JAMES COOK UNIVERSITY SINGAPORE
BX2062 OPERATION MANAGEMENT
M. SADANAND VARMA
CASE STUDY
UPS:
A Leading-Edge Logistics Solution
Spring semester 2012
Submission date: Monday 15th of May 2012
TABLE OF CONTENTS
1 – EXECUTIVE SUMMARY......................................................................................... Page 03
2 – UPS’s background….......................................................................................... Page 04
3 – recent history and evolution of logistics.................................. Page 04 A – milestones of logistics maturity........................................... Page 04 B – logistics model prior to 2011....................................................... Page
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It allows the creation of a link between the demand and the offer and a better return on investment. Logistics has flourished in the '70s, when companies start looking for have limiting the costs related to the management of stock and inventories. That’s why they start by developing new methods, which consist planning the production and supplying. In the 90’s the logistic has developed a lot and currently linking between the first producers until the last customer.
Logistics is a term employed in manufacturing and commerce to describe the broad range of activities concerned with the efficient movement of finished products from the end of the production line to the consumer, and in some cases includes the movement of raw materials from the source of supply to the beginning of the production line. These activities include freight transportation, warehousing, materials handling, protective packaging, inventory control, plant and warehouse site selection, order processing, market forecasting, and customer service. (Grant M. Davis and Stephen W. Brown, Logistics Management, D. C. Health and Company Lexington, Massachusetts 1974)
Logistic providers developed themselves a lot and passed by many maturity stages. The globalization obliged those providers to expand and overtake the national and the regional barriers, the suppliers relied and rely on the technology progress to enable a fast and cheap (cost)
Logistics is planning and executing of the movement and support of forces. When examining logistics I have to draw from my most
International trade is defined by shipping commodities and finished goods between countries, including both exporting commodities and goods from the U.S. as well as importing commodities and goods from around the world. Logistics is the process of planning, implementing, and controlling the efficient flow of goods and services through the supply chain from producer to consumer. Distribution comprises all freight carriers (water, air, trucking, and intermodal) and warehousing. Until recently, most manufacturing organizations took responsibility for the warehousing
Due to the large quantity of freight and the long distance that it must travel to arrive to its destination exporters and importers alike have found logistic service providers essential to engage in international trade (Rodriguez, Comtois, Slack, 2013). While some Logistics service providers focus only on the area of transportation others specialize in freight consolidation, distribution management, and warehousing (Robinson, 2014). They have enough market knowledge, information and communication systems to offer supply chain solutions tailored to the specific needs of any company be it small or large (Rodriguez, Comtois, Slack,
Modernization of logistics, which was laid down in the ’60s’ and ‘70s’ (Business Finance, 2008), became the priority of the world’s leading management theorists and practitioners. The process of modernization was closely connected with the introduction
Westminster Company is one of the largest manufacturers of consumer health products, based in US. Their distinctive name and company logo are recognized throughout the world. Westminster was originally founded as a family-owned pharmaceutical supply business in 1923, the company has expanded, by virtue of aggressive new product development, into a global provider of health care consumer products. It consumes three wholly owned subsidiaries, manufacturing grocery product, drugs, and mass merchandise. Intense rivalry in the market, and distresses of having an effective supply chain, made the company evaluate its supply chain and logistics. The primary focus of its research was the key clients of the three companies. To understand logistics the company must first know what logistics is and how it works. Logistics is defined as a business planning framework for the management of material, service, information and capital flows (Logistics World , 2014). Logistics is an important function of the business and without a proper logistics system, all the manufacturing, marketing and other activities would fail, overall resulting with the company failing to reach its full potential. After thoroughly analyzing the case study of, Westminster Company, to improve their current logistic strategy, they would need to implement the following strategies: developing and analyzing a new system to focus on strategic effort to ship their products in a timelier, efficient and in a more accurate
Logistics is a vital component of supply chain management. Both involve the planning, carrying out and management of goods, services and information from the point of origin to the point of consumption. Logistics aligns the multifaceted pattern of traffic and transportation, shipping and receiving, import and export operations, warehousing, inventory management, purchasing, production planning and customer service. Organizations, like the one I work for, see logistics as a critical design of the supply chain. When organizations incorporate logistics as a key component of the business plan, they can use it to manage, coordinate and monitor resources needed to move products in a smooth, timely, cost effective and reliable manner.
(Bowersox, D.J., Closs, D.J., and Cooper, M.B. (2010). Supply Chain Logistics Management. (3rd Edition) New York, NY: McGraw-Hill/Irwin.
This report provides modern infrastructure of logistic via Qube case, analysis of current problems of logistic in NSW and in the world and resolutions about related problems in NSW and in the world. Also, Australia government’s activities and resolutions to help to develop logistics network. Result of the analysis shows that current
During 1980s, most global firms focused on quality management in product design and internal process improvement in order to achieve competitive advantage. Today, the spotlight shines on transferring value to customers instead (Mentzer & Williams 2001). Therefore, logistics has turned to be the primary marketing instrument for increasing and sustaining competitive excellence. While comparing to the past, logistics was only taken as a function regarding the higher productivity objective (Hutt & Speh 2011).
Transportation is at the centre of logistics as it represents the physical movement of materials between points in a supply chain. High customer expectations and little tolerance for inadequate performance create a competitive environment for operating a fleet, which forces fleet managers to achieve high levels of reliability and cost-efficiency (Peter Mbuthia Gitahi, Dr
Even though this book was focused on the role of logistic revolution, the real intention of the authors was to apprehend the consequences and results of logistics revolution in relation to the employees and workers. Bonacich, Edna and Wilson, (2008:VII) shows their intention in the beginning of the book with the following statement, - "this book tells the story of those workers and the work they do to get us the goods we all depend on". This statement demonstrates the importance of the workers in respect to delivering the goods to the end consumers. Likewise, the authors also made the following statement, - "We are interested… in their potential for organising their rights as workers" (p.
Third-Party Logistics have continued to play a strategic role in the management of supply chains most especially in the developed world over the past years and has seen a consistent increase in its usage in the world. In Malawi the concept is still new and has also been adopted by the public sector. There are clearly benefits associated with the use of the approach which enables companies to concentrate on their core competencies. However, there are critical issues to be addressed in order to experience the benefits. This
1. How can Design for logistic concepts be used to control logistic cost and make the supply chain more efficient?
The Year 2008-2009 for India was quite different from the expectations of industry stalwarts and economy speculators. Increase in input materials costs, wages, interest and transportation forced companies to cut costs. Logistic service providers therefore are required to be cost effective and more efficient to compete in market place. High logistics and warehousing costs in India shows that there are
Forward logistics (or conventional logistics) is the regular distribution channel followed by the manufactures from time immemorial. Forward logistics concentrates on the products (goods or services) reaching the consumer end and deals with the line of flow from the manufacturer’s end to the consumer’s end. It deals with the very essence of Supply Chain Management and logistical activities of an organization. It has a significant impact on the primary operations carried out, which act as the basic revenue generating aspect of a business. In this logistical system, the flow is a “one-to-many” type and the forecasting or traceability is quite simple.