overview of integrated logistics methods

1. Integrated Logistics: Transportation
Laura Andrade
David Coto
David Cox
Arianna Espinoza
Nicole García
Helanny Rendón
Carolina Vélez
Logistic II “A”
Date: February/15/2016
• Lecturer
Mr Max Galarza

2. Logistics
is ‘part of the supply chain that plans, implements, and controls the
forward and reverse flow and storage of goods, services, and related
information between the point of origin and the point of consumption in
order to meet customers’ requirements’.

3. Integrated Logistic
System-wide management of entire logistics chain as a single entity, instead of separate
management of individual logistical functions.
Integrated
Logistic
Order
Processing
Inventory
Transportation
Warehouse /
Material
Handlling
Facility
Network

5. Integrated logistics network
▪ The number of warehouses, their location, ownership and their size.
▪ The amount of inventory to be maintained at various locations.
▪ The type of transportation services to use.
▪ The level of customer service to be provided.
Point of origin
Cargo
Transport
Transport
Network
Destination

6. Transportation
Logistic
&

7. Transport is a component of many
national or
international logistics networks,
managing and controlling the flow of
goods, energy, information and
other resources like products,
services, and people, from the
source of production to the
marketplace.

8.  Transportation system joints the separated activities (Required in the whole
production procedures, from manufacturing to final consumers and returns.)
 Companies will be able to collaborate effectively with suppliers.
 Achieve the seven R’s:
Importance of Transportation in logistics
Right
Product
Right
condition
Right
Place
Right cost
Right
Customer
Right time
Right
quality

9. Factors to be considerer to choose means of transport
▪ Points available to load and discharge the merchandise.
▪ Goods characteristics: weight, volume, shape, size, special requirements.
▪ Costs related to charge, discharge.
▪ Distance that can separate a firm from its customers.

10. Transport Management
Deals with four areas that are economically interrelated:
▪ Transportation mode
▪ Fleet size
▪ Route selection
▪ Vehicle scheduling
▪ Freight consolidation

11. Means of transport
Air
Land
Water
Others

12. Air freight
▪ The characteristics are:
1. Airplanes and airports are separated. (industries only need to prepare planes
for operation)
2. It is not affected by landforms.
3. Air freight logistics is cooperative with other transport modes, such as maritime
and land transport, to provide a service base on Just-In-Time, and door-to-door.
▪ It provides the delivery with speed, lower risk of damage, security, flexibility,
accessibility and good frequency for regular destinations.
▪ Disadvantage is high delivery fee.

13. Combined
aircraft
Passenger
and cargo
Cargo
aircraft
Only cargo
Super
carriers
Cargo of large
dimensions
Cargo aircraft

14. Land logistics
The most positive characteristics are:
▪ High accessibility level in land areas.
▪ Flexibility and adaptation: the schedule (routes and timings) can be adjusted, for
example allow “just in time” and door to door service.
▪ Low cost and less time: fast delivery.
The disadvantages:
▪ The excessive usage of land transport also brings many problems, such as traffic jams,
pollution and traffic crashes.

15. Land transportation: Railway transport
Advantages
High carrying capacity
Lower influence by weather
conditions, and
Lower energy consumption
Disadvantages
High cost of essential facilities.
Difficult and expensive
maintenance
Lack of elasticity of urgent
demands.

16. Land transportation: Road freight
Advantages
Cheaper investment funds
High accessibility
Mobility and availability
Disadvantages
Low capacity
Lower safety
Slow speed.

17. Land transportation: Pipeline transport
Advantages
Less effect by weather conditions
High capacity
Cheaper operation fee
Continuous conveyance
Disadvantages
Expensive infrastructures
Harder supervision
Regular maintenance needs. .

18. Maritime Logistics
▪ It can provide a cheap and high carrying capacity conveyance for consumers.
▪ Its disadvantage is that it needs longer transport time and its schedule is strongly
affected by the weather factors.
▪ Maritime transport industry can be divided into three main types:
1. Liner Shipping: The business is based on the same ships, routes, price, and
regular voyages.
2. Tramp Shipping: irregular transport price, unsteady transport routes, and schedule.
It usually delivers particular goods, such as Dry Bulk Cargo and crude oil.
3. Industry Shipping is to ensure the supply of raw materials. This sometimes needs
specialized containers, such as the high-pressure containers for natural gas.

19. Bulk Carriers Container ships
Tankers
• Fluids (oil, LPG)
Freight Transport by sea

20. Refrigerated ships
Perishable commodities
Usually ships are painted
white
Roll on/roll off ship
Cargo as Automobiles,
trailers
Ferries
Freight Transport by sea

21. Multimodal Transport
▪ Also known as combined transport is the transportation of goods under a single contract,
but performed with at least two different means of transport.
▪ The carrier is liable (in a legal sense) for the entire carriage, even though it is performed
by several different modes of transport (by rail, sea and road).
▪ The carrier does not have to possess all the means of transport (performed by sub-
carriers.)

22. Advantages
▪ Allows handling and faster movement of cargo, including transshipment
operations
▪ Ensures greater protection to the cargo, reducing risk of damage.
▪ Reduce transportation costs from the unitization and consolidation of cargo
▪ Stimulate competitiveness in international trade where the practice is widespread
among developed countries
▪ Improve service quality by using operators responsible and efficient transport
services

23. Disadvantages
▪ High economic costs
▪ Unfamiliarity with new technology
▪ Presence of legal and operational constraints in implementing international
standards with new technology
▪ Safety requirements : inspections by different authorities in terminals and roads
remain a limiting

24. Conclusion
▪ Transportation is the base of efficiency and economy in business (expands other
functions of logistics system).
▪ If there is not a well-developed transportation systems, company could not obtain the
all benefits from logistics such as decrease in operation cost, and promote service
quality.
▪ A well-operated logistics system could increase both the competitiveness of the
company and service quality.
“Goods could be sent to the right place at right time in order to satisfy customers’
demands.”

25. Sources

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