transport logistics from negril point to morant point
TRANSCRIPT
Transport Logistics
From Negril Point to Morant Point
Team Lean
Kevon McAnuff
Lascelles Virtue
Osawaki Wickham
2
The Lean Team
Contents
The Transportation Link2
Reference6
Introduction to Logistics1
Conclusion5
Modes of Transportation3
3
The Lean Team
An Invaluable Insight4
Introduction
Customer satisfaction and development of brand loyalty are two competitive advantages that firms strive to achieve.
Achievement is however dependent on the firms’ ability to make available quality products when they are needed. In other words, firms need to optimize the economic utility of their products.
The Lean Team
4
Introduction cont.
A firm’s ability to optimize economic utility has become more difficult due to :Relaxation of economic regulationsChanges in consumer behaviorGlobalizationOn line shopping
Logistics/Logistic management assist firms in their effort by:
1.Optimizing existing production process
2.Making the distribution process more efficient
3.Increasing the competitiveness of the firm
The Lean Team
5
Introduction cont.
The Lean Team
6
Lean Logistics
Right Amount
Right Thing
Right Time
Right Place
Introduction cont.
The Lean Team
7
Logistics FlowLogistics FlowLogistics FlowLogistics Flow
Inbound Logistics
Material Management
Physical Distribution
External Logistics
Introduction cont.
The Lean Team
8
Logistics Services (transport, storage etc.)
Logistics Services (transport, storage etc.)
Logistics Information SystemLogistics Information System
Logistics Infrastructure & Resources
Logistics Infrastructure & Resources
The Logistics
System
The Logistics
System
Introduction cont.
The Lean Team
9
The Transportation Link
The Lean Team
10
Transportation involves the movement of goods and raw materials.
This includes shipment of raw materials to the manufacturer and movement of finished product to the customer.
Transportation also includes the movement of parts to assembly areas as they are assembled.
The Transportation Link cont.
The Lean Team
11
Key element of Logistics Services because it links all other activities
Key element of Logistics Services because it links all other activities
It is required throughout the entire production process
It is required throughout the entire production process
It’s efficiency and effectiveness influences the performance of the entire Logistics System
It’s efficiency and effectiveness influences the performance of the entire Logistics System
The Transportation
System
The Transportation
System
The Transportation Link cont.
The Lean Team
12
Objectives of Transportation System
Low Cost
Fast Delivery Quality
Service
Low EnergyUsage
Maximize Resources
The Transportation Link cont.
Transport Costs and Goods Characters in Logistics.
Transport system makes goods and products movable and provides timely and regional efficacy to promote value-added under the least cost principle.
For those products with small volume, low weight and high value, transportation cost simply occupies a very small part of sale and is less regarded.
For those big, heavy and low-valued products, transportation occupies a very big part of sale and affects profits more, and therefore it is more regarded.
13
The Lean Team
The Transportation Link cont.
The Effects of Transportation on Logistics ActivitiesBasically, production/manufacturing plants, warehousing services, merchandising establishments are all about doing transportation.
Production or manufacturing plants required the assembly of materials, components, and supplies, with or without storage, processing and material handling within the plant and plant inventory.
Warehousing services between plants and marketing outlets involved separate transport.
Merchandising establishments completed the chain with delivery to the consumers.
14
The Lean Team
The Transportation Link cont.
The Role of Transportation in Service Quality
By means of well-handled transport system, goods could be sent to the right place at right time in order to satisfy customers’ demands.
It brings efficacy, and also it builds a bridge between producers and consumers. Therefore, transportation is the base of efficiency and economy in business logistics and expands other functions of logistics system.
In addition, a good transport system performing in logistics activities brings benefits not only to service quality but also to company competitiveness.
15
The Lean Team
Modes of Transportation
16
The Lean Team
Airfreight
Marine Transport
Land Transport
Modes of Transportation cont.
17
The Lean Team
SpeedCost
Capability
Flexibility
Reliability
Capacity
Mode Selection
Marine Transport
18
The Lean Team
ProsProsCheap High carrying capacity conveyance for consumersIdeal for transporting crude oil, grains and cars
ConsConsNeed longer transportation timeSchedule is strongly affected by weather factorsLacks flexibility
UsesUses
Crude oilMotor vehiclesWheatCement
Marine Transport cont.
19
The Lean Team
Airfreight
20
The Lean Team
ProsPros
Delivery speed & FlexibilitySecurity - lower risk of damageAccessibility and good frequency for regular destinations
ConsCons
High delivery fee. Air freight logistics is selected ‘when the value per unit weight of shipments is relatively high and the speed of delivery is an important factor.
UsesUses
Fast delivery of important machine and motor vehicle parts.
Airfreight cont.
21
The Lean Team
Land Transportation
22
The Lean Team
ModesRoad
Railway Pipeline
Express Delivery
Railway
23
The Lean Team
ProsProsHigh carrying capacityLower influence by weather conditionsLower energy consumption
ConsCons
High cost of essential facilitiesDifficult and expensive maintenanceLack of elasticity of urgent demandsTime consumption in organizing railway carriages
UsesUses
Currently used only by Bauxite companies
Railway cont.
24
The Lean Team
Road
25
The Lean Team
ProsProsCheaper investment fundsHigh accessibility, mobility and availability
ConsCons
Low capacityLower safetySlow speed
UsesUses
Most dominant means of land transportationLarge number of trucking companies Free market pricing
Road cont.
26
The Lean Team
Pipeline
27
The Lean Team
ProsProsNo need for vehicles and vehicle operatorsReliabilityCapacity
ConsCons
One-way transportationLimited capabilityHigh Initial CostFlexibility
UsesUses
Petrojam Limited to JPS
Express Delivery
28
The Lean Team
Door-to-door service (efficient)
DHL
FedEx
Tara Couriers
Air-Pak Express
Doorway Express
Just Call Couriers
Express Delivery cont.
29
The Lean Team
Express Delivery cont.
30
The Lean Team
Regulating Authority
31
The Lean Team
Transport Authority
Airport Authority
Port Authority
Marine Authority
Jamaica Railway Corporation
Ministry Ministry of Transport of Transport
& Works& Works
Ministry Ministry of Transport of Transport
& Works& Works
An Invaluable Insight
What methods of transportation are being used? Land - Trucks for DomesticSea - Ships for Containerized ShipmentAir - Plane for sensitive goods
How is the right method selected for a particular product? The right method is selected based on:Cost effectivenessDistanceProducts parametersTimeLocationCustomer’s request.
The Lean Team
32
An Invaluable Insight cont.
Which industries mostly require the service of Transport Logistics in Jamaica? Distribution (Commerce) and Passenger.
What types of products/goods are mostly transported? Mainly convenience goods - food Items
How effective is Transport Logistics in Jamaica. The Transport Logistics in Jamaica is effective as it have been achieving the desired outcome.
The Lean Team
33
An Invaluable Insight cont.
Is there room for improvement? Yes
Where? While the Transport is effective it is not efficient:
There are very few freight forwarders. Little or no alternatives for road transport (domestic). Congestion in cities and towns. More containerized ports needed in strategic locations.
The Lean Team
34
An Invaluable Insight cont.
The distribution process. The distribution process is very mundane. Orders place by customer. Based on satisfying the above stated pre-requisite the
correct mode of transportation is chosen.
How are the locations for distribution centers chosen? Cost, Proximity to majority of your customer. Proximity to competent labor, suppliers and ports.
The Lean Team
35
An Invaluable Insight cont.
How is the scheduling of deliveries completed? All deliveries are made within 24hrs. The transport department group orders according to their
size (to chose the size container or truck) and their geographical location.
Orders are then dispatch for Picking, Staging, Checking, Invoicing, Loading and Delivery.
Once the goods are delivered both the customer and delivery personnel are required to sign each copy of the invoice.
The Lean Team
36
An Invaluable Insight cont.
What software is utilized? SAP WM
Is tracking service widely available in Jamaica? Yes, this service is available in Jamaica from some of the
security companies - Guardsman, Hawkeye etc.
The Lean Team
37
An Invaluable Insight cont.
What are some of the disadvantages of poor transport logistic? Increased Distribution Cost, Increase in Price of Goods and Services offered, Dissatisfied Customers etc.
What are the main challenges with providing an efficient Transport Logistics service? CostProper infrastructureDiscipline within the systemIncompetence
The Lean Team
38
Conclusion
Logistics system has a more and more important position in our society activities.
Transportation and logistics systems have interdependent relationships.
That is, logistics management needs transportation to perform its activities while a successful logistics system could help to improve traffic environment and transportation development.
Since transportation contributes a significant cost, the improvement of transport efficiency could change the overall performance of a logistics system.
Without the linking of transportation, a powerful logistics strategy cannot bring its capacity into full play.
The Lean Team
39
Reference
Contemporary Logistics, 9th Edition http://www.btre.gov.au/docs/wp49_contents.htm http://www.cscmp.org http://www.siam.org/journals/plagiary/1657.pdf http://en.wikipedia.org/wiki/Logistics http://www.prospects.ac.uk/
industries_transport_logistics_overview.htm http://ec.europa.eu/transport/logistics/index_en.htm http://www.portjam.com/ http://www.mto.gov.on.ca/english/
The Lean Team
40
We hope you enjoyed our presentation
The Lean Team