Logistics assessment

Résumé du document

"Supply chain management is concerned with achieving a more cost effective satisfaction to end customer requirements"(Christopher, 2005). Logistics traditionally represent the various activities implemented to handle goods from the supplier to the final customer. Today, these activities are included in the concept of supply chain management, where the main objective is the optimization of costs and flows linked to the goods.

In this period of economic downturn, the firms understood that the international trade and the expectations of the markets have changed. Today, they have to improve their supply chain management, as they must face new issues and expectations of the markets. Firstly, the prices of goods have rocketed because of the economic crisis and the Mideast wars have created an increase of oil rates.

Then, the United Kingdom became in a decade a massive importing country and a major part of these importations come from the Far East Asia. Besides the importation forecasts show that they should more than double by 2030. Finally the populations are getting more and more concerned by the environmental issues, concerning the relief of road traffic congestion, the reduction of CO2 emissions and the way of making their lives greener through the consumption. So, in the way of creating a modern supply chain, companies have to face the pressures to reduce the costs, the demands of increased efficiency, the reduction of lead times, while keeping in mind that the environment must be protected as much as possible.

Extraits

[...] (Gourdin, 2006) The choice of Teesport The first point we have to highlight is the choice of the port. Indeed, by choosing to establish their warehouse in Teesport, instead of keeping the inland warehouse, probably situated in the golden triangle in the middle of the country, Asda have chosen to favour a north port. Actually, the south ports –Felixstowe, Southampton, London-, are bigger than the 4th UK port, Teesport, and they receive more containers, all the more so as they come from deep sea lines, whereas Teesport used to have freight from UK ports, so why is this port better? [...]

[...] et al (2008) “Port-centric Logistics” Vol 19, The International Journal of Logistics Management Norman.S. (2010) “Asda import centre, Teesport”, Warehousing Workforce Pettit S.J. and Beresford A.K.C. (2009) “Port development: from gateways to logistics hubs” Maritime Policy & Management, 36:3, 253-267 “Asda makes logical link with PD Ports”, (February 2010) Chartered Institute of Logistics and transport ports attracts Northern Europe's largest feeder”, (June 2010) Chartered Institute of Logistics and transport the time come to rethink our freight distribution networks?”, Chartered Institute of Logistics and transport “Distribution centres based at the port are smart option” Chartered Institute of Logistics and transport “Smarter routes” Chartered Institute of Logistics and transport “Port-Centric Logistics- integrated supply chain solutions” Chartered Institute of Logistics and transport “Heading for the coast. [...]

[...] How to reduce Asda's Logistics Costs? The logistics costs include inventory, warehousing, material handling, transportation, packaging and security costs. In this part we see how Asda can save money on these costs The management can help to reduce the inventory size, so the warehouse can be more little, and help to reduce the cost per product. Then, if Asda ask for fully laden containers, as they do not have to be worried about the road limitations, they are able to use 1200 fewer containers per annum. [...]

[...] In 2006, they were opening their new import centre in Teesport, in the North of the United Kingdom, making a significant change in their supply chain management. Indeed, before this establishment in Teesport, Asda were using inland distribution centres. In logistics warehouses have a strategic role to play. Actually, they provide a local inventory, permit manufacturing economies and procurement efficiencies; they enable the company to perform value added services for the customers such as customization of the goods, or product mixing. They also act as a consolidation point for final distribution centres' orders. [...]

[...] Today, these activities are included in the concept of supply chain management, where the main objective is the optimization of costs and flows linked to the goods. In this period of economic downturn, the firms understood that the international trade and the expectations of the markets have changed. Today, they have to improve their supply chain management, as they must face new issues and expectations of the markets. Firstly, the prices of goods have rocketed because of the economic crisis and the Mideast wars have created an increase of oil rates. [...]