Topic 1 – iGlobalization : Moving the Things We Buy

1. Topic 1 – iGlobalization: Moving the Things We Buy A – What is iGlobalization? B – The Age of Interdependency C – Transportation and Logistics

2. Sometimes Image is Important Global Transport and Logistics iGlobalization

3. What is iGlobalization? How can iGlobalization be defined? What are its driving forces?

4. iGlobalization: Generating added value through globalization What is iGlobalization? Research and Development Finding better products and processes. Input Costs Using the labor and resources advantages of locations. Transportation • Effectively transporting and distributing resources, parts and finished goods. Sustainability • Improving environmental and energy efficiency. Read this content

5. The World in a Box: Containers on the Move Watch this video

6. Reuse of a Container as a Swimming Pool

7. Pallets waiting to be loaded in a container, Shenzhen, China Read this content

8. Container and Tanker Ships Crossing the Miraflores Locks at the Panama Canal (The Panamax Standard)

9. 53 Footer Domestic Containers, Corwith Rail Yard, Chicago Read this content

10. FedEx Freight Truck at Distribution Center, Kansas City In the case below, FedEx is a third party logistics provider, what does this means? Read this content

11. Dedicated Air Cargo Plane

12. Economies of Scale: Ultra Large Crude Carrier (ULCC), Persian Gulf What are economies of scale and how this ship represents them? Read this content

13. Grocery Distribution Center, Regina, Canada Read this content

14. A Delivery Bin Full of Mixed Orders (E-Commerce) How ecommerce has changed retailing?

15. iPads: Qualitative and Quantitative Product Improvements Read this content

16. Ikea Rolled Foam Mattress: Product Design and Distribution Efficiency Read this content

17. Major Forms of Globalization: A Multidimensional and Dynamic Concept

18. The Drivers of Economic Globalization: Connecting Different Chains Explains the different chains supporting economic globalization.

19. Economic Integration Levels, 2011 Read this content

20. Short Assignment: Complexity and the Cheeseburger… Read this background information This simple product would have been impossible to create more than 100 years ago. Why?

21. The Age of Interdependency What are the main relations holding the global economy?

22. World GDP, 1AD - 2015 Read this content

23. Better and Faster: Powered Transatlantic Passenger Modes Read this content 1900 1920 Jet Plane (1958-) 7-8 hours 1940 Dirigible (1931-1937) Sea Plane (1934-1946) 80 hours 15 hours 1960 Ocean Liner (1830s-1960s) Propeller Plane (1934-1960) 6-4 days 11 hours 1980 Supersonic Jet Plane (1976-2003) 2000 3.5 hours

24. Global Space / Time Convergence: Days Required to Circumnavigate the Globe (1500-1840 )Average speed of horse and cart: 4 km/hr Average speed sail ships: 16 km/hr (1850-1930) Average speed of trains: 100 km/hr Average speed of steamships: 25 km/hr Space / Time Convergence (1950) Average speed of airplanes: 480-640 km/hr (1970) Average speed of jet planes: 800-1120 km/hr (1990) Numeric transmission: instantaneous Read this content

25. The Flows of Globalization Read this content What are the main flows supporting globalization? Trade Migration Telecommunications Flows of information (mainly asymmetrical) Flows of physical goods (mainly asymmetrical) Flows of people (mainly symmetrical) Permanent, temporary (migrant workers), tourism, business transactions Communication, power exchanges, symbolic exchanges Raw materials, energy, food, parts and consumption goods Telecommunication systems (postal, internet, telephone, radio) Freight transport modes (maritime, rail, trucking) Passengers transport modes (vehicles, air, rail) Interconnected hub-and-spoke networks Interconnected and redundant hub-and-spoke networks Interconnected hub-and-spoke networks Ports as main hubs Global cities as main hubs Airports as main hubs

26. World Merchandise Trade, 1960-2017 Read this content

27. World Air Travel and World Air Freight Carried, 1950-2016 Read this content Watch this video

28. Global Net Migration (2010-2015) Read this content

29. Some Can Travel, Some Can’t: Visa Restrictions Index, 2011, 2015 Read this content

30. Diffusion of Personal Computing Devices, 1977-2017 What are the three stages in the evolution of personal computing devices? Android (2009) PC (1981) iPhone (2007) Tablet (2010) Macintosh (1984) Symbian (2001) Atari (1979) Blackberry (2003) Commodore (1982) Apple ][ (1977) TRS-80 (1977) Read this content

31. Technological Convergence, 1993-2013

32. The Myth of the Dematerialization of the Economy Read this content (first section) Explain why a dematerialized economy is a fallacy.

33. Transportation and Logistics What is the role and purpose of transportation? What are the relations between transportation and logistics?

34. Core Components of Transportation Read this content What are the core components of transportation and how they interact? Modes Conveyances (vehicles) used to move passengers or freight. Mobile elements of transportation. Infrastructures Physical support of transport modes, such as routes and terminals. Fixed elements of transportation. Networks System of linked locations (nodes). Functional and spatial organization of transportation. Flows Movements of people, freight and information over their network. Flows have origins, intermediary locations and destinations.

35. Different Representations of Distance Euclidean Distance B A Transport Distance Delivery Pickup B A Transshipment Mode 1 Mode 2 Logistical Distance Order Pickup Delivery B A Transshipment Mode 1 Mode 2 Order Processing PackingScheduling Inventory Management Unpacking SortingWarehousing Read this content

36. Transportability of Freight Read this content Weight Storage Fragility Perishability Ores Piling None None Heavy (0.83 g/cc) Grain Low Silos Low Heavy (0.83 g/cc) Petroleum Tanks None Heavy (0.88 g/cc) None Apparel None Low Warehouse Average Fruits & vegetables Temperature controlled warehouse High High Average Containers Cargo dependent Cargo dependent Stacks Average (15-20 tons)

37. Transportation as a Derived Demand Read this content Activity Manufacturing Vacationing Working Direct Taxi Air travel Truck Containership Commuting Indirect Warehousing Services Services Energy Derived Demand Transportation cannot exists on its own and cannot be stored.

38. Logistics • Definition • Activities related to the transformation and circulation of goods. • All operations required for goods (material or nonmaterial) to be made available on markets or to specific destinations: • Material supply of production. • Distribution and transport function. • Wholesale and retail. Watch this video Based on the video, how would you define logistics?

39. The Nature of a Supply Chain In-process inventory Parts or raw materials Parts or finished goods Inventory Inventory Manufacturer / Distributor Orders Orders Supplier Customer Transportation Transportation Read this content

40. The Relevance of Logistics Read this content Costs Friction of distribution • Efficient logistics has commercial benefits (costs, time and reliability). • Logistics cost 10-15% of national GDP. Growth Growing material demands • Growth of global consumption and income. • Diversity of consumption patterns. Explain why logistics matters in a global economy. Complexity Complex value chains • Goods are getting more complex (parts and processes). • Embededness of design, manufacturing, distribution and marketing. Geography • Spatial division of production and consumption • Stages of production are spatially separated. • Final production and markets are spatially separated. Environment Sustainability • Energy and material efficiency. • Reverse logistics / recycling.

41. World’s Major Container Ports, 2012 Read this content

42. Freight Traffic at the World’s Largest Airports, 2010 Read this content

43. Logistical Distance and Online Purchases Apply the concept of logistical distance to all the stages of an online purchase.