INT.LOGISTICS
1-WHAT IS LOGISTICS is the time related positioning of resources or, the strategic management of the total supply-chain.
The supply-chain is a sequence of events intended to satisfy a customer. It can include procurement, manufacture, distribution and waste disposal, together with associated transport, storage and information technology. Logistics is the function that is responsible for movement of goods and products. It is responsible for the transport and storage of materials on their journey between suppliers and customers. In reality, this view is rather misleading, and every product is really a complex package that contains both goods and services.
Operations are usually divided into a number of related parts. Moving materials:
-Into the organization from suppliers: inbound or inward logistics.
-Out to customers: outbound or outward logistics.
-Within the organization: materials management.
Logistics is the process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.
8. SUPPLY CHAIN VARIABILITY. The term demand variability in supply chain is a measurement of how much variability can occur in the demand from customers. In other words, it is the variability between what is epected to happen and what really happens. There are several factors that contribute to demand variability in supply chain management. The complexness of the demand that may occur from customers, the variation in the demand among the worlwide organizations, missing to find out the details within Supply Chain Management, foreseeing and predicting the variables at the production unit and to customers, change in the Lead Times at the production unit and among customers, adding more suppliers and more subcontractors in the supply chain and adding smaller suppliers in the supply chain.
9. SUPPLY CHAIN VULNERABILITY. It can be defined as an exposure to serious disturbance, arising from risks within the supply chain as well as risks external to the supply chain. Supply chain risk management aims to identify the areas of potential risk and implement appropiate actions to contain that risk. Examining the vulnerability of an organisation’s supply chain network can be used to identify such risks and weaknesses and produce mitigation strategies and corrective action plans as part of managing risk in procurement.
11. WAYS OF REACHING FOREIGN MARKETS. Depending upon your resources and tolerance for risk, you have numerous options to reach foreign markets. Exporting: it is relatively low-risk option that requires minimal investment. You can start exporting by hiring a middleman. Licensing and Franchising: with the exception of technology licensing, which is in widespread use, licensing is a tactic ofen used to enter foreign markets that may not be attractive otherwise, lower sales-potential markets that discourage imports and direct investments. More ways: contract manufacturing, joint ventures and strategic alliances, foreign direct investment, etc.
16. INTERMODALISM: Involves the organization of a sequence of modes between an origin and destination, including the transfer between the modes. Its main goal is to connect transportation systems that could not be connected otherwise because they are not servicing the same markets areas due to their technical characteristics. However, each segment is subject to a separate ticket (for passengers) or contract (for freight) that must be negotiated.
17. EVOLUTION OF INTERMODAL INTEGRATION: 1. Inventing intermodalism: The first significant intermodal innovation were pallets handled by forklifts. Even if the pallet is a simple device, it could not be invented until there was a mechanical mean to lift and move it Paradoically, palletization benefit trucking and in the 1950s the trailer on flat services were adopted, permitting a preliminary integration of rail and truck services. 2. Setting intermodal standards: By the late 1950s, containerization triggered a series of innovation related to the more effective handling containerized cargo. The standardization of container sizes and latching systems in the late 1960s incited the construction of cellular containerships and the establishment of container on flat services. 3. Operationalizing intermodalism: The 1980s marked significant changes for intermodal transportation, particularly with the onset of rail deregulation, enabling railways to reorganize their services along more commercially driven imperatives. Long distance doublestack rail services were established, reachstackers and rubber-tired gantries were developed; new intermodal facilities emerged as satellite terminals, inland container depots, etc. 4. Massification and automation of intermodalism: by the late 1990s, ships larger than the standar Panamax design began to be introduced. By the 2000s, electronic bill of lading systems enabled a more effective handling of the crucial documentation related to intermodalism, enabling intermodal transportation to become increasingly multimodal. Also, the implementation of blockchain technologies shows the potential to substantially improve the transactional effectiveness of intermodal transportation.
18. ADVANTAGES OF CONTAINERS IN INTERNATIONAL AND HINTERLAND TRANSPORT. 1) Standard transport product: Standardization is a prevalent benefit of containerization as it conveys a ubiquity to access the distribution system and reduces the risks of capital investment in modes and terminals. 2) Flexibility of usage: A container can transport a wide variety of goods ranging from raw materials, manufactured goods, and cars to frozen products. 3) Economies of scale: container reduces transport costs considerably, about 20 times less. 4) Operational velocity: A modern container ship has a monthly capacity of 3-6 times more than a conventional cargo ship. This is attributable to gains in transshipment time as a crane can handle rougly 30 movements (loading/unloading) per hour. 5) Warehousing and security: The container limits damage risks because it is resistant to shocks and weather conditions. The container is its own warehouse.
19. CHALLENGES OF CONTAINERS: 1. Site constraints: containerization implies a large consumption of terminal space. Conventional port areas are often not adequate for the location of container transshipment infrastructures, particularly because of draft issues as well as required space for terminal operations. 2. Infrastructure costs and staking: container handling infrastructures, such as gantry cranes, yard equipment, road and rail access, represent important investments for port authorities and load centers. 3. Thefts and losses: because of the freight anonymity a container confers. 4. Empty travel: Maritime shippers need containers to maintain their operations along the port networks thet service. The same number of containers brought into a market must thus eventually be relocated, regardless if they are full or empty. 5. Ilicit trade: By its confidential character, the container is a common instrument used in the illicit trade of counterfeit goods, drugs and weapons. At a global lvl, only 2-5% of all containers are manually inspected by customs.
21. GLOBAL DIFFUSION OF ADVANCED LOGISTIC PRACTICES. We saw diffusion as a process involving the combination of new ideas with insights from other industries and countries. This is useful to eplore the role of international trade in the process of development. Starting from autarky (closed borders), a country opening itself to traded results in a higher temporary growth rate and a permanently higher lvl of the stock of knowledge, as producers are exposed to more productive ideas. We separate the gains from trade into static and dynamic components. The static component consists of the gains from increased specialization and comparative advantage, wehereas the dynamic component comprises the gains that are made through the flow of ideas.
22. TRIPLE BOTTOM LINE: Is an accounting framework with three parts: social, environmental and financial. Some organizations have adopted the TBL framework to evaluate their performance in a broader perspective to create greater business value. The concept of TBL demands that a company’s responsibility lies with stakehoders rather than shareholders. The TBL consists of social equity, economic, and environmental factors. The phrase “people, planet, and profit” is used to describe the TBL and the goal of sustainability. The people (social equity) pertains to fair and beneficial business practices toward labour and the community and region in which a corporation conducts its business. Planet (environmental) refers to sustainable environmental practices. A TBL company endeavors to benefit the natural order as much as possible or at the least do no harm and minimize environmental impact. Profit deals with the economic value created by the organization after deducting the cost of all inputs, including the cost of the capital tied up. It therefore differs from traditional accounting definitions of profit.
3. SEPARATE ACTIVITIES OF LOGISTICS: 1) Order processing: this activity might be the work of the commercial department in an organization. The commercial department is the one who ensures that the payment terms and the delivery terms have been met and then processes the order from within the company. 2) Materials handling: is the movement of goods within the warehouse. It onvolves handling the material in such a way that the warehouse is able to process orders efficiently. 3) Warehousing: If we take the example of LG, these are are consumer durable companies which are present in multiple contries. Their manufacturing might be at one point, but the distribution is all across the world. Warehouse should be nearby to the dealer or the distributors’ place and it should facilitate the easy delivery of goods. 4) Inventory control: If a firm has 100 units of a product in stock, but the demand is only 10, then the company has uselessly invested in 90 units. This is money which can be used as a working capital and its money on which banks are applying interest. 5) Transportation: it involves the physical delivery of goods from the company to the distributor or dealer and from the dealer to the end customer.
4. BENEFITS ACHIEVABLE THROUGH GLOBAL LOGISTICS: 1. WIDE NETWORK OF RESOURCES: this enables providers to execute each step along the supply chain efficiently. 2. SAVE TIME AND MONEY: more businesses find that they can save both time and money by outsourcing their logistics to third-party logistics providers. Generally, these companies provide warehousing, transportation, proprietary technology and integrated operation services. 3. INDUSTRY EXPERTISE AND EXPERIENCE. 4. SCALABILITY AND FLEXIBILITY: Three key benefits to outsourcing logistics has to do with the flexibility to scale space, transportation and labor, especially if you are experience a sudden spike in demand. 5. BEST PRACTICES AND OPTIMIZATION.
10. EUROPEANISATION OF LOGISTICS: Logistics plays a vital role in economies throughout Europe. With continuing changes in market conditions, it is important to be aware of current trends in order to remain competitive. Logistics makes up 14% of total GDP in the EU countries. Road is the biggest carrier of goods in terms of tonnage, with over 46million tonnes carried daily. Over 79million euros in tobacco and beverages are eported daily in the EU. There is an increase in consumer spending in Europe; Eastern European countries such as Poland outspend many of their European counterparts, etc. We have to highlight that contract logistics now accounts for over 1/3 of the European logistics market value.
15. CONTAINER: A large standard size metal bo into which cargo is packed for shipment aboard specially configured transport modes. It is designed to be moved with common handling equipment enabling high-speed intermodal transfers in economically large units between ships, railcars, truck chassis and barges using a minimum of labor. The container, therefore, serves as the load unit rather than the cargo contained therein.
20. FOUR D IN GLOBAL LOGISTICS: Logistics functions are same domestically and globally but differ in four D’s (distance, documents, diversity in culture and demand of customer). In the global logistics distances are longer, documentation is more extensive, customer demand varies to satisfy cultural differences within both, countries and regions. Developing strategies to respond to the 4D’s environment is the global challenge for logistics management.