Buy your DIA groceries via Amazon!

Group DIA is one of the key players in the Spanish retail industry development in the last 40 years.  Grupo DIA has more than 7,400 stores (DIA, 2018) in 3 different countries (Spain, Argentina and Portugal), and specifically in Spain it is the 3rd largest supermarket chain.

In fact, they have integrated a new key logistic activity that Grupo DIA successfully. The alliance with the most well-known e-retail worldwide which is Amazon. This allowed DIA to have access to hundreds of thousands of new consumers, but also to be part of a world-class purchase platform which, indeed, might impact on its brand perception.

DIA consider that digital transformation impulse is key to achieve best-in-class growth in the future. Based on this, the main logistic activities that are going to be evaluated are related to Physical distribution, which includes: Order Picking, Packaging and Outward transport. The alliance with Amazon gave DIA a great advantage.

At the beginning, this activity was focused only in Madrid and Barcelona. Since it was successful, and they have the goal of multiplying revenues by six (DIA Amazon, 2017), they are starting to expand to other cities. One of those is Valencia (DIA Amazon, 2018), we are able now to purchase through Amazon our groceries.

To have access we must download the Amazon Prime Now App follow the instructions that are clearly shown:

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The E-Commerce Director of DIA, Diego Sebastián de Erice, mentioned that “One of the key issues is the control and management of stocks “so that there are no faults”; his responsibility is limited to the preparation of the order, since the shipment is handled by Amazon” (DIA Prime, 2017).

For this alliance, DIA is using their format called “La Plaza de DIA” which offers all the assortment from one store and it “obviously that includes a wide range of private-label items of Bonté, Delicious, and all our private-label — exclusive private-label products. And we see that — we are really seeing that that is a differentiation factor in the future of [line].

They are offering something amazing related to Outward transport, they offer to deliver the products in two hours if the order is higher than 25 Euros. This is really convenient for those new shoppers that do not have time for going to the physical store

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Ricardo Curras also said “What we have seen is — but it is very preliminary, is that we are gaining Amazon customers because what we have provided these La Plaza de DIA as the supermarket of Amazon Prime Now, the best Amazon customers.

The existing DIA app for online purchasing have really good LOGISTIC benefits for customers that are allowed to receive their products at home after purchasing online in the same day, this is really good. Now, inside the AMAZON Prime Now App, people would also be able to buy products from DIA, this is an amazing opportunity for DIA to be able to reach new customers. “Even though online purchasing still accounts for just over 1% of total sales” (DIA Prime, 2017), logistic activities regarding online purchasing are extremely important.

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NITROGEN PACKAGING

Nitrogen is an inert gas that barely dissolves in water and is not combustible. Therefore, it is an ideal gas for inertisations in different industries. Its low boiling point (-196ºC) makes it the ideal refrigeration agent for freezing and refrigeration processes.

The Nitrogen applies in various sectors:

Chemical industryInerting or blanketing for flammable chemicals, bulk materials or powder, Temperature control in tanks and reactors, Freezing of pipes for repair and maintenance work.

Welding and cutting: Auxiliary gas for laser and plasma cutting, Gas for root protection in pipe welding.

Automotive and transport: Root protection in the welding of automobile components, Filling of aircraft tires and race cars.

Metallurgy and metal industry: Heat treatment of metals to provide a surface of more quality and flexibility, Lace of metal pieces, Fine in the production of steel and aluminum.

Environment: Recovery of volatiles (VOCs) from gas and vapor emissions, Recycling of plastics and tires through the cryogenic grinding process.

Feeding: Freezing and refrigeration of food, Gas for food packaging in modified atmosphere, Cryogenic grinding of spices, Cryo Cooking with nitrogen in haute cuisine.

Health: Cryogenic conservation of biological samples, Cryosurgery and dermatology, Propellant gas for medical devices.

Pharmaceutical industry: Auxiliary material for the production of active substances, Inertization of equipment, Temperature control in reactors.

 

PACKAGING

Bottles and liquid containers: Nitrogen in bottles and blocks of high pressure (200 and 300 bar) from a capacity of 1 to 235 m3. Also liquid nitrogen in fixed or transportable cryogenic containers (dewars) of various sizes.

Liquid supply: liquid nitrogen by tank truck offering cryogenic storage tanks of different capacities.

Supply On-site: For a greater demand of nitrogen exists installation of on-site generation plants.

Gas pipeline supply: To large consumer customers located in large industrial areas the supply is provided through a network of gas pipelines to ensure the greatest flexibility and reliability of supply.

 

 

Flexible wings, radical change in air logistics.

The research is not limited to the production of flexible wings, as scientists and engineers from different companies working for the Pentagon are also trying to change the shape of the surface of the wings, as is the case with the muscles, which are tightened and stretched as their thickness increases and decreases.

Skunk Works, a division of Lockheed Martin in Palmdale, California, also aims to make planes with small wings to replace the traditional ones so that, attached to the fuselage, they can fold and move closer together, just like birds do.

Resultado de imagen de flex aeronautical wings

NextGen Aeronautics, for its part, is working on a metamorphic wing that aims to replace the conventional wing of fighter planes with a much narrower wing that is much more favourable to speed, while Raytheon Missile Systems, from Tucson, is profiling a telescopic wing adapted to the needs of a cruise missile.

The aim of all this research is to create before next year a set of functional wing models capable of halving their length and thickness, so that aerodynamic technology is close to what were the first steps of aviation, the flexible wings of the Wright brothers, which for safety reasons were replaced in the early twentieth century by rigid structures combined with ailerons.

The increasing capacity of computers and the elasticity and weight of new materials allow us to think again a hundred years later of aircraft that mimic the flight of birds, although there are still a few decades to go before this technology, if it really confirms its validity, crosses the border of military vehicles and extends to civil aviatio

 

Shinkansen, the Japanese bullet trains

Shinkansen high speed trains are the fastest way to discover Japan, the most important one is still in production process and is called “Maglev”, it will be able to reach a speed of 501 km/h .

There are different types of trains that circulate in each of the Shinkansen lines. They take their names of different animals depending on their speed. There are express trains, which are the fastest, semi-express and local or urban trains.

To increase the competitiveness of Japan’s train stations, the government is carrying out actions to improve services and reduce costs, and also equipping stations with container terminals and innovative logistics systems.

But talking again about the Maglev, this train beat the previous world speed record at 590 kilometers per hour. This train works through a magnetic levitation system that uses linear motors installed near the rails and that causes the magnetic field to elevate the train up to 10 centimeters above the rails , eliminating contact and making the only element of friction be the air.

Central Japan Railway wants for the ‘Maglev’ to start operating in 2027 between the a station in the south of Tokyo and the city of Nagoya. The 286 kilometer journey, which the bullet train currently covers in 88 minutes, would be reduced to 40 minutes with the ‘Maglev’.

In the next video we can see a real test of the Maglev performance.

Queue management in Disney land

I went to Primark last summer in the season of sale and there was long queue. But they have organized small products inside the queue to distract the waiting time, which was one of the ways to organize queue. Before 2 months, due to some emergency, I went to hospital Clinico here in Valencia and I have to wait for 3 hours there to get my treatment because there was already a queue of patients. That was awful.

We have studied about queue management system and how it is applied to manage and analyze the flow of visitors and to prevent the formation of queues altogether. It can be applied in a retail store, hospital, mall, etc. But what if there are different places in one location and there is a need of queue management at every places. For example Disney land. There are numerous rides, museums, parks and long queues. Visitors are there to be entertained, but more clearly, to be entertained throughout every part of the Disney World experience. The Magic Kingdom at Disney World in Florida, which had more than 20 million visitors last year. So how they manage it?

Disney world has some interactive television through which a guest can watch a clip or play games while waiting and on some lines queuing system ask guests to text message jokes to a specified number and if their joke is selected then it will be read aloud in the live show. Moreover, they made change in 2014 by introducing smart phone app and magic band bracelets with embedded RFID chips that guests use to schedule ride times, character meet-and-greets, parade viewing, dinning and more. Also, by using Fastpass + from home, guests can adjust their schedules as much as 60 days before they arrive.

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Next time be ready with Fastpass+ 🙂

https://www.qminder.com/disney-queueing/

http://www.foxnews.com/travel/2016/06/03/how-disney-manages-its-legendary-lines.html

My experience in the transport of goods management

This is my last blog and that is why I have decided to write about my professional experience in the logistics sector.

Last year I worked in a company dedicated to the manufacture in distribution brand and co-packing of beers, soft drinks and water. Among the clients of this company are Mercadona, Consum, LIDL, Carrefour … of which we have spoken during this course. I carried out my duties in the logistics department and, among other activities, I was in charge of managing part of the outbound transport from the factory.

Some of the tasks that involve the management of outbound transport is the planning of the load schedule in the facilities. To do so, I had to consider which client I was dealing with (because the quays are classified by clients), the destination and the time of delivery. However, sometimes there were problems in the production line and in the packaging that caused delays and entailed rescheduling the deliveries of the products. Also, on occasions, there were incidents related to transportation, such as punctures, traffic accidents, retentions or delays in the unloading. These situations that can not be anticipated in advance highlight the importance of a good planning.

Personally I have to say that at the beginning the idea of being responsible for the product to arrive correctly to the client scared me, but the knowledge of the existence of INCOTERM 2010 and the use of the Enterprise Resource Planning SAP system made it easier for me to work. The INCOTERM constituted a great discovery during the performance of this work.

The INCOTERM (International Commerce Terms) are terms of three letters that reflect, for both the seller and the buyer, the rules of voluntary acceptance of the conditions of delivery of the goods. Then, we can ask ourselves what the INCOTERM are for: they serve to regulate the expenses, regulate the norms of delivery of the merchandise, regulate the transfer of risks and facilitate the processing in the customs.

There are different types of INCOTERM, therefore, when choosing one, you must take into account the type of merchandise, the type of transport and who hires and pays it, who is obliged to pay for insurance, the place of delivery of the goods, who must pay the import and export customs obligations. As you can see there are many aspects that should be considered. That’s why I’m going to focus on the ones I used the most and that involved the from lower to higher obligation on the part of the seller. They are the following:

Ex Works (EXW): this system represents few obligations for the seller, because it is limited to putting the goods at the disposal of the buyer in their premises and in a packaging appropriate to the type of transport. On the contrary, the buyer assumes the costs and risks inherent to the transport.

Free Carrier (FCA): the seller loads the goods if the delivery is done in their premises. If it is to export the seller pays the tariffs. But it is the buyer who chooses the means of transport and the carrier. In this way, the transfer of expenses and risks occurs when the carrier takes charge of the merchandise.

Free On Board (FOB): the seller places the goods at the disposal of the buyer at the port of embarkation and on board to the designated vessel and carries out the customs procedures if necessary. The buyer chooses the ship, takes care of freight and insurance costs, and assumes the expenses and risks for the loss or deterioration that the merchandise may suffer from its delivery.

Delivered At Place (DAP): in this case the seller is responsible for the expenses. It closes a contract for the transport and unloading of the goods when arriving at the client. In this term the seller assumes the risks of transporting the goods until they reach their destination. The buyer pays the price of the goods as provided in the sales contract, after receiving it.

So, according to the modality chosen, I had to assign a loading and unloading schedule depending on the destination and the availability of docks (in EXW and FCA), or in addition, I had to contact transportation agencies, so I had to consider the costs to choose the appropriate transport (in DAP).

In the following drawing can be seen what I have explained, and also the others INCOTERMS.

INCOTERM

I hope this blog has been of your interest.

Source: https://www.searates.com/reference/incoterms/

 

Logistics, A Part of Everyday Life

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If we think for a moment of our favorite store or restaurant, perhaps the concept of logistics doesn’t come to mind at first. But if we contemplate how that particular establishment obtains the products and materials needed to conduct business each day, the importance of logistics to our consumer lifestyle are undeniable. This post is just a reminder, of how important logistics are in our every day life.

Logistics management is that part of the Supply Chain Management process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements. (Maciek Nowak, 2015). Logistics can also be applied to business activities other than transportation, such as warehousing and material handling. Management is a critical element in successful logistics, due to the high degree of coordination and collaboration required among supply chain members.

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The transportation and logistics industry is one of the most important industries in the entire world. Anything that can be found in a shop, was once loaded in a truck and transported from one location to another. If there was not a logistics network, it would not be possible to purchase items across the nation from their location of origin. Thanks to the interstate system, each state is able to specialise in certain products and services from which all citizens can benefit.

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There are certain products, that are more time sensitive than others. Like fresh products and frozen food. Each day millions of goods, travel billions of miles through precise transportation networks in order to reach their final consumers in a timely manner. The fast and efficient nature of logistics, make customers able to purchase these goods in the ideal time.

Maciek Nowak, (2015). Trends in Supply Chain Management. Quinlan School of Business.