the dubai logistics industry

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Logistics & Retail Business Vertical
Optimizing the efficiency of Supply chain Cycle
Presented by :-
Akash Jauhari
Aniket Pandey
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Dubai Logistics industry
Strategic Geographic Location between Eastern and Western
Hemispheres
Rated Best in Logistics Infrastructure in Middle East by World Banks Logistics Performance Index 2010
Has One of Lowest Average Logistics Costs in the World
UAE also has good internal road network, including The Emirates Road (140 Km) connecting all emirates.
Availability of World Class Logistics Infrastructure facilities including free Trade Zones for Transshipment and Re-exporting
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UAE Transportation Infrastructure
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UAE warehousing Infrastructure
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Leading players in logistics Industry
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Strategic Analysis of SCM Cycle of Foreign Players in UAE
DHL
Full RMA-RTV tracking and visibility
Customer Business rules embedded in software
Strategically positioned storage locations
Express Logistics Centers
Strategic Parts Centers
DHL Worldwide Express Transportation network
Logistics Customer Service Center
Dedicated DHL Airways
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United States
Europe, Africa
Middle East
45
Asia Pacific
109
93
Latin America
35
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DHL
Global Network SPCs & ELCs
9 Express Logistics Centre's
273 strategic parts centers
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2
Event
Info flow
Breakdown occurs
Pick & Pack
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Physical flow
Customer request spare part
Dispatch Confirmation
Optional (EDI only) : Dispatch Confirmation to CUST
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CUST validates order (Optional :
request can be direct to LCSC)
Delivery of part to destination
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11
Transmission to DHL LCSC
Stock level ELC drops below reorder level
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12
DHL LCSCvalidates order
Parts ordered
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13
Optional
Order confirmation
New parts delivered to ELC
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14
Order to pick and pack
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D.E.I- Direct Express Inventory
CUST Suppliers
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LCSC
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ELC
CUSTCustomers/Engineers
CUST
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1
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Advanced Exchange Business Model
Manufacturing
Repair
Defective Repair
process
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New Stock
process
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DHL CRC
DHL ELC
Order attributed
to SPC or ELC
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5
Defective
Returned
to ELC
Auto replenishments from ELC to SPC
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DHL SPC
4
2 or 4 hour
Order delivery
from SPC
Overnight
Order delivery from ELC
4
Lucent Customers (FLM)
Lucent EMEA CRC
triggers maintenance order
via DHL web
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Lucent Customer
suffers maintenance
failure
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DHL
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Key Challenges faced by local players to compete against Foreign Major Players
1.How to identify interdependencies in process networks, while doing the modeling of a Supply Chain Cycle.
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E-SCM IMPROVEMENT PROCEDURE
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STEP 1 :- Standarzation of Business Process
Using SCOR Reference Model ( Supply Chain Operational Reference ) Version 6.0.
The model is built on the concepts of BPR, benchmarking, and process measurement
STEP 2 :- Business Process Modeling ( IDEF01 )
How Business Should be executed bya firm
Decomposition and Assigning the Nodal Numbers
Vertical & Horizontal Interdependencies
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2. How to Minimize the total expected delivery transshipments cost from Warehouse to Customer/Retail and Vice-Versa in uncertain Demand Situation
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For simplicity, we aggregate all customers from one regional market into one customer located at the DC in that market, which implies no distance difference among customers in the same market
delivery costs follow the basic geometric axiomthat is, Cij+CjkCik, for any i, j, and k
n=number of distribution centers in the system
Si=current inventory position at DC i (i=1, 2,, n)
j=expected periodic demand rate at market j (j=1, 2,, n)
Cij=unit transshipment cost from DC i to market j
Dj=expected remaining demand within the current period from market j
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Optimal Transshipment Rule to find Optimal Dynamic Shipment Strategy
Although the market demand is dynamic and uncertain, it follows a Poisson distribution with rate j. So the probability that the next unit demand comes from market j is j/.
To the extent that shipping cost is roughly proportional to distance, it appears reasonable to transship from the closest DC with stock on hand. This intuitive approach is widely adopted in practice. We name the first decision rule as theNearest Rule.
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3. Application of RFID technology at various interface of Supply Chain Cycle and creating platform between Data and ERP Interface
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BENEFITS TO SUPPLY CHAIN STAKEHOLDERS
Benefits to Manufacturers
Benefits to Distribution Centers
Benefits to Warehouses
Benefits to Logistics Company Administration
Benefits to Retailers
Benefits to the Whole Supply Chain
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ADOPTION STRATEGY
Shared Understanding
Goal Setting
Justification
Read Rate Accuracy
Security
Privacy
Moraitis Fresh
Australian Post
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4. Implementing ERP with Supply Chain for the better flow of Information and better tracking of Job ID
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22. Company website
Flight details receipt custom clearance
Air Freight
CRM
Warehouse 1,2,3.n
Customer
Service delivery team
Feedback free receipt
Delivery Vehicle Space
Sea freight
3rd Party Agent
Loading company
General Flow Process For Logistics Company
Port No
Vessel no
Route No
Custom clearance
Receipt
Recipient
Feedback
Job no = close
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References
http://somweb.utdallas.edu/centers/c4isn/documents/c4isn-Impact-RFID-SC-Perform.pdf
http://www.dhl.co.ae/en.html
http://www.dhs.gov/xlibrary/assets/foia/US-VISIT_RFIDattachI-redacted.pdf
RFID utilization and information sharing: the impact on supply chain performance
Pamela J. Zelbst
Department of Management and and Marketing, College of Business Administration,
Sam HoustonState University, Huntsville, Texas, USA
Kenneth W. Green Jr
Department of Management, Marketing, and Management Information Systems,
College of Business,Southern Arkansas University,Magnolia, Arkansas, USA, and
Victor E. Sower and Gary Baker
Department of Management and Marketing, College of Business Administration,
Sam Houston State University, Huntsville, Texas, USA
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End of Slides
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the dubai logistics industry

Business

dubai logistics industryd

local players

lowest average logistics

foreign major playersstep

foreign major players3

market demand

market j j

market jdj