SUPPLY CHAIN MANAGEMENT II

Transcription

1 SUPPLY CHAIN MANAGEMENT II DEFINITIONS Ton.Km: Unit of measure of freight transport which represents the transport of 1 tonne of goods over a distance of 1 km. ULD: Unit load device is a pallet or container used to load/unload luggage, freight on an aircraft. SSS: Short sea shipping encompasses the movement of cargo and passengers mainly by sea, without directly crossing an ocean. Multimodal transport: Carriage of goods by two or more modes of transport. Intermodal transport: The movement of goods in one and the same loading unit (container, swap body and semi-trailers) or road vehicle, which uses successively two or more modes of transport without handling the goods themselves in changing modes. Hinterland: A port's hinterland is the area that it serves, both for imports and for exports. RFID: Radio frequency identification is the wireless non-contact use of radio-frequency electromagnetic fields to transfer data, for the purposes of automatically identifying and tracking tags attached to objects. The tags contain electronically stored information. LTL: Less than truckload shipping is the transportation of relatively small freight. An LTL carrier will have several vehicles that collect shipments from customers in a localized area. These vehicles then converge onto a central hub, where each shipment is unloaded, weighed, and processed. Each shipment is then loaded onto a vehicle with other shipments bound for the same geographical area. FTL: Full Truckload shipping is the movement of large amounts of homogenous cargo. Generally, FTL carriers will contract an entire trailer load to a single customer. The cargo usually remains on a single vehicle from the point of origin to the destination. TSP: Travelling salesman problem asks the following question: Given a list of cities and the distances between each pair of cities, what is the shortest possible route that visits each city exactly once and returns to the origin city? It is an NP-hard problem. Low emission zone: LEZs are areas or roads where the most polluting vehicles are restricted from entering. Advantages/Disadvantages RFID Relatively low cost Electronic data transmission (no error and fast) Marc Gou - MIP Page 1

2 Need infrastructures (Offices, IT systems) Incompatibility with metal and liquid. Road transport Flexible (door-to-door) Relatively short delays Wide variety of services like groupage Advantageous speed/price relationship Security (accidents) and delays (congestions) occur due to the countries covered and the climatic condition More pollution than rail transport Rail transport Development of combined transport Possibility of door-to-door thanks to private sidings Steady flows of traffic and schedules adhered to Long distances and to major tonnage Entire train rather than single wagon Unsuitable for short distance Limited by the railway track Necessitates pre- and post- carriage beyond private sidings Sea transport Cheapest and best adapted method of transporting heavy and bulky products (grain, hydrocarbons, fruit...) Possibility of storage within the port installations Numerous geographical locations can be connected Delays Insurance and packing are expensive Air transport Speed, safety for the goods Regularity and reliability of transport Packing is cheap Well suited to "Just in time management" Many geographical locations can be connected High price Limited capacity It is forbidden to carry certain hazardous products Bulk breaking: any loose material that must be loaded individually Pipeline Adapted for massive gas/liquid transport Safe and reliable transport system Adaptation to automatism (reduced labor cost) Marc Gou - MIP Page 2

3 Important initial investment cost Intermodal transport Flexibility for how to move the freight (time, mode) Possibility to optimize the cost Need important communication systems to assure the efficiency between different modes of transport Delays when we change the mode of transport Hub and spoke network For a network of n nodes, only (n-1)*2 routes are necessary to connect all nodes. Better complexity than (n-1)*n of the point-to-point system. Small number of routes generally leads to more efficient use of transportation resources (Ex: + possibility to fly at full capacity). Complicated operations, such as package sorting and accounting, can be carried out at the hub, rather than at every node. Spokes are simple, and new ones can be created easily. Because the model is centralized, day-to-day operations may be relatively inflexible Route scheduling is complicated for the network operator. Careful traffic analysis and precise timing are required to keep the hub operating efficiently. The hub constitutes a bottleneck or single point of failure in the network. Total cargo capacity of the network is limited by the hub's capacity. Cargo must pass through the hub before reaching its destination, requiring longer journeys and more kerosene than direct point-to-point trips. Characteristic of hubs of major air freight integrators Generally situated in a region where the air traffic is very important (Europe, North America, Asia-Pacific): Hong Kong, Shanghai, Seoul, Frankfurt, Liege... Memphis: Hub of Fedex: In the center of USA, collect and sort all packages for the whole country. Anchorage: Hub of Fedex: Strategic situation between North America and Asia. Dubai/Bahrain: Strategic situation between Asia and Europe + Cheaper fueling. Eco combi (truck => 60 tons) Less emission (15 to 30%) Less trucks Parking problems Cities, twisty roads, roundabout (oversize) Overtaking Made rail transport less attractive Driving ban for HGVs on Sundays Less noise and vibration during ban period... but just shift in time -> adverse effects on other days Marc Gou - MIP Page 3

4 Negligible effects on congestion (low traffic on Sundays) Workload increases for public authorities and managers monitoring the ban. Limited gains for transporters. Additional parking spaces required Increase in staff (delivering from 7 to 6 days) -> higher labor costs -> charged to the consumers. Air transport could suffer severe consequences (ex: TNT already works at full capacity on working days) No impact on the number of accidents Drop-shipping: A supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders to the manufacturer or a wholesaler, who then ships the goods directly to the customer. Ability to centralize inventories at the manufacturer -> Risk pooling -> Decrease safety stock and Reduce average inventory while maintaining the same service level. Lower inventory, facility costs due to the aggregation. High level of product variety and availability The time to market is fast Higher transportation costs (increased distance, disaggregate shipping...) Significant investment in information infrastructure to integrate manufacturer and retailer. Long response time Returnability is expensive and difficult to implement Theoretical questions Difference between block train and single wagon load A block train is a train in which all the wagons are shipped from the same origin to the same destination, without being split up or stored en route. Single wagon load consists of individual wagons load with goods at separate locations, transferred to marshalling yards where the wagons are sorted by destination, then transported to a destination marshalling yard where individual wagons are separated and collected into trains per destination. Difference between LTL and FLT FTL carriers will contract an entire trailer load to a single customer while LTL carriers typically have several destinations or pick up locations to accommodate the needs of different customers. What about the dominant mode(s) of transport in Europe? Road transport is the dominant mode in Europe (especially in the south of Europe and in UK).Short sea shipping is an important way in coastal region (North sea, Mediterranean sea, Baltic sea) Inland waterways is important in Netherlands and Belgium. Marc Gou - MIP Page 4

5 What about the dominant mode(s) of transport in Japan? Short sea shipping (Archipelago) and Road transport. What about the dominant mode(s) of transport in China? Short sea shipping is dominant, but rail transport is also important. What about the dominant mode(s) of transport in the USA? Rail transport is dominant, after comes the road transport. What about the dominant mode(s) of transport in Russia? Pipeline (big Oil/Natural Gas producer) and rail transport are dominant. What about the main characteristics of air freight flows? Asia <-> North America, Europe <-> North America, Asia <-> Europe. The most important flow is Asia -> North America. What about the main characteristics of maritime freight flows? Transatlantic (Europe <-> North America), Trans-Pacific (Asia <-> North America), Europe <- (Suez, Malacca) -> Asia, Persic Gulf ->... Give the different types of maritime routes Port-to-Port: +/- Regular service between 2 ports. (like a taxi) Pendulum: Regular itinerary between sequences of ports. (like a bus) Round the world: Pendulum around the world. Why the increasing of containers flows is so important? Adapted to the intermodal transport and the pendulum maritime route. Possibility of logistic tracking. Why the number of 40 containers is more important than the number of 20 containers? The cost of loading/unloading operations for 20 or 40 containers is the same. One 40 container is cheaper than two 20 containers. Marc Gou - MIP Page 5

6 Give an example of a priority axis for European transport? Galileo: Global navigation satellite system built by Europe. What are the interoperability problems of the European rail network? Signaling Gauges (4 different systems in Europe) Power system Rolling stock Direction of running Train length What is a reefer container, its role and its need? A container that allows to keep a constant temperature inside. It is used for the temperature sensitive goods. Need: Electricity What is a Bibo? BIBO (Bulk IN Bags OUT) bulkers are specially equipped to provide the service of bagging cargo at loading time. Describe the specific issues of city logistics The traffic environment The traffic congestion Energy consumption What about the ERTMS? ERTMS (European Railway Traffic Management System) is an initiative backed by the European Union to enhance cross-border interoperability and the procurement of signaling equipment by creating a single Europe-wide standard for train control and command systems. What are the measures of customer service level influenced by the network structure? Response time is the interval between the time that the customer places an order and the time that the customer receives delivery. Product variety is the number of different products/configurations that are offered by the distribution network. Product availability is the probability of having a product in stock when a customer order arrives. Customer experience includes the ease with which customers can place and receive their orders. Time to market is the time it takes to bring a new product to the market. Marc Gou - MIP Page 6

7 Order visibility is the ability of customers to track their orders from placement to delivery. Returnability is the ease with which a customer can return unsatisfactory merchandise and the ability of the network to handle such returns. Explain the 7 wastes in lean management Overproduction: To produce sooner, faster or in greater quantities than customer demand. Inventory: Raw material, work in progress or finished goods which is not having value added to it. Waiting: People or parts that wait for a work cycle to be completed. Motion: Unnecessary movement of people, parts or machines within a process. Transportation: Unnecessary movement of people or parts between Rework: No right first time. Repetition or correction of a process. Overprocessing: Processing beyond the standard required by the customer. Overqualification: Being skilled or educated beyond what is necessary for a job. Difference between push and pull system Push system: The production of the item begins in advance of customer needs. Material is pushed into downstream workstations regardless of whether resources are available. Pull system: Customer demand activates production of the service or item. Material is pulled to a workstation just as it is needed. Explain the use of Kanban Kanban is a card or other device that communicates demand for work or materials from the preceding station. The idea behind this system is to authorize materials for production only if there is a need for them. Through the use of Kanban authorization cards, production is pulled through the system, instead of pushed out before it is needed and then stored. What are the 5S? 5S Principles are used to create a clean and well-organized work environment. 1. Sort: Keep only what we need 2. Set in order: A place for everything and everything in its place 3. Shine: Cleaning, and looking for ways to keep clean and organized 4. Standardize: Maintaining and monitoring the first three categories 5. Sustain: Sticking to the rules Difference between reverse logistics, green logistics and closed loop Green logistics investigate supply chain with respects to environmental and ecological activities while reverse logistics emphasizes more on the profitability of strategic recovery options. Marc Gou - MIP Page 7

8 Reverse logistics involves the processes for sending new or used products back up stream for repair, reuse while closed loop supply chains are designed and managed to explicitly consider both forward and reverse flows activities in a supply chain. Give examples of reverse flows Products that have failed; are unwanted (or wrong delivery), damaged, or defective; but can be repaired or remanufactured and resold. Products that are old, obsolete, or near the end of their shelf life but still have some value for salvage or resale. Products that are unsold from retailers, usually referred to as overstocks that have resale value. Products being recalled due to a safety or quality defect that may be repaired or salvaged. Products needing pull and replace repair before being put back in service. Products that can be recycled such as pallets, containers, computer inkjet cartridges, etc. Products or parts that can be remanufactured and resold. Scrap metal that can be recovered and used as a raw material for further manufacturing. Forms of reuse 1. Direct reuse: Without prior repair operations (with cleaning and minor maintenance). 2. Repair: Restore failed products / components to working order, generally less quality than the original product. 3. Refurbishing: Bring used products up to specified quality. Disassembly into modules, all critical modules are inspected and fixed or replaced. 4. Remanufacturing: Seeks to bring the product back into an as new condition, products are completely disassembled and all modules and parts are examined in detail. It conserves product identity. 5. Cannibalization: Recover a limited set of reusable parts from used products or components, parts are reused in repair, refurbishing or remanufacturing of other products. 6. Recycling: Material recovery without conserving any product structures or functionality. Marc Gou - MIP Page 8