Logistics PDF

Logistics Success Criteria I will be successful when I can …………………. Define logistics and explain its importance for businesses List the advantages and disadvantages of the different modes of transportation Define F.O.B. and explain when ownership of a product gets transferred from seller...

Logistics Success Criteria I will be successful when I can …………………. Define logistics and explain its importance for businesses List the advantages and disadvantages of the different modes of transportation Define F.O.B. and explain when ownership of a product gets transferred from seller to buyer Logistics In your own words can anyone of you define logistics???? Logistics Involves: ◦Purchasing ◦Manufacturing ◦Storage ◦Transportation Transportation Logistics managers consider the following: ◦ Destination ◦The distance something has to travel affects the cost of transportation ◦ Weight ◦Heavier items = more $ ◦ Volume ◦Bulkier items = more $, possibility for containerization ◦ Type of Goods ◦Special handling or containers may be necessary (ie. Fruit and frozen food, oil and toxic chemical needs containers) Free On Board (FOB) The point at which responsibility for shipped goods changes hands Buyer – send a ship to pick up goods Seller – load goods onto the ship, notify buyer When the goods cross the rails during loading, the risk is transferred from seller to buyer Affects who arranges transportation, and who is responsible if something happens Free On Board ◦Ex: “F.O.B. destination” - Means the terms of sale (the responsibility of the product) passes from the producer to the buyer at the point of the destination (where its going). ◦or “F.O.B. source” – Means the terms of sale (the responsibility of the product) passes from the producer to the buyer at the point of the source (where it comes from). FOB Example A good gets damaged being transported from the factory where it was made to the retail store where it is being sold. Who is responsible if the system is: A) FOB Source? B) FOB Destination? FOB Example A good gets damaged being transported from the factory where it was made to the retail store where it is being sold. Who is responsible if the system is: A) FOB Source? ◦ The Buyer B) FOB Destination? ◦ The Producer Activity Video http://www.wsj.com/video/inside-a-modern-day-santa-workshop/28E46689-8E64-4 474-969E-2AFAA17879D1.html Additional videos: Walmart: Shipping wars https://www.wsj.com/video/series/shipping-wars/how-walmart-is-leveragi ng-automation-and-ai-to-deliver-faster/96CFF5F3-7DA4-4B23-B55E-26223 158E0A5 Tesco Distribution centre at xmas: https://www.youtube.com/watch?v=_pcrCnJS3BE Common Types of Transportation Trucks Trains Planes Ships Pipelines Drones? Common Types of Transportation Trucks Door to door delivery Always involve in logistic plan Cost varies widely depend on trucking companies Consolidate goods until there are enough shipment to make a full truckload (TL)>>wait>>cheaper Common Types of Transportation Train Large quantity of freight at one time Long distance, heavy, bulky, hard-to-handle goods Can travel across countries Common Types of Transportation Plane Expensive Ideal for small shipments that need fast delivery Common Types of Transportation Ship Large cargo, tremendous weight Slow International shipment across water, cheaper than plane Common Types of Transportation Pipelines Natural gas, crude oil Which mode(s) of transport? 10,000 flatscreen TVs from China to Future Shops across Canada 20 tons of grain from Regina to the Weston Bakery in Toronto 10 lbs of Otoro (tuna) from Tokyo to MHK Sushi in Ottawa 10 cases of maple syrup bottles from Gatineau to Montreal