Means used to deliver services
Of course, this steamers, along with some steam machines and this beside the people walking on .. In 1915 the company has become “four cars steam … Five motorcycles …. 20 man walks on foot ”
After the company became active in areas other than the city of Style only, in 1919 the name of the company had to be renamed “United Parcel Service” and the quality of service was the basis of the company and the key to the continuation of success. This new name also came to emphasize that UBS is a short or famous name for United Parcel Service
UPS is now an international company with branches all over the world that deliver goods and parcels to customers and have expanded to become the fastest-moving aircraft carrier. Today, UPS has the world’s largest fleet, with its fleet taking 8th place in size The number of aircraft “237 aircraft” .. The countries that serve it has reached 220 countries … The shipments that connect them amounted to about 15 million shipments per day.
-UPS Air Lines -UPS STORE UPS – UPS Express UPS – UPS SHIPPING U
Exactly, “machines that build machines”, the Gigafactory of Tesla and Panasonic, located in Sparks Nevada, EEUU and operating since 2014.
It is being built in phases, in order to produce as the construction proceeds and obtain better yields. The facilities of this factory, occupy 180 thousand square meters and 492 thousand square meters of functional space in various heights. The construction is 30% completed, producing the main 3 and Y models of Tesla cars. But at the end of construction is expected to produce 500,000 batteries for for different models of electric cars.
It will be be the largest building in the world, looking to reduce the environmental impact with self-sufficient energetically through solar panels, windmills, and geothermal systems.
Elon Musk’s (co-founder and Chief Executive Officer of the company) believes that electric vehicles must be produced in large volumes in order to reduce costs, this production must be located in the continent where the consumers are.
Here is the video of this amazing building, ¡Enjoy it!
In today’s economy, e commerce has become a point to consider for every business. Step by step it has started to be a necessity for every new organization as small or big as it might be. It is because of this that is so important to find and choose the right supplier for your deliveries, as a sender or a receiver.
First of all is to finde someone with a good reputation. As in any other service, your history with your clients makes you a name and generates expectations and hope among new customers.
Next is to be completely aware of your own necesites . This is the most important part in order to make a decition. With this in mind you can actually match your expectations with the service offer for each supplier. Do you need to get something fast, or maybe have a special delivering? Can you wait at home or need to have some flexibility?
Quality before price. Make a complete research about the service reviews of the possible vendors. Review terms and coditions, devolution process, customer satisfaction, etc. When managing or expecting deliveries most of the time it is better to pay a little bit extra for that extra service.
All of this translate in satisfaction for you. To have your packages in time (your time of choosing) at the right place (your place of choosing), making your life easier, at a reasonable price for you, your needs and expectations.
Amazon has announced new self-driving robots, and revealed that six of these robots will deliver the packages to customers in a neighborhood in Sinohomish County, Washington. Support each six-wheeled robot to be able to walk easily, and provided with powerful batteries, to be able to deliver packets independently.
Amazon confirmed that urban or suburban residents would not have to worry about colliding with the robot on the street.
Each robot supports a door to make it easier for users to open it to remove their own package. It is not clear how robots check user identity, but other independent delivery robots require users to enter code on the robot’s touch screen first before they can get their package or Their goods.
Currently, scouting robots will deliver the packages from Monday to Friday during the day, said Sean Scott, vice president of the company through the official blog.
The way they work now is that these devices will follow their delivery path independently, but will initially be accompanied by an Amazon employee. We developed the robot in our R & D laboratory in Seattle to ensure safe and efficient mobility around pets, pedestrians and anything else in sight. . And to provide greater sustainability and convenience to customer delivery.
In addition, the logistics system achieves global efficiency in both on-time delivery (JIT) and global quality components.No doubt, all of these features of the logistics will create an unconventional advantage that can be called the Logistics Advantage, a feature that makes the commodity competitive in global markets.
1) Importance of logistics:
Logistics activities include 14 activities, including transportation. Statistics indicate that transport logistics costs alone account for about 10.5% of the world production cost.
It was considered that developing countries, including the Arab Group, had no interest in logistics, nor was there a precise study of the cost of logistics for foreign trade in any of these countries. Therefore, a significant rise in the cost of producing goods and services in these countries As a result of the physical and human return of the products of these countries, which is losing them competitiveness in the global markets.
2) Total quality as a tool of logistics:
Quality is a cornerstone of the logistics process, and the close relationship between logistics and quality has a long-term economic impact.
3) Logistics feature:
What is important here is how to create the logistical advantage through the logistics chain by controlling costs in all 14 cycles by regulating the productivity of the equipment and eliminating the material and temporal yield, and the administrative, documentary and legal procedures required, which reduces the cost Production to 50%.
4) Relationship of logistics advantage to competitive advantage:
Porter’s theory of “comparative advantage” was considered a substitute for the theory of comparative advantage. The study concluded that the “logistic advantage” is not the “competitive advantage”. It is the alternative to Ricardo’s comparative advantage theory based on The Logistics Value Chain is the only one that can create logistics value in a way that coordinates supply and demand. It controls the flow of internal and external materials, so that we get the commodity in the right quantities, in the right place, in a timely manner and at the right cost.
For example, especially online shops often outsource logistics to 3PLs. The influence of the logistics chain in the customer experience is often underestimated. It is no that much about the client getting his goods fast, complete and undamaged. This is obligatory nowadays!
The big challenges for both company and 3PL are for example that the status-mails of the shipping company appears in the corporate design of the retailer, when the packaging has the same design frames as the shop and also the invoice. The client should be sure at every point of time that he is in direct contact with the retailer.
Of course, the details of the interaction depend on the business model of the retailer: For example, clients who order perfumes online attach more importance to an elegant packaging than those who buy washing machines. For these clients, it is more important that the machine is delivered in time, without any damage and that the shipping company takes the packaging and the old machine with them.
Another aspect that is underestimated about outsourcing is the danger of losing the contact with the clients. Only the companies that are doing the picking and consignment by themselves, can always be sure how the package is going to the clients. If such processes are outsourced to 3PLs, exact agreements with the 3PLs about packaging, filling, documents and attachments have to be done and the compliance with them has to be tracked in order to avoid failures as in the picture.
The same is important for communication that accompanies the shipping. If the shipping is outsourced, a good reporting is essential. If not, criticism about too long lead times, unclear invoices or bad support never gets to the retailer itself.
In order to make sure that a good customer experience is maintained, even if logistics services are outsourced to 3PLs, a company can undertake certain measures like agreeing on exact contract with 3PLs and conducting blind test orders.
Most of us known that today is a very important day for Spain, because it’s Spanish election year, we are going to chose our new president, who will represent us for the next four years. These process has a tremendous logistics to organize everything, and sometimes people are not focused in how important all of these is.
The government delegation in the CV has prepare all the logistics devices in all the “electoral schools”, so everything is ready today for the citizens who have been elected to stay in the “electoral schools” to go to the school and open the doors, starting in that way the Electoral process.
There lot’s of things to have in consideration, in Valencia there are 3 million 657 thousand of people that are going to vote, these takes lots of issues in consideration, from the one point tables, booths, ballot boxes, ballots and envelopes are really important to ensure that everything proceeds with absolute normality. And from the other hand national police, regional police, civil guard and local police will be more than 11 thousand in CV.
The Sub-secretary of the Ministry of the Interior, Isabel Goicochea, explained that the electoral bugged has been divided into four parts: Public administration, electoral logistics, postal operator and dissemination of official scrutiny and telecommunications. The total amount of money that has been expended amount to 138.961.516,72 euros.
In the following link we can find a video that explains the distribution of the budget for the General Elections:
Correos is a company with 100% public capital, whose owner is the Spanish State. Correos is the main nucleus of the group’s activities through the provision of universal postal service to all citizens and is at the same time the reference company in the Spanish market, one of the most liberalized in the European Union.
Correos has been chosen as the most attractive logistics company in Spain to work. It’s the second consecutive year that these company obtains that valuation, according to the Randstad Employer Brand Research report elaborated from more than 7,200 surveys nationwide.
In the light of the growth of electronic commerce, the development of parcel logistics is one of the most promising areas in a digital world and Correos has been able to adapt to the new times and transform itself to remain a benchmark in the logistics sector of the commerce, digitizing processes and innovating in new tools.
Electronic commerce has grown exponentially in recent years. In the global market it grows 17% in 2017 and only in Spain the turnover of electronic commerce increased almost 25% year-on-year, reaching 6,756.9 million of euros.
Due to the change in consumer habits, Correos has adapted their strategy and invested in commerce to get closer to their customers. Commerce, drones, robots and new systems that make it possible to streamline the supply chain and allow companies, especially packaging, to approach their biggest challenge: the last mile.
In the following video we can watch an example about how Correos works:
i was thinking about companies that have a huge amount of inventory how they manage their stock and what are the best ways to manage them , I have searched how these stores will form in the future to help those companies to manage the stock in the best way.
the grocery warehouse they service stores with dry good items they receive directly from the manufacturer and stock items and then deliver them to the stores by their request.
They take those pallets, load them up in conveyors and then the first robot would take that pallet apart layer by layer. Those layers would then be broken up into single case quantities and then stored within the structure by the next set of robots.
They then receive the customer’s order and they would give them an order for coffee and for peanut butter and mayonnaise and whatever else they wanted. Those cases would then be retrieved by the bots, and then brought out to a third set of robots, which would then build the customer’s order in a pallet to their specification. The system can cut labor cost by 80% and reduce warehouse size by 25% to 40%.
People do not handle the products in the automated system. On each shift, they have five to six associated out on the floor that are monitoring the system and there to resolve any issues that come up and keep the lines running. Its running essentially 20 to 21 hours a day, its seven days a week. The reason we can store things more efficiently is because they really don’t have any barriers to store one product next to another. They can store it as needed to get the most efficient through put in the system.
I want to tell you about this issue because the other day I was driving on the Ademuz Highway and I saw a large sign on a ship at Quart de Poblet (Valencia): MERCADONA ECOMMERCE.
I have decided to investigate on this subject and I’m goint to tell you what I’ve discovered:
In addition to the technological limitations that it has (for example, it has basic web design and it also can not be used in mobile phones, because the interface is not practical…) there are other much more serious ones, in my opinion: at the moment this service is only in Valencia and not all Valencia’s areas have access to it.
And here what is interesting for us: the orders of customers who buy on this new website won’t be prepared and sent from the chain’s physical sales points, but will be managed from different logistics centers (which it has named « hives ») scattered throughout the country. So the “ship” that I saw in Quart de Poblet was a “hive”, a logistic center! It is a logistics center of more than 12,000 square meters, in which there are different products (fresh, cleaning, frozen, packaged, etc.)
But, following the limitations of this new form of business: users are forced to make a minimum purchase of € 50. Also the shipping costs are € 7.21 and it is not delivered on the same day!
So … why does J. Roig say that this business was going to be based on Logistics?
Hi all! I have been thinking about what topic choose to write about.. and researching on the internet I have found something interesting. It’s a different topic than what we usually write here but I think it may be good to know about it.
There is a famous fair of congresses in Barcelona (Spain) focused entirely on Logistics! More specifically, the sectors that are present are Logistics, Operations, New technologies, software, E-logistics solutions, Handling systems, Payment solutions and privacy and legal services and Consultancy.
In this place more than 50 companies from these sectors and more than 500 attendees of the e-commerce industry, retail and delivery, meet to discuss the latest trends in the sector. Also they hold congresses, business opportunities arise, new clients, many CEO of companies, investors, it is also an opportunity to solve your doubts, obtain information of the sector, big brands come, know about innovation and so on.
In the previous edition, very interesting ideas emerged. I’m going to mention you the ones that I liked the most:
ELIOPORT (That during this event won the Best Startup Award from eDelivery Barcelona): It presented a last mile delivery solution by providing a fleet of self-loading and unloading terrestrial robots. These robots can travel in public spaces on pavements to cover a distance between the final logistics point and the customer’s home. Also a system of gates to receive the orders in the homes of the clients.
SCOOBIC (which received the Best Innovation Award): it has managed to create a 100% electric scooter with the load capacity of a commercial van.
What do you think, guys? If Josepe teaches us to be a good logistics professionals maybe one day we can be there with our company … and if we don’t, we always have the option of be a simple visitors 😛
In its simplest form, “e-commerce” is buying and selling of products and services by businesses or consumers over the internet. People use the term of e-commerce to describe the process of searching for and selecting products in online catalogs and then purchasing by using a credit card or encrypted payment processing.
In the age of “World Wide Web”, multi-story shopping centers are dramatically coming to a close with the rise of e-commerce. Over the last decade, technology has inspired an online retail boom that has benefited some retailers, while leaving others helpless. With the younger generations embracing smart phones and tablets, e-commerce’s role has shifted from an untested frontier to a vital pillar of the retail industry. Emerging markets will also play a key role in the future as the demand for smart phones and tablets will grow alongside a burgeoning middle class.
Since e-commerce business has been rapidly growing and expected to grow even more, it also became a major factor on changing the shape of global logistics industry. Decisions such as physical locations of warehousing and whether to fulfill e-commerce orders from separate facilities, in-store, from existing warehouses likes of Amazon, eBay and Newegg.
Logistics is already widely regarded as a crucial piece of a successful retailer’s business plan and its role will be even greater as the e-commerce increase continues to unfold. This is due to the fact that an efficient supply chain will allow a high level of service to be provided across all channels. The acquisition of the right DC that is in close proximity to major populations is also an increasingly difficult task for retailers because of the limited number of supply and the increase of demand. This is why numerous retailers opt to partner with 3-PL firms that can supply fulfillment services required. It will be seen as a competitive advantage as consumers begin to value time over reliability.
Managing the delivery process is also an increasingly difficult task as delivery locations from warehousing/fulfillment centers are no longer confined to physical stores. Now, these facilities are shipping either directly to the customer, a neutral site (such as a lock-box location, FedEx/UPS store or other retailer) or to the physical store for pickup.
As such, IT companies such as High Jump, Red Prairie, Oracle and others have expanded their traditional warehouse management systems (WMS), transportation management systems (TMS) and other IT solutions to meet this need for flexibility, for not only changing transportation needs, but also for order/inventory management and visibility.
Due to e-commerce, an inevitable market shakeout awaits the transportation industry. The number of transportation and logistics e-commerce products proliferates daily.
E-commerce has spurred, not only new concepts and ideas within the supply chain, but also new companies are popping up to address logistical challenges resulting from the rise of e-commerce. It’s no longer about being the fastest one in the e-commerce delivery race. Instead, it is about being able to deliver an order at a time frame and price point that customers want.
The supply chain management has been achieving meaningful importance nowadays due to the increase of trade globally, a fact that complicates every stage of the supply chain in every company. A large number of operators through the supply chain, increasing and huge demands, more and more consumers… All these factors affect the way the companies manage their logistical operations, and today we are going to talk about a phenomenon that could appear in the upstream levels of the supply chains: the Bullwhip Effect.
What does it consist of?
The bullwhip effect is the trend that drives to an excessive inventory and order fluctuation at the upstream levels. The imbalance begins because each member of the supply chain makes a demand forecasting based on the order information of the previous member of the supply chain instead of the real demand of the market. This fact usually occurs when the orders flow from the retailer to the wholesaler and then, from wholesaler to the producer.
To be more clear, here you can watch more visually how the bullwhip effect is produced:
Lack of information between suppliers and intermediate buyers.
Operation without a predetermined order in the production orders, generating volatility in the shipments.
Possible periods without the demand for the goods.
Possibilities to take advantage of wholesale discounts, generating problems of time.
Inflated or strategic orders, taking advantage of conditions or market opportunities.
Uncertainty in the supply, which can generate unnecessary orders.
How can we combat against the Bullwhip Effect?
Looking for constant demands through the elimination of offers and discounts for the customers.
Improving the communication of the information in each level of the supply chain thanks to the centralization.
Increasing the efficiency of the order management.
Improving the technology of information that every actor uses along the supply chain.
Furthermore, as a way of expanding this interesting concept, there are more implications than the fluctuations of the orders along the supply chain, and this effect could be positive in other ways and situations. I am talking about the “Green Bullwhip Effect“, which is based on transferring environmental requirements along the supply chain. For more information, you can click on the link.
On the road, in a supermarket, in the emergency room, in the bank, in the chair lifts, in a concert… Everyone has had to wait in a queue. It is true that, studying on this subject, you realize that in this society of immediacy and new technologies there are things that refuse to change. Like the queues, that waiting ordered in a row with the common goal of reaching a point to get something.
Some studies calculate that in the 21st century we spent four years of their lives queuing up. It is a sample of order without any written law, those rows of unknown persons with civilized conduct waiting for their turn to arrive.
The strategy:A single queue, in the form of a snake, is better supported than several rows without order
There are some remedies so that the wait does not seem so long and to “cheat”, creating the perception of losing less time in a queue. It is a reality that when a person is busy, the perception of time is less. To avoid despair, it has been shown that reporting the remaining time in the queue, is effective so that “time runs faster” (When the first skyscrapers were built in the US, many people complained about the time lost in waiting for elevators, it was solved by placing many mirrors in those areas to entertain them.)
Many of the queues that steal, on average, four years of life, are inevitable. There are companies aware of this. A well-known case is the Houston airport. His passengers complained about waiting in the luggage tapes. They hired more staff and the situation continued. The solution worked to keep the planes away from the baggage claim area. The passengers had to walk a lot more to get to the tapes. So that time was not as long as before.
Time stops: most believe that the delay suffered lasts 30% more than the real time lost
One of the advances in psychology of waiting is the idea of forming a single queue, shaped like a snake. Staying in a single queue will be longer, in addition all people follow the same path, have the feeling that nobody is going to skip the line and respect the turn. The opposite of when different queues are formed in a straight line. You have the feeling that the row in which you are going slower than the one next to you. Anxiety appears when there is a certain disorder in those ranks, which some people take advantage of to advance positions without respecting the turns.
From the reward to despair there is only one step
There are factors that contribute to waiting in a queue leading to despair: – Waiting alone will become longer than if we go accompanied. – Very few people get out of a queue when they have more people behind them, no matter how long they have to wait. – The multiple queues increase the anxiety pictures by giving the feeling that the shifts are not being distributed with justice, because each row progresses at different rates. This situation has even name, the Erma Bombeck law: “The other line always advances faster than ours”.
In the last session of our Service & Sales course, our professor stated that “partnerships with distribution channels and suppliers create extra value for its customers”. And also, our Logistics Professor said that outsourcing of logistic services as a very intelligent decision in many cases. So, I asked myself, what exactly are the advantages of outsourcing logistics external companies and how can extra value for the customers.
Third Party Logistics Service Providers (3PLs)
First of all, different classifications of Logistics Service Providers have to be understood. In this case, I am talking about “Third Party Logistics Service Providers” (3PL). The 3PLs offer complex solutions, they do not only take care of transportation and distribution, but also of warehousing. Because of the high complexity of logistics, in many cases 3PLs are also providing additional tasks, so called “value-added-services”. The can integrate parts of the supply chain, for example the customs clearance, order taking, or billing. They can also offer the assembly, packaging and labeling. There do also exists “Fourth Party Logistics Service Providers” (4PLs) which can be defined as supply chain integrators. The different layers of logistic service providers are explained in this video, the focus on 3PLs is at minute 2:37.
So, what are the advantages of outsourcing logistic services to 3PLs?
… save costs and time as 3PLs can work significantly more efficient due to their size and experience.
… reduce the committed capital by using the 3PLs warehouses, fleets, technology, etc.
… focus on their core-competences as 3PLs take care of logistics.
… create flexibility when the customers demand is fluctuating as they us3 the 3PL´s warehouse
… profit of the experience, know-how and networks of the 3PLs.
All these advantages seem quite logical and are the obvious consequence of using the whole logistic resources of a “Third Party Logistic Service Provider” which basically uses the concept of Economies of Scale.
But, how can a company create extra value for its customers by outsourcing logistic services to 3PLs?
The extra value for customers is basically created due to two main topics: Geographical coverage with fast deliveries and customer service improvements.
Geographical coverage with fast deliveries:
By outsourcing the logistic services two a big 3PL, smaller companies that may even be located in other countries can cover other regions and countries as well. Due to that, they can not only reach more clients but also deliver much faster to their customers. 3PLs can offer flexible models like express delivery for additional charges. The following image show online shops from Austria and Switzerland that can quickly deliver to customers in Germany.
Customer service improvements:
Big 3PLs usually provide access to advanced logistics technology for the companies. By using this technology, the can improve visibility, create aid-process efficiency and meet the customers demand for real-time information. An example for this is real-time order tracking. Also reverse logistics can be realized very easily via 3PLs and so creating extra value in speed and efficiency for customers. Another example how customer service can be improved by outsourcing logistics services to 3PL is the customer service on shipping. A small or mid-size retailer does usually not have the means to provide a multi-lingual customer service – 3PLs do.
Friday’s class talking about warehousing and its design I decided to
investigate, as an electronic engineer, about automated warehouse’s design.
I found a
really interesting company, AR Racking, which is specialized in designing,
manufacturing, calculating, and installing industrial storage systems for heavy
One of its
storages systems is the automated warehouse for heavy loads with automated
access to unit loads too. They difference two types of automated storage:
warehouses for cartons
The second one it has drawn my attention, they have a particular storage system for mini loads related with cartons. The mini load automated storage system is the optimal solution for the storage of light and small unit loads with high stock turnover ratios. The system is using automated stacker crane mechanisms to handle loads, offering high performance and reduced carton storage and handling times.
is based on reducing operational isolation and maximizing floor and height
space to be considered high density.
allows the daily inventory of stored products and minimizes errors when
advantages that I can see of this automated warehouse design are:
great density of storage
storage in different heights
of the warehouse expanding up to a lot of meters high
That’s right, better known as Volvo Vera, totally electric and autonomous concept for companies that need transportation on a permanent basis in their fixed terminals.
How does it work?
Each of these vehicles is connected to a control center, where the progress of each transport and its measurements such as battery charge, load content, service requirements and other parameters are continuously monitored. From this same control center, the speed and progress of the operations are adapted in order not to have delays or contingency situations so that the operation is efficient.
The vehicles that operate on the same route, cooperate with each other, in order to optimize the delivery and create an optimum flow. All the vehicles are designed to be able to locate their position every moment with millimeter precision, they control the operations with details, analyze what is happening outside on the road with sensors and respond with accuracy.
The system allows greater flexibility and productivity, with greater precision in deliveries in places such as ports and large logistics centers including intermodal terminals. Currently, the needs of the logistics and transport sector, demand solutions that guarantee the continuous flow of goods at the same time, seeking protection of the environment.
Volvo Trucks with its Vera concept, in which automation, content and electro mobility technologies are developed, is aimed at habitual and repetitive operations that contemplate short distances, large volumes and high precision in delivery. Although it is currently a concept, it is the beginning of a new Hera in terms of autonomy and electro mobility in large-scale logistics centers.
For Volvo, the intent is to offer its customers transport solutions without problems and concerns.
floating train crossing Japan at full speed. Its wheels do not touch the
ground, it is a dream that comes true, but as the years go by, Maglev continues
developing fastest trains.
Maglev SC or Superconducting Magnetic train has been developed by the Central
Japan Railway Company and the Railway Technical Research Institute since the 70s.
operation is based on magnetic impulsion, capable of creating a powerful
magnetic field that acts between the cars of the train and the way it moves. Plaza
Mag-Lev is composed of “Magnetic” and “Levitation”. This
allows the train to float in the air thanks to an electrodynamic suspension
system better known as the EDS system. The rails have two sets of crossed coils
of “eight” that create an electromagnetic modulation. The train, on
the other side, carries superconductors magnets called “bogies”. When
the train is stopped, it rests on the rubber wheels.
it starts to run.
you start your journey, the train moves slowly over the lines making it
possible for the magnets located under it to interact with the ones on the
road. Once the train reaches 150 kilometers per hour (93 miles per hour), the
magnetic force created is powerful enough to raise the train by 10 centimeters
from the ground, eliminating friction and allowing the speed to increase.
same magnetic outside that raises the train, ensures that it advances and stays
balanced without leaving the road, which makes the trip extremely fast but
pleasant, smooth and exceptionally safe.
The maximum speed of the Maglev today
April of 2015, a superconducting train Maglev broke the two records of existing
speeds of vehicles on rails. The train was timed and reached 603 kilometers per
hour. A speed is superior to the maglev trains of shanghai china and South
Korea that run between 268 miles and 311 miles per hour.
At present, they have built different types of Maglevs which are in Japan, China and South Korea, by the year 2027 it is expected that the Japanese Maglev will cover the Chuo Shinkansen line to unite Tokyo and Nagoya. This journey is scheduled to take approximately 40 minutes. Less time if you fly from one city to another.
After reading about this breakthrough we can appreciate the
importance of research, technology, and innovation in all areas. It is
impressive how the logistics are present everywhere. As throughout the years,
travel times from one place to another have been shortened considerably.
If you are passionate about trucks, you work in the
transport sector, at some point you asked yourself how they are manufactured,
how is the assembly process, because I will tell you here.
In this occasion, we will focus on the Mercedes-Benz Actros truck, which is produced in the Daimler facilities in Wörth am Rhein, with around 3 million square meters. It is the world’s largest truck assembly plant.
To move from one side to another is very common to see
workers traveling by bicycle in kilometric corridors.
This factory has a complex design that is divided into two
zones. The first, chassis assembly line, mounted along the plant transversely,
is a chain of approximately 600 meters long where 6 hours of work are dedicated
to each unit.
The technology used in this factory, is advanced, use lasers
to mark the plates of the chassis, this is so that the workers, at the
beginning of the assembly, can know the measurements of screws, couple to use,
place of assembly of each piece, etc. In parallel, the second zone is located
the body assembly line, with different stations or work units such as cabins,
paint, interior, accessories, etc. Later in the last unit of the second zone,
it is aligned with the first one to later take out the final product.
The production of trucks is still more complex than the
production of other vehicles, due to the level of personalization of the same,
each client has special requirements (a la carte) which means 2400
combinations as load capacity,
motorization, power, torque, motor box relationship, chassis design
configuration, and others more. It is for this reason that it can not be
produced in masse.
In Worth am Rhein, 400 trucks per day are produced, that is,
25 trucks per hour and 80,000 trucks per year.
The Suppliers, this factory is supplied with 4000 pieces per
truck, which translates to a wide range of suppliers 4000 to be exact. And this
is why 1000 of these suppliers, have their plants “in situ” wall to
wall with the factory of Mercedes Benz.
The logistics of this factory, has such a high level of
complexity, that it took 2 years to adjust the elements to the needs of the new
vehicle Actros, and during this time, the production continued but mixing the
chains of assemblies with a vehicle and other.
I love this video because it shows me how do such giants warehouse distribute customers orders in the picking station and, if you focused on the detail, the position of those boxes are well setted ,there’s nothing special but make it square with robot pallet size.
Some employees who work in IKEA was asked why do you feel happy in such a giant warhouse facing with those robots every day?
A single mother replied that, they are just few workers(average to 100)here, but the automatic order-picking eliminate some kind of work and task which they were supposed to implement before.Now, she has time to send her kids to chirldren and accompany them somehow.
Automatic order-picking system reduce orders preparation cost and numbers of personnel working in warehouse. Some of the benefits like control inventory management well, less risky in peronnel safety problem and, make the pallet more precisely.
It has been using more commonly nowadays, such an advanced technology drives logistic supply chain developed more resultful.
As a division of supply chain segment, transportation is the only way to meet customers instant gratification and it’s needed to be calculated well for the same-day delivery, which enables the core operations function in an effective way.
Quantity, pallets, movements are relative key words in transportation management. A good transportation management can help removing the unnecessary shipping expenses and others resource outputs. On the other hand, time management has been improved somehow, because customers may consider deliver time is a partial of customer service and is very important.
While not each product can be distributed by ship, bu bus or by plane etc..Just because of its distance, price and product itself attribute(eg: fresh products). In another words, when products are shipped, they are supposed to be put in a suitable,cheaper, safety and faster channel. However, optimized routing can save time and money.
Queue or waiting in lines is something everyone does and waiting lines are encountered everywhere. When queue management works, your contact center is a healthy organization that represents your company in a positive light; but when queue management fails, your contact center is infected with the “contact center disease” – hold time. When implementing an intelligent Queue Management Strategy, contracting the “contact center disease” or hold time will be avoided, which will increase customer satisfaction and reduce your contact center costs
A SINGLE-LINE QUEUE…
Has shorter average wait times. It can look like a single-line
queue comes with a long wait, but compared to multiple lines, people are
standing in one line for a much shorter time than if they had chosen from many
lines. You’re not at the mercy of the customer in front of you or a slow or
chatty cashier. The service points are staggered so the entire line benefits
from a single fast cashier and the agony of a single slow customer is spread
evenly among all who wait.
“First come, first served” is inarguably the fairest way for a line to form. When all customers are standing in the same line, the perception is that there is no doubt who was there when and who should be getting attention before others.
A MULTIPLE-LINE QUEUE.
The customer has greater flexibility in a multiple-line queue
because they get to select the line in which they want to stand. Providing
they’re not of the jockeying nature, having the power to choose can make a
customer happier because they’ve selected where they want to be and aren’t
feeling forced to stand in a single line.
When there is one line, serpentine or straight, long or short, a customer can feel trapped by the thought of being at the mercy of only one waiting option. Multiple-line queues maintain the illusion that there is more service available and, therefore, worth the wait.
It’s possible to argue both sides of the coin when it comes to
choosing a single-line or multiple-line queue configuration. What ultimately
matters is what kind of queuing system works best for your business.
Rail transportation produces 3,5 times less CO2 emissions than road, reduce our dependence to petrol and is a very safe way of travelling. Since 1992, the European Commission is trying to foster the transportation of goods by rail by liberalizing the sector or encouraging interoperability and security in the Union, without obtaining significant results. Here is a short summary of some problems freight has to face in Europe.
First issue : The technical differences from a country to another
Even if most European railway have a rail gauge of 1,435 mm, this isn’t the case of the Iberian peninsula, Russia or Ukraine for example. At a time were Europe wasn’t a peaceful continent, it had a goal: prevent your enemies to invade your country. The electrification systems are also very different, as well as the signalling systems (19 different ones in the EU), the loading gauge (the width of trains, essential data to pass through tunnels), or the platforms height.
Second issue : The cost
Besides important fixed cost due to high
loading and unloading costs, freight trains have to pay a certain amount of
money for each kilometre they make on the infrastructure, which isn’t always
the case on the road. It contribute to raise the cost of the rail, when at the
same time trucks aren’t paying for the « damage » they occur to a
Third issue : The time
Transporting goods by rail takes time. The
average speed of a freight train is 18km/h in Europe, due to several factors:
the bad cooperation between countries to organize the allocation of trains
paths, the interoperability issues, and the bad quality of the infrastructure, This
make rail an impossible option to choose for transporting perishable goods and
a bad one when you need a fast and punctual delivery.
To conlcude, railway freight could represent a great alternative to the transportation by road in the EU, but it has to face some important challenges which cannot be solved at a national scale. We can only hope that the rising environmental requirements will contribute to develop the quality of the service and initiate a significant modal transfer.
I like it especially because it defends the automated model (with robots). Ikea can pack millions of objects of different shapes, sizes, etc. quickly and economically thanks to the robotization of their warehouse. This video explains it at minute 4.57, that I find it really interesting. They also say that before robots arrived, all the packaging was done by hand (by person). Look at the difference, guys: 20 packages could pack per hour a person, and now with machines they can pack 720 products per hour. Moreover a machine can take packages of all forms and is more efficient because they work 24/7, 365 days.
Once packaged, the package is sent to distribution centers, ready to be sent anywhere in the world. They follow the model of flat packaging because they see it as essential to maintain low prices, in order to make the most of the spaces.
Something curious about the video is also the 6.28 minute images: there you can see how big it is! 1 km long each corridor and 23 floors high!
Firstly, we have to know what’s the Third-party logistics?
Third party logistics (3PL) are companies that offers outsourced logistics and supply chain management to another companies. The 3PL service may be a single provider, such as transportation or warehouse storage, or it can be a system wide bundle of services.
Why companies deal with 3PL providers?
Outsourcing supply chain services to third party logistics providers gives businesses the ability to focus on primary functions and their core competencies. So, When companies experience growth, they often run into challenges meeting the demand of their supply chains Forming these business partnerships allows retailers and manufacturers to more easily expand operations while increasing efficiency and reducing costs, Whether in inventory management and storage, contract packaging, or shipping. with the following video you can also know more about how 3PL works.
Reasons to use 3PL companies
Save money & time
Saving time and money in any business is really
important, so, 3PL companies will offer to the organization not to spend money
on warehousing, transportation and hiring professional labor. Additionally,
they save the hassle of paper work, customs and billing.
Third party logistics
providers have a vast resource network like: in-house supply chains. With 3PL
provider network, supply chains can be expanded quickly, efficiently, and in a
the advantage of working
with a 3PL provider is Having access to distribution
centers and warehouses in various regions
allows companies to grow in new areas by being able to ship goods efficiently
to anywhere in the world.
Scalability & flexibility
Depending on what your needs are, 3PL providers have the ability to scale space, labor, and transportation based on the fluctuation of your inventory. Whether you’re dealing with seasonal inventory or new product releases, 3PLs can help provide adequate space and resources between your busy and slow times, giving you maximum amounts of flexibility during any time of the year.
From the successful examples for 3PL companies are:
DHL, Kuehne + Nagel, DB schenker Logistics. Those companies are from top 10 global 3PL companies in supply chain and logistics with millions of dollars profit.
Finally, Companies would
actually save more money and become more efficient with their supply chains by
partnering with an experienced 3PL provider with an extensive network of
resources and warehousing locations. So, it’s really important to choose
carefully your 3PL partner because it could be your company image with the
In the last lesson we were speaking about transportation and different transportation modes. One of these models is a pipeline that usually transport liquids (e.g. water, oil), gases (e.g. natural gas, carbon monoxide) or slurry (e.g. carbon with water). During the lessons, our professor mentioned a beer pipeline in Belgium. This sounded interesting and strange at the same time, so I did a deeper research on this.
And he was not kidding: in 2017, the world´s first beer pipeline was opened in the Belgian city of Bruges.
The first thing you may think now is the following: Oh cool, can I get beer out of the tub in my home? But as this is a logistics blog, of course the reason for building this pipeline is a logistical one. The pipeline does not connect private homes or restaurants.
What can we learn from a beer pipeline?
From this very special case, many things about pipelines in logistics can be learned. The main reason for using pipelines in general is the fact, that even besides the high construction cost, usually they are more economical than using tank ships or tank trucks and simplify complicated transport systems.
So what is the reason for the pipeline? The traditional brewery “De Halve Maan” had a logistical problem: The historic oldtown of Bruges had not enough space for an extension of the brewery´s facilities. As it was the oldest brewery in Bruges´ oldtown, they wanted to stay there. So, they build a bottling plant in a suburb, 3 kilometers away from the brewery. From then on, every day 4 or 5 road tankers, which carried 30.000 liters of beer, had to bring the beer from the brewery in the old town to the bottling plant. And here is the problem: The old town of Bruges which has very narrow little streets that are full of tourists. So, it was very difficult for the tankers to move forward and of course, this was not very economic neither.
As the owner was searching for a more practical solution, he came up with the idea of a pipeline. As mentioned before, it brings the freshly brewed beer from the brewery in the old town to the bottling plant in a suburb. I hour, about 5.000 liters of beer are flowing through the pipeline. This is enough to fill 12.000 bottles an hour. And besides the easier transport, the pipeline works as a big marketing tool for both the brewery and the city of Bruges.
The pipeline is 3.3 km long and at its deepest point 34 meters under the surface as it has to pass a parking garage. It was constructed using the latest technology and for that reason the road surface had to be opened only at two big spots as the digging was down from little holes automatically by special robots. The pipeline has also a cleaning and flushing system.
But not only the construction is similar to bigger water pipelines. Also, the rate of flow remembers of an oil pipeline which usually has a flow velocity of 3 to 5 km/h. The beer in the pipeline flows also pretty slow, it needs approximately 1 hour for the 3 km. This equals about 5000 liters per hour. For details, watch the video at minute 0:55:
The “De Halve Maan” brewery spend about 4 Million € for the project. A quite big part – 300.000 € – has been crowdfunded. By paying the top rate of 7.500 €, sponsor would get one beer per day for the rest of their lives for free and this way are getting close to the dream that was mentioned in the beginning: an inexhaustible flow of beer.
The purchase of logistic solutions is one of the most
important necessity in today’s companies. They are different types of services
with several complications to be evaluated and mostly what we need is the reassurance
of being on time. So, from the procurement view, to evaluate the perfect medium
point between cost and quality can be sometimes a little tricky in my
Logistic services are needed across the whole supply chain
in order to be able to produce what’s needed in the time needed to get profits.
Starting with the acquisitions of raw materials to the management of raw material
stocks, production plans, final product inventories, delivery of finished goods
and all the additional logistic services in a production site or administrative
offices. Logistics is always on the top 3 expenses of any company.
Throughout the entire supply chain production costs are affected
by logistics costs: stocks, trucks, in house handling, material movements,
warehouses, lead times, etc. This is why is such an important thing to find an
evaluate several suppliers in order to have options and mixed costs that keep
us as close to our ideal or theoretical production costs.
As in every kind of negotiation, but specially any including
logistic processes, we need to take into account:
-Big Picture. The product must be built. You need to think about
packaging, raw materials, manufacturing details and warehousing.
-Fin print. Don’t forget to take into consideration the Terms
and Condition of any negotiation. TCA (Total Cost of Acquisition) might be
better than a cheaper option considering all. Does a provider of procurement
logistics offer auditing services, ability to access additional resources and
other specific details?
– Delivering the product. Finish product strategy in order
to reach the maximum customers at the lowest investment.
– Purchasing Strategy. Take into consideration all variables
that can alter TCA. An optimized purchasing strategy can collect materials from
a variety of suppliers, analyze current supplier market trends, and select the
best means of obtaining materials at the lowest prices, without sacrificing
quality. This also drives competitive advantage among suppliers, helping to
keep prices from skyrocketing.
One of the biggest challenges for companies is finding a balance between the quality of their products and the cost of producing them, so in a globalized world like the current one, a vital question is launched: offshoring or outsourcing? The answer could be “it depends on the needs of the company” With the facilities for international trade that exist today and the specialization of the companies in particular activities many companies have decided to offshore and outsource as their most viable choice, so today we are going to analyze the reasons and logistical implications of this strategy.
Offshoring vs Outsourcing, what do they mean?
When we talk about offshoring maybe we can fall into confusion because outsourcing is sometimes related as a kind of offshoring, but there are many differences between both concepts. Whilst outsourcing means that an external supplier of services or intermediate products is working for a company in the same country, offshoring is understood within the international sector. When a company decides to carry out the offshoring it must decide in which way it wants to lead its operations. The company can choose between dealing with an external supplier in the foreign country for producing intermediate goods or services, or the establishment of a subsidiary in the foreign country in order to produce these intermediate goods or services.
Advantages and logistical implications
The choice of offshoring or outsourcing strategy involves different challenges, but especially, some crucial advantages for the right development of the company.
On the one hand, offshoring offers a lot of advantages for international companies:
Human resources: the availability and the quality of the foreign workers is one of the main factors by which a company decides the offshoring.
Costs: in developing countries, the companies can achieve low costs in telecommunications, rentals, transport… but the main cost reduction is produced by access to raw materials that are common in these countries and quite weird in the origin country and the low wages that most of the inhabitants of these countries have.
Business environment: in some countries, there are clusters that can benefit the competitivity of the industry.
Infrastructures: roads, airports, ports, telecommunications, and logistical facilities will lead a company to offshore its production to these countries.
On the other hand, other companies, usually medium companies, prefer to outsource some of their productive phases and operations which are quite important for the business, but they are not the core activities of the company, and the logistical outsourcing is one of their favorite options. Specialized enterprises are able to offer different services such as storage, inventory and stock control, receiving goods from foreign countries and labeling, packaging and shipping products. This provision of services offers the following advantages:
Reduce direct costs: the company doesn’t need to spend money in huge warehouses, machinery, expensive software…
Saving investments in R&D: they can save money from their investments in R&D and use it for investments in the core activities.
Reduce staff costs: the company can reduce the amount of money that spend on wages for logistic workers.
Improvement of the performance of the company: while the logistic company offers its specialized services, the company can be completely focused on their main activities and improve its performance.
However, it is not gold everything that shines and there are some critical voices which claim against the outsourcing, so I invite you to watch this interesting video and create your own opinion about this strategy:
After last Friday’s class, I started researching transport management systems and it was a surprise to discover that both logistics operations and transport are responsible for 25% of Co2 emissions in Spain.
That is why I have decided to write about this and some keys to make Spanish logistics a more sustainable activity:
Lean & Green: companies adhering to this code must commit themselves to reducing their emissions of greenhouse gases, at least 20% within a maximum period of 5 years
Alternative propulsion systems: use propulsion systems alternative to diesel such as liquefied natural gas or directly hybrid or electric vehicles for more sustainable logistics
Software applications to obtain data on routes, charges and carbon footprint: knowing how much the company pollutes, through what transport, how often and its impact is the first step to reduce these contaminations
Intermodality: combining two or more means of transport can be more sustainable, especially if it does not require a quick shipment.
Green logistics: try to put value to the efficiency from the ecological point of view to balance this principle with the economic one.
Solar light: take advantage of natural resources such as sunlight for daytime taking into account that logistics centers work day and night, reducing electricity consumption and artificial light
Inventor drives revenue profitability and customers satisfaction, yet retailers are losing an estimated billions dollars a year by not properly managing one of the their greatest assets.
Computerized tracking systems have emerged as a key component of business strategies aimed at increasing productivity and maintaining competitiveness. So how successful is your
business with inventory management here are 4 fundamental practices that can be started in the right way:
Supply and Demand
Basically, inventory management is about knowing your stock if there are enough products for offering to customers. If yes, you should consider the WHEN and HOW MANY that you will need to purchase more quantities to meet customer satisfaction. If not, the WHEN, HOW MANY and Why are needed to be thought deeply again.
In the class, our professor highlighted ,
“to have a huge quantities in the warehouse is not a good way, it will lead holding cost increases and ,customer purchase would be changed in the next year or in the next order. Especially for the seasonal products, which benefit depends on the climate condition”.
-Obviously, inventory needs substitute /replacement of suppliers(factories).When is out of stock,it is not available to place the order as usual in cooperated factories, it could failure of the delivery time is too long and is putting customer in a long waiting process. For instance, to find out another option to backup and maintain the quantities in stock is inevitable. What’s more, this occasion could happened when customers received defective items or lack of some spare parts, whom are urgently needed to gain the warranty products asap to satisfy customers needs. The more quantities of good it have , the more risk that it warehouse should be taken.
-The maximum and the minimum quantities of the stock are not be able to predict precisely. Decision makers purchased the quantities, model of products and decide the date to be arrived in warehouse just according to the average sale per year, per season,or per month.
-Control the inventory help making decision correctly, reduce the business cost, use the warehouse to have those goods, but NOT FOR HOLDING THEM.
-One more interesting point that José added at the end of the class:
People feel stressed when they are not stocked , customers would not prefer to see the color of pallet then they won’t buy that product which is not in shelf just because of phycology effect in Customer Purchase Behaviour.
For instance, inventory management is a curiously topic to learn and each theory class we have had will explain clearly what happened in our daily life.
Distribution is the process in which products are
transferred from the seller to the buyer. If we take the concept to the area of
marketing we will talk about logistics as it is a broader concept. This is
the area that deals with the processes necessary for the issuance of orders,
warehouse management, post-delivery service and any problem that may arise from
the process. Next, I will try to discover its main characteristics and its
importance in ecommerce.
The most common problems in purchases made through the Internet, according to the AECEM-FECEMD (Spanish Association of Electronic Commerce), are:
From the graph, the conclusions are:
Errors in delivery create unsatisfied e-clients and damage the company’s image
Bad logistics can mean the loss of e-clients
The profitability of the sales process is determined by the logistic cost
In order to offer a good service, the supplier must be managed correctly, delivery times, costs and after-sales service
That is why the main demands of current e-clients are:
We can also meet with technological challenges when talking
about logistics and e-commerce:
– Order-picking systems must be oriented towards small orders. – Have a quality shipping packaging (packaging, labels, etc.) – Agile stock management – Offer short response times
IN THE DISTRIBUTION.
– Quality in delivery – Have an emergency service – Create complementary services: delivery notices, new payment methods …
IN LOGISTICS INFORMATION SYSTEMS.
– Planning of delivery times – Route planning and optimization – Tracking systems – Integrate logistics information systems in the virtual store
Definitely, logistics is one of the most important aspects
to have in an account for any company and is a great challenge it comes to the
development of e-commerce, because it opens up business options globally. Therefore,
companies must be more demanding with themselves and take into account all the aspects
described above to optimize their logistics processes.
Supply chain planning is one of the best strategies that you have to maintain the balance between the supply and the demand. The truth is that it includes many different factors including the use of specific tools for production, sales, and inventory. Overall, supply chain planning is crucial for every business. This is the way that businesses have to monitor, automate, and control all processes with the use of modern tools. Ultimately, this allows businesses not only to cut the costs but also to work more efficiently.
SUPPLY CHAIN PLANNING PROCESS
1. Make Sure That it is Made in Real-Time
While in the old days businesses needed to rely only on historical data, this is no longer enough. The reality is that businesses need to create different scenarios an plan for each one of them. This makes sure that you are able to take control when any disruption occurs.
2. Integrate the Supply Chain Planning With the Company Planning
A business needs to be managed with common goals. So, you need to make sure that all the goals are perfectly aligned. This will ensure that your business is able to synchronize your short-term operation planning with supply, inventory forecasts, among others.
3. Learn More About Your End Customer
In case you sell directly to consumers, the more you know what they want and when, the better you can plan. With the use of different supply chain planning systems, you can discover more about your end consumer and quickly adapt the supply of your product.
4. Use Real-Time Data to Gain An Edge
When you use real-time data, you will be able to reduce the risk of having too much inventory and reduce the risk of stock-outs. Ultimately, you will plan with more accuracy.
5. Keep Adapting
One of the most important steps on using a supply chain planning system is that you need to keep adapting, and fast. This is why it is so important to have the right technology that allows you to know what is happening in real-time and that any disruptions that may occur won’t affect you because you already forecasted this scenario. So, you’ll be able to make all the necessary changes quickly which will not only save you time and money as it will also increase profitability.
KEY SUPPLY CHAIN PLANNING SYSTEMS
There are two main key systems that we believe are the most important ones in what concerns supply chain planning process:
1- Training and Motivating Employees
Supervisors need to be furnished with the right knowledge and tools to run a successful supply chain planning. This is the only way they can then make sure that the employees have the right tools to succeed. When the supervisor knows what is happening in real time and knows how he should act in case of a disruption, he will be able to pass on the information to his employees, ensuring that the process is still in place.
2- Understanding the Future Demand
While this is easier said than done, there are different methods that you can use to ensure that you can reduce inventory, minimize waste, and improve the in-shelf availability. One of the best strategies to implement this is by taking advantage of the forecasting methodology.
With a good forecast, you will have fewer missed sales, a lower working capital, higher and better customer service levels, less waste and spoilage, more efficient manufacturing, and a reduced effort of everyone involved in the process.
As you can see, supply chain planning is one of the best strategies that you can use to minimize the waste and the costs and to increase the profitability at the same time. While there are multiple tools to implement a supply chain planning that you can use, the truth is that one of the most important things to have in mind is to ensure that you access to real-time data.
Queueing theory is used to be studied of queueing or waiting in lines to be served by enterprising mathematical tools.When someone is asked “what is queue”, then it’s easy for one to reach of the image of themselves who are waiting for a line to be served in a supermarket on Monday evening.While queue is not targeted only in customers, also can be items, object or information.
For example, like Gmail, those mail onces customers received in mailbox according to the server, normally the latest one always in the first line ,that it is waiting to be checked and replied. In warehousing system, the amount of products are waiting to be distributed and input in the inventory system(ERP,CRM etc.).
Recently, us student were asked to compare Julia and Carmen’s case (FNAC and Apple store in Valencia).Some of us might not notice how exactly these 2 stores treat their customers and how they implement customer experience goal.
Both 2 girls wanted to purchase the targeted article in electronic devices stores. The final result was differentiate by the process of purchase and the way to be treat. Julia didn’t have a good shopping experience and have a lower satisfaction with the store where she had been because she was kept waiting all the time for obtaining information of stock of her wanted item , being told where should she go for the item and was not simplified to get her receipt. On the contrary, Carmen spent a great time in another shop and at the end she got what she desired.
After studying these 2 cases, dropped the attention(checkout line) of when a customer comes to the line , waiting to be charged, but after 30 sec, another customer joins the queue, and after 10 sec…,the cashier are supposed to improve her/his work efficiency,if not, that line will be accumulated with uncountless number. Nevertheless, a discipline of first-comes-first-serve(FCFS) is acceptable and logical rule in a queue .Likewise, last-come-first-serve(LCFS) also is normal when the first queue is overloaded, then the second queue will be appear. Obviously, the last customer in the first queue will be served preferentially.I do believe that the majority of customers are not satisfied with this unfair-treated service because of breaking the rule of FCFS and some might leave for home.
For instance, queueing is dealing with one of the most unpleasant experience of life, waiting to be…Whatever, queueing theory can be summarized that it’s related to arrival process, what will customers act when they are not willing to wait for a long line then to be served,how customers are treated and the rules to be served.
which was first proven by mathematician John Little, states that the average number of items in a queue can be calculated by multiplying the average rate at which the items arrive in the system by the average amount of time they spend in it.
L = λW
3 input Little’s law is useful in analyzing how a queue has performed over some time.
Eg: Wants to figure out the average number of tequila that are stored in warehouse.
W: Average arrival rate of the tequila(carton) into the warehouse is 5000 per year
λ: Average time the company spend in warhouse is about 3 weeks