Mercadona Logistic Center of Ciempozuelos

Thanks to its well known name or thanks to the logistics classes we all know about the size of Mercadona as one of the biggets companies in Spain.

For the ones that don’t know it yet, Mercadona is a Spanish distribution company borned in Tabernes Blanques (Comunidad Valenciana) in 1977. Mercadona already has 1626 supermarkets distributed between the 50 Spanish provinces, with a total of  79.000 workers. The total net benefit of Mercadona in 2016 was 636 million euros, what meant a new record for the company on that year.


But let’s stop talking about numbers and interesting general data and let’s start talking about logistics, that’s what this blog page is for. If I write about Mercadona logistic structure it’s impossible for me to not talk about the logistic center of Mercadona in Ciempozuelos, Madrid.

Mercadona calls its big logistic center in Ciempozuelos as “the warehouse of the XXI century”, It is one of the most modern distribution platforms in the world, where they have achieved to automate all the processes thanks to a new software that distributes the pallets from the manufacturers to the different shops.

In our last class we had a session about warehousing where we understood the importance of the measurements as height, depth or weight in order to design a warehouse, that’s why I looked for information about these data in the warehouse of Ciempozuelos, it has four large buildings; one for dry products (45,000 square meters), one for cold products (42,000 square meters), one for packaging products (10,000 square meters) and another for services (with another 2,000 square meters, organized in vertical, in its more than 20 meters of height). The process is automatic in all the sections, except in the one in charge of the fish.

In fact, in order to make the circulation of workers through the facilities of Ciempozuelos easier, the warehouse has two walkways (of 2,000 square meters) that internally communicate all the buildings, this helps to avoid transit through the ways leading to the loading docks and unloading for trucks.

But Mercadona will not stop here, the supermarket chain is already working and investing in its new logistic center in Sangunto (Valencia), it is assumed  that after its construction this warehouse will be the biggest logistic center of Mercadona in Spain. So be prepared logistic center of Campozuelos, because as Mercadona announced you will not be the biggest warehouse of the company for the next summer, when the new center of Sagunto is supposed to be inaugurated.

Sources and more interesting info:


Ford Valencia: Just in Time and Just in Sequence

As some of you may know, Ford Valencia is one of the biggest companies of this city, with 8500 workers, and it is the branch that exports more to the U.S in Europe.

It is located in Poligono Industrial Juan Carlos I (Almussafes) and most of the 100 companies located here work, almost exclusively, to Ford.

This industrial park is almost unique in Europe, because it is not just the common policy of Just in Time (JIT) that is a lean manufacturing process that helps companies keep as little inventory on hand as possible. They only order products when a need arises, and they try to get products to customers as quickly as possible without having to store lots of products in warehouses. This saves money, space, and other resources that can be put toward more worthy pursuits.

Here’s a video to explain this JIT system:

But they use a policy called Just in Sequence. This system goes further than JIT, because the resources are delivered in the exact moment that the customer need it but also in the correct order that the customer is going to use them.


So, taking into account that almost all the suppliers of Ford are located in the surroundings of the company, that have developed a tunnel system. They are known as “conveyors”. The piece travels automatically from the supplier to Ford, providing them with the material in the exact possition where they need it.


This system allows the factory to be flexible in their production, with capability to produce four different model of cars.

I think that this system is really usefull, but it also needs a really high degree of planification and it’s a bit risky, because if the suppliers should be very reliable or everything would be a disaster!

Running out of space in warehouse?

Last class was about building warehouse and calculating the space like number and size of aisle, approximate number and size of boxes and pallets, height. But what if we run of space in warehouse?  It is a sign of good business or we store wrong product at wrong place, as a result we are not utilizing maximum space of our warehouse, which is storage mismanagement.  There are high chances of storage mismanagement when a company has to replenish very often because of high inventory volume.

There are number of methods and ways that can be used to maintain space in warehouse. One of them is Cross –docking.

What is cross docking?

When a products from supplier or manufacturing plant are directly distributed to customer without handling or storing cost. It is helpful when customer get their product when they exactly want.


When is Cross- docking used?

  • The products which need to be transported quickly like perishable goods or sensitive items.
  • There are products which are packed for specific kind of customer.
  • When there are bulky goods. For example, furniture item or kitchen appliances; this would not be good idea to store in warehouse so cross-docking is easiest and fastest way to reach customer.

Companies that implemented Cross-Docking

  • There is a big role of cross-docking in Wal-Mart’s success. The product moves quickly, there is storage space, deliveries are performed rapidly. It helps Wal-Mart to increase inventories and as there is space now, it can be utilized as a shelf for other products.
  • Tesco also implemented Cross-docking system. This help Tesco to directly load same store’s products into the trailer instead of distribution center approach.


  • Reduction in labor cost
  • Customer satisfaction
  • Space in warehouse for another product

Here is a video to understand what exactly cross-docking system is all about.




During the last lesson of Logistics, we were talking about the warehouse design and store types of equipment for example (floor storage, Conventional Racking, Drive in Drive through, live storage, mobile racking) while designing the warehouse We must take into consideration the size, and height of the warehouses. And, we talked about the Material Handling Equipment’s need it to hold the products like forklift truck, Trilateral Forklift Retractable Forklift. The main objective of design the warehouses is to improve and achieve the level of service that the company expects to deliver to their customer. Also trying to minimize the operating costs.

Yesterday we visited Delikia company in Gandia, we enjoyed our visiting. The employees there were very helpful, and they explained to us how they are doing their work and the secret of their success. Their job is offering an excellent service with the fresh and top-quality of products, they offer Snacks, Coffee, cold drinks, fresh fruits, and sandwiches are the main products they serve. The presence of a highly-qualified technical team helps in solving problems that may arise and prevents possible failure in machines which are the contact interface with clients. Their customers, when facing a problem using these machines, can easily contact them by emails, WhatsApp, website, social networks or calling them by phones.

While visiting their main headquarter in Gandia and passing through the warehouse, we have seen that they use Pallet Racking systems for storing the products such as water bottles, cold drinks, juices… etc.  Each unit loaded has its location. This makes it easy to control, besides that it’s the most widely used in pallet storage systems especially when there are not enough spaces to store the products, there are 2 doors in the warehouse the first one for move in the product and the second for move out. they use the conveyor on the shelves to make it easy for moving the products first in, first out, in addition to cold rooms for foods which need specific conditions of temperature for storage. They use refrigerated Vans to save the food while transferring them to all the machines in the areas. The material handling equipment uses to move the products from the Van to their Machines is Pallet Jack.

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Their food production factory is located in Madrid and they have a big logistics center for distribution through all Spain.Nowadays, they are establishing their new warehouse for food preparation in Gandia to make it easy to distribute for the valencian region and nearby areas.

this video will explain briefly the process of Delikia


Xiaomi Inc. is a Chinese company dedicated to the design, development and sale of smartphones, apps and other electronic products, that sells in its Mi stores in China, India, Russia and Spain, and certain countries in Asia, Europe and Latin America, as well as on its website. Since the launch of its first smartphone in August 2011, Xiaomi has gained significant market share in China and expanded its product line to other electronic devices.

In 2013, the company succeeded in making the Xiaomi Mi2S, China’s most popular mobile phone, ahead of Samsung’s Galaxy S4 and Apple’s iPhone 5, according to data from specialist consultancy Antutu? with a competitive and cheaper product than its competitors. In October of that same year, Xiaomi released its Mi3 model for sale, and its first 100,000 units took 86 seconds to sell over the Internet, according to the company’s findings.

Its competitors believe that Xiaomi’s pace of expansion so far is too fast, and it’s impossible to do business with those prices and it will be devoured by its own success. It was always difficult for European countries to acquire the firm’s devices because they were not officially distributed in most European countries. Will this statement be true?

Xiaomi has experienced rapid growth in terms of total sales throughout 2017, with 92.4 million units shipped, behind OPPO (111.8 million terminals) and Huawei (153.1 million units), Xiaomi ranked as the fifth largest manufacturer worldwide according to IDC data.


This dynamic growth can be seen in the Spanish smartphone sales market. As we already know, a few weeks ago they opened their third store in Barcelona, and in the next few weeks they will open their fourth store in Madrid. And this would be due to the fact that 63% of Xiaomi’s product sales are produced in Spain.


In my opinion, the Xiaomi brand has already established itself in the world market, and I only see one way to dethrone the giants Samsung and Apple. And all thanks to its more than competent prices and the quality it offers within these reduced prices.

Granier bakery chain



One of my favorite bakery shop in Valencia is Garnier, when you enter the shop and smell the bread you will see the shelves fresh bread, golden and crunchy. They care about their customers and offer the highest quality and the best prices. They have a large network of franchises with which to reach all people in all places and all the time 

Granier has more than 350 bakeries all around Spain with 4 product families: bakery, pastries, coffee shop, pastry shop. The company with solid experience in the bakery and that differentiate them from the competition by not using precooked bread, their manufacturing processes its long fermentation in the bakery and its elaboration in the store. The brand is committed to constant innovation and international expansion with a presence in countries such as the United States, Portugal, London, and Italy.

They make more than 50 types of pieces of bread with traditional recipes in 3 production factories located in Catalonia, Madrid, and the Canary Islands without manual labor and with the help of large bread machines.  in addition to Euro pastry plant (which manufactures croissants and pastries), with more than 11.000 m2 of facilities and their own logistics that cater to more than 350 stores.

They prepared the bread in the factories and put them on a pallet rack in storage areas and then the Bread is distributed to shops by transport trucks to be baked there, as well as the desserts.

If you walk in the morning you will find all the shops closed except one Granier from 4 o’clock in the morning all the employees start working in this shop. And suddenly you may find a Small Van Stop in front of the shop, they carry all baked bread and dessert to the shop. they start heating and baked the bread inside the shop before they opened. they put the precooked bread in the oven one behind the other, in less than 30 minutes they finish all the baking. When everything is ready they start purchasing the bread to the customers. There are no waiters only the workers behind the counter in addition to customers service alone.


In the store they arrange the bread in a remarkable way on the shelves in front of the customers, to make it easy for them to choose bread they need and to see all the types. and because the desserts And Croissants are smaller in sizes they put them in shop windows, and always have offers.

In this video, you will find something interesting about Granier until minute 3: 00.

Hospital Logistics

I recently booked an appointment with a doctor in Valencia through a great website called Doctoralia. Through this website, anybody can get in touch with a specific doctor and see recommendations, details, etc. I then realized that doctors, as any other service providers, need to use marketing in order to promote themselves. This raises the question: where is the line between a client and a patient?

Hospitals, like any institutions, use marketing, finance, human resources and logistics to deliver a reliable service which helps the patients while making profit.

Through this post, we are going to see how a hospital uses logistics.

The roots of health care logistics:
The population is aging: in 1960, the persons older than 65 represented 4.974% of the world population, whereas in 2016, this number jumped to 8.482%. This means that the need for treatment has increased in the same manner. The need for more expensive treatments (for example: cancer) has increased as well. This calls for an increase in efficiency and a decrease in price in order to keep the service level required.

The goal is to accelerate the patient flow by assuring that they are treated in the best way possible.

  1. “Just-in-Time” logistics: this will enable to reduce the length of the treatments by providing the patients the right doctor at the right time.
  2. Use of computer systems enabled to track any patients, doctors or medicines in a hospital in order to reduce the length of the treatment which increases the life span and allows more patients to be treated. The use of technology is extremely important in this changing environment: use of RFID chips (low-cost solution for tagging equipment), fully automatic laboratory (with robotic arms for examples).

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This will be achieved by:

  • Using RTLS (Real Time Location System): about the location of equipment, personnel and patients
  • Having transparent task management across the hospital

There are 6 sectors that need to be optimized in order to achieve “Just-in-Time”:

  • Task Management
  • General Management
  • Bed Management
  • Trolley Management
  • Transport Management
  • Cleaning Management

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Applying logistics to a health care environment will be the solution to the increasing demand of expensive treatments and aging population. Some hospitals are already implementing it, such as Aalborg University Hospital in Denmark. If you want to learn more about this topic, take a look at this report:

Thank you for reading 😉

Fresh Fish for Everybody

It might not be a big deal to have access to fresh fish and seafood if you live in Valencia (or any other city that is located near the coast) but where I come from the next coast is over 600 km away. Still, there are supermarkets in my home area with fresh saltwater fish in their counters. So I began to ask myself, how do they manage to get the fish from all over the world to the supermarkets in the middle of Germany and what are the important aspects of the journey the fish make.

Since fresh fish is a highly perishable good and spoils very fast if it is not stored under the right conditions, its transport to the stores and markets is one of the biggest challenges for the food industry and its logistic.

One of the leading European fish-wholesales, METRO Cash & Carry, claims to deliver the fish in only 48 hours at the maximum. These 48 hours include the whole timespan from the moment the fish has been caught to the point it is placed into the counter. This is a quite impressive feat and also very important because only a fast transportation ensures that the fish retains its good quality.

The distribution center of METRO receives fish from several European countries, including Spain, but also from overseas, for example from Sri-Lanka, New Zealand and Australia. Every fish, regardless of its origin, is treated the same.

During its complete travel, the fish is stored in polystyrene boxes filled with ice and is transported in special refrigerated trucks.

First stop: Logistics center

During these hours, several quality and hygiene regulations have to be adhered to.For example, the temperature of the fish at the time of arrival at the logistics center must not be over 2° Celsius. Directly after the arrival the fish is checked by inspectors in regard to looks, smell, temperature, firmness etc. Additionally, a laboratory specialized on fish performs microbiological, physical and sensorial test on a regular basis.

Second stop: Wholesale store

The next step the fish takes is the tour from the logistics center to wholesale store which is done in less than 12 hours. Again, several quality inspections are conducted once the fish arrives.

Third stop: Supermarket

Finally, the fish arrives in the supermarket where it can be purchased by you. Here, too, it has to be cooled constantly in order to keep it fresh.

Final stop: Your Kitchen

Before you can cook your fish you have to transport it from the store to your kitchen. Make sure you have any means of cooling your fish on hand when you buy it. Only if you keep your fish cool during its final journey it will retain its quality and you can enjoy your meal without any negative side effects. Keep that in mind and then there is nothing else to do but enjoy your meal.

Image result for whole fish on plate

Fish logistics = Not your average logistics

The Path of the Luggage

I guess everybody who ever flew with an airplane, was probably hoping that also his/her personal luggage would reach the desired destination airport and would not get lost along the way. The fear to spend two weeks on holiday or on a business trip without fresh clothes and personal items is always present in the heads of the passengers.

And this fear is not baseless. Since 2008 almost ~ 33 million baggage items got lost.

Maybe now you will ask yourself: How does the Luggage get into the airplane to fly with you around the world?

The luggage’s way starts at one of the numerous check-in desks; where it gets a board card like a traveller. The barcode on this banderol holds information about the respective weight of the luggage, the destination, the flight number, the interchange and the passengers name.

After a laser camera scanned the barcode, the luggage gets into the baggage conveyor system, where it races 5m per second with a deafening noise along its way to the airplane. The baggage will be transported in plastic tubs and passes a number of security check-points, where it gets controlled by a X-ray machine. In case it includes any suspect content, a special airport employee will open the luggage.


The whole transport within the baggage conveyor system is automatized and barcode readers guide the items to the respective baggage compartment by scanning the container number and luggage number.

From this point, the items will be loaded into the airplanes cargo area.

Directly after the landing, first, the unloading of the baggage for the passengers that have to reach another airplane starts. Afterwards, the luggage of the first-class passengers will be handed out and at last the items of the remaining passengers will be processed.

The most common causes for a loss of the luggage are changes in booking, customs control, mistakes during the loading or old banderols.

The passenger can increase the chance of getting back the luggage after it doesn´t reach the destination by adding a name plate.

So always make sure to include your name tag! 😉



Logistics to the rescue

During the days of Fallas the city of Valencia has been filled with people. The continuous flow of people walking and visiting the Fallas has involved the purchase of food made in the stalls installed on the street. One consequence is that there are traces of food everywhere. All of us have done it. This observation has made me reflect if we always take advantage of the food that we have left over or food that we have bought but we will not use. Food is wasted in the production, distribution and consumption process.

This reflection has led me to think that managing the pantry and the fridge is simple, but  how are the products that volunteers, supermarkets, companies and institutions donate to Food Banks managed?


The operation and organization of a food bank is similar to a company, with different areas and a management team. It consists of an area of ​​supply and transport, warehouse, distribution, accounting, patronage, communication and direction. In general, the operation is as follows: firstly, the food that is obtained for free is collected, either through agreements with private companies, many of them agro-food and transport companies, and with public companies; also through food surpluses of the European Social Fund; donations from individuals  and subsidies from public institutions for the maintenance of infrastructures (warehouse, cold stores, wheelbarrows …). The surge in donated goods leaves food banks with many perishable items that must be quickly distributed before expiration. Furthermore, the product mix that they receive is unpredictable and changes from week to week. The challenge is to move the food, and minimize the wasted amounts. Logistics to the rescue!

All products are stored for a short period of time, selected and subjected to a sanitary control. Later they are distributed to specialized charitable centers and associations, that are responsible for delivering food to individuals according to their needs.

Despite all the donations, these banks are deficit because the demand has increased a lot. A logistical and legislative problem that arises, is that perishable products must be transported in cold stores and this can not always be achieved.

If you want to know more about Food banks don’t doubt to visit:


Giant and miniature

In the glowing eyes of a girl who go abroad for the first time in her life, Germany is more than a leading country in the mechanical industry in a European country. Last week, in Logistic and Supply chain session, I knew more about a truck and the distinction between the full load truck and less load truck, it prompts me about a type of vehicle transportation which was very excited for the first days in Bavarian. Therefore, in this blog, I want to appreciate how smart of engineering who created the truck.

From my point of view, heavy goods vehicle with steel cover looks like giants on the avenue. Enormous and powerful are adjective I use in order to describe this transportation. Sometimes, a truck pass, I curious about products inside its container. How much it cost? A few cents per unit or it can be reached to a thousand per unit? How far and how long to deliver it from the factory? How have they organized the items, is it messy with plenty of space inside or is it so logical? Or even anybody has to sleep inside to take care of because it seems to be fit with 5 comfortable single beds. No one can know exactly answers my questions, honestly. I said no one, it means no-bo-dy, for instance, the cost only knows by a person who estimates the value of each product. Otherwise, the distance only determines by the driver due to we all know that from A to B we always have more than one way so he might be saving a little money for fuel because of a shortcut. Assuming that the products are arranged perfectly to ultimate space, which might depend on an IT guy who writes a program for a robot just do everything so automatically. In conclusion, the Giants keep many “secret” inside and nobody for all the real answers.

Mercedes is one of the most reputable car brands and the safety is the highest priory in all over the world. The product line which attractive me named “Mercedes Benz Actros” – the new benchmark for long-distance transport. The dimension of the truck length (Wheelbase part) x width x height is about 6 x 2.5 x 3.5m and the length truck-trailer can be from 13,6 – 21,42m (Data based on Article Workshop on LHVs, Stefan Larsson Director, Regulatory Projects, June 24, 2009, Brussels). So that easy to visualize, a common 5 seat car has length approximate 4-5m, so when we put the Mercedes Benz Actros with trailers can equal the length of 3-5 cars. The capacity weight can be from 45 – 60 tons (depends on the type of the truck)

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Understanding the oversize of the truck, the German engineers divide into 2 parts such as tractor and trailer, it’s an effective way to save space. The truck move without the trailer it looks like a joke for me, really entertaining. Because when I look straight to the head, its 2.5times higher than a normal car, however, the length is similar with a small “tail” 😀 I think about what can be rescued from that kind of pretty smart truck, and there are my finds:

  • The worn out of wheels, when the truck move only with a tractor, it needs 4 instead of weight and the pressure is lighter
  • Operating cost and transporting cost for logistic
  • Ultimate space, more personal or public transport on the road

Overview, this is a very clever innovation for a truck. And the last thing interested me, they actually have a truck race in EU in order to prove the strength, the speed and the safe for each type of trucks.

For more information (just in case you need)
1. Mercedes Benz Actros:
2. Advertising:
3. Truck race:
4. Weight and dimensions of heavy commercial vehicles as established by Directive 96/53/EC and the 4. 5. European Modular System:

How to give logistic and environment a turn of the screw with Logicopalet

Logicpalet, is a removable and mountable pallet made of plastic scrap. with which thanks to this invention we will achieve a reduction of organic and plastic waste, and help the environment by avoiding the felling of trees.

The Patent is based on a structure based on the combination of only two basic pieces, capable of being assembled and disassembled indefinitely, resulting in a Pallet.

These two basic pieces, multiplied in number and arranged in a given position (longitudinally and transversely), are assembled in a solid structure without requiring any other connecting elements.


The Logicpalet has a wide range of dimensions depending on the customer’s needs. We can take any measure. The damaged parts of the Logicpalet are easily replaceable. Since they are two parts.

Low logistics costs over long distances. Great savings in logistics return ratio of 1 to 4. With this we could use the space left over from transport to transport other goods. With this new idea we could achieve a greater benefit from the same journey.

Thanks to the reuse system of the recycled plastic pallet, we avoid the felling of millions of trees. Reduction of the totality of greenhouse gases emitted by direct or indirect effect of an individual, organization, event or product. It contributes to preventing Biological Contamination (Living undesirable organisms in an environment, which can generate different diseases).

The journey of blood donations

Do you know that every 2 seconds, someone in the world needs blood?

On the second War, in Vietnam over 58,000 soldiers were killed and 25% of them was died because of hemorrhage.
It’s fantastic when something from your body can really save a life without paying anything. Unlike the daily products, blood is a unique product as part of a billion-dollar business.

Blood donation not only good for donors health because they are actually at a lower risk for heart attack however it does not demand from everyone.
Due to the harsh conditional to maintain the quality of blood and it’s also a very meaningful product, I was curious about the supply chain of blood and the content below is what I found out about its journey.

Screen Shot 2018-03-05 at 8.03.05 PMFigure 1. The supply chain of Blood

The donations

  • Donor registers with a form of health check-list
  • About 1 pint of blood and several small test tubes are collected from each donor

Blood Center

  • Every blood units are poised in the bag test tubes and the donor record are labeled with an identical bar code label to keep track of the donation
  • The donation is stored in iced coolers until it is transported to a Blood Center

Manufacturing area

  • From Blood center, the blood packs are sorted and registered in the manufacturing area. Donated blood is scanned into a computer database
  • In here, each donation is tested to find out the donor group and checked for viruses to help ensure that each donation is safe to transfuse to patients.


  • This is one of the most important steps during the whole supply chain process
  • When test results are received, units suitable for transfusion are labeled and placed into controlled storage


  • Red Cells (which plays an important role in your health by carrying fresh oxygen throughout the body) are stored in refrigerators at 6ºC for up to 42 days
  • Platelets(tiny blood cells that help your body form clots to stop bleeding) are stored at room temperature in agitators for up to 5 days
  • Plasma and cryo are frozen and stored in freezers for up to one year


  • Blood is available to be shipped to hospitals 24 hours a day, 7 days a week.
  • Most deliveries to hospitals go unnoticed by the public but sometimes an urgent delivery may require a vehicle with sirens and blue flashing lights to get to the patient as quickly as possible. After some checks, the blood is ready to be transfused.

IMG_6769Picture 1. A patient is receiving blood in the hospital

Interesting knowledge of writing this blog:

  • Blood can be stored up to one year after the donation
  • Gay men or a man “slept” with another man can’t donate blood
  • One donor can save up to 3 lives
  • Vitamin K is to contribute to normal blood clotting. It plays a vital role to increase the speed of blood clotting at the site of injury and prevent major blood loss. Therefore, a nutrition for blood is vitamin K (especially K1 can be found in foods such as broccoli, carrots, kale, watercress, kelp, eggs and cheese)
NHSBT Blood supply chain
The donation process
Vitamin K
Hospital blood UK
What happens donated blood (Red cross)
How Does Blood Donation Work? (BBC)

Shot by a Bullet made in Germany


Yesterday evening I watched as usual the daily news on the internet and it has touched me emotionally to see the current situation of Syria. The newsreader reported that the Syrian government and Russian airstrikes started a new offensive against the rebels in East-Ghouta and even worse than this fact is that there are still thousands of civilians cut off and stuck in the battle zones.

Behind all these victims there are companies making profit with the supply of firearms and other war machineries. Besides the ethical topic of whether supplying weapons to third countries or not, the supply of these products often went wrong and the weapons never reached their customers or planned destinations. There is not enough security which prevents the cargo during the transportation and distribution of robbery for example. There is only a lose track of weapons and often a missing supervision by the delivering party.

The following video will give you an example of how the ISIS got delivered unintentionally by the U.S. air force with shells and other arms (I recommend watch the whole video, it’s short and very illustrative):

But how to ensure the supply chain?

Recently, the German government introduced a pilot project: post-shipment controls for German arms exports. This mechanism supports the actual tracking of the products and ensures that during and after the transportation (shipping) the firearms will be distributed to its destination. It is an inspection with stricter standards that requires certificates of the end-user and on-the-spot checks. The project in details:


The Netflix Era

A couple days ago, I was watching a TV-show on Netflix at home called Stranger Things (great TV show by the way…), and I was wondering… why is Netflix so appealing to such a large audience? If like me you are watching Netflix, you are among the 128 million users worldwide (this number doubled in less than four years!).

The Netflix Era:


Netflix has a really good supply chain, linking entertainment companies to end consumers in a way that has never been that easy. They went from renting DVDs by mail to delivering a service on the Internet. They now use a completely virtual (or digital) supply chain, which brings several advantages:

  • No lead time (subscribers can “consume” content whenever and wherever they want)
  • No need to manage an expensive network of distribution centers: this allows to cut costs and to develop more rapidly in any market having an Internet access
  • No need to manage stock: as it is virtual content, it can be streamed as many time as possible. Nevertheless, Netflix should update their inventory as soon as possible because movies and TV shows lose their value over time.

This supply chain strategy also has several risks that should be considered:

  • Upstream supplier risks: depends on entertainment companies to provide the content subscribers want
  • Downstream distributor risks: depends on ISPs (Internet Service Providers): some cable companies have complained that Netflix was increasing the traffic levels, and that they should thus pay higher fees.
  • Competitive risks: Netflix competes in a cut-throat market against companies such as Amazon (around 85.3 million users), and Hulu (around 32 million users).

This virtual supply chain also allows to easily analyze the data they are collecting. This helps to better predict what every users will probably want to watch. For example, if you watch a lot of action or superhero movies, it is highly possible that they will recommend you to watch Marvel TV Shows such as Daredevil. You can watch a short video on how Netflix uses Big Data:

Netflix does not only have a good supply chain strategy, but it also can be used in many different companies. For example, the way they use Big Data can be really useful for predicting future costs, future stock level but also to choose among several suppliers (You can see more about it right here:

So as you can easily understand, Netflix’s success relies on a well operating business model that connects suppliers to consumers on an “easy-to-use” platform that can be accessed anywhere at any moment. The next time you are watching your favorite TV Show, just think about it… 😉

Some facts about Netflix:

  • 128 million users
  • 1 billion hours of content per week
  • 10 largest Internet based company with $11.69 billion in revenue
  • 5,500 employees in 2017
  • In Canada, 56% of the Internet users have Netflix

Videos you can watch on Digital supply Chain:

If you want to know more on Netflix’s strategy  :


I think everyone have made this same question regarding how do the “Chinos” in Valencia keeps their inventory controls, for me it’s always a very big dilemma each time I enter to one of these stores and think about how a nightmare should it be to keep track to every single product they have in their stores. I observe that many products are identify with barcodes but at the same time there are many that are not. I also notice that their inventory controls are manual, there is usually a man counting and writing how many products are in the shelves, can you imagine how much time they must spent counting each product!! It’s crazy!! (can’t imagine their excell sheet) their products may have barcodes, but they do not fully use their advantages and uses, one of them is clearly having a lector and just scanning the barcodes, this make the process much faster, and with a good information system it can keep track of how many products enter the stores, how many are in stock and how many have been sold.

Working for GS1 Colombia for two years had taught the importance of the barcode identification (although there are many other types of identification). It’s really interesting now to notice the type of identification of different products, I’m usually turning over each product and trying to figure out from which country the product is and other details. Before this professional experience I didn’t notice at all the barcodes and didn’t fully understand the importance of them, how do they exactly work and their advantages, I realize most people are like that, and with this blog I want to explain in a simple way why they are important.

Can you imagine if we didn’t have any personal ID? How many Maria’s, Laura’s, Manuel, Javier are in Spain.. how could any institution can fully identify you, Height? Weight? Haircolor? It’s very difficult because there are so many people and so many differences. So, each country has a local ID number right? but what happen if you want to go abroad, you usually go with your passport number because that number is accepted in any other country.

Barcodes works the same way, there are so many different products and so many characteristics there was a need to standardize and make every business speaks the same language. People ask, what happen if I don’t want to use GS1 Codes and identify my products with an internal number, well, it works like the Local ID situation, it can works with your information system but if you want to share your information with other actors in the supply chain or sell your products in other countries, they are not going to understand the meaning of your internal number, that’s why is necessary to have a standardize number for the hole supply chain.

In the Chinos stores is like being back in the time where there was no barcodes and the local stores had to count everything manual, having no control over their inventory levels and having high human errors. Imgine big retail stores like Mercadona counting every product… in each store in Valencia..Imposible! Barcodes really had improve not only the retail industry but also the healthcare, foodservice, and Transport industry, in the Chinos store case they can improve their inventory control system only by using the barcodes that already come with the product and asigning barcodes to the one who don’t have and with a good barcode lector system, it can make less horrible their control process.

This is only one of the many advantages there are of using barcodes identification, inventory control. But we can find many other advantages that can make logistics process more efficient…. interested? stay tuned for next posts 🙂



Dynamic Inventory Control, and DHL supply chain solution



The purpose of logistics management is to deliver the right product to the right place at the right time and tries to account every conceivable contingency that could impact this delivery to the final customer.

DHL solutions design team offers a wide portfolio of experience and support, from logistics network strategy, transport design, warehouse design, and simulation, to operational improvement and inventory analysis.

For one leading international automaker, increasing the efficiency of inbound-to-manufacturing materials flow was the fundamental step in driving peak production performance. And with all the parts that go into a single vehicle, there was no room for a single stumble. DHL had developed a supplier integration system to meet just these kinds of challenges

Dynamic Inventory Control

Automotive manufacturing is a well-planned athletic competition. Every player needs to be designed and executed flawlessly by each member of the team. For one leading international automaker, increasing the efficiency of inbound-to-manufacturing materials flow was the fundamental step in driving peak production performance. And with all the parts that go into a single vehicle, there was no room for a single stumble.

DHL supply chain solution

Fortunately for this company, DHL Supply Chain had developed a supplier integration system to meet just these kinds of challenges. The system is a specialized in-house IT platform that supports common manufacturing operations — such as delivery sequencing, metering, and replenishment of open-bin supplies — for inbound-to-manufacturing automotive environments

DHL Supply Chain worked closely with the customer to implement a tailor-made, web-based supplier integration system. It links all of the company’s global supply chain partners into a flexible, real-time production schedule that streamlines information flow and reduces waste.

With support and training at both the implementation and ongoing operation stages, the system provides much-needed visibility and inventory control.

 This Link will describe more about This Case With DHL: 


HelloFresh – Home delivery of Food Ingredients

Logistics has long been a part of the business strategies of companies and is indispensable nowadays.

The purpose of Logistics is to plan and organize and implement the bridging of the dimensions of time and space within a system. Due to that, Logistic is one of the most important functions of an enterprise.

For this purpose, the seven R´s (Figure 1) are the central tasks of Logistics.

seven R´s

But also in the private sector, these seven elements of Logistics should not be ignored.


Lately, companies like “HelloFresh” exploit the current market situation, in which it is important for the society to save as much time as possible. With their business idea, which is mainly to save time for the consumer, they placed themselves in the market.


Their main concept is to offer recipes and the necessary ingredients for the respective meals. Additionally, the delivered ingredients fit to the chosen amount of people as well as the amount of meals. So, the customer has the possibility to choose between 2, 3 and 4 people, and between 3 to 5 recipes per week.

They deliver the right ingredients in the right quantity, with the right quality to the customers home, at the right time and the right costs for the right customer. (remember the 7 R´s)

This business concept has the advantage of a huge time saving aspect for the consumer. The times in which the customer had to spent time in supermarkets and on long supermarket checkouts, as well as the times for finding new ideas for healthy and delicious meals are over.



Logistics as a part of my everyday life / Inventory Management

Inventory Management is a part of Supply Chain management/Logistics.  It is supposed to keep track of what goes in and what goes out of company’s inventory. The inventory can be separated into a stock area of the single components and an area for the finish product. In total this would mean that there are two “Stock In” and also two “Stock Out” sides. The first “Stock In” is for the incoming single components or raw materials of the product that is manufactured in the company whereas the first “Stock Out” is from the storage area of single components to the production department. The next “Stock In” is for the finished product going into the storage area and the next “Stock out” is from storage to sales department. There are several ways of performing Inventory management. Especially big companies use software based Inventory management. Three possible Methods are for example:

  • Stock Review
  • Just-In-Time methodology
  • ABC analysis

Why am I talking about this topic? Because today I realized that inventory management is part of my daily life. For example, let’s assume I own and run a company that is active in the “Sandwich Assembly” business. In order to be able to consistently put out sandwiches of the same quality, it is necessary to always have a complete stock of all the single components like bread, salad, ham, cheese and in my case also mustard. So all these components are procured from a supplier (mercadona) and are delivered to me also by me. So there is a product flow from mercadona to me and a financial flow from me to mercadona.  These products resemble the raw material coming into my storage area for raw materials and are then assembled for the later distribution to the consumer.  Now if I wouldn’t keep track of my stock and would run out of one component, my customer would not be very happy so I have to always know how much of each material is in my inventory and when it is time to restock on a single component. Now let’s get back to that mustard that started this whole thing. I just realized that my mustard bottle is actually helping me keep track of my mustard stock.


It tells me when I am half down and also when it is time to go out and buy a new bottle. This greatly helps my ability to produce sandwiches with the quality my customer expects and therefore it (hence inventory management) is crucial for the success of my or any company. Sadly, I am my only customer so my business is not very lucrative but nonetheless it is a great example of how the very basic aspects of logistics are a part of my everyday life.

KFC runs out of chicken: Is the end near?

The chicken crossed the road, just not to KFC restaurants

Fancy some fried chicken? No problem, go to KFC, the world’s second-largest restaurant chain (by sales), with almost 20,000 locations globally. It is so popular that in Japan has become a tradition to have the christmass meal there, and getting the KFC special Christmas dinner often requires ordering it weeks in advance, or wait in line, sometimes for hours.

So now imagine yourself waiting for your traditional christmass dinner at KFC with all the family together, just to realize there is no chicken, destroying all the magical spirit of the christmass. Well, something like that has happened in the UK (maybe not as tragic), as more than half of the KFC restaurants in the country, over 600, have run out of chicken.

The 14th of February hundreds of the UK branches were forced to shut their doors when their chicken supply stopped. DHL, in partnership with Quick Service Logistics, took over the KFC supply contract from long term partner Bidvest Logistics, food distribution firm with years of experience that has been succesfully working with the brand for eight years. The new delivery company struggled to cope with supplying 900 shops.


The root cause of the problem is still uncertain, and it is not known yet if it’s a supply/stocking problem or a distribution one. The fact that there are no other companies that are lacking chicken shouldn’t make us think it is a transportation problem and discard a supply one.

It takes 8 weeks to raise a chicken, and chicken farms will be very careful not to hatch any surplus chickens that then crash the wholesale market in eight weeks. KFC don’t use a single supplier, so no chicken supplier can forecast the KFC demand on their own and so rely on the forecasting from KFC to plan production. So if the forecasts were messed up, then a long running shortage for several weeks is possible, unless KFC authorizes expensive and potentially out of specification purchases from the wholesale market.

We can see in this blog lots of interesting articles about how logistics work effectively in different business, but articles about what happens when things are not done well are far more scarce. Due to this error in the logistics, KFC is having huge loses on the UK, and it is not known if the contract will return to Bidvest.

Time will tell.