Operations and Supply chain Management
Inhoudsopgave
Week 2 Transportation chap 8....................................................................................................................... 2
Week 3: Warehousing chapter 8.................................................................................................................... 5
Week 4: Inventory management chapter 11................................................................................................... 8
Week 5: strategic Sourcing chapter 7............................................................................................................ 13
WEEK 6: INFORMATION SYSTEMS................................................................................................................ 19
,Week 2 Transportation chap 8
Transportation is necessary to
1. Move purchased goods from suppliers to buyers and
2. To move finished goods to the customer.
- Products have little value to the customer until they are moved to the customer’s point of
consumption.
- Transportation is what creates the efficient flow of goods between supply chain partners.
There is also internal transportation: move products inside the company
Different types of transportation modes:
- Road (highway)
- Air
- Water
- Rail
- Pipeline
- (Multimodal)
Road (highway)
1 Dominates the logistics infrastructure because of geographic extension of supply chains (more companies
develop supply chain relationships with non-local suppliers and customers) AND greater emphasis on
delivery speed and flexibility (because highway is better than this compared to rail and water)
2 Has become more cost effective over time (more competition due to deregulation, better scheduling and
use of vehicle capacity, more efficient and reliable vehicles)
3 Different types of shipments: LTL / TL (less than truck load= moving goods when not completely
empty/full)
Geographic extension of supply chains. As more companies developed supply chain
relationships with nonlocal suppliers and customers, highway traffic increased.
Greater emphasis on delivery speed and flexibility. Highway transportation has stolen market
share from slower rail and water systems, which have experienced relatively slower growth in
recent years, although this situation is turning around in the case of rail. In a world that places great
emphasis on delivery speed and flexibility, highway transportation has a clear advantage over both
rail and water.
Air
1 Ideal for customers with a low weight-to value ratio, especially if delivery speed or delivery reliability is
critical.
2 Higher shipping (fuel!) costs and improvement in other modes have reversed the rise in air growth over
the past decade.
3 Half of the goods transported by air are carried by freight–only airlines, e.g. Fedex. The other half is
transported by commercial flights.
Water
1 Water Carriers- Inexpensive, slow & inflexible. Include inland waterway, coastal & deep-sea.
2 Ideal for materials with high weight-to-value ratio, (for heavy, bulky, low-value materials) especially if
delivery speed is not critical (farm produce, timber and petroleumbased products)
Rail
1 Rail relatively slow & inflexible
2 Characteristics similar to Water but more flexible.
Pipeline
A difficulty can be that it is easy to steal the goods transported, and the pipelines cut trough landscape, the
location is limited
, - Distance, modal choice and transport cost : Different transportation modes have different cost
functions according to the serviced distance. Road, rail and maritime transport have respectively a
C1, C2 and C3 cost functions
Multimodal/ intermodal solutions
1 Multimodal solution = A transportation solution that seeks to exploit the strengths of multiple
transportation modes through physical, information, and monetary flows that are as seamless as possible
2 Key aspect: integration of the various models through physical, information, and monetary flows
UPFRONT. Coordination is essential
Airports and water ports are other major points of transfer from one mode to another, they serve as transfer
points for gobal supply chains.
Roadrailer= a specialized car the size of a standard truck trailer that can be quickly switched from rail to
ground transportation by changing the wheels.
Planning transport:
The constraints are:
- Customer requirements and time available
- Maximum routine time
- Vehicle capacity
- Start & Stop points en route;
- Infrastructure constraints & traffic conditions;
- Balancing of the route for the driver, to avoid overtaxing
In order to plan transportation you will need information about transportation factors such as:
modal choice, carrier selection, consolidations, vehicle routing and scheduling, selection of the right
vehicle type considering the dimensions and characteristics of the shipment, selection of the right
vehicle and driver, vehicle loading.
Beyond transportation
- logical information systems (week 6)
- logical strategy aspects: outsourcing and landed costs
Measuring Logistics Performance
To better understand the real impact of their logistics choices, many companies evaluate their logistics
performance in terms of two measures: the perfect order and landed costs.
Inhoudsopgave
Week 2 Transportation chap 8....................................................................................................................... 2
Week 3: Warehousing chapter 8.................................................................................................................... 5
Week 4: Inventory management chapter 11................................................................................................... 8
Week 5: strategic Sourcing chapter 7............................................................................................................ 13
WEEK 6: INFORMATION SYSTEMS................................................................................................................ 19
,Week 2 Transportation chap 8
Transportation is necessary to
1. Move purchased goods from suppliers to buyers and
2. To move finished goods to the customer.
- Products have little value to the customer until they are moved to the customer’s point of
consumption.
- Transportation is what creates the efficient flow of goods between supply chain partners.
There is also internal transportation: move products inside the company
Different types of transportation modes:
- Road (highway)
- Air
- Water
- Rail
- Pipeline
- (Multimodal)
Road (highway)
1 Dominates the logistics infrastructure because of geographic extension of supply chains (more companies
develop supply chain relationships with non-local suppliers and customers) AND greater emphasis on
delivery speed and flexibility (because highway is better than this compared to rail and water)
2 Has become more cost effective over time (more competition due to deregulation, better scheduling and
use of vehicle capacity, more efficient and reliable vehicles)
3 Different types of shipments: LTL / TL (less than truck load= moving goods when not completely
empty/full)
Geographic extension of supply chains. As more companies developed supply chain
relationships with nonlocal suppliers and customers, highway traffic increased.
Greater emphasis on delivery speed and flexibility. Highway transportation has stolen market
share from slower rail and water systems, which have experienced relatively slower growth in
recent years, although this situation is turning around in the case of rail. In a world that places great
emphasis on delivery speed and flexibility, highway transportation has a clear advantage over both
rail and water.
Air
1 Ideal for customers with a low weight-to value ratio, especially if delivery speed or delivery reliability is
critical.
2 Higher shipping (fuel!) costs and improvement in other modes have reversed the rise in air growth over
the past decade.
3 Half of the goods transported by air are carried by freight–only airlines, e.g. Fedex. The other half is
transported by commercial flights.
Water
1 Water Carriers- Inexpensive, slow & inflexible. Include inland waterway, coastal & deep-sea.
2 Ideal for materials with high weight-to-value ratio, (for heavy, bulky, low-value materials) especially if
delivery speed is not critical (farm produce, timber and petroleumbased products)
Rail
1 Rail relatively slow & inflexible
2 Characteristics similar to Water but more flexible.
Pipeline
A difficulty can be that it is easy to steal the goods transported, and the pipelines cut trough landscape, the
location is limited
, - Distance, modal choice and transport cost : Different transportation modes have different cost
functions according to the serviced distance. Road, rail and maritime transport have respectively a
C1, C2 and C3 cost functions
Multimodal/ intermodal solutions
1 Multimodal solution = A transportation solution that seeks to exploit the strengths of multiple
transportation modes through physical, information, and monetary flows that are as seamless as possible
2 Key aspect: integration of the various models through physical, information, and monetary flows
UPFRONT. Coordination is essential
Airports and water ports are other major points of transfer from one mode to another, they serve as transfer
points for gobal supply chains.
Roadrailer= a specialized car the size of a standard truck trailer that can be quickly switched from rail to
ground transportation by changing the wheels.
Planning transport:
The constraints are:
- Customer requirements and time available
- Maximum routine time
- Vehicle capacity
- Start & Stop points en route;
- Infrastructure constraints & traffic conditions;
- Balancing of the route for the driver, to avoid overtaxing
In order to plan transportation you will need information about transportation factors such as:
modal choice, carrier selection, consolidations, vehicle routing and scheduling, selection of the right
vehicle type considering the dimensions and characteristics of the shipment, selection of the right
vehicle and driver, vehicle loading.
Beyond transportation
- logical information systems (week 6)
- logical strategy aspects: outsourcing and landed costs
Measuring Logistics Performance
To better understand the real impact of their logistics choices, many companies evaluate their logistics
performance in terms of two measures: the perfect order and landed costs.
