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Introduction into Logistics

Introduction into Logistics. PhD Natasha Lutovinova Logistics Lecturer E-mail: Lutovinova.N@nhtv.nl Room: G1.006. Handbook: Paul R. Murphy & Donald F. Wood, Contemporary logistics (New Jersey 2011), 10 th edition. 3. Introduction into Logistics Course Outline. 12.05 Introduction

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Introduction into Logistics

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  1. Introduction into Logistics PhD Natasha Lutovinova Logistics Lecturer E-mail: Lutovinova.N@nhtv.nl Room: G1.006

  2. Handbook: Paul R. Murphy & Donald F. Wood, Contemporary logistics (New Jersey 2011), 10th edition 3

  3. Introduction into Logistics Course Outline 12.05 Introduction 13.05 SCM Concept, Inventory 14.05 Demand Management, Warehousing Management 15.05 Transportation Management, International Logistics 16.05 Poster Session

  4. CHAPTER 12 Transportation 5 - 6

  5. Learning Objectives • To describe the role of freight forwarders and other specialists • To distinguish the five modes of transportation • To explain the trade-offs between the five modes of transportation 6 - 6

  6. Transportation • Transportation is the movement of goods and people between two points Influenced by: • Transportation costs • Transportation modes used: air, motor carrier (truck), pipeline, rail, water • Packaging • Materials handling equipment (loading-unloading, shipping docks) • Order management methodology (maximum consolidation) • Customer service goals • Environmental considerations 7 - 6

  7. Inventory Transportation Transportation Total cost approach • Transportation modes • Cost • Speed • Reliability • Capability (amount) • Capacity (volume) • Flexibility (ability to deliver a product to a customer) Warehousing 8 - 6

  8. Transportation modes • Supply chain success requires transportation • Transportation costs are affected by location • Inventory requirements are influenced by mode • Packaging requirements are dictated by mode • Materials handling equipment and design of the docks are dictated by mode • Maximum consolidation of loads achieved with order-management technology reduces costs • Customer service goals influence carrier choice 9 - 6

  9. Transportation modes • Airfreight • Motor carriers (trucks) • Pipelines • Railroads • Water 10 - 6

  10. 11 - 6

  11. Example of the capabilities of transport by ocean vessels: http://www.youtube.com/watch?v=bokySqGdRhM&feature=fvsr A ship on fire: http://www.youtube.com/watch?v=i51q3hMr0nE&feature=related 12 - 6

  12. 13 - 6

  13. Transportation modes • Airfreight • Line-haul (terminal-to-terminal movement of freight), belly freights • Consignees • Accessorial service • Dimensional weight (amount of space occupied in relation to actual weight) • Wearing apparel • Electronic equipment • Machinery and parts • Cut flowers and nursery stock • Auto parts and accessories • Fruits and vegetables • Photographic equipment 14 - 6

  14. Aircraft freight capacity 15 - 6

  15. Large Containers Used by International Airlines 17 - 6

  16. 18 - 6

  17. Transportation modes • Airfreight • Motor carriers • LTL (less-than-truckload) • Too big to be handled manually, too small to fill a truck • LTL trucks carry shipments from many shippers • Most large firms are LTL carriers • Operations via terminals (consolidation) • (F)TL (truckload) 19 - 6

  18. Transportation modes • Airfreight • Motor carriers • Less-than-truckload (LTL) (continued) • Process • Local pick-up • Origin terminal used to load aboard line haul (Movement of goods between cities) • Line haul to terminal near destination • Destination local delivery on smaller trucks • Consignee receives (the consignee is the person to whom the shipment is to be delivered whether by land, sea or air) • (F)TL (truckload): 18 tons, 82 m3, 110 m3, 120 m3, 1300x2450x2500-3000 mm 20 - 6

  19. 21 - 6

  20. Transportation modes • Airfreight • Motor carriers (fronthaul & backhaul transportation) • Pipelines • Excess capacity • Slurry systems (phosphate, limestone, copper concentrate, iron concentrate) • Pollution - Contamination 22 - 6

  21. Transportation modes • Airfreight • Motor carriers • Pipelines 23 - 6

  22. Transportation modes • Airfreight • Motor carriers • Pipelines • Railroads Ton miles: the number of tons multiplied by the number of miles transported Rail gauge: 1435 mm 1520 mm 24 - 6

  23. 25 - 6

  24. Transportation modes • Airfreight • Motor carriers • Pipelines • Railroads • Water: • Deep Sea Shipping • Short Sea Shipping • Inland Shipping 26 - 6

  25. Transportation modes - water Short Sea Shipping 27 - 6

  26. Ports in Europe and in the Mediterranean that are connected to Antwerp by ‘short sea’ water transport 28 - 6

  27. Transportation modes - water Inland shipping Barge 29 - 6

  28. Ocean Shipping • Types of Vessels • Containerships • Roll On-Roll Off (RO-RO) vessels • Tankers • Parcel Tankers • Tramps • Specialized vessels • General cargo 30 - 6

  29. 1795, Benjamin Outram, Little Eaton Gangway 31 - 6

  30. 1955, Malcom McLean, 3.0x2.4x2.4 Twistlock 32 - 6

  31. The world’s largest container vessel:MSC “Kalina”Capacity: 13800 TEU http://www.youtube.com/watch?v=ypyeOVCBSsE 33 - 6

  32. 1. «MSC Kalina», MSC, 13 800 TEU. 2. «Emma Maersk», MAERSK, 11 000TEU (Maersk Line declares 15500TEU) 3. «CMA CGM Andromeda», 11 330 CMA-CGM, TEU 4. «COSCO America», COSCO, 10062 TEU 5. «CSCL Long Beach», China Shipping Container Line/CMA-CGM, 9572 TEU 6.«Bremen Express», Hapag-Lloyd, 8749 TEU 7. «NYK Adonis», NYK, 9300 TEU 8. «MOL Creation», APL, 8100 TEU 9. «APL Russia», APL, 7900 TEU 10. «Hatsu Sigma», Evergreen, 7042 TEU Handysize Class — 260—1000 TEU Handymax Class — 1000—1700 TEU Feeder Class — 1700—2500 TEU Sub-Panamax Class — 2500—4000 TEU Panamax Class — 4000—7000 TEU Post-Panamax Class — 7000 −13000 TEU Super-Post-Panamax Class/Е-class - 15500TEU  Triple E-class — 18000TEU http://www.worldslargestship.com/ 34 - 7

  33. Figure 15-1: Loading a Travel Trailer Aboard a RO/RO Vessel in the Port of Seattle 35 - 7

  34. Tanker 36 - 7

  35. Transportation modes- water Bulk cargo 37 - 6

  36. World’s Largest ship: Knock Nevis 38 - 7

  37. Piggyback 39 - 6

  38. 40 - 6

  39. 41 - 6

  40. Transportation Specialists • Freight forwarders • buy space at TL (truckload) rate and sell at somewhat less than LTL rate • pick-up and deliver; motor carriers or railroads do line-haul • function as transportation departments of small firms • may specialize in specific cargoes 42 - 6

  41. Transportation Specialists • Freight forwarders • Air forwarders (consolidators) • Consolidate shipments • Tender to airlines in containers ready for loading • Forwarders provide for retailing function • Airline provides for wholesaling function 43 - 6

  42. Transportation Specialists • Freight forwarders • Shipper’s associations • Brokers • A facilitator who brings together a buyer and seller • May consolidate LTL shipments and then give to truckers, forwarders, or shippers’ associations • Parcel carriers 44 - 6

  43. Parcel carrier / Courier service 45 - 6

  44. Legal classification of carriers • Common carriers • Contract carrier • Exempt carriers • Private carriers • Private transportation is when the shipper provides and operates his own equipment 46 - 6

  45. Private Carriers Private transportation is used when firms own and operate their own trucks, railcars, barges, ships, and/or airplanes. Private trucking provides Improved level of customer service Advertising on the trucks May be less expensive 47 - 6

  46. Transportation Regulation • Environmental regulation and restrictions • Safety regulation • Economic regulation 48 - 6

  47. 500 km by water 300 km by train 100 km by truck Five litres of fuel transports one ton ……. km 6 km by air 49 - 6

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