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From Negril Point to Morant Point . Transport Logistics. Team Lean. Kevon McAnuff . Osawaki Wickham. Lascelles Virtue. 4. 2. 6. 1. 5. 3. The Transportation Link. Reference. Introduction to Logistics. Conclusion. Modes of Transportation.

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team lean
The Lean TeamTeam Lean

Kevon

McAnuff

Osawaki

Wickham

Lascelles

Virtue

contents

4

2

6

1

5

3

The Transportation Link

Reference

Introduction to Logistics

Conclusion

Modes of Transportation

An Invaluable Insight

The Lean Team

Contents
introduction
The Lean TeamIntroduction
  • Customer satisfaction and development of brand loyalty are two competitive advantages that firms strive to achieve.
  • Achievement is however dependent on the firms’ ability to make available quality products when they are needed. In other words, firms need to optimize the economic utility of their products.
introduction cont
The Lean TeamIntroduction cont.

A firm’s ability to optimize economic utility has become more difficult due to :

  • Relaxation of economic regulations
  • Changes in consumer behavior
  • Globalization
  • On line shopping

Logistics/Logistic management assist firms in their effort by:

  • Optimizing existing production process
  • Making the distribution process more efficient
  • Increasing the competitiveness of the firm
introduction cont1
The Lean TeamIntroduction cont.

Right

Amount

Lean Logistics

Right

Time

Right

Place

Right

Thing

introduction cont2
The Lean TeamIntroduction cont.

Logistics Flow

Inbound

Logistics

Material

Management

Physical

Distribution

External

Logistics

introduction cont3
The Lean TeamIntroduction cont.

Logistics Services

(transport, storage etc.)

The

Logistics

System

Logistics Information System

Logistics Infrastructure &

Resources

the transportation link
The Lean TeamThe Transportation Link

Transportation also includes the movement of parts to assembly areas as they are assembled.

This includes shipment of raw materials to the manufacturer and movement of finished product to the customer.

Transportation involves the movement of goods and raw materials.

the transportation link cont
The Lean TeamThe Transportation Link cont.

The

Transportation

System

Key element of Logistics Services

because it links all other activities

It is required throughout the entire

production process

It’s efficiency and effectiveness

influences the performance of the

entire Logistics System

the transportation link cont1
The Lean TeamThe Transportation Link cont.

Fast Delivery

Quality Service

Objectives of

Transportation

System

Low Cost

Low

Energy

Usage

Maximize

Resources

the transportation link cont2
The Lean TeamThe Transportation Link cont.

Transport Costs and Goods Characters in Logistics.

  • Transport system makes goods and products movable and provides timely and regional efficacy to promote value-added under the least cost principle.
  • For those products with small volume, low weight and high value, transportation cost simply occupies a very small part of sale and is less regarded.
  • For those big, heavy and low-valued products, transportation occupies a very big part of sale and affects profits more, and therefore it is more regarded.
the transportation link cont3
The Lean TeamThe Transportation Link cont.

The Effects of Transportation on Logistics Activities

Basically, production/manufacturing plants, warehousing services, merchandising establishments are all about doing transportation.

  • Production or manufacturing plants required the assembly of materials, components, and supplies, with or without storage, processing and material handling within the plant and plant inventory.
  • Warehousing services between plants and marketing outlets involved separate transport.
  • Merchandising establishments completed the chain with delivery to the consumers.
the transportation link cont4
The Lean TeamThe Transportation Link cont.

The Role of Transportation in Service Quality

  • By means of well-handled transport system, goods could be sent to the right place at right time in order to satisfy customers’ demands.
  • It brings efficacy, and also it builds a bridge between producers and consumers. Therefore, transportation is the base of efficiency and economy in business logistics and expands other functions of logistics system.
  • In addition, a good transport system performing in logistics activities brings benefits not only to service quality but also to company competitiveness.
modes of transportation
The Lean TeamModes of Transportation

Airfreight

Marine

Transport

Land

Transport

modes of transportation cont

Mode

Selection

The Lean Team

Modes of Transportation cont.

Cost

Speed

Reliability

Capability

Capacity

Flexibility

marine transport
The Lean TeamMarine Transport
  • Cheap
  • High carrying capacity conveyance for consumers
  • Ideal for transporting crude oil, grains and cars

Pros

  • Need longer transportation time
  • Schedule is strongly affected by weather factors
  • Lacks flexibility

Cons

  • Crude oil
  • Motor vehicles
  • Wheat
  • Cement

Uses

airfreight
The Lean TeamAirfreight
  • Delivery speed & Flexibility
  • Security - lower risk of damage
  • Accessibility and good frequency for regular
  • destinations

Pros

  • High delivery fee.
  • Air freight logistics is selected ‘when the value per
  • unit weight of shipments is relatively high and the
  • speed of delivery is an important factor.

Cons

  • Fast delivery of important machine and motor
  • vehicle parts.

Uses

land transportation
The Lean TeamLand Transportation

Express

Delivery

Modes

Road

Pipeline

Railway

railway
The Lean TeamRailway
  • High carrying capacity
  • Lower influence by weather conditions
  • Lower energy consumption

Pros

  • High cost of essential facilities
  • Difficult and expensive maintenance
  • Lack of elasticity of urgent demands
  • Time consumption in organizing railway carriages

Cons

  • Currently used only by Bauxite companies

Uses

slide25
The Lean TeamRoad
  • Cheaper investment funds
  • High accessibility, mobility and availability

Pros

  • Low capacity
  • Lower safety
  • Slow speed

Cons

  • Most dominant means of land transportation
  • Large number of trucking companies
  • Free market pricing

Uses

pipeline
The Lean TeamPipeline
  • No need for vehicles and vehicle operators
  • Reliability
  • Capacity

Pros

  • One-way transportation
  • Limited capability
  • High Initial Cost
  • Flexibility

Cons

  • Petrojam Limited to JPS

Uses

express delivery
The Lean TeamExpress Delivery
  • Door-to-door service (efficient)

Air-Pak Express

DHL

Doorway Express

FedEx

Just Call Couriers

Tara Couriers

regulating authority
The Lean TeamRegulating Authority

Transport Authority

Airport Authority

Ministry

of Transport

& Works

Port Authority

Marine Authority

Jamaica Railway Corporation

an invaluable insight
The Lean TeamAn Invaluable Insight

What methods of transportation are being used?

  • Land - Trucks for Domestic
  • Sea - Ships for Containerized Shipment
  • Air - Plane for sensitive goods

How is the right method selected for a particular product?

The right method is selected based on:

  • Cost effectiveness
  • Distance
  • Products parameters
  • Time
  • Location
  • Customer’s request.
an invaluable insight cont
The Lean TeamAn Invaluable Insight cont.

Which industries mostly require the service of Transport Logistics in Jamaica?

  • Distribution (Commerce) and Passenger.

What types of products/goods are mostly transported?

  • Mainly convenience goods - food Items

How effective is Transport Logistics in Jamaica.

  • The Transport Logistics in Jamaica is effective as it have been achieving the desired outcome.
an invaluable insight cont1
The Lean TeamAn Invaluable Insight cont.

Is there room for improvement?

  • Yes

Where?

  • While the Transport is effective it is not efficient:
    • There are very few freight forwarders.
    • Little or no alternatives for road transport (domestic).
    • Congestion in cities and towns.
    • More containerized ports needed in strategic locations.
an invaluable insight cont2
The Lean TeamAn Invaluable Insight cont.

The distribution process.

  • The distribution process is very mundane.
  • Orders place by customer.
  • Based on satisfying the above stated pre-requisite the correct mode of transportation is chosen.

How are the locations for distribution centers chosen?

  • Cost,
  • Proximity to majority of your customer.
  • Proximity to competent labor, suppliers and ports.
an invaluable insight cont3
The Lean TeamAn Invaluable Insight cont.

How is the scheduling of deliveries completed?

  • All deliveries are made within 24hrs.
  • The transport department group orders according to their size (to chose the size container or truck) and their geographical location.
  • Orders are then dispatch for Picking, Staging, Checking, Invoicing, Loading and Delivery.
  • Once the goods are delivered both the customer and delivery personnel are required to sign each copy of the invoice.
an invaluable insight cont4
The Lean TeamAn Invaluable Insight cont.

What software is utilized?

  • SAP
  • WM

Is tracking service widely available in Jamaica?

  • Yes, this service is available in Jamaica from some of the security companies - Guardsman, Hawkeye etc.
an invaluable insight cont5
The Lean TeamAn Invaluable Insight cont.

What are some of the disadvantages of poor transport logistic?

  • Increased Distribution Cost,
  • Increase in Price of Goods and Services offered,
  • Dissatisfied Customers etc.

What are the main challenges with providing an efficient Transport Logistics service?

  • Cost
  • Proper infrastructure
  • Discipline within the system
  • Incompetence
conclusion
The Lean TeamConclusion
  • Logistics system has a more and more important position in our society activities.
  • Transportation and logistics systems have interdependent relationships.

That is, logistics management needs transportation to perform its activities while a successful logistics system could help to improve traffic environment and transportation development.

  • Since transportation contributes a significant cost, the improvement of transport efficiency could change the overall performance of a logistics system.
  • Without the linking of transportation, a powerful logistics strategy cannot bring its capacity into full play.
reference
The Lean TeamReference
  • Contemporary Logistics, 9th Edition
  • http://www.btre.gov.au/docs/wp49_contents.htm
  • http://www.cscmp.org
  • http://www.siam.org/journals/plagiary/1657.pdf
  • http://en.wikipedia.org/wiki/Logistics
  • http://www.prospects.ac.uk/industries_transport_logistics_overview.htm
  • http://ec.europa.eu/transport/logistics/index_en.htm
  • http://www.portjam.com/
  • http://www.mto.gov.on.ca/english/
slide41

Thank You !

We hope you enjoyed our presentation

The Lean Team