How can we get hot food and undamaged from a Vending Machine

I used to live in Benimaclet, and everyday i passed in front of a vending machine which serves hot fast food, but i wasn’t used to these machines, from where i come, this doesn’t exist yet. I really appreciate seating at a restaurant, enjoying time, flavors, smells, and so on. So I don’t usually pay attention to that machine. One day, coming back at night i realize that I have nothing for dinner, and i just stop at that strange machine and took a hot hamburger, for my surprise, it was really yummy. From that day I promised myself to take a look at the logistics behind the vending machine, so, today is the day.

It isn’t a hard job, but neither easy.

 

Normally owners of vending machines, have several machines in different places and establishments, some of them working 24 hours 7 days a week. Also, they usually have different types of machines like: cold food, sweets, hot foods, drinks, and so on. This is really what makes the business complicate and careful planning.

The logistics behind the vending machines has a lot to do with inventories. Inventories should be done carefully, taking into account the range of each machine, the expiration date of each product, and that each machine should always have products available. Also, it has to be taken into account that there must be an adequate storage for food and with enough space to store stock. Additionally, the owners must have a vehicle for the replacement of the products and to allow the machines to have change available the all day, always available to meet a specific schedule. (Hostelvending, 2014)

These machines usually breakdowns, so it must have the support of technical staff to resolve the problems quickly, because it is seen that these machines are made for profit only when they get to sell about 15 products a day.

To conduct this business, you should get some important licenses as: business taxes, tax operating machinery, municipal tax card location and handling of food. (Vending machines, 2009). There are some statistics that say that this way of serving food will grow rapidly and in some cases will substitute the original way people use to eat, especially for people that doesn’t have enough time to take a break.  I just don’t agree with this kind of service, if we can call it service, what do you think?

Customer Order Decoupling Point

The Customer Order Decoupling Point refers to the point in the value chain of mass customization at which a customer triggers the production activities. All activities before the CODP are drive by a firm’s market research and planning department (Swamidass 2000, p. 138).This point, (also known as the freeze point, order penetration point), is the fork dividing customer-dependent and customer-independent production.

All activities at the left side of the decoupling point (Demand upstream) will start based on the forecast of the specific customer. All activities at the right side of the decoupling point (demand down stream) will start as soon as the customer order gets issued. These activities at the left side start based on the forecast of the specific customer too. Determining the CODP is a trade off between lead-time and value in the supply chain.

I think this point is very important because it will determinates how far a customer order will enter into the supply chain.  So in every company this is something essetian vbecause if  it calculates correctly, then they will save time, labor and money, there is not going to be waste of  goods and the orders and the production is going to be equitable.

Here is a video where explains the CODP more Widely.

The IKEA’s success

Five or six days ago, a friend of mine sent me a very interesting video which talks about Burger King, McDonalds, IKEA, etc. Though certainly the criticism is directed to the last one. At the end of this post, I’ll put the video, but firstly I would like to talk a bit about IKEA which has a successful career, although we have to assemble our purchase.

IKEA was founded in 1943, in Sweden. IKEA focused on offering a wide range of good quality, stylish, well-designed, and functional furniture at a low cost so that more people could afford it. IKEA kept cost reduction at the center of any decision making. It made efforts to improve its internal supply chain processes like packaging, warehousing, and transportation which contributed to its cost cutting objective.

IKEA’s supply chain management became the key factor for the success of the company. As a result IKEA managed its costs better than its competitors ans could offer products at 30% lower costs. Nowadays, we can say that IKEA is expanded around the world, by the year 1990, it had 89 stores in 21 countries, and it was operating 260 stores in 36 countries in 2008.

ikea world

The Flat Pack

IKEA’s most differentiating factor is its flat packaging system which had significantly improved its operational efficacy. Assembled furniture is expensive to transport and store because you have to pay for a lot of air. By flat packing unassembled furniture and getting customers to pick their own products in store, IKEA drastically reduce its transportation and warehousing costs and can pass the savings to their customers (30% lower costs). Furthermore, this company doesn’t offer free home delivery as other furniture retailers do.

As IKEA was selling at very low costs, the competitors forced their suppliers to boycott IKEA. That led IKEA to design and engineer its furniture. The flat packing success started in 1955 when one of IKEA’s co-workers decided to remove the legs of a table so that he could fit in his car and minimize any damage in his transit. That idea allowed IKEA to test the flat packing in 1956, then it realized that flat packing could bring down the costs of transportation and storage drastically.

flat packs

This happening also allowed minimizing the types of pallets used to store the products, so IKEA started focusing on designing functional furniture that could be disassembled and transported to its stores.

Now, I’d like to share with you the video mentioned above.

Another curious thing about IKEA are its stores, in particular their design. When you go to an IKEA store, they give you pencils and papers at the entrance to list down product details like item code and respective aisle number in the store’s warehouse. The store layout is designed in such way that customers have to pass through all of its products so that even a customer who enter with a planned shopping list would check out other products which he/she didn’t really want. Furthermore, customers have to pick the products displayed in the showroom in the form of disassembled flat packs. Customers are provided with flat trolleys for carrying their goods from the warehouse and in addition, there are some loading zones at the store’s exit where you could bring your vehicle and load the merchandise yourself, what a deal!

ikea flat packaging

PEGASUS CARGO

Hi to everyone!

After Diana’s post I also want to note one avia company  🙂

Maybe you have heard about this company it is very famous turkish airlines and recently it became very famous low cost in Central Asia and Russia. It flyes 97 destinations and also flyes to the biggest and famous cities of Europe as Madrid, Berlin, Paris, Brussels, Bologna, Brazil and etc. Pegasus is Turkey’s most established private airline has been flying for 20 years and uses cutting-edge technology and they have Pegasus Cargo logistics. So they are as other “smart” (low cost) companies ship parcels. 

About the company:

Pegasus Airlines (Turkish: Pegasus Hava Taşımacılığı A.Ş.) is a low-cost airline headquartered in the Kurtköy area of Pendik,Istanbul, Turkey formed 15th April of 1990. Formerly a charter airline in partnership with Aer Lingus, Pegasus is now completely controlled by Esas Holding. In January 2005, ESAS Holdings purchased Pegasus Airlines and placed Ali Sabanci as the chairman. Two months later, he changed the airline from a Charter airline, to a Low-Cost airline. In 2007, Pegasus carried more passengers in Turkey than any other private airline. In 2008, it carried a total of 4.4 million passengers. In 2013 the passenger traffic grew even further to 16.8 million passengers carried. In 2012, Pegasus Airlines, the second largest airline in Turkey. Pegasus becomes a new Airbus customer and the first Turkish airline to order the A320neo. This is the largest single commercial aircraft order ever placed by an airline in Turkey, and was announced on December 18, 2012.

Image

 

“Easy way to send”

Company’s slogan

Even if they started to fly to my country KYRGYZSTAN recently, Pegasus Airlines was bought 49% of our Kyrgyz air company Air Manas in June 2012. 22 March 2013 the air company had operated its first flight under the brand name Pegasus Asia. Pegasus not only has facilitated the distance between Central Asia and some post Soviet countries and made it really cheap comparing to other air transporting companies  but also has given us possibility to send and get  parcels very fast and for convenient price. 

P.S. Normally we (Central Asia) use only DHL and Fedex Ltd.for international shipping and it is expensive enough. My next post will be about this. 😉

 

P.S. #2 Have you known that Avia companies have their own yearly award named “Cargo Airline of the Year”?!

Each year, customers vote for their favourite carriers based on their efficiency and friendly ease of use. Awards are also given each year to the best ground handling company, the best GSA, the top charter broker –  and to a mystery global personality who receives recognition for a lifetime’s endeavour. The event culminates in a glittering London ball as award winners travel to London from around the world to collect their prizes.

http://www.aircargonews.net/cargoairlineoftheyear/home.html

 

 

Links to web pages of Pegasus Airlines and Pegasus Cargo:

http://www.flypgs.com/

http://www.pegasuscargo.com/

 

Delivery service of a restaurant

DeliveryBy.com is a useful software for small catering company that helps prevent delivery problems.

DeliveryBy.com is a SaaS (software as a service) that manages the Delivery service of a restaurant, covering online as well as telephone orders. The system allows restaurants to upload their menu, receive and manage the status of their orders in a very easy and intuitive way. Customers will be automatically informed about the status of their orders and all services include mobile support.

Click here to watch presentation of new technological service for restaurants.

How Logistics affects you

Hey Everybody I just want to share with you the way logistics affects us all both directly and indirectly

The US alone  is comprised of 566 railroads.

The approximate number of truck drivers moving America s  freight is 3.5 million,  which from a different perspective,1 in every 15 people working in the US is employed in the trucking industry.

Only in 2011 the transportation and warehousing sector totaled 4.292 million people.

Trucking is the dominate mode of transportation for the nation´s freight movement by approximamtely 71 %.The highest-valued imported prodcts in the U.S include : agricultural products 4.9%, industrial supplies 32.9 %, capital goods 30.4%( computers, telecommunications equipment, motor vehicle parts, office machines), consumer goods 31.8% (automobiles, clothing, medicines, furniture)

There are a total of 149 ports located in the U.S.                                                    American businesses transported over 19 billion tons of raw materials and finished goods in 2002, valued at 13 trillion dollars

All these facts mentioned above are quite astonishing. So,would you like to be part of it?

Industry 4.0

Kaizen was yesterday.  If you believe scientists and some OEMs, MUDA will soon be part of the past. Because Industry 4.0 will change especially logistics in a sustainable manner.

But first of all, what is Industry 4.0 ? It s a project in the high-tech strategy of the German Government. They are talking about the 4th Industrial Revolution, which already started. The goal is the intelligent – or Smart Factory – which is distinguished by resource efficiency, adaptability and the integration of business partners and customers in business and value processes. Industry 4.0 is promoting the computerization of traditional industries, for example manufacturing. Following the actual trend of production, customized products  will be manufactured under the conditions of high flexibilized mass- production. The basic principle is to connect all processes and machines to an intelligent network to allow them to communicate to each others.

But why should Industry 4.0 replace basic principles of Lean Manufacturing? Well it won´t replace all principles of Lean Manufacturing, but trusting Prof. Dr. Daniela Nicklas from “OFFIS – Institut für Informatik”, real-time optimized value-adding networks will replace the classic value-added-chains with its buffers. Machines will be able to communicate, they will order fresh supply when needed, request the status of the transportation system and so on. (mm-logistik.vogel.de

The central controlling system, as used  for example at the Toyota Production System, will now be decentralized. With the help of intelligent containers and RFID Tags, machines will get all the information needed to produce the product. The product will find its way through all of the production processes by itself. (www.logistik-heute.de)

In these times, information flows grow bigger and bigger and in my opinion, it is only a question of time until the first factory will be  adapted completely to Industry 4.0. And of course competitors will have to follow, if they want to continue being a competitor.