tag:blogger.com,1999:blog-72109885024733231992024-03-15T18:10:23.486-07:00Sina's Logistics BlogSinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.comBlogger18125tag:blogger.com,1999:blog-7210988502473323199.post-61653131759050318462010-05-23T08:48:00.000-07:002010-05-23T09:27:14.069-07:00Pick-by-Voice<span style="font-weight: bold;">What it is</span><br /><br />Pick by Voice is a language based picking system. It is possible to pick without invoices or bills of order because the picker gets all the important data by voice response. The picker also has the possibility to communicate with the help of voice entry.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiuWlZaRcLl_a55ybS0AzkAz23BOWaBvZ1hJyMGYEnsz2EoN9fz_mj1dK_b3M1Bu7pX7f-Fi50E0G7NwDw9lQER92beG8CJQN4EPQ9bHReO0_DpHu2hjsSDEYsxGYY5rxlckWlrskQPwWey/s1600/voice2.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 200px; height: 150px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiuWlZaRcLl_a55ybS0AzkAz23BOWaBvZ1hJyMGYEnsz2EoN9fz_mj1dK_b3M1Bu7pX7f-Fi50E0G7NwDw9lQER92beG8CJQN4EPQ9bHReO0_DpHu2hjsSDEYsxGYY5rxlckWlrskQPwWey/s200/voice2.png" alt="" id="BLOGGER_PHOTO_ID_5474501592058742434" border="0" /></a><br /><br />In warehouses where long distances have to be covered or when picking goods that have to be picked up with both hands, it is advantageous if the picker has his hands free and does not have to carry a pick list around.<br />The pickers have their hands and eyes free for their work. Earphones and microphone replace the classical terminal. Thanks to the increased freedom of action, the order picking process becomes more efficient.<br />When using pick by voice keyboard entries, watching the display and reading the list are all steps that are superfluous. The operator can concentrate entirely on his job.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuYI_k1t8PYeh0hRSQtieKzosbLVEeWKRlUcbHbYbxe6-MWokKuFiT_T01BtlsRDIckbS-hsExjDqJGssSh4pL6W3-zQsHdqrnGmobNfczq01Ny5BvWrfLjC3II1yAnDYOaa_Q8K_BY4EH/s1600/voice1.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 150px; height: 200px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuYI_k1t8PYeh0hRSQtieKzosbLVEeWKRlUcbHbYbxe6-MWokKuFiT_T01BtlsRDIckbS-hsExjDqJGssSh4pL6W3-zQsHdqrnGmobNfczq01Ny5BvWrfLjC3II1yAnDYOaa_Q8K_BY4EH/s200/voice1.png" alt="" id="BLOGGER_PHOTO_ID_5474501248881088690" border="0" /></a><br /><br />If you want to learn more about what pick-by-voice is check out:<br /><a href="http://www.kbs-gmbh.de/en/beleglose_kommissionierung/#pick_by_voice">http://www.kbs-gmbh.de/en/beleglose_kommissionierung/#pick_by_voice</a><br /><a name='more'></a><br /><span style="font-weight: bold;">How it works</span><br /><br />The picker receives his working instructions acustically by his transportable computer (client) via headset. The feedback to the host also takes place with the help of speaking. The data is being transmitted by radio.<br />In order to reach a high picking quality error checking numbers are used. As soon as the picker reaches the storage area he sais the last numbers of the number assigned to this storage area or of the product-boung barcodes. The system then verifies the accuracy and gives an immediate feedback signal.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPa1hojhyphenhyphencUB66LT83aodJQLreoDxj5NXdhKbvks7V8lgkbHTvDHGbJ4d0dDRwOfSZm0fdALXfJ4e8-S0Uvph3fxt85XzTpOzGgEYZpVWuLeVhaa66q6lLBmxA1FVUqcFRslcsxTQZVx5x/s1600/voice3.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 230px; height: 156px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPa1hojhyphenhyphencUB66LT83aodJQLreoDxj5NXdhKbvks7V8lgkbHTvDHGbJ4d0dDRwOfSZm0fdALXfJ4e8-S0Uvph3fxt85XzTpOzGgEYZpVWuLeVhaa66q6lLBmxA1FVUqcFRslcsxTQZVx5x/s320/voice3.png" alt="" id="BLOGGER_PHOTO_ID_5474502119576211890" border="0" /></a><br /><br />The average vocabulary that can be used for pick-by-voice usually is about 100 to 1000 words.<br /><br />This video is especially for the German students in this course because it shows how the company Schäfer uses pick by voice and therefore the picking is done in German.<br />But since the explanations are all in English of course everyone can watch it.<br /><br /><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dzZ7Bpch7AMikCIMnraqvEVRTVN4cewpltvzm0ThC-viiUS0814U74_EiQqllr_NtJzLdnpfIuo5H2G_uAf5Q' class='b-hbp-video b-uploaded' frameborder='0'></iframe><br /><br />To be fair, this video is especially for the Spanish logistics class attendants since this video is in spanish. Still, there are Spanish subtitles so it is also perfect for the foreigners to learn some logistic terms. :)<br /><br /><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dyOjnw3NyEs_wB7ME9k3QqGWAvsedzJcjvq_1_G5fMttpcOcczTAtko8CCGSt1sYWeaSP_KSa2uMcslfsm2' class='b-hbp-video b-uploaded' frameborder='0'></iframe><br /><br /><span style="font-weight: bold;">Advantages</span><br /><br /><ul><li>Speach as natural way of communicating</li><li>paperless picking</li><li>free hands when picking (no buttons to press)</li><li>free eyes for simultaneous activities</li><li>an innovative system that is accessible on the market</li><li>price level is going to decrease over the next years</li><li>no installations on the shelf are necessary</li><li>wide area of application</li><li>different activities can be done simultaneously (f. ex. Confirmation when walking to the next shelf)</li><li>very low picking-error rate ca. 0,1%</li><li>short training period necessary to be able to use the system</li><li>better concentration of the picker</li><li>faster, saving in time</li></ul><br /><span style="font-weight: bold;">Disadvantages</span><br /><br /><ul><li>only small amounts of data can be transmitted</li><li>only sequential issuing of orders and the waiting time that results from this</li><li>limitation on the preparation of orders, single goods can’t be identified</li><li>the possibility to scan barcodes doesn’t exist</li><li>additional processing power is needed for the speech processing</li><li>elevated protection from environmental influences is necessary</li><li>after long working hours it is tiring for the employees</li><li>problems when using it the first times (the artificial voice is wired at the beginning and at first there might be problems of identification)</li><li>hardly any communication between the different employees possible</li></ul><br />Some of these advantages and disadvantages, as well as a lot more information about picking in general can be found on this German website from the Technical University of Munich.<br /><a href="http://www.fml.mw.tum.de/fml/index.php?Set_ID=320&letter=P&b_id=4146397B-4338-3934-442D-433636432D34">http://www.fml.mw.tum.de/fml/index.php?Set_ID=320&letter=P&b_id=4146397B-4338-3934-442D-433636432D34</a><br /><br />In this video the members of the company <span style="font-weight: bold;">PEPBOYS</span> explain why the company has changed from pick by light to pick by voice system. This way a lot of advantages and disadvantages of pick by voice and pick by light can be seen.<br />This video is in English with Spanish subtitles.<br /><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dwXLe8PgZk2aoXJOhunCI8Ix6ia4QfdwI_vUxUSfeSzipNNC8OX7QyOEIyNjTro4yI3MIwWwh_t48NVms-AIg' class='b-hbp-video b-uploaded' frameborder='0'></iframe>Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com58tag:blogger.com,1999:blog-7210988502473323199.post-65614280539454311982010-05-23T07:33:00.000-07:002010-05-23T10:05:03.134-07:00Pick-to-Light<span style="font-weight: bold;">This video gives a first impression how Pick-to-light works:</span><br /><br /><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dy6QG13eEs-mvQe7imIDckv2Gr6_MSc4D1k2Tu3nmi2A5x0n2CGKpnwgjMm0Pgynd0KPjuRmT87zFSIbHWQVA' class='b-hbp-video b-uploaded' frameborder='0'></iframe><br /><br /><span style="font-weight: bold;">What it is</span><br /><br /><span style="font-weight: bold;">Pick-by-Light</span> or <span style="font-weight: bold;">Pick-to-Light</span> is being used for commissioning by companies like Carrefour, Día, Nike, Gear for Sports and Champion and many more. It offers diverse advantages compared to manual picking techniques which usually require the presence of bills of delivery or invoices when the picking takes place.<br /><br />If you want to know more about Trends in warehousing and Distribution check out this link:<br /><a href="http://www.impomag.com/scripts/ShowPR.asp?RID=7755&CommonCount=0">http://www.impomag.com/scripts/ShowPR.asp?RID=7755&CommonCount=0</a><br /><br />Pick to Light is acknowledged to be the fastest operator-based picking strategy available to execute broken case quantity order fulfillment operations.<br />It is ideal for team-based approaches like zone picking.<br />It can increase the pick rate productivity, accuracy and cost efficiency of this labour intensive operation by reducing the walk time, eliminating the reading errors and simplifying the task throughout the pick process.<br />Make faster and better decision responses with real-time visibility into all important activities, events and productivity statistics in real-time, presented through a sophisticated GUI featuring complete reporting tools.<br /><br />If you want to learn more about pick-by-light in general and about the leading company in this are, Lightning Pick, check out this link:<br /><a href="http://www.lightningpick.com/pickToLight.html">http://www.lightningpick.com/pickToLight.html</a><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZmKowiSt5UOK9jSoxghdhoVMd5kclYUxzUR1Fubkn6oUwIcGceuMpT2ObvM_2N0jnI6QvQGoc0rudc6JuvFrm7bhkGA0KauPCzBlXM_VkMjy-t79Sdg-AeGJYGFFXLZMvbhwBKPtTqATh/s1600/pick1.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 214px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZmKowiSt5UOK9jSoxghdhoVMd5kclYUxzUR1Fubkn6oUwIcGceuMpT2ObvM_2N0jnI6QvQGoc0rudc6JuvFrm7bhkGA0KauPCzBlXM_VkMjy-t79Sdg-AeGJYGFFXLZMvbhwBKPtTqATh/s320/pick1.png" alt="" id="BLOGGER_PHOTO_ID_5474480824335624114" border="0" /></a><br /><a name='more'></a><br /><span style="font-weight: bold;">How it works</span><br /><br />On Pick-by-Light-systems there is a signal light on each storage shelf with a display that shows nubers or also letters of the alphabet. Also there is at least one button for confirmation and sometimes buttons for numerical input or for corrections.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRRUMmu64obt9i2w1zcZEYHbF5CzoUdmidxAL5HZtfs7KEABphAHBYTI5UE8qNtH2LXmbZZgsOQUrd6zt0o-9ZtNJVYWy1oEcNS2BBx7vgiEgEh5l_B8Dt81JYTa6ObRyWm1bnpTMZ95sf/s1600/pick+2.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 287px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRRUMmu64obt9i2w1zcZEYHbF5CzoUdmidxAL5HZtfs7KEABphAHBYTI5UE8qNtH2LXmbZZgsOQUrd6zt0o-9ZtNJVYWy1oEcNS2BBx7vgiEgEh5l_B8Dt81JYTa6ObRyWm1bnpTMZ95sf/s320/pick+2.png" alt="" id="BLOGGER_PHOTO_ID_5474479801935795586" border="0" /></a><br /><br />Whenever the picking box is at the picking position a signal is lighting at the storage shelf from which the employee has to take the products and on the display a number with the amount of items that have to be taken appears.<br />After having taken the products, the withdrawal is being confirmed with the button for confirmation and the inventory change is being transmitted in real time to the warehouse management system.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKHNlaK7o1R2FDDOcyggD2OdTrr5oQzPFQ6Bbs6BPB9d917FHnWiQa_hz_p6Ts0YvAhUbEt9mLpvVEQCn9v43EGgjONAYsNBpk-zXy81XdQ0zm-nr2D3SFWIMzCt8BCvRcXdEX7yOKLgIs/s1600/pick+3.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 212px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKHNlaK7o1R2FDDOcyggD2OdTrr5oQzPFQ6Bbs6BPB9d917FHnWiQa_hz_p6Ts0YvAhUbEt9mLpvVEQCn9v43EGgjONAYsNBpk-zXy81XdQ0zm-nr2D3SFWIMzCt8BCvRcXdEX7yOKLgIs/s320/pick+3.png" alt="" id="BLOGGER_PHOTO_ID_5474481934024419538" border="0" /></a><br /><br />Pick-to-light solutions guide order pickers through display lights, LCD panels and entry keys mounted over pick faces. Specialized software controls the flow of information to and from pickers. Pick-to-light software is usually interfaced to a WMS or ERP in a near-real-time or batch mode. Pick-to-light solutions are typically employed to support zone pick. Generally, each user starts the process within his/her zone by scanning a bar-coded order or carton number. The software then activates the display lights above each location that has a pick and displays the pick quantity on the associated LCD panel. Each pick is acknowledged or adjusted through the location's entry key.<br /><br /><span style="font-weight: bold;">Advantages</span><br /><ul><li>Unbeatable simplification, reliability and flexibility.</li><li>A high degree of cost-effectiveness.</li><li>Maximum competitiveness in installation and maintenance costs.</li><li>Accuracy of operations, practically eliminating all possibility of error.</li><li>Increase in productivity.</li><li>Speed: operation time is significantly reduced.</li><li>Fewer workers are needed (up to 50% less).</li><li>Real-time information on order progress and status.</li><li>Real-time monitoring of the content of each case.</li><li>Improvement in system management and client service quality</li></ul><br /><span style="font-style: italic;">In conclusion:<br /></span><br /><ul><li>maximising the productivity of the operations</li><li>maximising the speed of the operations</li><li>maximising the efficiency of the operations</li><li>reducing errors to a minimum</li></ul><br />Also see: <a href="http://www.ptlsystems.com/eng/articulos/articulo5.html">http://www.ptlsystems.com/eng/articulos/articulo5.html</a><br /><br /><span style="font-weight: bold;">Disadvantages</span><br /><ul><li>cost</li><li>integration</li><li>functionality issues</li></ul><br />Also see:<br /><a href="http://www.impomag.com/scripts/ShowPR.asp?RID=7755&CommonCount=0">http://www.impomag.com/scripts/ShowPR.asp?RID=7755&CommonCount=0<br /></a>Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com6tag:blogger.com,1999:blog-7210988502473323199.post-12991452982939780742010-05-23T07:15:00.000-07:002010-05-23T07:17:51.540-07:00Mercadona - Our Personal Perception<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9CznWDJjvP5Q-xk0aVKTbzdHkRGE1gxCQLXDzg1tdDkdVeHHQ_oDfpkMX-7mfBaHkVCesoDkFb52_B2rIANrSh3FLCaru3S_b3_c-fzHezEHZsgFeJUnWyVE4792lJDHlaz1myuMRigQ/s1600/BILD0006.JPG"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9CznWDJjvP5Q-xk0aVKTbzdHkRGE1gxCQLXDzg1tdDkdVeHHQ_oDfpkMX-7mfBaHkVCesoDkFb52_B2rIANrSh3FLCaru3S_b3_c-fzHezEHZsgFeJUnWyVE4792lJDHlaz1myuMRigQ/s320/BILD0006.JPG" border="0" alt=""id="BLOGGER_PHOTO_ID_5474468973951200338" /></a><br /><br />We love to go shopping at Mercadona because of the excellent price policy (SPB) and the products from Hacendado, Deliplus and so on are of a great quality.<br /><br />So far we have tried many different products from Mercadona’s suppliers and we have only been disappointed by one product, which is muesli. The other kinds of muesli, however are very tasty.<br /><br />Also, it is noticeable that the fresh leche semidesnatada is often not available when we go shopping late. This is also a little disappointing.<br />Nevertheless we like Mercadona very much as a supermarket and for sure, we will miss Mercadona when we go back to Germany :)<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSbMq_RVnIbLF_r73QE77X68Rw9wbmLGSrX8um61h2WkUqYWwvWf4i437fIOXG7xdx4uhBtDHiyJFdMUuzizg6oHYn_fkDpgVE9vXNZBxgPsP0HQLkhCNYy9tcPTvRJbAA53xqFwvQ4b8/s1600/BILD0007.JPG"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSbMq_RVnIbLF_r73QE77X68Rw9wbmLGSrX8um61h2WkUqYWwvWf4i437fIOXG7xdx4uhBtDHiyJFdMUuzizg6oHYn_fkDpgVE9vXNZBxgPsP0HQLkhCNYy9tcPTvRJbAA53xqFwvQ4b8/s320/BILD0007.JPG" border="0" alt=""id="BLOGGER_PHOTO_ID_5474468981586967618" /></a>Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com4tag:blogger.com,1999:blog-7210988502473323199.post-8268096200639952182010-05-23T06:47:00.002-07:002010-05-23T06:48:20.782-07:00Austrian Company Provides Rolldocking for Mercadona Warehouses<a href="http://logistics-janina.blogspot.com/">Janina </a>and I did some research on Mercadona and its logistics system. This post is about the Rolldocking system of Mercadona.<br /><br />An Austrian company called <a href="http://www.tgw-group.com/">TGW Logistics</a> has developed a new system called Rolldocking for Mecadona. The company describes its solution in a document that is only available in German <a href="http://www.tgw.at/uploads/media/MERCADONA_DEU_02.pdf">http://www.tgw.at/uploads/media/MERCADONA_DEU_02.pdf<br /></a><br /><br />In this blog, we have summarized the main facts about this new technology.<br /><br /><span style="font-size:130%;"><span style="font-weight: bold;">Mercadona's requirements</span></span>:<br /><br /><ul><br /><li>Delivery of articles in single-origin truck loads using europallets or half pallets</li><br /><li>Maximum weight per pallet: 1000 kg</li><br /><li>Minimizing the employment of staff</li><br /><li>Buffering at leat 1,5 truck loads per article</li><br /><li>First in - first out</li><br /><li>Loading up to 800 pallets daily</li><br /></ul><br /><br /><a name='more'></a><br /><br /><span style="font-size:130%;"><span style="font-weight:bold;">Rolldocking</span></span><br /><blockquote>The solution created is not a warehouse in the typical sense but rather a transshipment site with dynamic buffer storage. Truck drivers unload their trucks, with the help of electric or hand-driven pallet trucks, directly onto the accumulating conveyor. The pallet input for this conveyor is implemented at floor level.</blockquote><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEinS5s9qpTKICqGQw78kfHrgQnlzhEc7ELuNpZep9Ivxhj1_3BLX6UUoPUoDp3Ge6yD3iiODVrqDl3TTNQxq7L_Yd_eq2nIgCUpHXL8LJC_TdXVOP3DgzwF_q7_3jauix8QSw2BxbYI-Aw/s1600/rolldocking2.png"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 299px; height: 225px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEinS5s9qpTKICqGQw78kfHrgQnlzhEc7ELuNpZep9Ivxhj1_3BLX6UUoPUoDp3Ge6yD3iiODVrqDl3TTNQxq7L_Yd_eq2nIgCUpHXL8LJC_TdXVOP3DgzwF_q7_3jauix8QSw2BxbYI-Aw/s320/rolldocking2.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5473412375414236482" /></a><br /><br /><blockquote>A 70 m long accumulating roller conveyor is available for each article. This allows 52 euro pallets or 104 half pallets per article to be placed on the conveyor. For articles with low weight, the capacity can be doubled if stacks of two pallets each are placed on the conveyor.</blockquote><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhp2Yh4vir3W50gxoGiHWDBx5OpiP-1soCsbQkrXKADdtWmxNGWyzZOhJ7jua7xVD6HOqRHZm2MWhNEaYt4P_7ybZ3raECd8xiJ5ogjwuIjNs_gY1EOxjSdlE-2CCuP2cDbo_3UpNz4gvU/s1600/rolldocking1.png"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 298px; height: 230px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhp2Yh4vir3W50gxoGiHWDBx5OpiP-1soCsbQkrXKADdtWmxNGWyzZOhJ7jua7xVD6HOqRHZm2MWhNEaYt4P_7ybZ3raECd8xiJ5ogjwuIjNs_gY1EOxjSdlE-2CCuP2cDbo_3UpNz4gvU/s320/rolldocking1.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5473412373802651154" /></a><br /><br /><blockquote>Commissioning takes place at the end of the accumulating conveyor. Mercadona employees commission the pallets with the help of forklifts, confirm removal with radio scanners, and place the commissioned pallets together at the assigned outgoing goods gate.</blockquote><br /><br />See also: <a href="http://www.tgw-group.com/eng/industries/grocery-general-retail/mercadona/">http://www.tgw-group.com/eng/industries/grocery-general-retail/mercadona/</a>Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com8tag:blogger.com,1999:blog-7210988502473323199.post-3632160667121318882010-05-23T06:47:00.001-07:002010-05-23T06:47:26.966-07:00Mercadona Builds Kindergarten into Logistic Blocks<a href="http://logistics-janina.blogspot.com/">Janina </a>and I did some research on Mercadona and its logistics system. This is the second post about Mercadona's kindergarten in the logistic blocks.<br /><br />A German newspaper has reported that Mercadona makes place in its logistic blocks for kindergarten: <a href="http://www.lebensmittelzeitung.net/news/karriere/Mercadona-Ist-familienfreundlich_44749.html">http://www.lebensmittelzeitung.net/news/karriere/Mercadona-Ist-familienfreundlich_44749.html</a><br /><br />In this block we have translated the most impressive facts:<br /><br />In 2001 Mercadona inaugurates the first kindergarten in the logistics block in San Sadurní D'Anoia (Barcelona). Mercadona calls it also "nursurey". It is a place where trained personal looks for the children of employees for free. As it has been a successful venture, Mercadona concluded to build a kindergarten into all logistic blocks that are newly opened up.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhK8FH8wKMDW1ktm0CLTe4LpJFc0hLcT42H5dW8LaHiNhRTYIqhJIspDrHGynuBoJOw_IqUhWABBZKaZZbuthwHsZU1vKYUyy7Cg0reLrgjTXgDXmIKUk6VBGKdY2_uw8DLBFq6WhsMUoE/s1600/kindergarten3.png"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 120px; height: 82px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhK8FH8wKMDW1ktm0CLTe4LpJFc0hLcT42H5dW8LaHiNhRTYIqhJIspDrHGynuBoJOw_IqUhWABBZKaZZbuthwHsZU1vKYUyy7Cg0reLrgjTXgDXmIKUk6VBGKdY2_uw8DLBFq6WhsMUoE/s320/kindergarten3.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5473408666932290146" /></a><br /><br />The kindergarten of the logistics block in Albatera/ San Isidro (Alicante) provides 82 spaces per shift. A shift either takes from 6 to 2 or from 2 to 10 at night. To guarantee a proper child care, there are 14 educators with various qualifications (kindergartener, educator, pedagogue, and teacher) per logistic block.<br /><a name='more'></a><br /><br />The logistics block in Albatera/ San Isidro yields 1.055 square meters to the kindergarten so that there is enough room for bathrooms, rooms to train the psychomotor domain, relaxation areas and green spaces. In fact, when the kindergarten in Albatera/ San Isidro was newly opened, it was one of the most advanced of its kind.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgU5J067FZFxXL_d4bhYElKST7TW29YkB9mC9nFzlMeowCQP0fSpDquApwMLyLmZXx5l4WzJO8QPmk40AvqwffdaZsBBRl3U88mrwtWT5fqWFAbBO1UL1az-szo9e6LFo3_t6ZA3Y_VLow/s1600/kindergarten1.png"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 119px; height: 83px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgU5J067FZFxXL_d4bhYElKST7TW29YkB9mC9nFzlMeowCQP0fSpDquApwMLyLmZXx5l4WzJO8QPmk40AvqwffdaZsBBRl3U88mrwtWT5fqWFAbBO1UL1az-szo9e6LFo3_t6ZA3Y_VLow/s320/kindergarten1.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5473408655472390882" /></a><br /><br />The whole service, including meals are for free for children of Mercadona's employees.<br /><br /><span style="font-weight: bold;">The newspaper says that with the inauguration of such kindergarten, Mercadona again improves and advances its logistic blocks.<br /></span><br /><br />In the <a href="http://www.mercadona.es/corp/ing-html/memoria09.html">2009 annual report</a>, Mercadona says that there are currently 3 such kindergarten in the logistic blocks:<br /><br /><ul><br /><li>In 2001 Mercadona open the first free nursery in Sant Sadurní d’Anoia (Barcelona).</li><br /><li>In 2003 Mercadona opened the logistics block in San Isidro (Alicante) and the company's second nursery.</li><br /><li>In 2004 Mercadona opened the logistics block in Huévar (Sevilla) and therewith the company's third nursery.</li><br /></ul><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLnEaLAcDCuZXwmjQCsiVYxhtlCiPy3ISOK1noF9RbRcXUkYXnki3EW9vY2Q5YmeFF9oqU4jkbD65KProgDgQcghI1zrZfrXtA8TGa_ymXTJdXjh88iBOR3KCOSMtfHu581oyIgmcJrYI/s1600/kindergarten2.png"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 120px; height: 80px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLnEaLAcDCuZXwmjQCsiVYxhtlCiPy3ISOK1noF9RbRcXUkYXnki3EW9vY2Q5YmeFF9oqU4jkbD65KProgDgQcghI1zrZfrXtA8TGa_ymXTJdXjh88iBOR3KCOSMtfHu581oyIgmcJrYI/s320/kindergarten2.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5473408651927834018" /></a>Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com5tag:blogger.com,1999:blog-7210988502473323199.post-25374520142957549982010-05-23T06:46:00.001-07:002010-05-23T06:46:55.083-07:00Introducing Mercadona<a href="http://logistics-janina.blogspot.com/">Janina </a>and I did some research on Mercadona and its logistics system. In total we have prepared 4 posts. This is the first one to introduce Mercadona.<br /><br /><blockquote>Mercadona is a Spanish family-owned supermarket company whose objective is to fully satisfy the grocery, home cleaning, hygiene and pet products’ needs of its "Bosses". To this end the company has 1,264 local stores<br /><ul><br /><li>averaging between 1,300 and 1,500 square meters of retail space, </li><br /><li>representing a market share of 12.8% of the total food store retail space in Spain and </li><br /><li>contributing to the business dynamics of the areas in which they are located.</li><br /><li>Every one of these supermarkets has an ample and ef?cient selection that includes up to 8,000 different items located within easy reach of the over 4.3 million households that place their trust in the company every year.</li></ul><br /></blockquote><br />See: <a href="http://descargas.mercadona.com/memorias2009/ING/Report09.pdf">http://descargas.mercadona.com/memorias2009/ING/Report09.pdf</a><br /><br /><a href="http://logiblog.wordpress.com/"></a>Jochen has found the "canción de Mercadona", which we can always hear when we go shopping at Mercadona (and which we still sing 3 hours after shopping):<br /><br /><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dzuzcF1XAbqAu4wNZMvf86CsOPOr5HypiZdyeot9croO7wIEDpAhxZ8GQS9QjEurBIDbpopYZ4PgIeYaAxxtA' class='b-hbp-video b-uploaded' frameborder='0'></iframe><br /><br /><br><br /><span style="font-size: 130%;">SPB = Siempre precios bajos</span><br /><br />Mercadona has a special business model that is called <span style="font-style: italic;">siempre precios bajos</span>, it means always low price in English. It is a formula that allows Mercadona's customers ("The Bosses") to buy products of the highest quality at the lowest prices on the market. That strategy matches what has always been the company’s motto for over 16 years: <span style="font-style: italic;">"Quality doesn’t have to be more expensive"</span>.<br /><br /><br />In total Mercadona works with more than 2,000 trade suppliers and service providers, over 100 of which are integrated suppliers, manufacturers of th Hacendado, Bosque Verde, Deliplus and Compy brands. Mercadona has long-term mutual cooperation and commitment relationship regulated by way of a Sound Business Practices Framework Agreement. This results in <span style="font-style: italic;">"contracts for life"</span> and all of them are committed to the total customer satisfaction philosophy that is so important to Mercadona and which applies to both quality services and products.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjL3pps8kVKqezA3QtQ-Hd15Oc_2F-Howr4r1cKvM1F2UZz4k5nv2EDknwDJKD_DEcAU4-3srL8qVsLT6v6IyvVhZTTkSqn22dNhiXSmRRHLJuRfE_CLmTRL59DcLg-whx0ETk96an87-U/s1600/introducing1.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 289px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjL3pps8kVKqezA3QtQ-Hd15Oc_2F-Howr4r1cKvM1F2UZz4k5nv2EDknwDJKD_DEcAU4-3srL8qVsLT6v6IyvVhZTTkSqn22dNhiXSmRRHLJuRfE_CLmTRL59DcLg-whx0ETk96an87-U/s320/introducing1.png" alt="" id="BLOGGER_PHOTO_ID_5473399631927060210" border="0"></a><br /><br /><span style="font-size: 130%;">Total Quality</span><br /><blockquote>Since 1993, Mercadona’s management model has been one based on Total Quality. Through this method Mercadona satis?es the company’s ?ve components with equal dedication: ‘The Boss’, The Employee, The Supplier, Society and Capital.<br /></blockquote><br /><br /><a name='more'></a><br /><br />Some Key Figures of the five components<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTbyg1cmHfzBDBXMImX8whemWPpWeu0C3s2c6GnY3TKCOEXXm491JWrwuktA19EltMqc2IrOTgze2Nu-FQtBarPE1YfvR3Q0pS_51Y9x6aN3LTSrsvWjnvZMHrYoh9AVdDmVyIc0T0DC4/s1600/introducing2.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 107px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTbyg1cmHfzBDBXMImX8whemWPpWeu0C3s2c6GnY3TKCOEXXm491JWrwuktA19EltMqc2IrOTgze2Nu-FQtBarPE1YfvR3Q0pS_51Y9x6aN3LTSrsvWjnvZMHrYoh9AVdDmVyIc0T0DC4/s320/introducing2.png" alt="" id="BLOGGER_PHOTO_ID_5473399637164091410" border="0"></a><br /><br /><span style="font-size: 130%;"><span style="font-weight: bold;">'THE BOSS'</span></span><br /><ul><li><span style="font-weight: bold;">Geographical presence</span>: 46 provinces, 15 Autonomous Communities, 4.3 million households trust Mercadona daily.</li><br /><li><span style="font-weight: bold;">Local supermarkets</span>: 54 more stores than in 2008, 74 openings, 20 closures.</li><br /><li><span style="font-weight: bold;">Market share</span>: 12.8% market share, 12,663,000 m2 total shopping surface area of organized distribution in Spain.</li><br /></ul><br /><br /><span style="font-size: 130%;"><span style="font-weight: bold;">THE EMPLOYEE</span></span><br /><ul><li><span style="font-weight: bold;">Stable employment</span>: 62,000 workers, all with permanent contracts.</li><br /><li>67% <span style="font-weight: bold;">female </span>employees.</li><br /><li>500 new <span style="font-weight: bold;">permanent positions</span> created.</li><br /><li><span style="font-weight: bold;">Training</span>: 25 training courses. 1.4 million hours. 38 million Euros investment. 609 euros average investment in training per person.</li><br /></ul><br /><br /><span style="font-size: 130%;"><span style="font-weight: bold;">THE SUPPLIER</span></span><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFV_97oV_7LX9plq9Wy-S9daqPnfz7ueefTGsN6geaFOybtWCQWVf0rjYuGjtBeR9vAo2H93yufIi8RPhpXu9xkbpiG6LT66lwDw3A4rLptG2vLgaCqgnbvbsLkH9OwVzAmOPW_xUf3JI/s1600/introducing3.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 148px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFV_97oV_7LX9plq9Wy-S9daqPnfz7ueefTGsN6geaFOybtWCQWVf0rjYuGjtBeR9vAo2H93yufIi8RPhpXu9xkbpiG6LT66lwDw3A4rLptG2vLgaCqgnbvbsLkH9OwVzAmOPW_xUf3JI/s320/introducing3.png" alt="" id="BLOGGER_PHOTO_ID_5473399646144476258" border="0"></a><br /><br /><ul><li>500 million Euros invested by integrated suppliers to <span style="font-weight: bold;">distribute their production activities</span> throughout Spain.</li><br /><li>More than 1,100 <span style="font-weight: bold;">jobs </span>created by the integrated suppliers.</li><br /><li>14,200 million Euros in <span style="font-weight: bold;">purchases from national suppliers</span>, both commercial and service, representing over 90% of the company’s purchases. Equivalent to over 1.4% of the Spanish GDP.</li><br /><li>Average <span style="font-weight: bold;">payment time</span> to suppliers: 65.</li><br /><li>8 active <span style="font-weight: bold;">logistics blocks</span>.<br />4 <span style="font-weight: bold;">logistics blocks in planning stage/under construction</span>: Villadangos del Páramo (León), Guadix (Granada), Pla-Za (Zaragoza) and Abrera (Barcelona).</li><br /></ul><br /><br /><span style="font-size: 130%;"><span style="font-weight: bold;">SOCIETY</span></span><br /><ul><li><br /><span style="font-weight: bold;">Social productivity</span>: Commitment to the efficient use of natural resources, contributing to the development of the areas where the company operates.</li><br /><li><span style="font-weight: bold;">Joint generation</span> of wealth and employment by Mercadona & integrated suppliers.</li><br /><li><span style="font-weight: bold;">Environmental investment</span>: 23 million euros.</li><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLjtNQgBojRz_YiW1hj38UkJW4GO5ww1zNgkC8PXuGApyzH3YTzrMXma7-ykIWvUrazj65q5grC6IHBuhMnNR6OlbFkmdOa0XhEgGBkJGL1EYzYwV0jsWrzb0JtgPFwelIYYocchlrLJw/s1600/introducing4.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 319px; height: 320px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLjtNQgBojRz_YiW1hj38UkJW4GO5ww1zNgkC8PXuGApyzH3YTzrMXma7-ykIWvUrazj65q5grC6IHBuhMnNR6OlbFkmdOa0XhEgGBkJGL1EYzYwV0jsWrzb0JtgPFwelIYYocchlrLJw/s320/introducing4.png" alt="" id="BLOGGER_PHOTO_ID_5473399651460443682" border="0"></a><br /><span style="font-size: 130%;"><span style="font-weight: bold;">CAPITAL</span><br /></span><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg4hMAKaYE53TSFYVwljmOCstC-lNgqFK-S7XFRjzyREleLAFBGP1cxyIJQrGv5SQAnUgOOko91o7EGHkAqs2pWo2wjwTLUuv_HXBEwXyTH7ClvuZ8-PS4pglMQCO0Nh9Mn-biNbZCQi3Q/s1600/introducing5.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 260px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg4hMAKaYE53TSFYVwljmOCstC-lNgqFK-S7XFRjzyREleLAFBGP1cxyIJQrGv5SQAnUgOOko91o7EGHkAqs2pWo2wjwTLUuv_HXBEwXyTH7ClvuZ8-PS4pglMQCO0Nh9Mn-biNbZCQi3Q/s320/introducing5.png" alt="" id="BLOGGER_PHOTO_ID_5473399652565581090" border="0"></a><br /><br /></ul><br />Check out more key facts on <a href="http://www.mercadona.es/corp/ing-html/memoria09.html">http://www.mercadona.es/corp/ing-html/memoria09.html</a>Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com1tag:blogger.com,1999:blog-7210988502473323199.post-36063647387421359972010-05-23T06:18:00.000-07:002010-05-23T07:04:45.655-07:00Mercadona's Logistics Blocks<a href="http://logistics-janina.blogspot.com/">Janina </a>and I did some research on Mercadona and its logistics system. This post is about Mercadona's Logistics block in general.<br /><br />A 620,000-square-metre network that supplies 1,264 supermarkets daily<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgQISF8smqCDqvKmOdhe1EnNlelAD8nCyv41zck9djQkfhejLLhUOFQJ7n7v7RrEZRsU3ZLRVLCQcYp9McBcJrUOIODD4JsQPvtNxx3VgA-702rs4VJZD1fu4AxNI8AvZwoY77k5RTSOODs/s1600/Logistics+blocks.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 398px; height: 400px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgQISF8smqCDqvKmOdhe1EnNlelAD8nCyv41zck9djQkfhejLLhUOFQJ7n7v7RrEZRsU3ZLRVLCQcYp9McBcJrUOIODD4JsQPvtNxx3VgA-702rs4VJZD1fu4AxNI8AvZwoY77k5RTSOODs/s400/Logistics+blocks.png" alt="" id="BLOGGER_PHOTO_ID_5474454554065954642" border="0"></a><br /><br /><span style="font-weight: bold;">Logistics Blocks</span><br /><br />At the end of 2009 Mercadona had 1264 supermarkets that need to be supplied. In order to do this Mercadona uses a 620.000 square-metre logistical network.<br />One of Mercadona’s main goals is to reduce the impact of transportation on the price of products. They call this “transporting more for less” which also has the positive side effect of having a smaller impact on the environment.<br /><br />In order to ensure the efficiency and optimization of its logistical network Mercadona plans to construct new facilities and to upgrade and improve existing structures during the following years. In order to do this more than 600 million euros are going to be invested.<br /><br /><a name='more'></a><br /><br /><span style="font-style: italic;">Examples:</span><br />In 2009, there was an ongoing construction at the Villadangos del Páramo logistics block. It is scheduled to be completed in 2011. It represents the company’s ninth logistics block and the investment to realize this project will be about 200 million euros. It will provide 400 permanent jobs.<br /><br /><div style="text-align: center;"><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTXETlRRgT702-ZNfpja0c0A9UHAzLP6AQUp1sC0dGSZWg3BV2Izeg_IMQhOYNbmFXI4o8pluIM-XJTtpcOz47c7rsWy6KRssbnNH08Cy6knJDoKriuS4wufr3F6Of25CQ4A9qNsyzB-dz/s1600/photo+log.+block.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 158px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTXETlRRgT702-ZNfpja0c0A9UHAzLP6AQUp1sC0dGSZWg3BV2Izeg_IMQhOYNbmFXI4o8pluIM-XJTtpcOz47c7rsWy6KRssbnNH08Cy6knJDoKriuS4wufr3F6Of25CQ4A9qNsyzB-dz/s320/photo+log.+block.png" alt="" id="BLOGGER_PHOTO_ID_5474455007334627250" border="0"></a>Aerial view of the Villadangos del Páramo logistics block, León<br /></div><br /><br />In the town of Guadix, in Granada, Mercadona’s tenth logistical block has been stared to be built in 2009. It is planned to open it in 2013. The investment to build this block will be about 180 million euros.<br />This warehouse will guarantee 200 permanent jobs and will supply 200 supermarkets in the provinces of Granada, Almeria, Jaen and Murcia.<br /><br />Both, the logistics block in Villadangos del Páramo and the one of Guadix will replicate the intelligent warehouse model of the facility in Ciempozuelos (Madrid).<br /><br />There is even planned the eleventh logistics block of Mercadona. It will be located in the city of Abrera (Barcelona) and a 360-million euro investment is necessary to build it.<br />This new facility will have an area of 100.000 square meters. It will probably open in 2014 and will then be able to supply 250 supermarkets.<br /><br /><div style="text-align: center;"><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh4lJC5vfpGL4g-ubQcOKlPQuuRGgknur0eQU7mWyntC-ROPngUwbu9eE2ZQhzLf7BXO_duVRwYGQSJ69Y5Aw5MgL03FTB_RNjikKVDDZY4hC0IrN5zgakZl2n3-EsU1a1giiIetcsGdSje/s1600/inside.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 117px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh4lJC5vfpGL4g-ubQcOKlPQuuRGgknur0eQU7mWyntC-ROPngUwbu9eE2ZQhzLf7BXO_duVRwYGQSJ69Y5Aw5MgL03FTB_RNjikKVDDZY4hC0IrN5zgakZl2n3-EsU1a1giiIetcsGdSje/s320/inside.png" alt="" id="BLOGGER_PHOTO_ID_5474455869171518050" border="0"></a>Employee at the facilities of integrated supplier Logifruit in riba-roja del Túria, Valencia.<br /></div><br /><br /><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dxQj8gYOzWwqNNh7njhuVGWE9boyMeO6mUFxCWzA3bUreoXbGHiExzUEP1stpWX-7QC6GnNG7eDy0s5F91Alw' class='b-hbp-video b-uploaded' frameborder='0'></iframe>Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com17tag:blogger.com,1999:blog-7210988502473323199.post-31773353108147508992010-05-23T06:02:00.000-07:002010-05-23T07:11:03.459-07:00Integrated Suppliers<a href="http://logistics-janina.blogspot.com/">Janina </a>and I did some research on Mercadona and its logistics system. This a post about Mercadona's integrated suppliers.<br /><br />The suppliers play a key role in Mercadona’s <span style="font-weight: bold;">Total Quality Model</span>.<br />Mercadona’s philosophy is to base their relationship with their partners (Mercadona has more than 100 of them) on trust, stability, constant work and joint commitment. Their common goal is to satisfy the needs of the customers by providing the best quality-price ratio on the market. They reach this goal by eliminating everything that does not provide any value.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6kGxgxHUmEGSb_1V_YNJ8lNAjcJn20FdZtONov_WEDXqgkSufD3TZI0eALvh_ClgrwiFMVjDn9CyNx4pPSCOPuvi1BsxT519OBuhV6yBTufTwMTdxRywTKO5zKD91P_aaSe7PCFaZ0cpA/s1600/bottles.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 309px; height: 320px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6kGxgxHUmEGSb_1V_YNJ8lNAjcJn20FdZtONov_WEDXqgkSufD3TZI0eALvh_ClgrwiFMVjDn9CyNx4pPSCOPuvi1BsxT519OBuhV6yBTufTwMTdxRywTKO5zKD91P_aaSe7PCFaZ0cpA/s320/bottles.png" alt="" id="BLOGGER_PHOTO_ID_5474451683707350834" border="0" /></a><span style="font-weight: bold;">Square olive oil bottle</span> which optimizes logistical processes. Integrated supplier Sovena.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKZWx3w5VPgcx2StGruZt6s4qyXFbuI7sDriLqMn4VG5tms6Q0yUpDzcpk6idtsNy2nJJtPcvOU6sv2mwRl_8lyK_av0tXwh7ITytbLfOJLvaRJBo7tDQW51wZtc2RA_Bz0r4Q-B2ayuT-/s1600/bottles2.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 190px; height: 200px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKZWx3w5VPgcx2StGruZt6s4qyXFbuI7sDriLqMn4VG5tms6Q0yUpDzcpk6idtsNy2nJJtPcvOU6sv2mwRl_8lyK_av0tXwh7ITytbLfOJLvaRJBo7tDQW51wZtc2RA_Bz0r4Q-B2ayuT-/s200/bottles2.png" alt="" id="BLOGGER_PHOTO_ID_5474452320117246978" border="0" /></a>Wine bottle stack that increases palletizing capacity. Integrated supplier Bodegas Ontanón.<span lang="EN-GB" style="font-family:Calibri;"><o:p></o:p></span><br /><br /><a name='more'></a><br /><br />Especially the manufacturers of Hacendado, Bosque Verde, Deliplus and Company brands are integrated firmly in the company since it is thanks to the cooperation with them that Mercadona achieves its goals.<br />This cooperation has a lot of socioeconomic benefits because the growth of these suppliers directly translates to the generation of wealth and employment for the communities in which they are carrying out their activities. In addition to that, one should not forget the impact on Spain’s economic output as a whole.<br /><br />In general it can be said that Mercadona’s model of having integrated suppliers shows solidarity with the entire value chain since these suppliers also have continued commercial relationships with over 8,500 SMEs.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_Uk7p6oCTT15Anl3oNhAyC-29LP_SJHNOA-oTV6eBZNRrh5XD0lFTVI0d3UAUPykiWyUiHqySd3F43a7BLCeFXzA6BMHe87WV8Ot2WeLix_v_DI7IHZn3rvuWpPe2doieo8zdazt8f7EY/s1600/numbers.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 176px; height: 200px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_Uk7p6oCTT15Anl3oNhAyC-29LP_SJHNOA-oTV6eBZNRrh5XD0lFTVI0d3UAUPykiWyUiHqySd3F43a7BLCeFXzA6BMHe87WV8Ot2WeLix_v_DI7IHZn3rvuWpPe2doieo8zdazt8f7EY/s200/numbers.png" alt="" id="BLOGGER_PHOTO_ID_5474453251711918994" border="0" /></a><br /><br /><br /><span style="font-weight: bold;">Ensuring stable prices</span><br />In order to enable their suppliers to guarantee the quality and safety of their products, Mercadona enters int “contacts for life” with them. Mercadona is committed to stable relationships with their integrated suppliers to allow them to plan their growth rationally.<br /><br />Mercadona guarantees the farmers a stable price for each kilo of fruit and vegetables in order to avoitd fluctuations of prices.<br /><br /><span style="font-weight: bold;">Tracking products from their origin at Mercadona<br /></span><br />Mercadona and its fruit and vegetable suppliers tried to guarantee more transparency in the origin of their products by hiring an external auditing firm (Norma Agrícola) in 2009, to certify the tracking of products from their origin.<br />The astonishing result of this was that 85% of the total volume of products solb by Mercadona in 2009 originated in Spain. Only 15% were imported because of seasonality and unavailability reasons of the domestic market. Therefore it can be said that Mercadona’s activities in the agricultural sector are very sustainable and responsible.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgEFGgWL0IecdNQAXUgHrlymK81Xyh6Cdfmz6G_h7mQ11oXIvdcCQ9S4ifGbp11hUOpFtRHW9jgDMn3RqLFmslCx9-CdjF0StCuHRajFHE3pTJKokOe5UQI7DhPDfuo2uKWx-HXLJ5r1xHU/s1600/logistic+blocks.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 334px; height: 400px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgEFGgWL0IecdNQAXUgHrlymK81Xyh6Cdfmz6G_h7mQ11oXIvdcCQ9S4ifGbp11hUOpFtRHW9jgDMn3RqLFmslCx9-CdjF0StCuHRajFHE3pTJKokOe5UQI7DhPDfuo2uKWx-HXLJ5r1xHU/s400/logistic+blocks.png" alt="" id="BLOGGER_PHOTO_ID_5474454014988946162" border="0" /></a><br /><br />Check out <a href="http://descargas.mercadona.com/memorias2009/ING/Report09.pdf">http://descargas.mercadona.com/memorias2009/ING/Report09.pdf<br /></a> to see the full annual report 2009 of Mercadona.Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com3tag:blogger.com,1999:blog-7210988502473323199.post-40945082096878643092010-05-23T05:59:00.000-07:002010-05-23T07:09:47.520-07:00Concept Innovation - Stores by Ambience<a href="http://logistics-janina.blogspot.com/">Janina </a>and I did some research on Mercadona and its logistics system. This a post about Mercadona's stores by ambience.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2BOZCqhHJ6IBI5e619M06joiOf507frCLG9198xdy4PM5wZYpzJO8NHCnosNbXY0K8Cs5szJJwaEWaMSo4GgyJ9RVQPP2_iq3kUeBuBqxSHb5GdJdPOxbpS-to7wH9nc4qv2jRen9MbeW/s1600/merca1.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 400px; height: 226px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2BOZCqhHJ6IBI5e619M06joiOf507frCLG9198xdy4PM5wZYpzJO8NHCnosNbXY0K8Cs5szJJwaEWaMSo4GgyJ9RVQPP2_iq3kUeBuBqxSHb5GdJdPOxbpS-to7wH9nc4qv2jRen9MbeW/s400/merca1.png" alt="" id="BLOGGER_PHOTO_ID_5474449653096795602" border="0" /></a><br /><br /><br />Concept innovation for Mercadona, involves incorporating everything that adds value to their customer’s shopping experience.<br /><br />Therefore, in 2000, the most important component of concept innovation has been launched, Stores by Ambience.<br /><br />The goal of Stores by Ambience is to provide Mercadona’s customers with <span style="font-weight: bold;">more spacious stores</span> that have a <span style="font-weight: bold;">warmer ambience</span> and a more <span style="font-weight: bold;">logical product arrangement</span>. In general, the intention is to optimize the customer’s purchases while making the experience more pleasurable.<br /><br />By 2009 there were a total of <span style="font-weight: bold;">1184 </span>Stores by Ambience.<br /><br />If you want to learn more about Mercadona and it's activities during the year 2009 have a look at their <a href="http://descargas.mercadona.com/memorias2009/ING/Report09.pdf">annual report</a>.Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com6tag:blogger.com,1999:blog-7210988502473323199.post-36755691141137313062010-05-13T14:39:00.000-07:002010-05-13T14:40:02.352-07:00Comparing the Distribution Systems of Dia and CarrefourThis post compares the distribution systems of Dia and Carrefour, which have been introduced in the previous posts. The comparison is based on Sina's and Janina's own interpretation of the collected information.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQuPQEXf0HNVNEx1yZ62vPCcD63xIfD_ZpBnkotVG69LpGQ3dlM2XgMPv76EjVyWJhn2Z8K4D3jFjh9FuPDzvtbsRTAeVnxcOFanbaxdJFdNHdgg7LxWe1B04AEeCv53VWiRjQmamgz7A/s1600/similarities.png"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 106px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQuPQEXf0HNVNEx1yZ62vPCcD63xIfD_ZpBnkotVG69LpGQ3dlM2XgMPv76EjVyWJhn2Z8K4D3jFjh9FuPDzvtbsRTAeVnxcOFanbaxdJFdNHdgg7LxWe1B04AEeCv53VWiRjQmamgz7A/s400/similarities.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5470870996424777346" /></a><br /><br /><a name='more'></a><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUSajvBEBjkBNxCaBj0OS18F5bNfOMAbVVe_fmXVXk4LwjyGmI0TJDe9LRzFJH_Rp2GLqlgjEw9EU2EhFjXqctk2sRDa-GhwOe-wQYI6t9r2d6UAI9zOSntBfzXECQ-8UYI9BfWm66_gU/s1600/differences.png"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 345px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUSajvBEBjkBNxCaBj0OS18F5bNfOMAbVVe_fmXVXk4LwjyGmI0TJDe9LRzFJH_Rp2GLqlgjEw9EU2EhFjXqctk2sRDa-GhwOe-wQYI6t9r2d6UAI9zOSntBfzXECQ-8UYI9BfWm66_gU/s400/differences.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5470870996440486882" /></a><br /><br /><br /><span style="font-weight:bold;">Conclusion: Although dia is a belongs to the Carrefofur Group, they have individually implemented their own distribution system.</span>Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com3tag:blogger.com,1999:blog-7210988502473323199.post-12386798895565404462010-05-13T14:38:00.000-07:002010-05-13T14:39:14.945-07:00Dia’s Distribution SystemThis post is about the distribution system of Dia, which Sina <a href="http://sinaslogisticsblog.blogspot.com/">http://sinaslogisticsblog.blogspot.com/</a> and Janina <a href="http://logistics-janina.blogspot.com/">http://logistics-janina.blogspot.com/</a> prepared in collaboration.<br /><br /><ol><li>Introducing Dia</li><br /><br />First of all, let us introduce Dia.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidxGhBPhOVeZIndy8HhmnPk8qO-AqxfhofGJU64Q4V6-f9X1mHONBJ8d1zjIBhVGJmR2NsSkpfixuEBfsbWHWaLyyBIYy7Mw26R-Q5RmM3-ROR2IYt5PC8kJqhgJOmyt-z4etI_Pkm1O0/s1600/dia_logo.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 163px; height: 75px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidxGhBPhOVeZIndy8HhmnPk8qO-AqxfhofGJU64Q4V6-f9X1mHONBJ8d1zjIBhVGJmR2NsSkpfixuEBfsbWHWaLyyBIYy7Mw26R-Q5RmM3-ROR2IYt5PC8kJqhgJOmyt-z4etI_Pkm1O0/s320/dia_logo.png" alt="" id="BLOGGER_PHOTO_ID_5470854746221199954" border="0" /></a><br /><br />Dia stands for "Distribuidora Internacional de Alimentacion". <a href="http://www.underconsideration.com/brandnew/archives/2009_03.php?page=2">http://www.underconsideration.com/brandnew/archives/2009_03.php?page=2<br /></a><a href="http://en.wikipedia.org/wiki/Dia_%28supermarket_chain%29">Wikipedia </a>says that Dia <br> <br /><blockquote>is an international hard-discount supermarket chain of Spanish origin, which is part of the Carrefour Group.</blockquote><br /><br /><a name='more'></a><br /><br />They have two different web pages. The first one is <a href="http://www.dia.es/">http://www.dia.es/</a> :<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgop6AAqvkVYijMfkrTV6LWjYXBRqZMTRvlz4mkBPdDKPEvJBdWbUPFR-moH9PTRjwO1L-DtI1Fwo6ohk7-jqMpgAjqS3EDRlq6fmSWnQoJZl2dqyZCcm6cFjSS03a51V1X-539EzA-eMY/s1600/dia_homepage.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 186px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgop6AAqvkVYijMfkrTV6LWjYXBRqZMTRvlz4mkBPdDKPEvJBdWbUPFR-moH9PTRjwO1L-DtI1Fwo6ohk7-jqMpgAjqS3EDRlq6fmSWnQoJZl2dqyZCcm6cFjSS03a51V1X-539EzA-eMY/s320/dia_homepage.png" alt="" id="BLOGGER_PHOTO_ID_5470853909752553874" border="0" /></a><br /><br />It offers the customer special offers and products. This web page is designed for Dia's customer so that they can inform themselves about stores, products and the latest news.<br /><br />Dia has another web site at <a href="http://www.diacorporate.com/diawebapp/web/home.jsp?lang=en">http://www.diacorporate.com/diawebapp/web/home.jsp?lang=en</a>. It informs the customer about its business in general, its concept and it provides background knowledge:<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjypzj4XRajpKvqBb0WtMR_zeDx4GITsiMVJFVhgmT4n8bif0lfekMzYTL_QgrLi9JnEVpSM3KDyzNYefv8JAlES4Fv1Xxam087j7bSJxf8l109NYuSIn6ppnob7kx5uEefZkwl0u5eYak/s1600/dia_homepage2.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 176px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjypzj4XRajpKvqBb0WtMR_zeDx4GITsiMVJFVhgmT4n8bif0lfekMzYTL_QgrLi9JnEVpSM3KDyzNYefv8JAlES4Fv1Xxam087j7bSJxf8l109NYuSIn6ppnob7kx5uEefZkwl0u5eYak/s320/dia_homepage2.png" alt="" id="BLOGGER_PHOTO_ID_5470854350606036322" border="0" /></a><br /><br /><br />On the <a href="http://www.diacorporate.com/diawebapp/web/about-us-/dia-group.jsp">web page</a> Dia is decribed as a <br><br /><blockquote>distribution chain which was founded in Spain in 1979 on the opening of its first store in Madrid.<br /></blockquote><br /><br /><br /><ul>More facts about Dia are:<br /><li>At the close of 2008, the DIA Group employed 52,375 people working</li><br /><li>It has 6,252 located in Spain, France (under the ED banner), Portugal (under the Minipreço banner), Greece, Turkey, Argentina, Brazil and China</li><br /><li>Of these, 4,795 are the company’s own stores</li><br /><li>1,457operate as franchises</li><br /><li>DIA is the fifth largest franchiser in Europe</li><br /><li>The secret of Día’s back shop is concealed in 850.000 square meters. It plays a key role in the system of Día</li><br /><li>In Spain operate 18 centers, each one comprises 18.000 square meters</li><br /><li>The incorporation of perishable goods obligates Día to divide the warehouses in chambers with controlled temperature and climate from 9 degree for the fruits and vegetables to minus 22 degrees for the frozen products.</li><br /></ul><br /><br /><li>The Dia warehouse</li><br /><br />The second <a href="http://www.diacorporate.com/">web page</a> is very interesting for us because it gives us the first hints about the Dia warehouse. We have retrieved the information from the site that Dia calls <span style="font-weight: bold;">Our logistic network</span> <a href="http://www.diacorporate.com/diawebapp/web/our-concept/warehouses.jsp">http://www.diacorporate.com/diawebapp/web/our-concept/warehouses.jsp</a><br /><br />Dia uses 44 logistic platforms equipped with state-of-the-art technology. Processes of the platforms are under constant revision, always striving for continuous innovation and at the service of efficiency.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhMaXS_JenzWTbCcjtLxJFcUcZlxJDBdv8Ta45uZQVMbWele1rUeXMkyqelwWwt3OZzTD_ik4zuTqB5OBK_DJ_IgCpKNmyO3Zx2u_ZteJColizN5Lw3Pe7Uf8haiU6udvwHQ8v1aWXx4pc/s1600/dia_stock1.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 242px; height: 162px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhMaXS_JenzWTbCcjtLxJFcUcZlxJDBdv8Ta45uZQVMbWele1rUeXMkyqelwWwt3OZzTD_ik4zuTqB5OBK_DJ_IgCpKNmyO3Zx2u_ZteJColizN5Lw3Pe7Uf8haiU6udvwHQ8v1aWXx4pc/s320/dia_stock1.png" alt="" id="BLOGGER_PHOTO_ID_5470854363460199378" border="0" /></a><br /><br /><li>Information Flow</li><br /><br />The perishable goods only stay one day in the warehouse until they arrive at the store.<br />Each platform moves about 95.000 bundles per day and serve about 120 stores. One of the newest developments is to pick by voice (for the preparation of the orders), a system that improves the efficiency of the employees because they know at any time where they have to address themselves to and what they have to choose.<br />One of Día's obsessions is to avoid that they run out of a product in the store, therefore the control of the stock is very important. Each store has to place its order to a national data centre every day which then sends the information to the warehouse assigned to the store. Within 24 hours the order is in the store and since the stores have hardly any own warehouse the truck visits them four times a week.<br /><br />See: <a href="http://www.ahorrarte.com/page/noticias/id/42">http://www.ahorrarte.com/page/noticias/id/42</a><br /><br />To visualize this procedure we have created a chart:<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0xCBffuZ70WD9LPUHQhYWd5-CjOwfCkCSyeqZceVzCLvtUwDu7pHsVo4MaGwm6I7a9zohZV8w1FDBIO0Oq_NWfhRAoiYtOfk2Mbunsypg7TgMrSDY9SRGk7tdP0jzvRk_1CuobUJpQrk/s1600/diagram.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 281px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0xCBffuZ70WD9LPUHQhYWd5-CjOwfCkCSyeqZceVzCLvtUwDu7pHsVo4MaGwm6I7a9zohZV8w1FDBIO0Oq_NWfhRAoiYtOfk2Mbunsypg7TgMrSDY9SRGk7tdP0jzvRk_1CuobUJpQrk/s320/diagram.png" alt="" id="BLOGGER_PHOTO_ID_5470857133307033266" border="0" /></a><br /><br /><li>Dia's Management model for material flow</li><br />Dia has implemented a management model to assure an overall efficient and effective system. This system monitors all activities in all Dia's warehouses and guarantees a capable material flow. The material flow starts form conveying products from the supplier until reaching the final consumer with the best possible quality. The system includes:<br /><br /><ul><br /><li><span style="font-weight:bold;">Totally computerized management:</span> This system allows the Group to continuously control stocks and minimize errors when preparing orders.</li><br /><li><span style="font-weight:bold;">Truck tracking:</span> A fleet of GPS controlled trucks which deliver merchandize to stores on a daily basis within 12 hours of the order being submitted, thereby guaranteeing stock turnover and product freshness.</li><br /><li><span style="font-weight:bold;">Fresh food products treatment</span>: Dia pays special attention to fresh food or perishable products as well as refrigerated and frozen goods. The receiving, manipulation and dispatch of these goods is carried out under conditions which are ideal for maintaining the cold chain at all times, an aspect which is vital in these products.</li><br /><li><span style="font-weight:bold;">Supply Chain Management:</span> Efficient and effective management throughout the complete chain, planning to promote work in a system of continuous improvements, thereby allowing compliance with employee work time optimization objectives (productivity), the reduction of stock breakages, and guaranteeing product freshness.</li><br /><li><span style="font-weight:bold;">Non-perishable products treatment</span>: Since September 2009 the Día Group uses a huge logistic warehouse in Miranda for non perishable goods with the goal to create a transport centre of the supermarket chain. The investment for the development of this project, which will be a distribution centre for the north of Spain, cost more than 9 million Euros. This warehouse is designed as a delivery hall for the supermarkets of the chain. All types of alimentary products are handled, including frozen products. The warehouse covers an area of 21.948 square meters and has 25 loading and unloading docks. It is situated close to the freeway of Bilbao to guarantee a good infrastructure.</li><br /></ul><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSEswYB0ddtW07HgF9gPIIdW1QiUSFv9tQxlzQUHxQq3lrQ2f8gwWI8PCv70MNsgo0xNNxtJl5gafDXgiNU8aB8qWK5wlr7MzGVJehPDRtYe7Pt6LVdCFvwuPZjKTqZ_yS0hkuhJ0b56I/s1600/dia_stock2.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 130px; height: 320px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSEswYB0ddtW07HgF9gPIIdW1QiUSFv9tQxlzQUHxQq3lrQ2f8gwWI8PCv70MNsgo0xNNxtJl5gafDXgiNU8aB8qWK5wlr7MzGVJehPDRtYe7Pt6LVdCFvwuPZjKTqZ_yS0hkuhJ0b56I/s320/dia_stock2.png" alt="" id="BLOGGER_PHOTO_ID_5470854352016690642" border="0" /></a><br /><br />We summarized this information from the following web sites:<br /><a href="http://noticias.terra.es/2008/local/0209/actualidad/empieza-la-construccion-del-almacen-logistico-del-grupo-dia-en-miranda-del-ebro.aspx">http://noticias.terra.es/2008/local/0209/actualidad/empieza-la-construccion-del-almacen-logistico-del-grupo-dia-en-miranda-del-ebro.aspx</a><br /><br /><a href="http://www.diacorporate.com/diawebapp/web/our-concept/warehouses.jsp">http://www.diacorporate.com/diawebapp/web/our-concept/warehouses.jsp<br /></a><br /><a href="http://www.elcorreo.com/vizcaya/20090731/miranda/grupo-pondra-marcha-almacen-20090731.html">http://www.elcorreo.com/vizcaya/20090731/miranda/grupo-pondra-marcha-almacen-20090731.html<br /></a><br /><a href="http://www.ahorrarte.com/page/noticias/id/42">http://www.ahorrarte.com/page/noticias/id/42</a><br /><br /><li>Fleed Management at Dia</li><br />Dia is facing a special problem because it offers quality products at a low price. Therefore, it is forced to carry out its distribution logistics efficiently and continuously seek improvements in order to save money. The solution for this issue was implemented in 2002 by a company called <a href="http://www.ortec.com/">ORTEC</a>. In this article, the company tells its <a href="http://www.google.de/url?sa=t&source=web&ct=res&cd=1&ved=0CBgQFjAA&url=http%3A%2F%2Fwww.ortec.com%2F~%2Fmedia%2F%2FFiles%2FCases%2FEnglish%2FSolutions%2Fvrd%2FA0250_Dia_Groupe_Carrefour_SHORTREC_Vehicle_Routing_and_Dispatch_Trade_Transport_and_Logistics_ORTEC_EN.ashx&rct=j&q=DIA++selected++SHORTREC++Distriplanner++for++their++distribution+planning+in+Spain+for+all+14+warehouses+to++2%2C394++outlets.++SHORTREC++generates++a++high++quality+distribution+plan+inseconds.+To+optimize+control+over+its+fleet+and+continuously+guard+the+quality+and+safety+of++its++products%2C++DIA++also++equipped++all++vehicles++with+ALCOM+GPS+devices+from+Protos+&ei=PxHrS77QEMGNOLL7leQK&usg=AFQjCNH6TfPHep78cLH6P39L45TeBC-OwA">success story</a>. <br /><br />Through the SHORTEC system of ORTEC, Dia has optimized the control over its fleet and continuously guard the quality and safety of its products. Additionally, Dia equipped all vehicles with special ALCOM GPS devices from Protos Communicationes, an ORTEC partner in Spain. The GPS devices allow Dia to track all their vehicles so that the company knows the exact location of every truck. Knowing the exact location of each vehicle and truck helps to control the supply chain and saves money by not losing those assets that are in transit.<br /><br />What was special about the Protos GPS system, was the fact that Protos integrated its GPS devices with temperature devices. Therefore, the planner has full control, armed with not only information about the position of the trucks but also with its temperature, which is especially crucial to fresh, perishable food.<br /></li></ol>Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com3tag:blogger.com,1999:blog-7210988502473323199.post-64774179094626286532010-05-13T13:04:00.001-07:002010-05-13T14:24:44.266-07:00Information and material flow @ CarrefourThis post is also done by Sina <a href="http://sinaslogisticsblog.blogspot.com/">http://sinaslogisticsblog.blogspot.com/</a> and Janina <a href="http://logistics-janina.blogspot.com/">http://logistics-janina.blogspot.com/</a> and it deals with the distribution system of Carrefour.<br /><br /><ol><li>Introducing Carrefour</li><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmSUDh4LKfcyY9c5b-V_7wc9Zr6zOyCLxLJ72OtPFOvzfp8y6973RAXomMjKFsl-lbQEMlZvGJKUkWOZ72dPVHeUft4wwOvpwjDImYwotxDHT_8TQuZPphTrmUDRa6T02WiKoJxpJ5Acet/s1600/logo.png"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 293px; height: 119px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmSUDh4LKfcyY9c5b-V_7wc9Zr6zOyCLxLJ72OtPFOvzfp8y6973RAXomMjKFsl-lbQEMlZvGJKUkWOZ72dPVHeUft4wwOvpwjDImYwotxDHT_8TQuZPphTrmUDRa6T02WiKoJxpJ5Acet/s400/logo.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5470864566116415490" /></a><br /><br />To find out information on carrefour's business, we had a look at the "at a glance" presentation of <a href="http://www.carrefour.com/docroot/groupe/C4com/Pieces_jointes/RA/ESSENTIEL_ENdef.pdf">Carrefour </a><br />Boasting four hundred parking spaces and 2,500 sq.m of sales floor area, the first Carrefour hypermarket opened in 1963 in Sainte Geneviève-des-Bois, close to Paris.<br />The concept was entirely new -<br /><br /><blockquote>everything under one roof </blockquote><br /><br />in a self-service environment - and was an overwhelming success.<br /><br /><a name='more'></a><br /><br />Carrefour then deployed and exported its business model<br />Today, it is the largest private European employer and the 7th largest worldwide.<br />Carrefour group offers its customers every type of retail shopping:<br /><br /><ul><br /><li>498 hypermarkets</li><br /><li>2,198 supermarkets</li><br /><li>3,267 hard discount stores</li><br /><li>2,143 convenience stores</li><br /><li>196 cash & carry stores</li><br /><li>503 frozen food stores</li><br /></ul><br /><br />More facts about Carrefour<br /><ul><br /><li>It is no. 1 in europe and no. 2 worldwide</li><br /><li>€102,442 billion in gross sales under group banners in 2007</li><br /><li>Present in 31 countries</li><br /><li>More than 490,000 employees including more than 140,000 in France</li><br /><li>More than 3 billion cash transactions per year</li><br /><li>Largest private European employer and 7th largest worldwide</li><br /></ul><br /><br /><li>Material flow: Reducing Carbon Emissions</li><br /><br />Since Carrefour delivers huge volumes of products to hundreds of stores the optimization of transport and logistics is indispensable.<br />The following figure shows how Carrefour manages its material flow and at the same time tries to reduce carbon emission:<br /><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhhJfwLOUVBr5cvNLR7wsXt8ZfkWptHNDvbVOSIPEb7yrJ6DgVhGR7W3v00vCXqlPr6-dRB5FsNpa4JuMipXCCqVgJgcun-zkqZMykjSPsAQH4qH5SIke43FX8evSf6d8vqhQjtCGu280nO/s1600/reducing_carbon_emissons.png"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 264px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhhJfwLOUVBr5cvNLR7wsXt8ZfkWptHNDvbVOSIPEb7yrJ6DgVhGR7W3v00vCXqlPr6-dRB5FsNpa4JuMipXCCqVgJgcun-zkqZMykjSPsAQH4qH5SIke43FX8evSf6d8vqhQjtCGu280nO/s400/reducing_carbon_emissons.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5470865515730804610" /></a><br /><br /><a href="http://www.carrefour.com/docroot/groupe/C4com/Commerce%20responsable/Notre%20engagement%20pour%20l%27environnement/R%C3%A9duire%20nos%20impact%20logistique/infography%20CO2.pdf">http://www.carrefour.com/docroot/groupe/C4com/Commerce%20responsable/Notre%20engagement%20pour%20l%27environnement/R%C3%A9duire%20nos%20impact%20logistique/infography%20CO2.pdf<br /></a><br /><br />One measure Carrefour takes is to focus its efforts to the reduction of the number of kilometres travelled by road. In general, the Group tries to develop a national logistics network in every country where volumes are big enough. It streamlines flows and transport trips by pooling logistics.<br />In the following paragraph, some steps are explained more in detail:<br /><ul><br /><li><span style="font-weight:bold;">Using alternative modes of transportation:</span> Nowadays Carrefour tries to find alternative means of transport for deliveries to Group warehouses. They want to increase in the number of containers delivered by barge and by rail. Carrefour France for example, achieved its goal to ship more than 40% of its merchandise by river and rail. In Spain, Carrefour dispatches 100% of its import containers from the port of Barcelona by rail and 67% from Valencia.</li><br /><br /><li><span style="font-weight:bold;">Developing Backhauling:</span> The latest innovation of Carrefour is to have trucks that collect goods ordered from suppliers and that deliver them to the warehouses after completing their store deliveries.</li><br /><br /><li>Creating consolidation warehouses: Another method Carrefour uses is to set up consolidation platforms. These platforms make sure that suppliers can reduce their mileage and that Carrefour can send the warehouses full trucks that contain products from several suppliers</li><br /><br />Please refer to: <a href="http://www.carrefour.com/cdc/responsible-commerce/our-commitment-to-the-environment/reducing-logistics-impact/">http://www.carrefour.com/cdc/responsible-commerce/our-commitment-to-the-environment/reducing-logistics-impact/</a><br /></ul><br /><br /><br /><li>Material flow: Further Improvements</li><br />Since one day saved in terms of worldwide inventory for Carrefour represents $183 million, the retailer has asked key suppliers to help manage inventory. This way 60% of Carrefour's inventory is now controlled and co-managed by key vendors until it arrives at the stores.<br /><br />Consigned or vendor-managed inventories, consisting primarily of seasonal merchandise and such direct-to-store products as ice cream and soft drinks, are held until needed, then released to the stores.<br />Carrefour has developed closer relationships with fewer suppliers. This way they have identified 30 suppliers that account for 65% to 70% of thei business. They don’t only ask their suppliers to help them manage the inventory but they also want them to deliver products to the stores ready to sell. This helps to eliminate a lot of store work to prepare those products for sale.<br />These information are retrieved from: <a href="http://webcache.googleusercontent.com/search?q=cache:N3NO5uLMTYoJ:findarticles.com/p/articles/mi_hb3235/is_11_21/ai_n29112115/+This+way+60%25+of+Carrefour%E2%80%99s+inventory+is+now+controlled+and+co-managed+by+key+vendors+until+it+arrives+at+the+stores+represents+%24183+million&cd=1&hl=de&ct=clnk">http://webcache.googleusercontent.com/search?q=cache:N3NO5uLMTYoJ:findarticles.com/p/articles/mi_hb3235/is_11_21/ai_n29112115/+This+way+60%25+of+Carrefour%E2%80%99s+inventory+is+now+controlled+and+co-managed+by+key+vendors+until+it+arrives+at+the+stores+represents+%24183+million&cd=1&hl=de&ct=clnk</a><br /><br />Some of Carrefour's producers are local while other goods are bought by bulk purchases or global sourcing. That means that Carrefour has to organize the whole transportation to its retail stores.<br /><br />Carrefour manages flows of finished products to ultimate customers. This is a critical activity for them because they cannot have empty shelves since this would contribute to unsatisfied customers. <span style="font-weight:bold;">Each day, 8 trucks are needed to deliver products to one hypermarket!</span><br /><br />Carrefour's distribution channels can be divided into three networks:<br />- grocery products which stay a very short time in warehouses for hypermarkets<br />- the same products for supermarkets, convenience stores and Promocash<br />- products which stay a bit longer in warehouses, and that are delivered to all formats of stores<br /><br />This new system shortens the time for the delivery. With a so called "multidrop system", only one truck is used to transport products from a manufacturer to two close warehouses.<br /><br />Carrefour owns many huge logistics platforms (distribution warehouses). They are used to gather products from different manufacturers, and redistribute these products to the different stores whenever they need them.<br /><br />Also technological tools have been introduced to prepare orders. The employees are helped by a vocal recognition tool (pick by voice), in order to avoid any mistakes.<br />The latest change in the material flow of Carrefour is that manufacturers used to store finished goods in their own warehouse, and then, the goods were transferred to Carrefour warehouses. Now, Carrefour wants a direct transport of the finished goods from the manufacturers’ to Carrefour warehouses.<br />Please refer to: <a href="http://eleves.mines.inpl-nancy.fr/~guerri99/Documents/Carrefour_Report_2.pdf">http://eleves.mines.inpl-nancy.fr/~guerri99/Documents/Carrefour_Report_2.pdf</a><br /><br /><li>Information Flow</li><br />In Italy, Carrefour uses of a software program that is capable of adapting the daily delivery plan to changes in order volumes. A result of this is that the mileage has been reduced by 5% and costs by 7%.<br /><br />Carrefour focuses on the information flow between the stores and the warehouses.<br />Therefore logistics services started to work with stores in order to review their systematic daily supply activities. They introduced more flexible hours and deliveries based on the realistic needs of the various departments. This approach has several advantages:<br /><ul><br /><li>There is the possibility of carrying out back-to-back delivery runs with the same truck</li><br /><li>This way less time and fuel are wasted in traffic jams</li><br /><li>There is an improvement of the filling of trucks</li><br /></ul><br />See: <a href="http://www.carrefour.com/cdc/responsible-commerce/our-commitment-to-the-environment/reducing-logistics-impact/">http://www.carrefour.com/cdc/responsible-commerce/our-commitment-to-the-environment/reducing-logistics-impact/</a><br /><br />We have found more information on <a href="http://eleves.mines.inpl-nancy.fr/~guerri99/Documents/Carrefour_Report_2.pdf">http://eleves.mines.inpl-nancy.fr/~guerri99/Documents/Carrefour_Report_2.pdf</a>:<br />In general it can be said that the development of technologies has been very important for the development of Carrefour. The main technology that has been useful is the computer. The Internet allows Carrefour to develop new kinds of activities like the online supermarket. But the most important point with the Internet is the creation of a B2B extranet.<br /><br />This extranet makes it possible that suppliers can manage their relations with Carrefour group more easily and more efficiently so the information flow is guaranteed and is smoother.<br /><br />Carrefour uses sophisticated software to create an efficient link between sales and purchases. They use "push-pull-push" logistics. This means that on the one hand they do forecasts, but on the other hand they control regularly what is sold in the stores on a daily basis order to adapt their inventory.<br /></ol>Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com1tag:blogger.com,1999:blog-7210988502473323199.post-74919895892549628102010-05-07T10:19:00.000-07:002010-05-07T11:17:40.002-07:00Presentation about Fleet ManagementHey everybody!<br /><br />Here is the presentation about Fleet Management Janina and I held during the last Logistics class (30.04.2010).<br /><br /><div style="width: 425px;" id="__ss_3929867"><strong style="margin: 12px 0pt 4px; display: block;"><a href="http://www.slideshare.net/valencialogistics/fleet-management" title="Fleet Management ">Fleet Management </a></strong><object id="__sse3929867" width="425" height="355"><param name="movie" value="http://static.slidesharecdn.com/swf/ssplayer2.swf?doc=fleetmgmtfinal-100501072402-phpapp01&stripped_title=fleet-management"><param name="allowFullScreen" value="true"><param name="allowScriptAccess" value="always"><embed name="__sse3929867" src="http://static.slidesharecdn.com/swf/ssplayer2.swf?doc=fleetmgmtfinal-100501072402-phpapp01&stripped_title=fleet-management" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="355"></embed></object><div style="padding: 5px 0pt 12px;"><br /></div></div>You may also find the presentation and many other interesting things about Logistics on Janina's Blog:<br /><a href="http://logistics-janina.blogspot.com/2010/05/fleet-management.html">http://logistics-janina.blogspot.com/2010/05/fleet-management.html</a><br />So check it out! :)<br /><a name='more'></a><br />If you are interested in reading more about the topic you can find a lot of useful information here:<br /><br />Definition<br /><a href="http://www.uni-koblenz.de/%7Eiwi/publicfiles/Arbeitsberichte/Nr28.pdf">http://www.uni-koblenz.de/~iwi/publicfiles/Arbeitsberichte/Nr28.pdf</a><br /><a href="http://www.buzzle.com/articles/fleet-management-a-must-have-tool-for-business.html"></a><br /><br />Field of Application<br /><a href="http://www.buzzle.com/articles/fleet-management-a-must-have-tool-for-business.html">http://www.buzzle.com/articles/fleet-management-a-must-have-tool-for-business.html</a><br /><a href="http://tu-dresden.de/Members/karsten.peters/Verkehrslogistik.pdf">http://tu-dresden.de/Members/karsten.peters/Verkehrslogistik.pdf</a><br /><br />Routing Planing<br /><a href="http://ebus.informatik.uni-leipzig.de/www/media/lehre/tm-verkehrstelematik06/vt06-ve09-pdf.pdf">http://ebus.informatik.uni-leipzig.de/www/media/lehre/tm-verkehrstelematik06/vt06-ve09-pdf.pdf</a><br /><a href="http://www.informatik.uni-halle.de/ti/forschung/toleranzen/">http://www.informatik.uni-halle.de/ti/forschung/toleranzen/</a><br /><a href="http://en.wikipedia.org/wiki/Travelling_salesman_problem">http://en.wikipedia.org/wiki/Travelling_salesman_problem<br /></a><br /><br />GPS Tracking<br /><a href="http://electronics.howstuffworks.com/gadgets/high-tech-gadgets/location-tracking1.htm">http://electronics.howstuffworks.com/gadgets/high-tech-gadgets/location-tracking1.htm</a><br />Video: <a href="http://videos.howstuffworks.com/hsw/19198-satellite-technology-the-global-positioning-system-video.htm">http://videos.howstuffworks.com/hsw/19198-satellite-technology-the-global-positioning-system-video.htm</a><br /><a href="http://ctsgps.com/">http://ctsgps.com/</a><br /><br />Advantages<br /><a href="http://www.buzzle.com/articles/fleet-management-a-must-have-tool-for-business.html">http://www.buzzle.com/articles/fleet-management-a-must-have-tool-for-business.html</a><br /><a href="http://www.donauschifffahrt.info/uploads/talks_downloads/Innovatives_Verkehrsmanagement_auf_der_Donau_v4_01.pdf">http://www.donauschifffahrt.info/uploads/talks_downloads/Innovatives_Verkehrsmanagement_auf_der_Donau_v4_01.pdf</a>Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com13tag:blogger.com,1999:blog-7210988502473323199.post-23517336177133123622010-04-15T14:38:00.000-07:002010-05-07T11:07:31.347-07:00Unit Load<span style="font-weight: bold; color: rgb(153, 51, 153);">1. What is a unit load?</span>
<br /><ul><li>"A number of individual packages bonded, palletized or strapped together to form a single unit for more efficient handling by mechanical equipment. [<a href="http://www.geodiswilson.com/en/Global_tools/Logistics_Dictionary/U/">http://www.geodiswilson.com/en/Global_tools/Logistics_Dictionary/U/</a>]</li></ul><ul><li>"Packages loaded on a pallet in a crate or any other way that enables them to be handled at one time as a unit." [<a href="http://www.apl.com/equipment/html/equipment_glossary.html">http://www.apl.com/equipment/html/equipment_glossary.html</a>]</li></ul><ul><li><span style="" lang="EN-GB">"A unit load combines individual items or items in shipping containers into a single "unit" that can be moved easily with pallet jack or forklift truck. A unit load packs tightly into warehouse racks, intermodal containers, trucks, and boxcars, yet can be easily broken apart at a distribution point, usually a distribution center, wholesaler, retail store, etc." [<a href="http://en.wikipedia.org/wiki/Unit_load">http://en.wikipedia.org/wiki/Unit_load</a>]</span><span style="font-weight: bold; color: rgb(153, 51, 153);"> </span></li></ul>
<br /><div style="text-align: center;"><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBnyz8_8yo2ICnOx_zOLp0Aueagg-Na1_yX9uYFSibEoyydZVn-_ayB_rZtKCG9ZCND-xMoQZGcKTanR1Sk7YF4Ym16ErZt8fTaUGyVAH8ob3djlaGHZhV4PfMM8FuiVsXh2OA8OlplSBB/s1600/pallet_handling.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 400px; height: 291px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBnyz8_8yo2ICnOx_zOLp0Aueagg-Na1_yX9uYFSibEoyydZVn-_ayB_rZtKCG9ZCND-xMoQZGcKTanR1Sk7YF4Ym16ErZt8fTaUGyVAH8ob3djlaGHZhV4PfMM8FuiVsXh2OA8OlplSBB/s400/pallet_handling.jpg" alt="" id="BLOGGER_PHOTO_ID_5460497603841138482" border="0" /></a>[<a href="http://www.andrews-automation.com/pallet-elevators/">http://www.andrews-automation.com/pallet-elevators/</a>]
<br /><a name='more'></a>
<br />
<br /></div><span style="font-weight: bold; color: rgb(153, 51, 153);">2. </span><span style="font-weight: bold; color: rgb(153, 51, 153);">Why unit loads?</span>
<br />
<br />In general it can be said that, unit load is getting more and more important because globalization, increasing international trade and the growing importance of electronic technology impose new demands on packaging and distribution industries.
<br />
<br />Two factors why unit load is imprescindible as modern-day transport concept and even more as an efficient consumer response to increasing volume of trade and expanding market
<br />coverage:
<br />1) achieving economies of scale to bring down cost
<br />2) improving the performance of the supply chain to delight consumers.
<br />
<br /><span style="font-style: italic; color: rgb(102, 51, 255);">Advantages of unit loads:</span>
<br /><ul><li>The primary advantage of using unit loads is the capability of moving more items at a time.</li><li>Therefore, unit loads reduces the number of trips, handling, loading and unloading operations.
<br /></li><li>And last but not least unit loads also keep to minimum level product damage and losses.</li><li>Unit loads facilitate internal handling and storage</li><li>They speed up trailing loading and unloading</li><li>They shorten the processing of manifests and bills of lading</li><li>They subject products to reduced handling hazards</li><li>And the cost may only be minimal.
<br /></li></ul><meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 10"><meta name="Originator" content="Microsoft Word 10"><link rel="File-List" href="file:///C:%5CDOKUME%7E1%5CSINAMA%7E1%5CLOKALE%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:hyphenationzone>21</w:HyphenationZone> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:wraptextwithpunct/> <w:useasianbreakrules/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><style> <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0cm; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} @page Section1 {size:595.3pt 841.9pt; margin:70.85pt 70.85pt 2.0cm 70.85pt; mso-header-margin:35.4pt; mso-footer-margin:35.4pt; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Normale Tabelle"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";} </style> <![endif]--> <p class="MsoNormal">[<a href="http://www.ecrphils.com/2nd%20ECR%20Conference/Efficient_Unit_Load_Concept_word.PDF">http://www.ecrphils.com/2nd%20ECR%20Conference/Efficient_Unit_Load_Concept_word.PDF</a>]</p>
<br />Unit loads make automation in plants possible. The following video shows that this automation is only possible by unit loads and therefore it emphasises the advantages mentioned before even more: it makes moving items faster and safer.
<br />
<br /><o:p></o:p> <span style="font-weight: bold; color: rgb(0, 153, 0);">Unit Load Automation:</span>
<br />
<br /><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dygxgBvICkYE4uiFHhMRvNdiuyoETJeKdc5Va0nh2R8NoIP3w2X08pSI-6Ji6M2BF3vOz7LmwnmthWjQ0K2' class='b-hbp-video b-uploaded' frameborder='0'></iframe>
<br />
<br />In this video mostly boxes are used for the unit loads.
<br />[<a href="http://www.youtube.com/watch?v=sZhfP8Ftbkw">http://www.youtube.com/watch?v=sZhfP8Ftbkw</a>]
<br />
<br /><span style="font-weight: bold; color: rgb(153, 51, 153);">3. Factors influencing Unit Load design</span>
<br />
<br /><ul><li>the design of the product itself (its nature, dimensions, shape or profile, etc.)</li><li>Environmental conditions to which the product is exposed</li><li>the manner of loading of goods at supplier end, handling facilities at shipping ports and unloading provisions at the receiving venue
<br /></li></ul>
<br />
<br />Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com0tag:blogger.com,1999:blog-7210988502473323199.post-12104006797255325322010-04-06T14:12:00.000-07:002010-05-07T11:06:02.298-07:00The bullwhip effect<span style="font-weight: bold; color: rgb(153, 51, 153);font-family:verdana;font-size:100%;" >1. Definition:</span><span style="font-size:100%;">
<br />
<br /></span><span style=";font-family:verdana;font-size:100%;" >"</span><span style="font-style: italic;font-family:verdana;font-size:100%;" >It is a phenomenon observed in forecast driven supply chain and describes that the variation in demand increases up the supply chain from consumer to supplier</span><span style=";font-family:verdana;font-size:100%;" >." </span><span style=";font-family:verdana;font-size:85%;" >[<a href="http://www.scribd.com/doc/17392509/Bullwhip-Effect">http://www.scribd.com/doc/17392509/Bullwhip-Effect</a>]</span><span style="font-size:100%;">
<br />
<br /></span><span style=";font-family:verdana;font-size:100%;" >-> the more steps that are in between of the consumer and the supplier, the bigger the variation gets</span><span style="font-size:100%;">
<br />
<br /></span><div style="text-align: center;font-family:verdana;"><span style="font-size:100%;"><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhdf0DeKaxLFnm5soXj6IQPS2al2etoWeOvT1zyetXGXA1J3sZpsgey-fJvxAvrB6qejDrM9eqQ06f40BHwpqOZ0Qtz5YunJQWO67-TDKK2tgmhQUE6EAwSaVzZIggXVorQKW1kWcJ5GLsc/s1600/bullwhip+effect.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 239px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhdf0DeKaxLFnm5soXj6IQPS2al2etoWeOvT1zyetXGXA1J3sZpsgey-fJvxAvrB6qejDrM9eqQ06f40BHwpqOZ0Qtz5YunJQWO67-TDKK2tgmhQUE6EAwSaVzZIggXVorQKW1kWcJ5GLsc/s320/bullwhip+effect.jpg" alt="" id="BLOGGER_PHOTO_ID_5457137360367123490" border="0" /></a></span><span style="font-size:100%;"><span style="font-size:85%;">[<a href="http://www.scribd.com/doc/17392509/Bullwhip-Effect">http://www.scribd.com/doc/17392509/Bullwhip-Effect</a>]</span>
<br />
<br /><img src="file:///C:/DOKUME%7E1/SINAMA%7E1/LOKALE%7E1/Temp/moz-screenshot-3.png" alt="" /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgveAI8MGRnYi6UDSqbWUYv6MYgPz4OCCFHfQZx8y0s-e4fwsqh-f9UcQcHaV_qmNq0FVoCRusYOE2pGRNgAGpv4-d-XqlBGsXnlEMFtW0xXI2_dTNAc13Xr8yrrFYBaALdSmZvi2ly4LsM/s1600/bullwhip+2.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgveAI8MGRnYi6UDSqbWUYv6MYgPz4OCCFHfQZx8y0s-e4fwsqh-f9UcQcHaV_qmNq0FVoCRusYOE2pGRNgAGpv4-d-XqlBGsXnlEMFtW0xXI2_dTNAc13Xr8yrrFYBaALdSmZvi2ly4LsM/s320/bullwhip+2.jpg" alt="" id="BLOGGER_PHOTO_ID_5457141696123600738" border="0" /></a></span><span style="font-size:100%;"><span style="font-size:85%;">[<a href="http://maja.uni-mb.si/files/apem/APEM3-1_045-055.pdf">http://maja.uni-mb.si/files/apem/APEM3-1_045-055.pdf</a>]</span>
<br />
<br /></span></div><span style=";font-family:verdana;font-size:100%;" >Therefore it can be said that the bullwhip effect is an inefficiency of the supply chain and small changes in customer demand can result in large swings in orders placed upstream.</span><span style="font-size:100%;">
<br /><a name='more'></a>
<br /></span><span style="font-weight: bold; color: rgb(153, 51, 153);font-family:verdana;font-size:100%;" >2. Causes of the Bullwhip effect:</span><span style="font-size:100%;">
<br />
<br /></span><span style="color: rgb(51, 51, 255);font-family:verdana;font-size:100%;" >Primary cause:</span><span style="font-size:100%;">
<br /></span><ul style="font-family:verdana;"><li><span style="font-size:100%;">lead time of information and material</span></li></ul><span style="font-size:100%;">
<br /></span><span style="color: rgb(51, 51, 255);font-family:verdana;font-size:100%;" >Secundary causes:</span><span style="font-size:100%;">
<br />
<br /></span><span style="font-weight: bold;font-family:verdana;font-size:100%;" >demand forecast updating</span><ul style="font-family:verdana;"><li><span style="font-size:100%;">Forecasting is based on order history from company’s immediate customer</span></li><li><span style="font-size:100%;">Often, forecasts are made at whims & fancies of managers</span></li><li><span style="font-size:100%;">Upstream manager updates his/her demand forecasts based on customer demand variations, longer lead times, price fluctuations etc.</span></li><li><span style="font-size:100%;">Techniques like exponential smoothing creates bigger swings at the supplier’s end</span></li></ul><span style="font-weight: bold;font-family:verdana;font-size:100%;" >
<br />order batching</span><ul><li style="font-weight: bold; color: rgb(255, 102, 0);"><span style="font-size:100%;">Periodic Ordering:</span></li><li><span style="font-size:100%;">weekly, Fortnightly, Monthly etc.</span></li><li><span style="font-size:100%;">Creates spikes in order sizes, disrupting supplier’s demand forecasts</span></li><li><span style="font-size:100%;">Benefits from transportation & distribution side</span></li></ul><ul><li style="color: rgb(255, 102, 0); font-weight: bold;"><span style="font-size:100%;">Push Ordering:</span></li><li><span style="font-size:100%;">Orders are pushed by sales personnel</span></li><li><span style="font-size:100%;">Done usually at monthly/quarterly sales review and demand estimates from sales team</span></li><li><span style="font-size:100%;">This results in uneven spread of customer orders resulting in the bullwhip effect</span></li></ul><span style="font-weight: bold;font-family:verdana;font-size:100%;" >
<br />price fluctuation</span><span style="font-size:100%;">
<br /></span><ul style="font-family:verdana;"><li><span style="font-size:100%;">Forward buys; discount sales; offer merchandise; coupons; rebates; end of season sales</span></li><li><span style="font-size:100%;">Customers buy in bulk</span></li><li><span style="font-size:100%;">But the buying pattern never matches the consumption pattern</span></li><li><span style="font-size:100%;">This results in overstocking at the far ends of the supply chain and also results in idle capacity
<br /></span></li></ul><span style="font-weight: bold;font-family:verdana;font-size:100%;" >
<br />rationing and shorage gaming</span><span style="font-size:100%;">
<br /></span><ul style="font-family:verdana;"><li><span style="font-size:100%;">When demand exceeds supply, manufacture ration supplies to distributors</span></li><li><span style="font-size:100%;">This results in distributors ordering more than they need, to fulfill the demand</span></li><li><span style="font-size:100%;">When the market cools down, orders start getting cancelled, excess inventory piles up, leading to the bullwhip effect</span></li><li><span style="font-size:100%;">Real demand is never known in such market conditions. </span></li><li><span style="font-size:100%;">Most commonly effected is the IT hardware & telecom industry</span></li></ul><span style="font-size:100%;">
<br /></span><span style="font-weight: bold; color: rgb(153, 51, 153);font-family:verdana;font-size:100%;" >3. Countermeasures against the bullwhip effect</span><span style="font-size:100%;">
<br />[<a href="http://www.scribd.com/doc/27375735/The-Bullwhip-Effect">http://www.scribd.com/doc/27375735/The-Bullwhip-Effect</a>]
<br />
<br />First of all long lead times should be reduced if possible.
<br />
<br /><span style="font-weight: bold;">demand forecast updating</span>
<br />One way to avoid inaccuracies is by reducing the lack of demand visibility by providing access to point of sale (POS) data. Also it is possible to overcome exaggerated demand forecasts by single control of replenishment or vendor Management Inventory (VMI).
<br />
<br /><span style="font-weight: bold;">order batching</span>
<br /></span><ul><li><span style="font-size:100%;">One countermeasure would be Electronic Data Interchange (EDI) and computer aided ordering (CAO).</span></li><li><span style="font-size:100%;">Random or correlated ordering is countered with regular delivery appointments</span></li><li><span style="font-size:100%;">More frequent ordering results in smaller orders and smaller variance
<br /></span></li></ul><meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 10"><meta name="Originator" content="Microsoft Word 10"><link style="font-family: verdana;" rel="File-List" href="file:///C:%5CDOKUME%7E1%5CSINAMA%7E1%5CLOKALE%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:hyphenationzone>21</w:HyphenationZone> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:wraptextwithpunct/> <w:useasianbreakrules/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Wingdings; panose-1:5 0 0 0 0 0 0 0 0 0; mso-font-charset:2; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:0 268435456 0 0 -2147483648 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0cm; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} @page Section1 {size:595.3pt 841.9pt; margin:70.85pt 70.85pt 2.0cm 70.85pt; mso-header-margin:35.4pt; mso-footer-margin:35.4pt; mso-paper-source:0;} div.Section1 {page:Section1;} /* List Definitions */ @list l0 {mso-list-id:607354096; mso-list-type:hybrid; mso-list-template-ids:-1093616776 -1966943140 67567619 67567621 67567617 67567619 67567621 67567617 67567619 67567621;} @list l0:level1 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:1.0cm; mso-level-number-position:left; margin-left:1.0cm; text-indent:-17.0pt; font-family:Symbol;} ol {margin-bottom:0cm;} ul {margin-bottom:0cm;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Normale Tabelle"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";} </style> <![endif]--><span style="font-size:100%;">
<br /><span style="font-weight: bold;">price fluctuation</span>
<br />High-low pricing can be replaced with everyday low prices. This way, special purchase contracts can be implemented in order to specify ordering at regular intervals to better synchronize delivery and purchase.
<br />
<br /></span><span style="font-weight: bold;font-family:verdana;font-size:100%;" >rationing and shorage gaming
<br /></span><span style=";font-family:verdana;font-size:100%;" >One solution is to allocate units based on past sales. Unrestricted ordering capability can be addressed by reducing the order size flexibility and implementing capacity reservations.</span><span style=";font-family:verdana;font-size:100%;" > For example, one can reserve a fixed quantity for a given year and specify the quantity of each order shortly before it is needed, as long as the sum of the order quantities equals
<br />to the reserved quantity.</span><span style="font-weight: bold;font-family:verdana;font-size:100%;" ></span><span lang="EN-GB" style="font-size:100%;">
<br /></span>
<br />Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com3tag:blogger.com,1999:blog-7210988502473323199.post-60560161914225307082010-04-01T07:22:00.000-07:002010-05-07T11:04:35.784-07:00Hub-and-Spoke-SystemIn transportation one usually distinguishes between <span style="font-weight: bold;">direct transportation</span> and <span style="font-weight: bold; color: rgb(153, 51, 153);">Hub-and-Spoke-Systems</span>.<br /><br /><span style="font-weight: bold;">Direct transportation</span> is a <span style="font-style: italic;">point-</span><span style="font-style: italic;">to-point connection</span>, which means transports that are going into one direction.<br /><br />The basic characteristic of Hub-and-Spoke-Systems is its <span style="font-style: italic;">star-shaped</span> organization.<br />The hub is the central node from where the transportation takes place to all the end nodes.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiig6ATbhBns05gLENPJ5wXI6ROVRTruE-elbwb3dW7pRTop71PiedUOXVzP_VqJVlDQ1WmyEtGR18w-6OCi8PDTe-JPJZlckNIm4f-UArO8o20qZ09h9kYtgp_NrP-puuQQ_aU-G72_GOd/s1600/Hub+and+Spoke.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiig6ATbhBns05gLENPJ5wXI6ROVRTruE-elbwb3dW7pRTop71PiedUOXVzP_VqJVlDQ1WmyEtGR18w-6OCi8PDTe-JPJZlckNIm4f-UArO8o20qZ09h9kYtgp_NrP-puuQQ_aU-G72_GOd/s320/Hub+and+Spoke.jpg" alt="" id="BLOGGER_PHOTO_ID_5455191496722211570" border="0" /></a><br /><a name='more'></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8iTgMeqZTPxuc6mAfzpHiyorQJlFTf2kkS7G9oxqOBv6xX_qvbg9-uiW7uxcMoF3pnEGpwK4QTrMwObC6cEUd3sPq7JVfav0giOd-swosLK1bivB8uPp6aIo7BUCLhfYsIT6hyphenhyphena7P-saG/s1600/hub+and+spoke1.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 320px; height: 196px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8iTgMeqZTPxuc6mAfzpHiyorQJlFTf2kkS7G9oxqOBv6xX_qvbg9-uiW7uxcMoF3pnEGpwK4QTrMwObC6cEUd3sPq7JVfav0giOd-swosLK1bivB8uPp6aIo7BUCLhfYsIT6hyphenhyphena7P-saG/s320/hub+and+spoke1.jpg" alt="" id="BLOGGER_PHOTO_ID_5455197716128389730" border="0" /></a><strong><span style="font-weight: normal;">When having a Hub-and-Spoke System there are predefined trans-shipment centers/reloading points (here yellow) which usually are situated at major transportation routes and which are used to hand over grouped goods to regional distributers.</span><br /><span style="font-weight: normal;">Hub describes the reloading point, whereas Spoke stands for the commodity flow from/to the Hub.<a href="[http://www.vnl.at/Hub-and-Spoke-Systeme.275.0.html]"> [http://www.vnl.at/Hub-and-Spoke-Systeme.275.0.html]</a></span><br /></strong><br /><span style="font-weight: bold;">Why having a Hub-and-Spokes-System?</span><br /><br /><ul><li>to optimize the capacity utilization</li><li>to avoid utilization below capacity or even empty drives<br /></li></ul> <span style="font-weight: bold;">Typical examples of Hub-and-Spokes-Systems:</span><br /><ul><li>parcel and mail delivery</li><li>courir express services</li><li>feeder traffic</li><li>rail freight traffic</li><li>truck transport</li><li>etc.<br /></li></ul><br /><span style="font-weight: bold;">Disadvantages of Hub-and-Spokes-Systems:</span><br /><ul><li>In some cases longer distances have to be covered because the transportation passes a central hub.</li></ul><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjUv1klBAby6LG9IX24SiSgDfYoLqdfInSH1CO1o8YqEpx9fo-8239JYAX9UQTFVnpCC6WarYZxrV4wWwHwwRB0I_5PFLy1tSGXBajIDIwPFbGK3wc5Fe12ifF9C2DzG-Dc_Qty7kKxH4t/s1600/Germany+Hub+and+Spoke.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 320px; height: 167px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjUv1klBAby6LG9IX24SiSgDfYoLqdfInSH1CO1o8YqEpx9fo-8239JYAX9UQTFVnpCC6WarYZxrV4wWwHwwRB0I_5PFLy1tSGXBajIDIwPFbGK3wc5Fe12ifF9C2DzG-Dc_Qty7kKxH4t/s320/Germany+Hub+and+Spoke.jpg" alt="" id="BLOGGER_PHOTO_ID_5455192842997956274" border="0" /></a><span style="font-weight: bold;"><br /><br />Example:</span><br />In our logistics organization the Hub is located in Hannover (see red dot) and two of the end nodes, or spokes are in Hamburg and Berlin (see blue dots).<br /><br />Now certain goods are supposed to be transported from Hamburg to Berlin.<br />With the Hub-and-Spoke-System these goods are first going to be transported from Hamburg to Hannover (because Hannover is the Hub). In Hannover the goods may even be reloaded before then being transported from Hannover to Berlin.<br /><a href="[http://www.logistikbranche.net/glossar/hub-and-spoke.html]">[http://www.logistikbranche.net/glossar/hub-and-spoke.html]</a>Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com146tag:blogger.com,1999:blog-7210988502473323199.post-38740329437204004382010-03-07T07:23:00.001-08:002010-05-07T11:03:17.768-07:00Task (26.02.2010): Is there a relationship between price, value and cost?<span style="font-weight: bold;">1. Definitions</span><br /><br /><span style="color: rgb(204, 51, 204); font-weight: bold;">Price:</span><br /><ul style="font-style: italic;"><li>"The amount as of money or goods, asked for or given in exchange for something else."</li></ul><blockquote></blockquote><blockquote><a href="http://www.thefreedictionary.com/Price">http://www.thefreedictionary.com/Price</a></blockquote><ul style="font-style: italic;"><li>"The <b>price</b> is your financial reward for providing the product or service"</li></ul><blockquote></blockquote><blockquote><a href="http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073790695">http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073790695</a><br /></blockquote><ul><li>Price depends on the market</li></ul><ul style="color: rgb(0, 102, 0); font-weight: bold;"><li>"Price is defined as what we pay for something. We write a check, use cash or a credit card, and our account is debited."</li></ul><blockquote><a href="http://ezinearticles.com/?The-Price,-Cost-Value-Relationship&id=321066">http://ezinearticles.com/?The-Price,-Cost-Value-Relationship&id=321066</a></blockquote><blockquote></blockquote><br /><br /><a name='more'></a><br /><br /><span style="color: rgb(204, 51, 204); font-weight: bold;">Cost:</span><br /><ul style="font-style: italic;"><li>"The <b>cost</b> of your product or service is the amount you spend to produce it"</li></ul><blockquote><a href="http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073790695">http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073790695</a></blockquote><ul style="font-style: italic;"><li>"The total money, time and resources associated with a purchase or activity."</li></ul><blockquote><a href="http://www.investorwords.com/1148/cost.html">http://www.investorwords.com/1148/cost.html</a></blockquote><ul style="font-weight: bold; color: rgb(0, 102, 0);"><li>"Cost is what we pay for what we have bought over time. In other words, buy a cheap car and you will have bigger service bills and inconvenience. You have a higher cost over time than the lower price you paid."</li></ul><blockquote><a href="http://ezinearticles.com/?The-Price,-Cost-Value-Relationship&id=321066">http://ezinearticles.com/?The-Price,-Cost-Value-Relationship&id=321066</a></blockquote><br /><span style="font-weight: bold; color: rgb(204, 51, 204);">Value:</span><br /><ul style="font-style: italic;"><li>the <b>value</b> is what your customer believes the product or service is worth to them</li></ul><blockquote><a href="http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073790695">http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073790695</a></blockquote><ul style="font-style: italic;"><li>"An amount, as of goods, services, or money, considered to be a fair and suitable equivalent for something else."</li></ul><blockquote><a href="http://www.answers.com/topic/value">http://www.answers.com/topic/value</a></blockquote><ul><li>Value depends on the individual customer<br /></li></ul><span style="font-weight: bold;"><br />2. Interpretation</span><br /><br />Interpreting these definitions it appears that there is in deed a relationship between the different elements:<br /><br /><ul><li>The price that can be charged for a service or a product depends rather on the value perceived by the customer than on the costs that emerge during production. But also it is of course important to keep in mind the costs because if they are lower than the value there is no win margin left.</li></ul><ul><li><p>In the end it's all about the definition and the usage of the different expressions. If we use the definitions of cost and price <span style="font-weight: bold; color: rgb(0, 102, 0);">(written in green)</span> we can get to the result that in the end, even if customers say they want a low price, what they really want is a low cost. So in the end it's important to look at the (subjective) "perceived" value to the customer. Because if we lower the price, if we have to reduce costs, or if we have to provide better quality completely depends on the perceived value of the customers which we need to learn to understand first.</p></li></ul><blockquote>Looking at it this way the cost and the price a customer wants (and therefore we shoud offer) depend on the perceived value of the customer.<br /></blockquote><blockquote></blockquote><blockquote><a href="http://ezinearticles.com/?The-Price,-Cost-Value-Relationship&id=321066">http://ezinearticles.com/?The-Price,-Cost-Value-Relationship&id=321066</a></blockquote>Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com0tag:blogger.com,1999:blog-7210988502473323199.post-90980800151433362902010-03-07T06:29:00.000-08:002010-04-01T03:51:33.288-07:00Review of first class (26.02.2010)<span style="font-weight: bold;font-family:verdana;font-size:100%;" >1. Clarification of organizational questions & introduction of course members<br /><br />2. World Trade and GDP</span><span style=";font-family:verdana;font-size:100%;" ><br /><br /></span><span style=";font-family:verdana;font-size:100%;" >Between 1950 and 2010 the GDP has multiplied by 10, the World Trade even by 80.<br /><br /></span><span style=";font-family:verdana;font-size:100%;" >What is the reason for this? (Brainstorming in class)</span><span style=";font-family:verdana;font-size:100%;" ><br /><br /></span><ul style="font-family:verdana;"><li><span style="color: rgb(153, 51, 153);font-size:100%;" ><span style="font-weight: bold;">Open markets</span></span></li></ul><span style=";font-family:verdana;font-size:100%;" ><blockquote></blockquote><blockquote></blockquote> -> globalization, no borders<br /></span><ul style="color: rgb(153, 51, 153); font-weight: bold;font-family:verdana;"><li><span style="font-size:100%;">Unit Loads have been created</span></li></ul><blockquote style="font-family:verdana;"><span style="font-size:100%;">-> Standardization of units that are being used to cut costs (f. ex. faster up- & unloading)<br />-> ex. europallets, containers, boxes<br /><a name='more'></a><br /></span></blockquote><ul style="color: rgb(153, 51, 153); font-weight: bold;font-family:verdana;"><li><span style="font-size:100%;">Infrastructure</span></li></ul><blockquote style="font-family:verdana;"><span style="font-size:100%;">-> roads, ports, airports, railways<br />-> internet<br />-> Suez Canal, Panama Canal</span></blockquote><ul style="font-weight: bold; color: rgb(153, 51, 153);font-family:verdana;"><li><span style="font-size:100%;">Trade agreements</span></li></ul><blockquote style="font-family:verdana;"><span style="font-size:100%;">-> between poor & rich countries<br /></span></blockquote><ul style="font-family:verdana;"><li><span style="color: rgb(153, 51, 153); font-weight: bold;font-size:100%;" >Outsourcing</span><span style="font-size:100%;"><br /></span></li></ul><blockquote style="font-family:verdana;"><span style="font-size:100%;">-> to give away parts of a company's tasks to other companies that may be specialized to do these certain tasks (f. ex. supply certain tasks, facility management, security service, etc.)<br />-> the opposite of </span><span style="color: rgb(153, 51, 153); font-weight: bold;font-size:100%;" >vertical integration</span><span style="font-size:100%;"> (Henry Ford)<br />he bought the steel manufacturing company<br /></span></blockquote><ul style="color: rgb(153, 51, 153);font-family:verdana;"><li><span style="font-size:100%;">Transportation time went down</span></li></ul><blockquote style="font-family:verdana;"><span style="font-size:100%;">-> better organization<br />-> technology<br />-> better means<br />-> it's possible to carry more (bigger ships, etc.) => got cheaper<br /></span></blockquote><ul style="font-family:verdana;"><li><span style="color: rgb(153, 51, 153);font-size:100%;" >Cocacolaization (</span><span class="fliesstext_m" style="color: rgb(0, 0, 0);font-size:100%;" ><span style="color: rgb(153, 51, 153);">Zdravko Mlinar) / McDonaldization (George Ritzer, Book: The McDonaldization of Society)</span><br /></span></li></ul><span class="fliesstext_m" style="color: rgb(0, 0, 0);font-family:verdana,arial,geneva;font-size:100%;" ><blockquote>-> describes the phenomenon that the US culture or more in general the western culture spreads more and more and replaces the cultures of other countries, regions and continents and this way produces one big uniform culture.<br /><span style="font-size:85%;">(http://www1.bpb.de/publikationen/VWSULT,1,0,Kulturelle_Globalisierung.html)</span><br />-> we think we have more products, but in reality diversity all over the world went down<br />-> change of market size<br /></blockquote></span><div style="text-align: center; font-family: verdana;">Video: McDonaldization<br /></div><div style="text-align: center;"><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dxkf3dLfqMChE7Q5qI5uMBfmVc48feDZmFmY1FS8Aq9CCZGHLpI8icrEx6oUayKTrKWlBqIyWKS-Wtz6fehCg' class='b-hbp-video b-uploaded' frameborder='0'></iframe><br /></div><br /><ul style="color: rgb(153, 51, 153);font-family:verdana;"><li><span style="font-size:100%;">Economies of scale</span></li></ul><blockquote style="font-family:verdana;"><span style="font-size:100%;">-> automatization (IKEA)<br /></span></blockquote><ul style="color: rgb(153, 51, 153);font-family:verdana;"><li><span style="font-size:100%;">Realtime communication</span></li></ul><blockquote style="font-family:verdana;"><span style="font-size:100%;">-> makes the flow of information and money a lot easier and faster</span></blockquote><ul style="font-family:verdana;"><li><span style="font-size:100%;">Better knowledge of markets & Products</span></li><li><span style="font-size:100%;">Multinationals move production to low cost countries</span></li><li><span style="font-size:100%;">Economic stability</span></li><li><span style="font-size:100%;">E-commerce</span></li><li><span style="font-size:100%;">Operational management tecniques</span></li></ul><span style=";font-family:verdana;font-size:100%;" ><br /></span><span style="font-weight: bold;font-family:verdana;font-size:100%;" >3. Definition of Logistics and of Supply Chain Management (SCM)</span><br /><br /><br /><span style="font-weight: bold; color: rgb(255, 153, 255);font-family:verdana;font-size:100%;" >Definition Logistics:</span><span style=";font-family:verdana;font-size:100%;" ><br /><br /></span><span style="font-size:100%;">"Logistics management is that part of the Suppyl Chain Management process that plans, implements, and controls the efficient, effective 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." <span style="font-size:85%;">(CLM, 2005)</span><br /><br /></span><span style="font-size:100%;"><span style="font-weight: bold; color: rgb(255, 153, 255);">Definition SCM:<br /></span><span style="color: rgb(255, 153, 255);"><br /></span></span><span style="font-size:100%;">"Two or more legally different organizations that are linked through material, financial or infromation flows." <span style="font-size:85%;">(Stadler, 2005)</span></span>Sinahttp://www.blogger.com/profile/09349165447091402085noreply@blogger.com0