Logistics.pptx
Transcript
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...
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. refridgeration) Free On Board (FOB) ● The point at which responsibility for shipped goods changes hands ● 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? Which mode(s) of transport? •10,000 flatscreen TVs from China to Future Shops across Canada •20 tonnes 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
