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Business model in logistic

Currently the most recognized concept indicates that a business model consists of a conceptual tool that contains a set of objects, concepts and their relationships with the objective of expressing the business logic of a particular firm. This definition has been the precursor of those expressed in the text entitled “Generation of Business Models”, which has taken center stage by proposing the model called CANVAS. This text begins by stating that “the business model describes the basis on which a company creates, provides and captures value,” thus simplifying the authors’ considerations, which have been thoroughly discussed in several previous academic articulations. The authors sought through this text to present in a simplified way the way to diagram a business model, in order that the establishment of the “business canvas” be a common language through which companies can expose the form through which to seek to generate value.

 The combination of the concept of integrated logistics with the concept of business model takes on value from the importance of logistics processes in recent years. This makes logistics no longer only appear as one more component of business strategies, but now emerges as the core business in many companies in various sectors and economic sectors. This has been observed for decades, perhaps recognizing for the first time in the value chain of Michael Porter, the importance of two relevant primary activities such as entry logistics, related to purchase orders, order management, and storage , etc; And outbound logistics, linked to the storage of finished products, and distribution to the consumer, among other functions.

In logistics can be contemplated all the business models, knowing:

– Market Segment.
– Value proposal
– Channels.
– Customer relations
– Sources of income.
– Key resources.
– Financial structure.

Logistics goes through each and every one of the modules that make up the business model based on Canvas or business canvas. And it is noteworthy that it is useful for any logistic business model, the use of a scheme such as the one mentioned, in order to structure the operations, check the interrelationships of each function, and clearly state how the company will generate and capture value .




Information on pallet in logistics

In the last class it was possible to appreciate the importance of knowing how to integrate the quantity of pallets in a warehouse, to know how many trucks are delivery and the possible quantity of pallet inside the truck, quantity of truck and to calculate according to the available space the capacity of Pallet that can to store depending on the demand of the company and consider the best cost. Below we will see certain characteristics of the pallets.

The pallet can be recognised by the blocks underneath the pallet. The right block bears the word Euro and the other block bears the name of the manufacturer. The pallets may only be manufactured by recognised companies that follow certain standards during the manufacturing process. If the euro pallet is broken, it loses its entire value.  The customary dimensions of a block pallet are 100 x 120cm. A block pallet is sometimes also referred to as a four-way pallet, as a forklift truck can lift it on any of the four sides.

Wooden pallets typically consist of three or four stringers that support several deckboards, on top of which goods are placed. In a pallet measurement the first number is the stringer length and the second is the deckboard length. Square or nearly square pallets help a load resist tipping.
Two-way pallets are designed to be lifted by the deckboards. The standard North American pallet, or GMA pallet, has stringers of 48 inches and deckboards of 40 inches.
Four-way pallets, or pallets for heavy loads (or general-purpose systems that might have heavy loads) are best lifted by their more rigid stringers. These pallets are usually heavier, bigger and more durable than two-way pallets.
Pallet users want pallets to easily pass through buildings, to stack and fit in racks, to be accessible to forklifts and pallet jacks and to function in automated warehouses. To avoid shipping air, pallets should also pack tightly inside intermodal containers and vans.
No universally accepted standards for pallet dimensions exist. Companies and organizations utilize hundreds of different pallet sizes around the globe. While no single dimensional standard governs pallet production, a few different sizes are widely used.
Over the last few years, logistics has become increasingly important, has become professionalized and has become one of the most important departments of companies operating in a global, dynamic and increasingly competitive environment. This has greatly contributed to the fact that the pallet is no longer considered as a mere “commodity” and has become an element of great importance for the optimization of logistics costs.

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Factors to Consider In Warehouse Layout Design

The last class we talked about the importance of layout in a warehouse about its main areas such as Docks, Picking store and reserve storage. Also as it arises the need to calculate the capacity of pallets that can be inside a warehouse considering the size of the same, for that reason we will see below the important factors to make a perfect design, which are:


This process is very essential because it allows the free space between the movements of the product which should be placed conveniently to avoid wasting time to have ease.


It is important to allow easy and quick access to each of the pallets within the warehouse. The space in the warehouse must be properly organized to obtain the articles with the greatest ease and identification possible for the acquisition of the merchandise.


The space allocated for the activities inside the warehouse has to be calculated and compared to the remaining space for the good placement of the equipment and raw material. etc


The type of product and the speed at which it flows in the system are evaluated. Checking factors that will have an impact on the speed of the system, which are the volume, fragility and flexibility.

Local plans

It is important that you comply with state regulations. Guaranteed safety in the work environment.

Site details

According to the characteristics of the place will define the final design of warehouse. Including other factors such as topography, drainage and soil condition as it should be designed with a raised floor to protect the materials.

Financial consideration

The main step is to consider the amount of money before you start with the warehouse design. Once the budget is made you can do the planning of the construction. Some of the designs are more expensive than others so you have to consider several factors.




Planning and Administration of Procurement in inventory

Generally, Procurement Planning and Administration focuses on a fundamental role in the storage and stock management of raw materials in terms of the entry, storage, purchase and exit of products, since one of the purposes of this Is the optimal distribution of the available space in function of the volumes of the products in the inventories, whether they are periodic or permanent. In addition, the control and determination of safety stock and articles with their respective rotations enters which are responsible for relating the outputs With stocks of products among others

In order to satisfy the great variability of a company in order that the stock of raw materials and elements for assembly and storage must be as low as possible. According to Pacifico and Witwer (1983), “planning leads to the most efficient use of the resources available in the production process, so that the maximum objectives can be achieved” .

Normally, once the objectives of the Inventory Management have been defined and the forecasting techniques of demand and certain costs of stock described, it is granted to the elaboration of a work plan that refers to the forecasting, checking and regulation of the time Invested in the different operations that comprise the manufacture of a product.

Next we will observe the models of inventory management where they are grouped into two important categories according to the demand Dependent or Independent:

Model for non-scheduled supply: In the demand this type is independent, it develops through the repercussions of the clients in the market. The most common model is the Economic Lot.

-Model for scheduled provisioning: In the demand is of dependent type. This model was developed through a production and sales program.

Unscheduled models are classified as continuous and non-continuous. Continuous orders are made when inventories decrease to a specific position while non-continuous ones make an inventory order each planned time.

The last class we were talking about the Stocks management was very interesting, I understand that through the knowledge of the models and the planning of the stocks management we will have the ability to measure and control our services in order to obtain the best results and maintain Continuous improvement in the area.


– Arbones, E. (1989). Business Logistics. Spain. Editorial Boixereu.
– Ferrero, A. (1998). Organization and Business Administration. Mexico. Editorial Mc Graw – Hill.



In the last class of logistics we interact with different interesting topics one of them was about traceability, this topic is focused in the ability to verify origin, ubication and application of an object through an archived document and to discover the information about where and how a product was made or invented.

Another important point is the Traceability Requirement, which focuses on tracking all the cases with test and allows users to find the origin of each requirement and follow all the changes they made at the beginning of the requirement.

There are different areas in which you can apply traceability, some of them are:

Logistic: Refers to the capability for tracing goods along the distribution chain on a batch number or series number basis.

Materials: Refers to associate a finished part with results of a test performed on a sample.

Supply Chain: Illustrating the fact that the products they sell are manufactured in factories with safe working conditions .

Forest product: Improving effectiveness and efficiency and Increasing transparency.


Below we will see a video that shows how the traceability allows you to Track Lost & Serial numbers on demands.




The impact on queuing systems

The queuing theory is the study by formulas of waiting lines by which we analyze the different processes related as: The arrival in the queue, waiting time, among other variables. At present, this model is considered as a branch of operational research, as it dares to study an extensive diversity oriented in: business, commerce, industry, engineering, transportation and telecommunications.


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The objectives of queuing theory are:

  • Recognize the optimum capacity of the system to minimize cost.
  • Analyze the impact on process changes.
  • Maintain a balanced balance between quantitative cost and qualitative relations of services.
  • To be pending of the system.

One of the most important objectives is the impact of this study on the improvement or change of its process reflected in costs. A determining characteristic is the quality of the service that depends on subjective aspects such as: The ability to attend to the client, the hygiene, the presentation of the service, respect and kindness.

In most cases the psychological cost of waiting is longer than the time of service, the main reason is because customers do not take their time while they wait. Therefore businesses and services use various strategies to entertain customers by adding Tv presenting news, new products in the exits and mirrors to distract customers in the waiting areas.


Design, LayOut and Distribution

The supply system plays an important role since it has evolved as warehouse facilities to become centers focused on the service and support of the organization. A warehouse and an efficient distribution center have a fundamental impact on the overall success of the logistics chain. Therefore it must be designed according to the level of the manufacture of the product, using the necessary tools, be supported by an excellent layouts, information system and distribution.

The objectives of design and layOut in a company or business are to improve and facilitate the speed of preparation of the most efficient products or services, precision and distribution. All these characteristics focused on achieving the competitive advantages within the strategic plan of the organization thus obtaining a better pace in its services and satisfying the client.

There are a number of principles at the time of making a good distribution:

– Large moving items should be near the exit to save time.
– Transporting uncomfortable articles and difficult to move to an area that minimize work.
– The spaces must be efficiently established in order to easily obtain our materials.
– Chemicals must be located outside the work area
– All materials that require it must be identified and protected.
– All components against fire and safety must be located according to their scope.

Below we will see a brief video where it shows us how the requirements in the execution of a wholesale distribution to the right people, the right product and in the right time.