Transport Logistics

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Transport Logistics
From Negril Point to Morant Point
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Team Lean
Kevon McAnuff
Osawaki Wickham
Lascelles Virtue
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Contents
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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.

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Introduction cont.

• A firms ability to optimize economic utility has
  become more difficult due to
• Relaxation of economic regulations
• Changes in consumer behavior
• Globalization
• On line shopping
• Logistics/Logistic management assist firms in
  their effort by
• Optimizing existing production process
• Making the distribution process more efficient
• Increasing the competitiveness of the firm

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Introduction cont.
Lean Logistics
Right Amount
Right Time
Right Place
Right Thing
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Introduction cont.
Logistics Flow
Inbound Logistics
Material Management
Physical Distribution
External Logistics
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Introduction cont.
Logistics Services (transport, storage etc.)
The Logistics System
Logistics Information System
Logistics Infrastructure Resources
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Introduction cont.
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The Transportation Link
Transportation also includes the movement of
parts to assembly areas as they are assembled.
This includes shipment of raw materials to the
manufacturer and movement of finished product to
the customer.
Transportation involves the movement of goods and
raw materials.
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The Transportation Link cont.
Key element of Logistics Services because it
links all other activities
The Transportation System
It is required throughout the entire production
process
Its efficiency and effectiveness influences the
performance of the entire Logistics System
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The Transportation Link cont.
Fast Delivery
Quality Service
Objectives of Transportation System
Low Cost
Low Energy Usage
Maximize Resources
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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.

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The Transportation Link cont.

• The Effects of Transportation on Logistics
  Activities
• Basically, 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.

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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.

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Modes of Transportation
Airfreight
Marine Transport
Land Transport
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Modes of Transportation cont.
Speed
Cost
Capability
Reliability
Capacity
Flexibility
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Marine Transport

• Cheap
• High carrying capacity conveyance for consumers
• Ideal for transporting crude oil, grains and cars

Pros

• Need longer transportation time
• Schedule is strongly affected by weather factors
• Lacks flexibility

Cons

• Crude oil
• Motor vehicles
• Wheat
• Cement

Uses
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Marine Transport cont.
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Airfreight

• Delivery speed Flexibility
• Security - lower risk of damage
• Accessibility and good frequency for regular
• destinations

Pros

• 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.

Cons

• Fast delivery of important machine and motor
• vehicle parts.

Uses
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Airfreight cont.
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Land Transportation
Express Delivery
Modes
Road
Pipeline
Railway
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Railway

• High carrying capacity
• Lower influence by weather conditions
• Lower energy consumption

Pros

• High cost of essential facilities
• Difficult and expensive maintenance
• Lack of elasticity of urgent demands
• Time consumption in organizing railway carriages

Cons

• Currently used only by Bauxite companies

Uses
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Railway cont.
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Road

• Cheaper investment funds
• High accessibility, mobility and availability

Pros

• Low capacity
• Lower safety
• Slow speed

Cons

• Most dominant means of land transportation
• Large number of trucking companies
• Free market pricing

Uses
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Road cont.
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Pipeline

• No need for vehicles and vehicle operators
• Reliability
• Capacity

Pros

• One-way transportation
• Limited capability
• High Initial Cost
• Flexibility

Cons

• Petrojam Limited to JPS

Uses
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Express Delivery

• Door-to-door service (efficient)

Air-Pak Express
DHL
Doorway Express
FedEx
Just Call Couriers
Tara Couriers
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Express Delivery cont.
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Express Delivery cont.
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Regulating Authority
Transport Authority
Airport Authority
Ministry of Transport Works
Port Authority
Marine Authority
Jamaica Railway Corporation
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An Invaluable Insight

• What methods of transportation are being used?
• Land - Trucks for Domestic
• Sea - Ships for Containerized Shipment
• Air - Plane for sensitive goods
• How is the right method selected for a particular
  product?
• The right method is selected based on
• Cost effectiveness
• Distance
• Products parameters
• Time
• Location
• Customers request.

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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.

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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.

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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.

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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.

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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.

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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?
• Cost
• Proper infrastructure
• Discipline within the system
• Incompetence

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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.

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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_lo
  gistics_overview.htm
• http//ec.europa.eu/transport/logistics/index_en.h
  tm
• http//www.portjam.com/
• http//www.mto.gov.on.ca/english/

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Thank You !
We hope you enjoyed our presentation