing between strategic and tactical foci in strategic SCM adoption, and suggests that this in itself is a driver and/or inhibitor of effective implementation.
This report is designed to highlight the impact of policy drivers on the freight logisticssupplychain. This section will define the term policy drivers and outline the different types of impacts the can have upon the logisticssupplychain. In Section Two a list of policy drivers is presented, along with associated policy levers. An attempt to assess what impact each policy lever has on the logisticssupplychain is made in Section Three and in Section Four a number of policies levers are selected to take forward as possible scenarios to be evaluated in the University of Leeds cost modelling work.
At the outset of this section the importance of conceiving of logistics provision, and therefore the logistics triad, within the supplychain, consequently influenced and shaped by SCM strategies, was emphasised. The discussion about the supplychain and SCM has revealed that although it has become more popular for practitioners to base strategies around process, and for academics to research SCM, there is still a significant level of confusion and ambiguity surrounding exactly how the supplychain should be conceptualised and what SCM definitively stands for. Yet the essence of what the supplychain is and what SCM thinking is about is hopefully clearer: “the supplychain encompasses organisations and flows of goods and information between organisations from raw materials to end-users” (Handfield and Nichols, 2002): the management of this (SCM) refers to inter-organisational relationship management whose purpose is to improve value for the end-consumers and where possible also profitability of activities and therefore the organisations involved. It includes the integration of business processes and requires the coordination and interaction of decision makers across a supply system often between economic institutions (company boundaries).