Study Skills

1. Logistics strategies for Europe

2. Introduction There are two logistics strategies we will focus about them The trend to concentrate production & Storage in fewer but larger manufacturing & stockholding sites A flexible manufacturing strategies Has Been Just-in-time production

3. the key role of logistics is To integrate the function of buying production & distribution with in a company the scope & need to develop new logistics strategies has been stimulated by the steps taken to create a Single European Market (SEM) from 1 Jan. 1993

4. SEM Factors Encouraging * the desire to encourage the development of European companies able to compete on level terms with companies from Japan & USA * to create the Single European Market certain barriers have to be removed 1-physical Barriers (border crossing controls) 2-technical Barriers ( such as different product standards in different member states) 3-Fiscal barriers ( such as different taxation regimes) 4-Reduce the need for product differentiation 5-Expand the Opportunities for European branding & marketing 6-Reduce research & development costs 7-Reduce Unit Costs of Production

5. The Factors which strongly influence the concentration Of production & storage are : 1-the value per tonne of product 2-the frequency of delivery the concentration production at fewer sites will generally increasing transport costs because products need to be carried further to markets

6. *not All products readily lend themselves to these pan- European logistics strategies the factors will favour some degree of localization in logistics 1- products with relatively low value densities 2-limited economics of scale in production 3-need to produce in local markets as a result of political consideration 4-uneven development of markets with some regions taking much more of a product that Others

7. Flexible production The best known and most widely documented flexible production method is that of JUST-IN-TIME production European reference to JIT tend to emphasize rapid transport &control of suppliers in a European context , JIT has the following implications: 1-A closer relation between suppliers & manufacturer 2-A closer relationship between manufacture & transport company 3-More frequent delivery but smaller Amounts 4-Intensive flows of information between supplier ,manufacturer & Transport Operator

8. Logistics service Logistics service providers need to be clear about which of the following strategies :

9. 1-Pan-Europeans providing a Europe-wide service offering distribution both within & between a number of European Countries

10. 2-Multidomestics providing national service which are in several European countries

11. 3-Eurolinkers providing a network of mainly international service between major European markets

12. The choice of strategy for any one company providing logistics service will be influenced by: 1-Company culture & background 2-Customer profile 3-Customer culture