Logistics_and_Transportation

Logistics_and_Transportation - Over 90 of international...

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Global sourcing, production and logistics Just In Time (JIT) - Benefts - Reduce holding and warehousing costs - Better manage transportation costs as demand can be used inForm shipment locations and levels - Reduce depreciation oF products with short liFe cycles (e.g., high-tech products) - Issues - Rests on management oF uncertainty - Examples: ±edEx, UPS Managing the Uncertainty - Though there is pressure for economies of scale, there are many recent examples of great disruption of tight supply chains:
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- Some ways to manage the risk: - New advances in manufacturing technology are allowing for faster “turnover” of production processes--allows for more Fexibility in production. - Example: Robotic paint sprayers. - Supplier diversity and “+1 strategies” - Contract manufacturers Considerations for modes of transport - Value to volume and/or value to weight ratio (cost) - Perishability - Stresses of mode Transportation: ocean freight
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Unformatted text preview: - Over 90% of international trade by weight- Prior to 1950s- Labor intensive- Ships often spent weeks in port- Meet Malcolm McLean- Containerization; specialization (ro-ro)- Intermodal idea took off- Supertanker from London (via Cape) can reach Singapore in 28 days- Costs low because of standardization, better logistics, technology, growing size of ships, fewer crew members Other issues- Types of vessels: containers, bulk and tankers- Port technology- Automated customs screening- RFID tags- Specialized receiving stations- Recent Panamanian referendum- Transport: rail- Currently not ideal for international trade- Public and private ownership/investment issues- Different gauges- Slow- Transport: air freight- 34% in terms of value of products shipped internationally- Highly predictable- 1990 air freight in ton-kilometers: 45 billion- 2005 air freight in ton-kilometers: 190 billion...
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Logistics_and_Transportation - Over 90 of international...

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