Logistics and Physical Distribution - Essay Example

LOGISTICS & PHYSICAL DISTRIBUTION By This is a paper analyzing my fictitious company’s supply chain design (Company ABC). The company deals with clearance and forwarding of products at a port. The objective of the company is to ensure consignment shipment are collected and distributed to respective destination in a convenience manner. To assist in ensuring that this is achieved my logistics and physical distribution would employ automation and electronic documentations. This leads to analysis of the components of logistics and physical distribution involved in supply chain of a company. The key components of the paper involve company description, supply chain mechanism, key performance indicators, charts and diagram of supply chain and applicable support systems such as ERP, SCM, and APS. Introduction My supply chain design of the company ABC is aimed at ensuring that time for clearance and distribution of goods at port is minimized. This paper addresses the design and operation of company ABC in terms of its supply chain. Key Performance indicators (KPI’s) in terms of supply chain of the company ABC concerns improvement of time usage at ports (Kapoor and Kansal 2003). Diagram and charts providing the logistics and physical distribution of the ABC are essential for effective presentation of the strategy. Physical distribution comprises the movement, handling, and storage of products from the point of source to their tip of consumption or employ, via various routes of distribution. Logistics administration comprises the management of these functions for competent and expenditure successful physical distribution. It must be apparent the last 50 meters are fitting more and more leading in these kinds of supply chains. Supply chain organization is the lively administration of supply chain actions to exploit customer value and accomplish a sustainable aggressive advantage. Content and KPI of the supply chain The objective of Company ABC is to increase efficiency through elimination of redundancy distribution and supply processes that are used in many clearance and forwarding organization. The goals of supply chain management are to minimize and reduce organizational inefficiencies. In order to employ this in company ABC’s supply chain, it is necessary to analyze the process of organizing practices among production facilities, suppliers, customers and distribution centres. This will enable a precise distribution of goods at the right time to the correct destination. By doing this, it would be possible to reduce costs while sustaining a desired service level. After assessing the objective of managing supply chain it is essential to analyze the KPIs (key performance indicators) that would drive the desired supply chain of Company ABC. The KPIs necessitate a proper understanding of the business problem; resolve an appropriate problem as fast as possible and making processes that are easy to use. For this company, the following forms the KPIs to drive the Supply chain management to desired condition: Transport efficiency: The supply chain management of Company ABC is to reduce the transport complications and ensure there are efficient flow products. This is achievable through lean distribution system that ensures a precise distribution of goods at the right time to the correct destination. The information is retrieved from the port control mechanism IVS. It is also apparent that NEI (Nautical Efficiency Index) gives data on the suitability of the timetable in the nautical procedure (Cullinane 2010). This is oriented on piloted sailing and the diversity between the premeditated and actual times the conduct goes on board and disembarks. Strengthening Customer Relationship; The customer knowledge survey is apprehended every many years among their customers. They ask them to gauge their point of satisfaction with port’s services and what areas customers feel could be enhanced (Cullinane 2010). Sustainability: This KPI reveals the Company’s possibilities for situating sustainability necessities on the corporations in the diverse growth concepts. The approach the port authority uses are: capture-readiness, air quality, use of biomass, modal split, and vapour return installations. The KPI demonstrates the number of approaches for which they have an official commitment or contractual conformity on their submission by several progressive corporations. This is possible through analysing the current businesses and advancing on the technologies they are using (Cullinane 2010). Cycle Time: Time is an essential KPIs determinant since it is limited and must be utilized appropriately. Cycle time is the entirety time from the commencement to the conclusion of the process, as definite by corporation and respective customer. This is a process that will ensure customers, suppliers, distribution centres and production facilities adhere to time. Cycle time comprises process time, during which a component is managed upon to convey it nearer to an output, and hold-up time, during which a component of work is exhausted waiting to take the subsequent action. Cycle Time Ratio (CTR) is equated to Standard Cycle Time divided by Real Cycle Time Development in Development Concepts: The Market Share denotes the total promote share of the company ABC variety. The amounts of results are received periodical from the pertinent port authorities. The Container harbour calculation is oriented on the threshold figures of the seaports in the HLH range. The figures are attained quarterly from the pertinent port establishment (Cullinane 2010). To encourage the effectual, safe and well-organized handling of transport in the harbour of company ABC and the advance region off the coast. Flow of supply chain and location design Company ABC has to jointly design and operate its supply chain. This involves the design of supply chain facilities, infrastructures/networks and processes so that they are in a best position to ensure the supply chain management objectives are achieved. This would ensure that the supply chain best meet the customers and company’s needs and requirements. To maintain the desired result the design would be maintained on daily basis to ensure that the objectives are met. Supply Chain Enhancement in Prospect: An enhanced comprehension of supply chain performance as it impacts origin–final intention traffic via the harbour would seem probable to be extremely useful, given the effect that provide chain decisions could have on the requirement for the Port’s services. The ABC will employ extra factors in ensuing in all kinds of shipping that does not seem reasonable by only assessing at distance and time. However, yet if the factors modelled formerly are not the just imperative ones, they can be predictable to pressure the allocation of command between the company and rest of the ports in prospect (Kapoor and Kansal 2003). Company ABC would be is accountable for the growth, management, construction and procedure of the port and industrial region in local region and encourages the successful, safe and well-organized handling of transport in the ports and the offshore strategies to the port. Physical distribution comprises the movement, handling, and storage of products from the point of source to their tip of consumption or employ, via various routes of distribution. Logistics administration comprises the management of these functions for competent and expenditure successful physical distribution. Fig. Supply Chain diagram The supply chain of Company ABC would divided into the following Freight transport: concern movement of goods from one source to one destination Transport mode concerns the technical means to take on the transport action Transport infrastructure involves technical hold used by a specified transport A transport move is branded by: Origin, destination, itinerary Mode, vehicle, infrastructure Speed, distance and time. Most of the surface shipment is performed by an economic method such as inland waterways, rail, or short sea transportation – terminal sections are done by road or international maritime transport (Straube 2006). The corporation strengthens the port’s competitive location as a logistics hub and manufacturing complex of globe standing. Not just in terms of scope, but also superiority. The ABC’s main objectives are the sustainable growth, organization and function of the port and the sustained smooth and safe management of vessel traffic. Cross docking is a distribution mechanism where items got at the storehouse are not received into stockpile, but are organized for consignment to another destination or for retail warehouses. Cross docking can recognize a cost decrease by skipping enforced and repossession steps. Premeditated cross-docking is a purposeful strategy for the distribution chain. It involves determining the goods that will be the best contestants for flow-through or cross-docking functions, and then using a complete supply and demand administration process that controls the flow-through scheme at the storehouse. Warehouse Readiness (Bostel, Dejax and Langevin, 2012): The physical resources in the store, warehouse plan, and layout influence the ability to apply a successful flow-through policy. Organization and structure of the supply chain Company ABC enforces the port’s viable location as an industrial multifaceted and logistics hub of globe reputation. The company strengthens the port’s competitive position as a logistics hub and distribution complex of globe rank. Not just in regards to scope, but also superiority. ABC main objectives are the sustainable growth, organization and function of the port and the sustained smooth and safe management of vessel traffic (Ng and Liu 2014). On the foundation of the main tasks, the company concentrates on the future, together with its business associates and customers. The mission of ABC Company is development, incorporation with the European utmost-class port. The key partners are the corporations which function from the port. Ports generate an amalgamation of public and private products. Public products comprise those that are intrinsically non-divisible and non-consumable concerning public security, safety, and a healthy surroundings and coastal defence works essential to generate port basins (Wood 2007). Private products are both divisible and consumable and their employ entails a least of financial externalities. The endeavour of the Company ABC power is to improve the regional viable situation as a logistics hub and world-class industrialized complex. Not just in terms of dimension, but also value. The core objectives of ABC are to extend, manage and manage the port in a sustainable method and to sustain a speedy and protected service for transporting (Ng and Liu 2014). The commercial departments and the executive departments are answerable to the Chief Executive Officer. Inside the commercial sections, dissimilarity is made in accordance to market area: Breakbulk & Logistics, Containers, and Process firms and Bulk Goods. The commercial subdivisions are accountable for developing the business strategy for their own marketplace. In addition, the subdivisions work jointly with market parties to enhance ABC’s location as a superiority port (Stadtler and Kilger 2005). The ABC has formulated the succeeding mission in its industry plan for some period as current and future strategies (Wood 2007). It develops in partnership the utmost European harbour of world stature. The company management team is completely dedicated to keep increasing the port and industrial multifaceted of region to be the principally competitive, pioneering and sustainable in the universe. The company creates value for clientele by developing networks, chains and groups. In order to attain this, the company Authority differentiates three strategic aspects for special attention (Cullinane 2010): Customer: the port work as an associate with the existing clients, while simultaneously attracting fresh activities and consumers that will further reinforce the port and business complex. Area and space: the second mission the port undertakes is to ensure an efficiently organized port region with a good quality public infrastructure. In addition, they aim to offer space for development by creating Maasvlakte 2 and frame working, restructuring and increasing the use of the current Company’s area. The port authority also actively scrutinizes opportunities as they happen outside the ABC region (Wood 2007). Traffic and accessibility: it is essential that transportation aspect is well managed in port business. The company is responsible for the clean, safe, smooth and secure management of shipping within the port. Together with port’s partners, they are also more and more active in improving landside convenience for the four transportation modalities comprising the road, rail, inland shipping and pipeline (Ng and Liu 2014). Environment and sustainability: the company invests with the partners in accessing extensive support in society and best preconditions for a harbour that has the aspiration to expand. Sustainability, communication, work and novelty are significant elements in this objective (Cullinane 2010). Supply Chain Enhancement in Prospect: An enhanced comprehension of supply chain performance as it impacts origin–final intention traffic via the harbour would seem probable to be extremely useful, given the effect that provide chain decisions could have on the requirement for the Port’s services. The Authority warned that many extra factors are concerned, ensuing in all kinds of shipping that does not seem reasonable by only assessing at distance and time. However, yet if the factors modelled formerly are not the just imperative ones, they can be predictable to pressure the allocation of command between the ABC and extra N-W European ports in prospect (Kapoor and Kansal 2003). Information and Decision Support Systems An APS (Advanced Planning and Scheduling) system is illustrated as any computer system that manages advanced arithmetical algorithms or logic to execute optimization and imitation on finite capacity scheduling, capability planning, sourcing, resource planning, demand planning, forecasting and others. For academia, this denotes a lost chance of understanding reimbursement and problems of applied and using complex planning and scheduling strategies. Observing the many algorithms urbanized by academia throughout the years that never have been inputted into practice this must be expensive knowledge (Günther and Beek 2003). ERP (Enterprise resource planning) is business procedure management systems that allow a corporation to use a system of incorporated applications to control the business and mechanize back office functions. ERP software incorporates all facets of a process, counting product planning, and growth, manufacturing procedures, sales and promotion (Jacobs and Weston 2007). Supply chain management (SCM) is the administration of the run of goods. It comprises the movement and storeroom of raw materials, work-in-procedure list, and finished products from aim of origin to point of use. Interlinked or interconnected systems, channels and knob businesses are concerned in the stipulation of products and services needed by end customers in a supply chain (Wood 2007). Conclusion The goals of supply chain management are to minimize and reduce organizational inefficiencies. In order to employ this in company ABC’s supply chain, it is necessary to analyze the process of organizing practices among production facilities, suppliers, customers and distribution centres. This will enable a precise distribution of goods at the right time to the correct destination. The KPIs of ABC are geared towards ensuring that the company save on time during distribution and supply chain implementation. Time is an essential KPIs determinant since it is limited and must be utilized appropriately. Cycle time is the entirety time from the commencement to the conclusion of the process, as definite by corporation and respective customer. Future Works The current supply chain management of Company ABC depends of the infrastructures that have been used in ports for many years. Documentation still employs paper records since digital has faced some authentication challenges. However, the near future of ABC will embrace full digital and electronic clearance of products so as to ensure full efficiency is realized. Reference List (2013). Port business. [S.l.], Books On Demand. Bostel, N. Dejax, P. & Langevin, A. (2012). Tactical planning of procurement of a supply chain with environmental concern. Proceedings of the 4th International Conference on Information Systems, Logistics and Supply Chain CREATIVE LOGISTICS FOR AN UNCERTAIN WORLD ILS 2012 – Quebec (Canada), August 26-29 Cullinane, K. (2010). International Handbook of Maritime Business. Cheltenham, Edward Elgar Pub. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=599661. GüNther, H. O., & Beek, P. V. (2003). Advanced planning and scheduling solutions in process industry. Berlin, Springer. Jacobs, R. F. & Weston, T. F.C. (2007). ”Enterprise resource planning (ERP)-A brief history”, Journal of Operations Management, Vol. 25, No. 2, pp. 357-663 Kapoor, S. K., & Kansal, P. (2003). Basics of distribution management: a logistical approach. New Delhi, Prentice-Hall of India. Ng, K. Y. A., & Liu, J. J. (2014). Port-focal logistics and global supply chains. http://www.palgraveconnect.com/doifinder/10.1057/9781137273697. Stadtler, H. & Kilger, C. (2005). Supply Chain Management and Advanced PlanningConcepts, Models, Software and Case Studies, 3rd ed., Springer, Berlin Straube. F. (2006). Trends and strategies in logistics agenda for logistics management in 2010, German Logistics Association, Bremen. Wood, D. C. (2007). SAP SCM applications and modeling for supply chain management (with BW primer). Hoboken, N.J., J. Wiley & Sons. http://proquest.safaribooksonline.com/9780471769910. Read More