Customer: the customer is the delivery task’s key initiators and stakeholders. Customer satisfaction can be used for measuring the required delivery service’s range, quality and performance. Low value goods have higher affinity than medium and high value products to service characteristics, such as frequency, time window and Delivery box usage but they do not need any return option or delivery with signature. In case of medium and high value products have opposite needs.
Fig. Customer interests
Institutional Stakeholders: it is an administrative body representing community’s interests. Its task is to improve the environment and social live within responsibility area. Its
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Interests of the Institutional Stakeholder
The Related Last Mile problems
The related last mile problems list is collated by studying academic literature and contacts with last mile service providers.
Due to specific needs, the last mile is considered as the most expensive part of the logistics / supply chain. The last-mile part accounts for 13% up to 75% of the total supply chain costs depending on several factors/characteristics. There are many inefficiencies in the last mile and the poor environmental performance related to these high costs.
The Last Mile‘s major problems are due to the ‘attended home deliveries’ in the following ways.
i) In case of without any specific delivery window, a ‘not-at-home deliveries’ high frequency will take place and the courier will have to visit two or three times.
ii) In the case of specific delivery window, routing process becomes very inefficient. Intuitively it can be said that, narrower time windows make delivery route more efficient.
The following simulation demonstrates the differences between a delivery round without (figure 5) and with (figure 6) delivery/time windows.
Fig 5. Simulation of a delivery round WITHOUT time
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Delivery window length’s effect MILES PER CUSTOMER
(Source: Boyer, Prud’Homme & Chung (2009))
It clearly shows descending relationship between miles per customer and window length which results, Miles per customer cost decrease with time-indefinite deliveries’ number increase.
By doing similar study, Kämäräinen (2001), calculated 42% cost difference when comparing reception boxes without time windows and delivery methods with time windows, using data from a Finnish grocery shop delivering a parcel with time windows was calculated to represent a cost of €2,1 per parcel, while this was only €1,2 when using reception boxes. This was due to the aforementioned reasons, such as the higher number of kilometers driven per parcel.
Security & type of delivery/reception
The delivery characteristic’s type & security is important due to dependency on the level of reception’s security needed. Some deliveries are done by handing the goods over to another person, while other deliveries are done by leaving these goods in a box at the consignee/consumer’s front
On-site transportation service is currently favorable with managers at Deere’s plants and could be improved by standardizing the ...
UPS NEXT DAY AIR- Has the same delivery timing as the UPS 2-DAY after the next business shipment
The organization is able to build a barrier to new entrants in parcel industry. It is very expensive to set up the services that are equal to the existing organizations. There is high fixed cost associated with establishing the required international transport network. This includes ground transportation vehicles, depots, plants and a retail
...ng luxury, not many people want to wait two weeks to receive their product. When an item is ordered, it is needed immediately, and if it is received immediately then it not only improve the relationship to the customer. But it will also add value to the purchase which makes that customer that much more likely to buy the product again in the future, as opposed to your competitors. If you have customers in remote areas you do not have the luxury to send their shipment in a large batch of items, you must pay more to have that item shipped individually, which is costing more money.
As mentioned in the case, there is a significant market potential (almost 870000 pieces per day) for documents and small package mailing. An analysis shows that in FEC stations, the volume for Courier Pak is 30% more than Priority One. That means Courier Pak market has a growing potential. In addition, it is found that the variable cost of it is the lowest among all other overnight delivery services provided by Federal Express (Table. 2). That means Courier Pak may be a more profitable product.
...than their current supplier. By decreasing their lead times, they would not have to buy materials for orders as far into the future as they do right now. While improving their forecasting process is extremely important, shortening lead times would lessen the extent of excess inventory. For instance, imagine that every month your forecasting is incorrect by two ambulances. With a lead time of six months for aluminum, you would order 12 ambulances worth of extra aluminum that would sit in excess inventory for that period of time. However, if you can shorten that lead time to four months, you only have 8 ambulances worth of surplus aluminum. This example does not take into account an improvement in forecasting. If both forecasting and the materials supply chain could be controlled better, Wheeled Coach has the potential to lower its spare inventory significantly.
Shipping over 15 million packages a day with over 390,000 part time and full time employees, UPS is the largest shipping company in the world both by volume and revenue. With that many packages, one must wonder, how does a package get from point A to point B? In this section, we will talk about the life of a shipment when it goes through UPS’s Supply Chain and Freight service.
We cater for bulk supply from the bakery to store, where transit protection is of paramount importance. Our eye-catching retail ready packaging solutions are proven to create maximum consumer appeal on shelf.
Dominate Characteristics: With globalization, shipping is now a major priority for businesses and many individuals, especially those that use the internet to do a lot of shopping.
...imizes total travel time while satisfying operational constraints (vehicle capacity and visit requirements). Some of the real life applications are collection of municipal waste (Beltrami et al., 1974), delivery options of interlibrary loan items (Francis et al., 2006), pick-up of raw materials for a manufacturer of automobile parts(Alegre et al., 2007), pickup and delivery of surplus food(Davis et al., 2014) etc. [20,21,22,19]
Close to the Customer: Customer satisfaction is very important throughout all the roles that the business plays. Many companies forget about their customers, whereas successful companies have an obsession with their customers. Excellent product quality and reliability will make a satisfied customer. Great service will keep the customer coming back.
In today’s competitive environment, packaging has become itself a sales promotion tool for the organizations. Even the consumer’s buying behavior also get stimulated by the packaging quality, color, wrapper, and other characteristics of packaging. Furthermore, it is also argued that quality packaging not only increases sales but also reduces market and promotional costs. Packaging is considered the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. (Ahmed, Parmer & Amin, 2014). Additionally, packaging also refers to the process of design, evaluation, and production of packages. Packaging can be described as a coordinated system of preparing goods for transport,
Scheduling operations in varying companies differentiate based on the variety of products being produced and the volume of which these parts are made. This difference in operations will affect how a company organizes its operations. Each kind of company operation requires different scheduling techniques. In scheduling, there are many terms involved which have specific definitions. Examples of these terms are routing, bottleneck, due date, slack and queue among others (Reid and Sanders, 2009).
Incidentally, earlier route optimization was performed with the outdated wall maps, but the innovative modern technologies has made the task simple. Moreover, schools are utilizing the school bus routing software for optimizing their routes.
Chase, R. and Apte, U. (2007). A history of research in service operations: What's the big idea?.Journal of Operations Management, 25(2), pp.375--386.