Airline Industry Introduction The announcement today that DHL will be developing a global trading and transportation hub at the Cincinnati/Northern Kentucky Airport (CVG) signals a broader trend of freight forwarders, third party logistics (3PL) providers, and transportation services organizations to seek greater economies of scale to reduce lag times in supply chains (Schmidberger, Bals, Hartmann, Jahns, 2009). DHL is building a 180,000 square foot facility at the Cincinnati/Northern Kentucky Airport to support large-scale express shipment, better integrate with motor and rail carriers, and increase efficiencies of 3rd party logistics services across the 220 nations DHL serves (HeraldOnline.com, 2013). The Role of Global Hubs In Supply Chain and Logistics Services Optimizing the performance of a given logistics network begins by gaining insights into the specific attributes of a given hub and its related dependencies over time. Using constraint-based modeling many freight forwarders, 3rd party logistics providers and services providers who rely on multi-modal transportation strategies are using hubs to define optimal freight loads and mode-based delivery (Schmidberger, Bals, Hartmann, Jahns, 2009). By modeling a supply chain to these specific aspects, including the use of hubs to optimize overall performance, global logistics providers including DHL have the option of further fine-tuning each aspect of their business model, using the aggregation and re-routing
United Parcel Service, a logistics company has established itself through its strong corporate culture, continuous ability to innovate, and its far-reaching global network. The company has maintained a competitive advantage over the years by implementing continuous growth strategies—the first was geographic expansion, next the early adaptation of electronic tracking technologies, and then came a series of acquisitions. Although UPS is financially strong and is able to maintain its role in the courier and delivery industry—it is vital that UPS continue to act strategically as to strive for long-term success. UPS is heavily dependent on the U.S. economy and it is important that it find greater and more profitable ventures
Innovations in transportation and telecommunications have introduced a number of opportunities for companies of all sizes and types to optimize their transportation networks. This paper provides a description concerning the design of a logistics network that consists of only one warehouse. A discussion concerning what steps will need to taken in order to design the optimal network is followed by a description of the information and data that is needed to make this determination. Finally, an assessment of the strategy will be employed in this network is followed by a summary of the research and important findings concerning these issues in the conclusion.
Accounting for nearly 10% of the world 's air and sea freight business by revenue, ahead of DHL
BlueSky flies three airplanes between Houston and three cities, Chicago, Miami, and Phoenix. These three cities are the spokes connected by the Houston hub. A few times each day the three airplanes fly from the spoke cities to Houston. They arrive
In 2004, the management of the DC had to rent expensive off-site, short-term space to handle peak flow. The report proposed two possible options for expanding the logistics network capacity:
It is widely known that logistics is the life blood of anything major. The logistics and transportation industry in the United
In order to optimize their logistics, a company needs high flexibility and a way to achieve time and cost savings. Based in Cincinnati, OH, Commonwealth Inc. has established itself as the region’s preeminent storage and distribution center. With a network of warehouses throughout Ohio, the company is strategically well-positioned to help any business with their flow of goods.
In recent years, Porter opened a new $50 million 10-gate terminal, increasing take off slots from 167 to 202 (allowing for more flights during the day). Within the last year, Porter Airlines has added service to Newfoundland and Charleston, South Carolina. The company is currently approaching the completion of an underground tunnel, which will increase and improve traffic flow from the terminal to the main land compared to the original transportation via ferry.
United Parcel Service (UPS), is the world’s largest express package delivery firm that handled more than 4.7 billion packages and documents in 2015. This global transportation and logistics service provider operates in more than 220 countries, and offers an array of supply chain management solutions (UPS Fact Sheet, n.d.). The firm has diversified its products and/or services to include freight forwarding and logistics services via air, ground, rail, and sea. U.S. Domestic Package operations, International Package operations, and Supply Chain and Freight operations are the three operating segments UPS. Through technology advancements UPS delivers online package tracking, e-commerce services, and specialized
Airborne Express has long differentiated itself in the market by structuring itself as a big business only carrier. They have specialized in large unit deliveries through metropolitan areas. Everything they do is aimed to optimize the delivery process and slash cost where ever possible. However, Airborne is now faced with a huge decision. They must decide whether to step away from their differentiation strategy to match the new pricing tactics of the market UPS and FedEx or to continue the old norm of delivery pricing. The new distance-based pricing strategy threatens Airborne’s consistent strategy to cut prices. Clients will seek to ship packages at the lowest cost. The short distance deliveries will be ruled by UPS and FedEx since they are the once who are
Centralize warehousing in Waltham (option 1) to meet demand in Southeast and Northeast regions using delivery service of Winged Fleet as their rates are cheaper for these two regions (Exhibit 2).
(Bowersox, D.J., Closs, D.J., and Cooper, M.B. (2010). Supply Chain Logistics Management. (3rd Edition) New York, NY: McGraw-Hill/Irwin.
This research paper is written to explain the importance of globalization and supply chain management of the United Parcel Service (UPS). In this document, the reader will obtain the history and development of UPS as well as the supply chain strategy and strategic network optimization developed for their business. In addition, this report will also discuss the distribution network of UPS and how it operates to deliver packages to their destinations around the
Deutsche Post World Net has a unique spectrum of international services including brands DHL, Deutsche Post and Postbank with different types of services. Thus, we have decided to focus on DHL in this analysis in order to better understand to strategic position within logistic services.
Following the paradigm shift on the role of logistics management in the recent decades, there has been a wide recognition of this as a very important aspect a business strategy in general. However due to the numerous factors promoting complexity of logistics management companies have adopted the idea of outsourcing their logistic activities to Third Party Logistics (3PL) providers. Hence, 3PLs have taken a critical role towards supply chains of heir customers.