ENPC MBA Lecture Slides 2010 Day 4

ENPC MBA Lecture Slides 2010 Day 4 - ENPC School of...

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ENPC School of International Management Maroc 12 MBA Logistics and Supply Chain Management Thursday 8 April 2010 Professor David Grant d.grant@hull.ac.uk / +44 1482 347542
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2 Agenda - Day 4 Classical utility perspective of transport Organising efficient freight networks Outsourcing and third-party logistics (3PL) The importance of inventory The ‘inventory conundrum’ Storage and location issues for stockholding
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3 What is freight transport? A simple definition: The planning and undertaking of the movement of goods between two points in a cost effective manner and which also achieves the times and condition specified. I.e. the concept of ‘Stop’ and ‘Go’ in logistics and SCM…!
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4 Source: European Commission at http://europa.eu.int/comm/transport/tif/4_goods_transport/ Tonne kilometres Transport growth to GDP EU 15 Domestic Goods Transport Growth GDP Road Rail
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5 Features of road transport EU Regulation + national operating controls & fiscal arrangements Liberalised highly competitive open market Low entry barriers, Quality licences Private company operated (own account), Public company operators (hire & reward, 3PL & transport companies) Many small, few large providers high churn Complex service range, emergence of global groups ‘Door to door’, ‘international through load’ services Connects all other modes, accessible to all Flexible departures and products Standard load size restricted to 28 tonnes (UK) 44 tonnes gross with vehicle; 13.6 meters in length overall Economical over wide distance range local to international
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6 Features of rail freight transport Broad EU regulatory structure, highly nationally interpreted Partially liberalised market High entry barriers , safety, capital, expertise Complex operating network Few train operating companies and service providers, Highly subsided to compete with road National bias to services, bulk and inter-modal Terminal to terminal operations, limited sidings Fixed pre-scheduled departures Load size 55 tonne wagons, 1,000 tonne train Economical over longer distances (>300 to 400km) Tracks, operator provided investment +government investments programs
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7 Features of air transport Internationally regulated, equipment and operators Bilateral access agreements, restrictive versus ‘open skies’ High entry barriers , safety, capital, expertise Many international and national service providers Access to services is mainly via freight forwarders Cross-subsidy with ‘belly-hold’ freight to passenger Segmented providers, all cargo, joint passenger, charter and INTEGRATORS Terminal to terminal operations Fixed schedule to flexible Intense use of assets, increased economy of scale via new generation of wide body aeroplanes
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8 Features of port and short sea transport Internationally regulated ship & port safety Freedom of the seas Growth being encouraged by EU for social, economic and environmental benefits Inland waterways fully liberalised in EU Ports combine public, private and municipal ownership, primarily public in continental Europe Scheduled services, route based alliance groups
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ENPC MBA Lecture Slides 2010 Day 4 - ENPC School of...

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