Part I Logistic Business Transportation, Process to manufactures & 3 keys Shipper needs to ship product or goods by using Carrier to Receiver 3rd Party Logistics Provider / Service Shipper Receiver Type of 3PLs Asset-Based Non-Asset-Based Revenue 100% 100% COGS 80 – 85% 70 - 74% Gross Profit Margin 15 – 20% 26 – 30% Asset-Based: Owned its own fleet of transportation vehicles i.e. truck, airplanes, railroads and ocean freighters Non-Asset-Based: without any of their own physical assets. Freight Transportation Multiple shipments: air, water, truck, and rail · Truck segment: Ryder, Penske, and Emery Freight to small owner-operated trucking firm · In competition: smaller firms developed specialty service or served niche markets · Large firms expanded into multiple modes of transport and provide service across a wide range · All shipper demanded Goals be transported safety& timely fashion · Price importance all companies (especially large, automakers) want to reduce cost of delivery to customer · Big 3 automaker (Ford, GM, Daimler Chrysler) looking to better management of supply chain (the series of transaction & interaction between suppliers, buyers, and intermediaries) to minimize costs while improving quality · All parties – manufacturers, 3PLs, suppliers – could participate in EDI (electronic data interchange) NLM Overview National Logistics Management is the only North American Third Party Logistics provider to specialize solely in premium freight for manufacturing industries, including automotive manufacturers. It is non-asset based and has a unique business model that employs its proprietary software to utilize the Internet to determine optimal shipping modes; export shipments to its vast carrier base including ground, air freight, and air charter; receive bids back form its carrier network; evaluate the lowest bids and carrier quality ratings; and coordinate shipments based on best price and carrier quality ratings all within a 30-minute window. Company profile Founded in 1991 Over 1.3 Million shipments successfully managed. Network in North America: 200+ Assembly and Manufacturing Plants 6,800+ Suppliers and 300+ Ground, Air Freight, and Air Charter Carriers Financial Information • 1999 Revenues: $ 7.3million No debt • Total share: $ 825 million (10% MKT Share) • Employee: 111 – 65 in Detroit, Michigan Office – 36 Logistic coordinators & Supervisors – 7 Audit Team – 1 Marketing & Business Development – 2 IT Team Business Model Business to Business NLM to Big 3 automaker (Ford, GM, Daimler Chrysler) NLM manages the return of containers to over 130 suppliers throughout North America. The returnable container program is part of an industry-wide greening strategy to reduce landfill use and decrease production-source pollution. Suppliers ship their products to the plant in returnable, reusable plastic containers. Most containers are returned to the suppliers within a 12-24 hour period. NLM determines release quantities and ship frequencies for containers and monitors supplier inventories.
For AutoZone’s Supply chain to be Successful, the company must understand all the components of it. That will go long way when implanting the strategies and concept into the chain. Distribution is the most crucial factor in the supply chain. It determines how and when the product to get the customers. Flourishing Chain will utilize every factor that impact its distribution channel and exploit all the technology to make the distribution more active and proficient in allowing customers to acquire their parts in an opportune moment.
At the core of the boom that was the “roaring 20’s” was the automobile. The primary boom industry of the period, the automobile industry employed one of every 14 manufacturing workers and spawned a plethora of ancillary industries. Industries and companies needed to provide the materials of automobile production boomed in support of the industry. Steel, plastics, rubber and glass manufacturing ballooned to support the growth in automobile sales, which grew from 5 million in 1920 to 26 million in 1929. Oil exploration grew in response to the need for petroleum, not only for gasoline but for production of other products which had a petroleum basis. Construction of new roads, manufacturing plants, and homes were born of the markets created by the rise in availability of the automobile to the masses. And smaller but no less important ancillary businesses like gas stations, auto repair shops, upholstery shops, and even consumer stores, in more remote areas away from the major cities, were the direct result of the automobile industry and its far reaching impact and influence on the economy of the time. And the mobility that transportation would provide would spur other impacts and influences and continue to feed the boom that was the 19...
There is no refuting that the railroad companies transformed business operations and encouraged industrial expansion. The raw materials required for construction of the transcontinental railroad directly resulted in the expansion of the steel, lumber and stone industries. (Gillon p.652) The railroad stimulated growth in manufacturing and agriculture providing an efficient manner to ship raw materials and products throughout the country. Which in turn, increased consumerism and introduced t...
"Railroads were the first big business, the first magnet for the great financial markets, and the first industry to develop a large-scale management bureaucracy. The railroads opened the western half of the nation to economic development, connected raw materials to factories and retailers, and in so doing created an interconnected national market. At the same time the railroads were themselves gigantic consumers of iron, steel, lumber, and other capital goods". (Tindall, Shi)
UPS and FedEx are the leading parcel carriers in the U.S. FedEx has significantly expanded their capability to compete with UPS’s dominant ground delivery service. UPS has continued its strong marketing efforts in overnight and deferred air services. Both of these carriers have introduced information systems, which include user-friendly Internet interfaces. The carriers have also expanded logistical services and improved integration with customer supply chains.
Commercial ventures: complete reach of mining and extractive businesses processing coal, oil, gas, chemicals, and metals; all manifestations of machine building from moving factories to elite airplane and space vehicles; guard ...
Ford Motor Company Supply Chain Strategy. Background In 1913, Henry Ford revolutionized product manufacturing by introducing the first assembly line to the automotive industry. Ford’s hallmark of achievement proved to be a key achievement for the motor company as the low cost of the Model T attracted a broader, new range of prospective car-owners. However, after many decades of success, customers have become harder to find.
Through their SCM Solutions, Oracle can manage one’s transportation and global trade operations, while streamlining everyday warehousing needs (Oracle SCM Solutions-Transportation Management). Throughout Oracle’s Transportation Management, they have the capability to manage all transportation activity throughout their supply chain, which enables them to optimize service levels and automate the numerous processes to have operations running more efficiently. As stated above, TMS can offer various functions to support a business such as Business Intelligence, Item Visibility, and Carrier Contract Management. Oracle’s Transportation management service provider correspondingly supplies similar services to improve procedures such as Transportation Intelligence, Visibility, & Carrier Sourcing (Oracle SCM Solutions-Transportation Management). The Transportation Intelligence function attempts to track items/orders/shipments, make appropriate changes to improve cost & services, and monitor metrics against benchmarks and forecasts (Oracle SCM Solutions-Transportation Management). One essential feature of TMS was the ability to track one’s orders from pick-up to delivery. Oracle focuses its practices on Visibility, to ensure that they provide superior service. Within their Visibility realm, Oracle manages the lifecycle of orders through automatic milestone monitoring, both on-hand and in-transit inventory across the extended supply chain, and tracks/traces each stage in the lifecycle of their global shipments (Oracle SCM Solutions-Transportation Management). Furthermore within their Carrier Sourcing, Oracle is able to negotiate with their service providers on rates, comprehend the financial impact before they commit to rate changes, and optimize bid execution with negotiating rates (Oracle SCM Solutions-Transportation Management). Oracle provides tremendously
Iyer, Ananth Roy, Vasher 2009 ‘Toyota’s Supply Chain Management: A Strategic Approach to Toyota's Renowned System’ McGraw Hill Professional
...vice the products, and reduce the main amount of waste. These processes can have quite a significant impact on the costs of reverse logistics, and also the carbon footprint. To benefit from this practice, and be successful, the ‘green’ initiatives taken need to have a significant positive impact on the company’s carbon footprint, as well as have managed to save them a significant amount of money. Many companies such as Walmart may try to implement these practices by taking into consideration the manufacturing, packaging and product design of their products. However to truly have gone ‘green’, the company will have to take all factors into consideration including all functions affecting the environment. Reverse logistics may one day be in the customer sector, as it is the process that has control over the usage and disposal of parts and products that a company uses.
It has become apparent the effects of globalization has changed the marketplace so much in the past few decades that a much faster response is demanded from producers and their supply chain. This is done by effective supply chain management, which is the integration of key business processes acrosss the supply chain within organisiations. The objective of this is to create a system of best value for the entire supply chain including the consumer. In recent years, many firms have realised the importance of the optimization and streamlining of the supply chain management processes, it has since become the focus for many firms.
A speedier transportation not just accomplishes a more elevated amount of consumer loyalty in making the supplies accessible on time additionally builds the deals by seizing business opportunities, when there is a sudden ascent popular. To meet these targets numerous partnerships tend own their own particular armada of transport and main consideration in an inventory system management. This component, consequently, looks to set up the vehicle mode limit, area, steering and the timetables of dissemination so the supplies achieve the destinations on
Zanjirani F., Rezapour, S. & Kardar, L. (2011) Logistics operations and management concepts and models, 1st ed. London ; Elsevier.
Throughout history, getting things (and people) where they need to go has been a pretty basic need. The Romans needed to move stone to build their aqueducts; the nobles wanted luxury spices and silks brought to them from far off lands; ancient cities needed to move vegetables and grains from the farms, to storage, and then to the cities to feed the populace. Transportation has always been one of the backbones of every great civilization, without the ability to move goods long distances, your 'culture' was only the distance you could go conveniently to get what was necessary for survival that you could not produce. The industry boomed during the railroading system and hasn't slowed since. First, there were ships and horse-drawn carriages, then cars, now huge 40 ton trucks and jumbo air-liners.
Logistics is the designing and managing of a system in order to control the flow of material throughout a corporation. This is a very important part of an international company because of geographical barriers. Logistics of an international company includes movement of raw materials, coordinating flows into and out of different countries, choices of transportation, cost of the transportation, packaging the product for shipment, storing the product, and managing the entire process. The concept of logistics is fairly new in the business world. The theoretical development was not used until 1966. Since then, many business practices have evolved and logistics currently costs between 10 and 25 percent of the total cost of an international purchase.