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Logistics & SCM, Deregulation of Transport, Deregulation, image, image…

- - - - Transformed into integrated SCM
        
        Integration of Functions
        
        Purchasing, warehousing, transport and marketing, are now unified under SCM
        
        Transport & Inventory Efficiencies
        
        Lean systems, JIT, containerisation, and real-time tracking reduce costs
        
        Seamless Global Freight Handling
        
        Deregulation + ICT enable cheaper, faster and smoother freight flows
        
        From Standalone Logistics to Network-driven SCM
        
        Shifted to end-to-end, interconnected supply chains for maximum agility
        
        Technology-driven transformation
        
        RFID
        
        IoT
        
        Analytics
        
        Real-time data
        
        Streamlines decision-making
        
        Competing Supply Chains, Not Companies
        
        Strategic alliances
        
        Creates competitive advantage
        
        Collaborative ecosystems
        
        Customer-centric Supply Chains
        
        Focus on speed, personalisation and service quality
        
        Global customers
  - - - 'Logistics' derived from ancient Roman & Byzantine military operations
    - - Introduced the production-distribution system model
    - - Central in business strategy over past 2 decades
- - - - SCM evolved from Logistics in many respects
        
        SCM is regarded as a subset of Logistics
    - - Logistics has been re-labelled by SCM
        
        SCM is the more recent term
    - - Logistics is seen as a part of the wider entity, SCM
        
        SCM is a concept that is :
        
        much wider
        
        intercompany
        
        boundary - spanning
    - - There is overlap between parts of both Logistics and SCM
        
        Both Logistics and SCM also have their own parts that are separate & distinct
- - - - Loaded 58 aluminum
        truck bodies as containers
        onto the ship
        
        Containerisation
        
        Creates security and less
        re-handling of goods due to Containerisation
        
        Cargo handling
        became much easier
        
        Transformation from
        manual bulk handling to
        container-focused operations
        
        Containerisation significantly lowered freight transport costs.
        
        Containers can be stacked onboard ships
        
        Maximizing space efficiency
        
        Multimodal
        Transportation
    - - Package identification becomes simplified
    - - Increased transparency
      - Customers can monitor
        location of shipment
        in real-time
    - - Contactless
        goods
        identification
    - - Steam engines > Diesel engines
        
        Faster travelling speed
      - New generation
        of trucks
        
        Heavier load
        capacity
        
        Increased mileage due to not having to refuel
    - - Automated processes
        e.g. inventory management
        
        Reduced
        human
        error
  - - - Adopted Just-in-Time (JIT) practice
        
        Minimizes storage costs
        
        Less tied-up capital
        
        Increased flexibility to adapt to market demands
      - Excess inventory ties up capital
        
        Increases storage costs
  - - - Integrate departments closely to prevent conflicts
        
        Information is shared across department instantly
        
        shorter delivery and response times
        
        Time becoming a key success factor
    - - Adopt less vertically integrated practice, more specialised
        
        Increased outsourcing
        
        Suppliers becoming more important and playing a more central role
        
        Increased flexibility to adapt to changing demand
        
        Focus on core competencies
  - - - Products are smaller in size,
        higher in value
        Less sensitive to transport cost
        
        Reduced cost sensitivity of freight
        
        More efficient & flexible supply chains
    - - Virtual products are replacing physical ones
        (software downloads, e-books)
    - - Final value-adding stages near end-user
        (3D printing, local assembly)
    - - From Bulky Raw Materials
        :arrow_double_down:
        In-process & finished goods
        
        eg. Electronics (smartphones) vs bulk coal
        Processed chickens vs live chickens
  - - - Cut costs in operations and logistics
        Focus on storage and movement of inventory
    - - Smarter product design
        Improve packaging (more units/shipment)
    - - Increased competition Falling marketplace prices
        
        eg. DVD players
        Automobiles: improved specs, but flat or declining real prices.
        
        Price pressure fuels
        innovation in
        supply chain efficiency
- - - - confirm to customer's requirements
      - Inbound movements
      - Outbound movements
      - internal movements
      - External movements
- - - - Government Regulation leading
        to limited operational flexibility
        
        FedEx was able to access more shipping routes