Logistic delivers….as if by magic!!!

Looking for something interesting ….something new I found this article that I liked  * DHL Cabinet of Curiosities *

The DHL Cabinet of Curiosities is the latest in a range of innovative Augmented Reality apps by DHL, Official Logistics Partner of Cirque du Soleil®.

As we all know DHL is one of the biggest logistic companies in the world, so I was very surprised to see the relation that they created with the Cirque du Soleil.

Then of course I started looking the DHL web page http://www.dhl.com/en/logistics.html and as they say they are the world’s largest logistics specialist.

Why ? Well….because they offer freight transportation, warehousing and distribution, supply chain solutions – they cover it all.

They are all over the world , one of the 4 largest companies with : FedEX, TNT Express and UPS. His direct competition is FedEX.

 

They also bet for the ecologic proposition

Green Logistics Solutions

¨Climate change is one of the greatest challenges facing our generation. Increasingly authorities and consumers expect business to calculate, account for and reduce their emissions.¨
Reporting of greenhouse gas emissions (GHG) is the first step to greening your logistics.

DHL provides two services – a Carbon Report – and an advanced Online Carbon dashboard.

Carbon Report

  • Maps emissions generated from your transportation within the DHL network
  • Can be prepared on monthly, quarterly or yearly basis
  • Calculation adheres to ‘Greenhouse Gas Protocol Product Lifecycle Accounting and Reporting Standard’
  • Calculation adheres to EN 16258 ‘Methodology for calculation and declaration of energy consumption and GHG emissions of transport services’

Online Carbon Dashboard

Has all the benefits of the Carbon Report, plus:

  • Maps emissions from your entire transportation supply chain – including third part networks
  • Maps emissions to individual shipment level
  • Flexible views on different carbon reports – enables simple measurement of emission improvements
  • Ability to simulate and assess carbon footprint and efficiency
  • Assists in supply chain optimization and strategic decision making
In the same thought of the green proposition I found that for the Formula E, DHL provides an extensive range of green logistics services.
If you want to read and know more find here this interesting document :
Hope you´ll enjoy this post 🙂 🙂 🙂 !!!
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Fast growing logistics in Samsung

Samsung SDS is increasing its presence in the transport logistics industry by expanding its fourth-party logistics segment based on its business associated with the parent Samsung Group.

According to industry sources, the logistics business unit of Samsung SDS recorded 2.4 trillion won (US$2.1 billion) in sales last year. The amount is highly significant in that it had stood at 500 million won or so in 2011, 627.6 billion won in 2012, and 1.8359 trillion won in 2013. In addition, the ratio of the business unit’s sales to the gross sales of Samsung SDS increased from 10 percent to 26 percent, and then to over 30 percent between 2012 and 2014.

At first, Samsung SDS was an IT service provider. The company set foot in the distribution industry in 2011, when it developed the logistics IT platform Cello at an investment of more than 100 billion won (US$89 million). Samsung SDS has since added transport logistics to Cello’s portfolio, while maintaining its major focus on B2B services. The platform provides optimal solutions in connection with global distribution companies without requiring any transportation vehicles or loading docks.

Samsung Electronics has adopted the Cello platform for its own physical distribution in Southeast Asia, Europe, and North America, and is planning to do so in Latin America this year. It is also planning to sell the service to third parties. The idea is to add 500 billion won (US$445 million) each to its logistics business sales associated with the Samsung Group and third parties within two years. According to stock market analysts, the logistics business division of Samsung SDS is forecast to record 3.2 to 3.4 trillion won (US$2.8 to $3.0 billion) in sales this year.

Samsung has a great opportunity to became to largest producer of smartphones. Now is a strong competitor for Apple and it is going up and one of the factors of their success is their supply chain management.

Crowdsourcing for the last mile problem

Last-mile crowdsourcing consists in leaning on a group of citizens for completing the last-mile delivery of parcels in a city. This model answers the need to cope with the increased congestion in cities and the resultant problems of inefficiency and negative environmental impacts of local deliveries.

Crowdsourcing has some potential advantages that cannot be ignored. For the logistics services providers, it might lead to lower operational costs and a more environmentally responsible profile if unnecessary deliveries are avoided, or if there is evidence that more environmentally-friendly means are used (e.g. consumers using public transport, their bikes, or just walk). For the society as a whole, having the same delivery needs covered with fewer vehicles on the road would translate to a reduction of emissions and congestion in their daily lives.

Probably the most well known initiative of this kind is “Bring.BUDDY”, conceived out of a students’ project at the School of Design Thinking, Potsdam University, with DHL as the project partner. The basic idea of “Bring.BUDDY” is that people who already move across the city could carry parcels for a part of the parcels’ trip. This creates a city logistics social network composed by city dwellers transporting parcels and packages on their way to their daily destinations.

In the Bring.BUDDY initiative, each member of the network shares his itinerary through social media, an application identifies opportunities for collecting packages along his route and informs the potential transporter through his smartphone. The application also identifies transfer points, where the package is passed on to another member of the network. It is estimated that for a typical inner-city delivery, a maximum of 3 persons will be required for delivering the package. To avoid issues related to the payment of the city dwellers (i.e. creation of a micro-company with low-wage informal employees) the initiative is rewarding the participants with a number of achievement points that later one can reimburse through services (e.g. public transport tickets), purchases from local stores, or donations to charitable organisations or welfare campaigns.

 

Wal-Mart is another company thinking of last-mile crowdsourcing as a business model of potential use. In its case the concept could be realised by having customers delivering packages. Currently, deliveries from Wal-Mart stores are fulfilled either by third party courier companies or in some metropolitan areas by its own “Wal-Mart to Go” service for same day deliveries. In the crowdsourcing scenario, Wal-Mart customers sign-up to deliver packages from the Wal-Mart stores to other customers living along their way home. As a return, these customers get discounts on Wal-Mart products, effectively covering their cost of petrol. This is not seen as a solution for all company stores or products, but most probably for metropolitan areas and high-priced products.

Of course real-life implementation of last-mile crowdsourcing is not an easy task. Open issues that still remain to be resolved are the legal, insurance and security ones. Especially regarding security, everyone is comfortable with having a branded courier knocking at their door, but what about a strange supposedly neighbour? On the other hand, although it might sound a strange comparison, pizza delivery has for many years employed a mechanism with similar potential security issues due to the part-time employees used.

Implication of Bruselas terrorist`s attack  in logistec management

All flights have been suspended at Brussels Airport following the two explosions which had killed 30 people and 230 more injured. The airport was lockdown betwen march 22 and 23 until 6:00 AM. All inbound flights was diverted to nearby airports in the region.

explosions20in20brussels_1458647070632_1119816_ver1-0
Source: 9 News

The cargo area of Brussels Airport was closed down for security reasons. Both cargo handling agents and customs officials ceased operations. As a result, no cargo can enter or leave the cargo area, resulting in significant impact to airfreight operations and was expect potential delays in cargo clearance. In case of urgent inbound cargo with final destination Brussels, Amsterdam’s Schiphol Airport can be considered as an alternative destination airport.

Also, the French-Belgian border was closed and French media sources reported that security at other French border points was heightened due the terrorist attacks. Additional police officers was deployed at the frontier and sensitive public areas such as transport hubs.

As precautionary measures, the UK also tightened its borders with Belgium and France and announced that intensify efforts at the UK-Belgian and UK-French border. This includes enhanced searching of inbound tourist vehicles, additional opening of car boots / transit vans, a heightened Border Force presence at ports, targeted Border Force presence at specific ports, with additional security checks on some flights and specialist search dogs deployed at key ports including St Pancras and Dover.

Eurostar services between London and Brussels was suspended, SNCB/NMBS train stations was closed. Thalys suspended all of its services, which operates in France, Belgium, Netherlands and Luxembourg. Eurostar and Deutsche Bahn rail services was canceled; all trains from Paris was suspended.

In Netherlands also indicated that police was deployed to Hoofddorp Train Station, where an international train from Brussels was stopped.

In Paris, the Gare du Nord railway station was closed due a security alert, believed to be a suspicious item of luggage. The station are remain on heightened alert when it reopens as the terminal operates services to Brussels.

There are a lot of implications when occurt terrorist attack, as we can see there was closed airports, border, train station, services and reduce operation in logistic and other department across Eurozone and this affect all the operations arround the world.

http://www.9news.com/news/explosions-rock-brussels-airport-metro-station/96090788

P:D ratio and order fulfillment options

Our discussions in class and our cases refer currently to the topic of process and time. We also talked about the P:D ratio and although this is a more theoretical topic, it is interesting to see what is behind it.

The production lead-time P describes how long it takes to manufacture a product and the demand lead-time D could be referred to as the lead time quoted by the firm to the customer. The comparison of P and D helps a company to select a suited strategic order fulfillment option (order fulfillment is the process a company responds to a customer’s order). The main difference between the options is the way that final users’ requirements are taken into consideration.

Post 4_Table

* Pull-type production:

  • production is based on actual demand
  • assembly / manufacturing process after receiving customer order à pulled by demand
  • quantity to produce per product specification is one / only a few

* Push-type production:

  • production is not based on actual demand
  • quantity to produce per product specification is high

 

See more:

http://www.lean-manufacturing-japan.com/scm-terminology/mto-make-to-order.html

http://www.arenasolutions.com/resources/articles/engineered-to-order/

https://en.wikipedia.org/wiki/Order_fulfillment

https://www.cairn.info/revue-projectique-2010-2-page-41.htm

http://cachon-terwiesch.net/1e/ch10.pdf

http://slideplayer.com/slide/7940801/

Santa Claus Challenge

“Logistics doesn’t make happiness but can take it wherever is needed”

 

Regarding what professor José Pedro García wrote one day we want our colleagues to read our posts meanwhile they are waiting for the bus” I thought it could be interesting to write this time about how Santa Claus manage in modern times to deliver all the presents in Christmas. In addition, I consider that this topic is quite related with logistics. According to Unicef, there are 2.200 million of children in the world. Assuming that only the 50% of them are good kids and having in mind the world average of 2’5 children per house we can conclude that Santa Claus only needs to visit 440 millions of homes (if the good kids live together). Therefore, how he managed to guarantee that all the products are going to be delivered on time?

Nowadays Christmas campaign is not about one man flying during only 24 hours with reindeer from the headquarter in Lapland. In fact, there exist logistic centres around the world and the story behind this is more complex. Is more about designing a good business plan able to face this situation. Market research, planning, inventory, logistics and suppliers are some of the key words in this gear. During this period of time, logistics has a great relevance due the increase of commercial transactions and movement of products. Such is the case that hiring in companies of the logistic sector increase a 20% regarding the previous months.

Therefore, it can be observed a major volume of sales and as a consequence an increase of the work load. The latter affects specially transport companies which have to deliver a service with a high efficiency and great results but having the same resources of the rest of the year. Furthermore, time has an important role. The delivery of a product to a customer out of time can create a bad perception of the company. At the same time, it acquires a great value not to make mistakes in the delivery which can be avoid by using software like WMS (standard protocol for serving georeferenced map images which a map server generates using data from a GIS database), RFID technologies (allows contactless identification of objects using radio waves) or voice directed warehousing (use of speech recognition software in warehouses and distribution centers to make verbal orders)

To sum up, logistics have a huge impact in the results of cost, productivity, quality of the service and efficiency of the Christmas Campaign. It is related with the supplying, the management platform and the transport to stores. In addition, the logistics is responsible to determine the quantity needed for each product, to decide the volume of each product that each store should have and the right moment for this. To conclude, it can be said that the logistics involved in the Christmas Campaign maybe is not within reach of Santa Claus due it requires a huge planning of the supply chain and stock management.

papá noel

Image 1. Imports and exports. Icontainers. <http://www.icontainers.com/es/2015/12/03/la-logistica-de-papa-noel-en-el-s-xxi/&gt;. [Accessed: 16/03/16]

Eco-industrial parks

Today I would like to write a post that relates environment with logistics. With this aim, I am going to make a little explanation about the ‘eco-industrial parks’ (EIPs).

Eco-industrial parks are industrial parks in which businesses cooperate with each other and with the local community integrating technical, financial and logistical solutions in an attempt to reduce waste and pollution, efficiently share resources.

In Denmark there is an EIP called Kalundborg. In this EIP there are numerous symbiosis between the industries placed there, for example, there is a coal-fired power plant which provides energy to the other industries placed on this EIP and also sells the steam for a pharmaceutical manufacturer and a refinery.

Kalundborg-ecosystem

In this case, there are a lot of materials that are constantly being transported like ethanol, water, waste, sulphur, etc. Some of them are transported through pipes between companies (avoiding the use of trucks, trains, ships and planes) and some of them are transported by trucks, but they only drive short distances.

Therefore, thanks to the nearness of the industries and as their products are useful for each other, they can reduce enormously the cost of transportation, making logistics easier and reducing the environmental impact as well.

You can also watch a video (2:35 mins): https://youtu.be/1yCYGOxnpSY

Joaquín Sánchez Planelles

 

More information:
http://www.symbiosis.dk/en
http://www.ecointeligencia.com/2012/04/kalundborg-ecologia-industrial-ecointeligente/#lightbox/1/