Premium Essay

Global Logistics

In: Business and Management

Submitted By Niall
Words 5013
Pages 21



‘’We declare that the material contained in this project is the end result of our own work and that due acknowledgement has been given in the bibliography to ALL sources, be they printed, electronic or personal. ‘’


Introduction 2
Overview of the organisation 3
CLI’s 3PL service provision objectives 4
Main issues raised 5
1. The need for an effective and successful sales pitch 5
3. High spot-rate cost of boat leasing 6
4. Delivery route and shore base operating costs 6
5. Resource requirements for 3PL service 6
6. Establishment of a trusting and reliable partnership 7
Approaches to issues raised 8
1. “AS IS” process documentation and operation analysis 8
2. The Morgan City Benchmark Study 8
3. Cost comparison and utilization of long-term vs. spot-rate leases 9
4. 2 months, 24 hours activity log book 9
5. Drawing of support and expertise 9
6. Information sharing and in-depth study of operational and cost data .…………………………….………………………………………………….………………….…………….…………..10
Effectiveness of approach adopted 10
Recommendations 13
1. Provision of a consolidated logistics service 13
2. Delivery route and shore base operation costs 13
3. Establishment of a trusting, reliable partnership 14
4. Customer Service Audit 15
References 19

With increasing global competition and the streamlining of the supply chain management functions of businesses, organizations now outsource parts or all of their logistic functions to Third Party Logistics (3PL) providers in an attempt to achieve operational efficiencies within the supply chain.
Specifically, 3PL service providers typically specialize in integrated warehousing and transportation services that can be scaled and customized to customer needs based on market...

Similar Documents

Premium Essay

Global Logistic Management

...Company Name: 1.0 Introduction The Council of Supply Chain Management Professionals (CSCMP) defines logistics as the process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods including services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. This definition includes inbound, outbound, internal, and external movements. Inbound Logistics It is important for companies to have total visibility of their inbound logistics function. If the logistics management can see which inbound deliveries are arriving they can schedule the correct resources to be available at the correct times so that materials are unloaded in a timely fashion without causing a bottleneck at the receiving dock. The inbound logistics process in SAP starts when purchase orders are processed at the vendor and an advanced shipping notification (ASN) is sent back. When an ASN is received this can trigger an inbound delivery to be created in SAP. The delivery will contain information on the vendor, the items, quantities to be expected and the delivery details. The delivery monitor is used to display and process open and completed deliveries. It is a single list that is easily reviewed. It shows deliveries that are due for picking or putaway and creation of transfer orders, deliveries for which picked quantities or putaway stocks need to be confirmed...

Words: 3099 - Pages: 13

Free Essay

Global Trend in Logistic Sector

...framework to further illustrate the identified trend in the chosen sector, Logistics. PEST Political factors are the level of government intervention in the economy that include such as Antitrust regulations, tax policy, special incentives, foreign trade regulations, environmental and labor law, trade embargo, tariffs, political stability, industrial relations and others. In the context of logistics M&A, these will be important especially for firms that are operating in China, India, Vietnam. Using India as example, apart from the non-uniform tax structure, logistic companies in India have to pay numerous other taxes, octrois, and face multiple check posts and police harassment. High costs of operation and delays involving compliance with varying documentation requirements of different states make the business unattractive. On an average, a vehicle on Indian roads loses 1-2 days in complying with paperwork and formalities at different check posts en route to a destination. Fuel worth up to estimated USD 2.5 billion is spent on waiting at check posts annually. Economical factors include economic growth, interest rates, exchange rates, increasing globalization, creation of WTO, trade agreements among regions such as ASEAN, NAFTA, EU), emergence of the Indian & Chinese economies and others. These factors have major impacts on how businesses operate and make decisions. In the context of M&A for logistics sector, economic deregulation plays an important part. Economic......

Words: 586 - Pages: 3

Premium Essay

Emery Assignment Global Logistics

...Global Logistics – INTL222-001 Emery Assignment Alternative 18 November 2015 I am about to ship precision instruments on 1 pallet. The cost of the goods is $2, 000, 000, 00. The interest rate is 6%. The trip takes 1 day by air and the air freight carrier will charge $4,500.00. The trip takes 21 days by marine vessel and will cost $300. The cost of lost interest over the length of the transit time (opportunity cost) needs to be factored into the total cost of transportation for each mode. Hint: first calculate the cost of lost interest per day. 1. What is the difference in “Total Cost” between the 2 methods excluding duty and tax which would be the same in either case? (Show your work). (2,000,000.00 x 0.06)365 = 328.77$ Interest per day 2,000,000.00 + 328.77 + 4,500.00 = 2,004,828.77$ Total Cost by Air 2,000,000.00 + 328.77 (21) + 300.00 = 2,007,204.17$ Total Cost by Marine Vessel 2,004,828.77 - 2,007,204.17 = 2,377.40$ Difference in cost between Air & Marine 2. How many days do the goods have to travel by marine vessel before the cost of the 2 modes of transport is roughly equal? 2,007,204.17 / 21 = 95,581.15$ 2,004,828.77 / 95,581.15 = 20.97 Days 3. Which transport method do you recommend? I suggest transporting the item via air, because it will take less time which is 1 day versus 21 days and cheaper for 2,377.40$ in compare to shipping it via marine vessel. Prepare a brief report to submit by the end of class formatted with an......

Words: 628 - Pages: 3

Premium Essay

Pre Assignment

...Logistics has developed as an important area or function of business since World War II. It has gone through several phases of development in achieving its present status. It is a critical part of supply chain management. The coordination and, perhaps, integration of the logistics systems of all the organizations in a supply chain are necessary requirements for successful management of the supply chain. (Bowersox etc, 2007) Logistics can be divided into two parts: domestic logistics and international logistics. Difference between Domestic & International Logistics can be said to arise mainly on account of the three major factors : 1) Logistic costs is International Business is much more higher than the domestic business 2) The Logistic Mechanics are much more complex in the context of international logistics than the domestic logistics 3) The political, cultural and institutional factors connected with international logistics are of considerable importance whereas these are usually not of much consequence in the context of domestic logistics.(Networker, n.d) Globalization of the world economy and our logistics has advanced at an almost unbelievable speed. Growth in world trade, and corresponding cargo container movements, continues to substantially exceed overall economic growth, meaning that trade volumes are doubling every 5-7 years.(Hill etc, 2001) There are some roles of global logistics: • Globalization helped in doing business beyond the national......

Words: 965 - Pages: 4

Premium Essay

Iscom 374 Course Success Begins / Tutorialrank.Com

...ISCOM 374 Entire Course For more course tutorials visit ISCOM 374 Week 1 DQs ISCOM 374 Week 1 Individual Assignment Logistics and Supply Chain Article Analysis ISCOM 374 Week 2 Learning Team Assignment Strategic Logistics Report ISCOM 374 Week 2 DQs ISCOM 374 Week 3 Individual Assignment Product versus Service Supply Chain Comparison Paper ISCOM 374 Week 3 Learning Team Assignment Forecasting and Inventory Analysis Paper ISCOM 374 Week 3 DQs ISCOM 374 Week 4 Materials Handling Packaging Field Research Report ISCOM 374 Week 4 Logistics Press Release ISCOM 374 Week 4 DQs ISCOM 374 Week 5 Learning Team Assignment Global Considerations Report ------------------------------------------------------------------------------------ ISCOM 374 Final Exam Test- Use As Study Material For more course tutorials visit ISCOM 374 Final Exam / Test- Use As Study Material ------------------------------------------------------------------------------------ ISCOM 374 Week 1 DQs For more course tutorials visit ISCOM 374 Week 1 DQs DQ 1 Pick one article from the course Electronic Reserve Readings (ERR) available in the Course Materials for Week 1. Summarize the main points of either the entire article if it is short or one section of a longer article. Provide your classmates with a concrete discussion of why what you learned is important relative to this week’s learning objectives. Did you......

Words: 1633 - Pages: 7

Premium Essay

Logistics Management

...As a brief description of the subject in the study, the life cycle of logistics can also be maximized through establishing effective management organizing efforts to maintain a certain company’s operational structure that will avoid or prevent errors and mismanagement that can take place within the corporation. In this case, the 360 degree logistics can be found when there will be a capital expenditure that will be carried out to fund materials and human resources that will be helping to manufacture product. As soon as the product will be made and distributed to the market, there will be an exchange of commodity as well as financial trade value. This process will undergo the procedural profit taking to collect the monetary amount of profits that has been sold to the market. The monetary value will be distributed to the accounting department of a certain organization to fund services, raw materials, and salaries to employees that completes the life cycle of the business operating organization. Image is one of the most sensitive factors that should be taken cared in long-term basis for the reason that it can be used for the marketing plan that will promote the company’s products to boost sales to the public as mentioned by Ponstern (2008). Location is one of the most important considerations that will be considered for companies such as Panasonic because it is an electrical distributing company that aims to identify potential target market to maintain their production capacity......

Words: 2080 - Pages: 9

Premium Essay

Mba Project

...TRANSPORT & LOGISTICS Reverse Logistics in the Supply Chain a report by James R Stock Professor of Marketing and Logistics, University of South Florida James R Stock is a professor of Marketing and Logistics at the University of South Florida, Tampa. He is the author or co-author of more than 90 publications in the area of logistics. His specialities are in the areas of reverse logistics and the marketing-logistics interface. Currently, Dr Stock serves as Editor of the International Journal of Physical Distribution and Logistics Management and is a frequent speaker and consultant on reverse logistics and other logistics topics throughout North America, Europe and Africa. In evaluating the importance of logistics within supply chains, many published ‘lists’ of logistics attributes have reverse logistics rated relatively low in importance. Such ratings are, however, misleading. Product quality, competitive prices, consistent order cycle times, ontime deliveries and low damage rates have traditionally been very important, and will continue to be so in the future. Today, they are the ‘price of admission’ to the competitive arena. Many competitors have reached parity on many of these important logistics attributes and they have become standard offerings of these companies and basic requirements of customers. Organisations not meeting standards on these attributes are usually not even considered in purchasing and/or outsourcing decisions. When a firm achieves......

Words: 2451 - Pages: 10

Premium Essay

Nippon Express

... 3 Literature review................................................................................. 4-6 Background of Nippon Express........................................................ 7 Description of logistics operation...................................................... 8-11 Challenges of Nippon Express........................................................... 12-13 Recommendations............................................................................... 14 Personal Reflection.............................................................................. 15 Conclusion............................................................................................ 16 Reference.............................................................................................. 17-18 Introduction Logistics is the art and science of management, engineering and technical activities concerned with requirements, design and supplying, maintaining resources to support objectives, plans and operation. [Society of logistics engineers (SOLE) 1974] INBOUND LOGISTICS Inbound side of logistics includes procurement or purchasing inventory management activities. It is important to note that the inbound and outbound logistics systems share common activities or process, since both involve decisions related to transportation, warehousing, materials handling, inventory management and control, and packaging, as well as some other activities. With......

Words: 3691 - Pages: 15

Premium Essay

Fourth Party Logistics

...Management and Economics Logistics outsourcing 3PL & 4PL – A Survey on Pakistani manufacturing and exporting companies Business Logistics, 15ECTS, FE–5594 Authors Muhammad Usman Tahir - 840523 Hammad Tabassum - 830509 Saeed Ahmad - 820919 Muhammad Arshad - 830804 Examiner: Helena Forslund Tutor: Petra Andresson ABSTRACT Authors: Tutor: Examiner: Title: Background: Muhammad Usman Tahir, Hammad Tabassum Muhammad Arshad, Saeed Ahamad. Petra Andersson Helena Forslund A Survey on Pakistani manufacturing and exporting companies The development of recent means of transportation, information has increased opportunities for global business and it is very common that the companies involved in global business often need to outsource logistic function, as they cannot perform global logistics on their own. The need of service effectiveness for companies and operations efficiency from logistics service providers involves the minimization of the uncertainties associated with logistics outsourcing, therefore risks reduction measures must be implemented using logistics outsourcing. - How do the Pakistani manufacturing and exporting companies currently outsource their logistics function in their downstream supply chain? - What benefits they seek with respect to 3PL and 4PL? - What factors they consider for outsourcing logistics? To investigate the current logistics outsourcing situation of the Pakistani Manufacturing and Exporting Companies. What logistics functions they......

Words: 21259 - Pages: 86

Free Essay

Global Logistics Firm Tnt Express.

...Case Study This case study relates to the appointment of a new Chief Executive Officer (CEO) for the global logistics firm TNT Express. Copy of a Press Release statement: 25 February 2013 07:30 CET - Amsterdam, the Netherlands – The Supervisory Board of TNT Express has today announced the appointment of Tex Gunning as CEO. "Tex’s extensive business experience and track record in successfully turning around businesses and delivering results make him the ideal candidate in this critical time for the company," said Antony Burgmans, Chairman of the Supervisory Board. "He is also an inspiring leader and we look forward to Tex stepping into his new role and helping the company realise its improvement plans. Tex Gunning said: "I am honoured to be part of TNT Express and look forward to leading the company with others and, with support from the extended management team." The Business Courier Market The global business courier market is dominated by several large organisations, these include the often familiar names such as FedEx, DHL, TNT and UPS. All of whom operate across the globe and offer express delivery services primarily to business customers. On a national level many of these organisations will compete against the home country mail providers (e.g. Royal Mail in the UK, or Hong Kong Post in HK) and many smaller nationally based organisations (e.g. City Link in the UK) and the several thousand freelance, self-employed independent courier delivery services. ......

Words: 1538 - Pages: 7

Premium Essay

Jak Byc Z Fordem

...freight takes center stage Contents Snapshot The challenge The solution The rollout Issues encountered Results Logistics finally catches up with ‘lean’ 1 2 3 4 4 5 5 Share this case study Tweet about this case study Follow Viewlocity on Twitter Share this on Linkedin Connect to Viewlocity on Linkedin Share via email Inbound freight takes center stage | Page 1 Snapshot Ford Motor Company Key challenge To balance inbound freight costs for thousands of parts across hundreds of suppliers with the high frequency of deliveries needed to support just-in-time (JIT) automobile manufacturing. Solution Ford deployed the Inbound Planning Engine from Viewlocity Technologies that considers multiple factors and constraints necessary to meet lean manufacturing requirements at the lowest possible cost. Factors considered included: • • • • • • • • Load sequencing across suppliers Quantities per load Trailer capacity Load configuration Dock schedules and capacities Production schedules Target plant inventory levels Return of part containers to suppliers Upon consideration of all of these factors, the Viewlocity Inbound Planning Engine was used to determine the plan for the right quantity and delivery frequency for every part at the lowest possible cost. The Viewlocity Inbound Planning Engine was first employed by Ford Materials Planning and Logistics Group to support the launch of the company’s best selling F-150 pickup. Results Fewer transport miles, better......

Words: 1654 - Pages: 7

Premium Essay

Corporate Strategy Fedex

...Executive Summary This report endeavors to look at FedEx from the strategic initiative point of view and how it was able to adapt to changing business environment to improve itself.  While organisations the world over have come and gone a few leave a lasting footprint on the way they have moved in the particular sector.  FedEx with its various innovative ideas has left lasting footprint that has forever altered the scope of service within the logistics industry. From its humble beginnings as a delivery company, it has set itself up a global logistics and business services organisation that has shaken the belief held by behemoths regarding the level of innovation and service that they can offer to the customer base.  With its out-of-box approach it has made industrial leaders like UPS, DHL etc, and look like new kids in the block.  The strategic initiatives that the organisation has taken during various time a frame has exemplified the leadership ability of Mr. Smith to work toward uncertainly and how to respond to them. Introduction A general assumption regarding strategy is that executives by applying a set of tools will be able to predict a future of any business clearly enough to choose a clear strategy or direction to adopt. This overall scenarios and assumptions made usually led to a layout of vision for the future with assumed precision. However, one needs to remember that when the time ahead looks uncertain this approach is at best only helpful marginally and...

Words: 3569 - Pages: 15

Premium Essay

Deloitte Logistics Report 2012

...Logistics Sector Present situation and way forward January 2012 2 Contents About Deloitte About ICC Overview I. Challenges faced by the Logistics industry in India II. Impact of challenges faced III. The way forward Bibliography Websites Contacts 4 5 6 8 13 14 16 18 19 Logistics Sector Present situation and way forward 3 About Deloitte Deloitte is one of the largest professional services organizations in the world with a worldwide presence of over 182,000 professionals in over 150 countries, with $28.8 billion in annual revenue (FY11). Deloitte’s global presence is highlighted below. the right combination of local insight and international expertise. Deloitte in India provides a full range of management consulting, financial advisory services, Accounting, Tax and IT solutions delivery to clients, tailored to Deloitte: Global network - 150 countries : 182,000 people Europe 297 offices in 47 countries Key Offices: London, Frankfurt, Paris, Rome, Dusseldorf, Madrid, Moscow, Prague Asia Pacific 113 offices in 26 countries Key Offices: Pakistan, Singapore, Thailand, Vietnam, Indonesia North America 131 offices 2 countries Key Offices: New York, San Francisco, Los Angeles, Denver, Toronto, Montreal South America 69 offices in 28 countries Key Offices: Sao Paulo, Mexico City, Buenos Aires, Santiago, Caracas Africa & Middle East 46 offices in 35 countries Key Offices: Johannesburg, Cape Town, Kenya, Tel Aviv India 15000......

Words: 6051 - Pages: 25

Premium Essay


...transactions are done with no intent on the consumer’s part to use the product or service for commercial purposes. An example of B2B can be Pepsi supplies soft drinks to KFC and Domino Pizza. On other hand, ebay merchant sell apparels to buyers can be an example of B2C. 2. Inbound and outbound logistic process is vital to businesses. Inbound logistics deals with purchasing, storing and processing all the materials from the suppliers. Depending on the type of goods produced by the business, these supplies can range from anything between raw materials or produced goods. For example, a firm which produces electronic goods such as mobile phones would require a supplier of electrical components such as LED panel which are used in its goods. A firm which supplies petroleum might require raw materials such as crude oil from another supplier. For smooth flow associated with inbound logistic, business must choose right methods of transporting these goods from the supplier, storing their goods at the most convenient location with minimised costs. Outbound logistic deals with management of inventories associated with storing, transporting, and distributing to its customers. Outbound logistics needs to take into consideration the demand of the consumers of its goods in order to determine size of inventory. If the demand of a particular good is low, the firm should control the production of goods to ensure the amount of inventory is not excessive. If the demand exceeds the supply,......

Words: 597 - Pages: 3

Premium Essay

Logistics Manager

...China 2015: Transportation and Logistics Strategies Leadership requires innovation, expansion and redesigned networks A s China’s economy grows, so grows its transportation and logistics industry. China is becoming a more mature and self-confident country and a driving force in the new global economic structure, and this is bringing new challenges and opportunities to the five sectors of the country’s transportation and logistics industry — express, road freight, air freight, contract logistics and international freight forwarding. How can Chinese companies improve the country’s transportation and logistics environment? Leadership in this industry requires innovation, expansion and redesigned networks. China’s extraordinary economic growth continues. Even as the global economy struggles to recover from the financial crisis, various statistics indicate that China’s economy has emerged resilient, with rapid growth expected to last into the foreseeable future. In this context, the transportation and logistics industry in China is also poised for major growth over the next five years, portending significant changes for its five main segments: express, road freight, air freight, contract logistics and international freight forwarding (see figure 1 on page 2). As the boundaries between these segments blur, consolidation will accelerate and network coverage and density will grow. At the same time, an increasing focus on sustainability will add new pressures to cost structures....

Words: 4163 - Pages: 17