OPERATIONS
The following chapter states and specifies the main services of an integrator’s portfolio through the example of Logistic Integrators Ltd. and further highlights the crucial factor of sophisticated network organization as a necessity for an operationally and economically successful performance.
4.1 INTEGRATOR’S SERVICES
The freight integrators offer a complete range of logistic services. All these services can be combined towards providing flawless operations from start to finish to the satisfaction of each and every customer all over the world.
Important operations of regular integrator’s services include amongst others:
• International Air Freight
• International Ocean Freight
• Customs Brokerage
• Warehousing and Facility
…show more content…
“The industry has witnessed large scale capacities, shorter routings, faster sailing times, direct and special services, improved frequency and competition to keep the price at check” .
Full Container Load: FCL known as an operation that serves the high priority and volume-economy freight solutions. Freight integrators are able to provide the best solutions in terms of cost, routing, minimum transit time, frequency of shipment and high capacity. They are well connected with world ports and they have expanded network to offer the best solution for ocean freight shipment.
Less Container Load: LCL is the service in demand on the market. Freight integrators have a special option for “smaller load in form of LCL consolidation, part consolidation that retains the advantage of all features of a Full Container Load but priced as per use basis” as it mentioned in Logistic Integrators Ltd company’s profile.
Special Equipment: Shipped cargo may not match up the size of а standard general purpose container. Hence the consignor may face with a challenge of dispatching his cargo. Integrators have а variety of special equipment such as flat rack, ISO tanks, flat beds, platform, open top, flexi container etc. Freight integrators can also lend assistance with the following
The Shipping Manager’s activities required a different approach. He used coordination through formal hierarchy. The Shipping Manager assigned the Team Leader tasks that required more supervision and resources. He gave an order to the Team Leader who divided it among his Pullers. The Pullers would enter the tunnel, assemble the order from the various coolers and send it down the track to the awaiting loaders. The Loaders would remove their assigned color-coded stacks and put them in the appropriate trucks for delivery. This process did not require special training but it did require more direction from the Supervisors than the warehouse functions.
of price versus service in the airline industry as a whole, as well as, the
Gardner Trucking Inc is a trucking company that has over 1200 freight trucks specializing in different deliveries of goods such as paper, cans, metal, and doors to companies such as Corrucraft, Budweiser, Pepsi, Metal Containers, and Home Depot. Each freight truck can make up to 10 stops a day delivering to different customers. With each location, paperwork such as proof of delivery, invoices, and bill of ladings must be turned in, along with driver logs by the driver to the central office so that it can be properly billed and filed away. With over 1200 trucks making on average of 5 stops, and 3 pieces of paper per stop along with 1200 driver logs, that comes to about 20,000 pieces of paperwork everyday that must be processed. The current process involves sending the paperwork to the central office via courier or by UPS. Everyday approximately 30 boxes of paperwork must be sorted, copied, entered into the system, billed to the customers, and then put into storage. Also, a copy of the proof of delivery and invoice must be sent to the customer so that the company can get paid. Gardner Trucking has approximately 40 employees in the processing department to handle the incoming paperwork as fast as possible. This process alone can take up to 5 days from the time a customers product gets delivered before a customer gets invoiced The paperwork must also be filed and stored properly for each customer for up to 1 year of all deliveries. Gardner Trucking has a warehouse along with several containers to store all the paperwork. Sometimes customers will lose the proof of delivery or say they never received it and request a copy be sent via email, fax or mail in order for the invoice to be paid. At that point, the paperwork must be found, a copy made, given to accounts receivable to send out and filed again. Sometimes the invoices do not get paid or deeply discounted because the proof of delivery could not be found (after spending many hours to locate it) to send to the customer.
Despite the growth in the market, Qantas International’s market share has been falling over the past 10years, from 34% in FY02 to 16% in FY13. The entry of Virgin Australia in 2000 in part explains this, however Virgin’s growth also coincided with the demise of Ansett in 2001 “… Virgin Blue will initially increase capacity on existing routes while evaluating what c...
(i) ‘Backward or upstream vertical integration’ in which the primary motive is usually to move towards a dependable source of supply. Dependability can be determined not just in terms of supply availability, but also through quality maintenance and timely delivery considerations. Having timely access
A switch from premium overnight services to lower – margin deferred services and ground delivery services is an advantage to Airborne Express. With existing assets including trucks, tracking systems, regional hubs and sorting facilities, they only need minor initial investments to develop fully these kinds of services. They should use these assets wisely and effectively.
According to a North American dictionary entry vertical integration is defined as “merging of companies in supply chain: the merging of companies that are in the chain of companies handling a single item from raw material production to retail sale” (“Vertical Integration,” 2009). Though the definition of vertical integration is quite simple the concept is much more complicated than one may think. There are four strategic factors that must be established by business leaders before the implementation of vertical integration can take place that must be well-thought-out in order to achieve any level of success. The factors that influence vertical integration are economic, market, operational, and strategic.
Vertical integration is where a company becomes their own supplier or distributor through acquisition. Seprod uses the strategy by their acquisition of Belvedere Estate in 2006 so as to expand its dairy farm pastures to increase their supply of milk output from the dairy farming. They also use vertical integration in their subsidiary Industrial Sales Limited. This is done by making them the main distributer and marketer of their
There are drivers promoting importance of reverse logistics. Regarding to this, Literature could be grouped as three parts: unavoidable returns, environmental and economic aspects. First of all, There are a few reasons for unavoidable returns of mate...
In logistic industry, they have been through lots of challenge in worldwide market. As the containerization of the global economy scopes, a phase of development and explanation, ports find themselves inserted in ever changing commercial environment where logistics is the forefront. Thus, this industry reaches a phase of maturity and rationalization due to the process of logistic on land.
Earlier Reliance had a dedicated Reliance Logistics as their logistics partner but it could not survive for long. There should be uniform dedicated logistics partner at least on city level as it will increase the response time and information can easily be shared about the demand and supply.
Within the airline industry currently the airlines can be divided into low cost airlines and full service airlines. The low cost airlines targets customers that are seeking no frills connectivity between cities at low ticket prices. The full service airlines provide several add-ons like free meals, on plane entertainment, and communication facilities. The target market for full service airlines are customers who are willing to spend extra for the services that the airlines provides.
Integration determines the ownership and control of assets, and it is through ownership and control that firms are able to exploit contractual incompleteness. It determines who gets control resources, make decisions, and allocate profits when contracts are incomplete and trading partners disagree.
International logistics requires many different options and requirements to be met in order for a company to operate internationally. It’s like a big puzzle that must be put together, in order for all the goals to be met. As described above, there are many options to consider, and sometimes what appears to be an option really isn’t. It is not difficult to hit a road block, and you must start over with a new plan. Once the logistics plan is in place, you must constantly look for improvements in order to maximize profits and goals.
As an outcome of the thesis, my professional interest on the issue associated with the development of logistics sector has been enhanced. Furthermore, I am planning to keep an eye on the sector to enhance my knowledge which will benefit me and the organization I work for.