Toyota supply chain is the idol

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With thinking in the case of our last class in logistics, I remembered the idol example in production process that we took in last semester “TOYOTA”.

TOYOTA is one of the largest automotive brands with a global footprint, Known for its innovative methods of production. Toyota has acquired a leadership position in the automotive industry. Every vehicle that it makes require assembling of thousands of parts sourced from suppliers all around the world.

Toyota’s supply chain practices have been lauded widely as the best in the automotive industry. The supply chain which was developed by Toyota was one of the premier in Low Cost supply chains and the situation has grown highly demanding in the 21st century and having a healthy supply chain network is an absolute essential to win against the competition.

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“What makes Toyota different from its competitors?”

“Toyota has an earthquake resilient supply chain” -An pioneering initiative feature of Toyota’s supply chain is its resistance to disasters. The brand has collaborated with the suppliers across each country and region for building a disaster resilient supply chain. The long standing relationship of trust that  Toyota has built with its suppliers has helped the brand receive and share information from them. for Example April 2016 there was an earthquake “Kumamoto” and following the disaster, Toyota was able to respond fast and make a quick recovery with the help of its database. 

-just in time one of the main pillars of TPS (toyota production system). It refers to the manufacturing and conveyance on only “what is needed, when is needed, and in the amount needed in the system”. with the following video you can know why TOYOTA could be the idol in supply chain.

“Centralized and De-centralized logistics in Toyota“

One of the challenges to having such a view of Toyota’s supply chain – let alone controlling it – is the complexity of its management organisation. . The central function has always been to monitor and manage providers and determine packaging requirements, working with Purchasing to procure the services. However, a great deal of logistics power has always sat with the plants, each of which is a separately incorporated entity at Toyota. 

Many of the operational logistics functions are split between each plant’s Manufacturing and Production Control departments. The internal conveyance of parts and containers falls under Manufacturing, Parts ordering, production planning and the management of separation centres – which sort inbound material by dock or assembly lines, and subsequently sort empty containers for return legs– are functions of Production Control. This setup reflects TPS (Toyota production system) in its degree of integration between manufacturing and supply at each plant. Until recently, each plant’s Production Control department also managed full truckload and milkrun deliveries, which it outsourced to lead logistics providers. The LLPs determined the routing based on volume and lead times and adjusting frequency to match the plant.

Finally, Toyota redesigned its plants so that it can also export to market that remain strong when the local market weakens and called this strategy “ global complementation”

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Product packaging in logistics

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Packaging is the first thing that a prospective customer registers when he buys the product. This means packaging also plays an integral role in supply chain management. It protects products from damage, from the environment and human error while streamlining shipping and storage, allows for their efficient distribution, communicates to the consumers, and is one of the major product promoters in a competitive marketplace. In fact, packaging design Also has recently developed into a mature communication discipline on its own and most of people working in logistics now realize that packaging is a critical and central element in the creation of an effective brand identity. To know more about packaging importance you may find the following video is interesting!

As Product packaging is an integral part of supply chain management, then the need to optimize it is also important.

So Here are 5 things you should consider for packaging optimization:

• Packaging Material – There are a lot of choices for packaging materials, but that doesn’t mean it needs to be complicated. The material needs to be strong enough to contain the products, and we have to identify things that could damage the products. That could be be environmental factors or mechanical ones, both during transportation or storage.
• Space Optimization  Wasted space means higher costs for transportation and under-utilized warehouses. By making sure that packaging is compact, you can reduce your logistics spending. Fewer gaps also reduce the chances of damage in transit, since the contents can’t bounce around.
• Packaging Dimensions – Carriers have various methods of calculating shipping charges and often use dimensional weight for bags or boxes above a certain size.
• Packaging Design – Apart from the functionality aspect of packaging, the visual and design elements are critical to branding and marketing, so take the ease of customizing packaging into account. When we’re optimizing packaging design, we have to think about where the products will be displayed and how they can attract customers visually.
• Packaging Testing – Before you start ordering your packaging materials, you need to ensure you’ve made the right choice. There are many methods to test your packaging solutions, depending on the material and the conditions you want to test for. In the following video you will see the packaging process in one of the warehouses.

Top packaging companies in 2019

The global packaging industry continues to be dominated by the 20 top packaging companies in the world in 2019, For example the Top packaging companies in 2019 are:

1- Amcor

Amcor is a global leader in responsible global packaging solutions, supplying a broad range of rigid & flexible packaging products into the food, beverage, healthcare, home and personal care and tobacco packaging industries

2-Ball

Ball Corporation is a provider of metal packaging for beverages, foods and household products, and of aerospace and other technologies and services to commercial and governmental customers. Founded in 1880, the company employs 15,000 people worldwide.

3-Crown holdings

Crown Holdings is one of the world’s top packaging companies in metal packaging technology. With operations in 40 countries employing over 23,000 people and net sales of $9.1 billion.

4- DS Smith

DS Smith is a leading provider of corrugated packaging in Europe and is present in 36 countries, employing around 26,000 people. The company’s story can be traced back to the box-making businesses started in the 1940s by the Smith family in East London

Conclusion

Packaging isn’t just restricted to bubble wraps and corrugated boxes anymore and Product packaging is a constant factor throughout the supply chain and the right solution can help your business to succeed, As The global packaging market, valued at $589.9 billion in 2015 and will reach $770.5 billion by 2020. Each brand has to make an impact with unique customized packaging options to leave an impression on the customers’ minds and once you’ve analyzed your supply chain, choosing the right packaging is very easy and rewarding! finally, the next video will show the packaging process.

 

Technology of DHL warehouses

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Today in e-commerce, customers expect a shorter turnaround time after they buy, and most are accustomed to and want free shipping. Shorter order processing time is key in making that work, and Deutsche Post DHL Group is using everything from helper robots to routing apps of a sort to cut down the time it takes to pack a shipment at the warehouse. DHL nowadays is using some technologies in its warehousing business to be more efficient as :

Sensor technology

DHL wants to increase the use of sensors in logistics and sees a potential in using sensors, such as motion and depth sensors, to tell how much room there is left on a pallet, truck or at a warehouse.

Locus Robotics

Wheeled bin-carrying robots take lists of items that need to be added to shipments, optimize their route around the warehouse to get those items, and whisk themselves off to each one. The autonomous Locus helper robots have led to a reduction in order cycle time of 50% and new employee training time of 80%.

Faster order processing time is critical in being able to serve customers as quickly as possible, noted Ilaria Raniero, a senior supply chain analyst at DHL, and so is the faster training. “When it’s peak season, you want to be able to support higher volume right away by training employees quicker,” she said.  

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Augmented reality (AR)

Vision Picking process  (AR) has helped to reduce new employee training time and streamline the order-packing process. DHL has conducted successful tests with augmented reality glasses on warehouse staff, when they pick goods. These glasses can scan barcodes, show the picking list, where goods are located and where the goods should be places. The picker can scan each item using the smart glasses’ camera, verifying that the item has been added. the following video to see more how they use the AR :

Group Smart

How do you reduce order cycle time as much as possible?  You’ve got to carve out any excess time in the warehouse you can find. 

DHL’s Group Smart software automatically takes orders that need to be packed and groups them for pickers to shorten the distance between bins for pickers to travel, It’s a kind of routing software — instead of walking up and down, up and down warehouse aisle after warehouse aisle, Group Smart creates a better path for the picker to minimize distance and time spent in packing.

People + Technology = A ‘more flexible’ supply chain

Rather than use technology to replace humans, DHL is using a “people + technology” philosophy that combines both to create a “simpler, more flexible, more capable” supply chain. Carl Behn, vice president of IT at DHL Supply Chain, told “One example of this is in the deployment of cobots to work side-by-side with humans. The combination increases productivity two-fold and enables DHL to accommodate its e-commerce peak day demand while reducing short-term labor dependencies”, Behn said

Finally, you may find the following video interesting to know more about all technologies that DHL is using to have ” Smart Warehouses”.

Third party logistics and its importance

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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.

• Resource network

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 cost-effective manner.

• Market expansion

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.

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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 customer.

Green supply Chain Management

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The Green Supply Chain Management is also called as “Supply chain sustainability” this direction that became a trend now in the business life of supply chain management, this stream has been building up in recent years, as the consciousness of consumers about the environment has been increased. Now the companies should also take the same step and become more environmentally conscious and from this point, the trend of the green supply chain has been aroused.

If we Looked at most multinational corporation’s web pages today, you will find dozens of pages on how the company is also looking to make the world a better place. The initiatives stretch throughout the value chain, from packaging to transportation and waste management. In the Following link you can know more about Green Supply Chain https://www.youtube.com/watch?v=Bl0UhiOvrdc&t=0s&list=WL&index=13

Green Supply Chain and Technology

There is significant evidence that there are points to the ongoing greening of the supply chain all over the world, which is driven by technology. Cleaner ships, trains, planes, and trucks combined with automation and clean technology introduced into cargo handling and warehousing operations are accelerating. And environmental policies at national and regional levels are driving investment and green compliance on a global scale.

The Case of Kodak: Green Technological Advancement

Since the early 1990’s, the need for technological advancement to Green Operations is becoming more popular. The ‘new economy’ has encouraged firms to be more environmentally sustainable and eco-efficient. Kodak is an example of a company that has a re-manufacturing line to the supply chain. It is reported that 310 million single-use cameras have been returned since 1990. Although the timing of returns of single-use cameras are unknown, Kodak has managed to allocate 310 million single-use cameras back into their production line. The reason for this success came from its own product design. Kodak’s single-use cameras are simple, reusable and easy to recycle, and because of this, Kodak has managed to reuse their products and save costs. Xerox Europe, US Naval Aviation are also good examples of Green Operations. Companies are encouraged to have Green Logistics due to various legislation.

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Actions towards the Green supply chain Management (GSCM)

At 2018, UPS announced it would add additional compressed natural gas (CNG) fueling stations and add 390 new CNG tractors and terminal trucks and 50 liquefied natural gas vehicles to its alternative fuel and advanced technology fleet which has more than 4,400 vehicles. As a result of using more natural gas for its ground fleet, in 2016, UPS decreased CO2 emissions by around 100,000 metric tons.

Also, as more inner-city deliveries are made like, FedEx, UPS, DHL and other delivery providers are parking their gas guzzling vans and instead are turning towards electric vehicles, boats and bicycles

Moving forward, we’ll see more emphasis on reusable packaging also not only transportation. DHL, FedEx and UPS all offer reusable packaging but more is still needed.

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With the increased attention paid to Green Supply Chain Management (GSCM) responsibility , a growing number of firms have explored “greening” (environmental-friendly) initiatives as their competitive strategic weapons

For Example In Europe, Germany and the Netherlands are leading the way with ongoing investments in green transportation and automated ports. And not least, the headlong push into supply chain software solutions is eliminating efficiencies and congestion that directly reduces energy and fossil fuel consumption.

Why Change to Green Supply Chain Management?

There are different thrusts for companies to change to a ‘greener’ supply chain than the existing one. Some organizations are simply doing this because it is the right thing to do for the environment even though some of the motivators are quite unclear.

 Studies, however, reveal that profitability and cost reduction are some of the main motivators for businesses to become ‘green’ in the supply chain. Advertising took this idea further and argued that Green Supply Chain Management practices are only about ‘win-win relationships on environmental and economic performance’.

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