lecture 1 Introduction to Trans & Logistics Mgt

8/7/2019 lecture 1 Introduction to Trans & Logistics Mgt.

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SC 314SC 314TRANSPORTATION &TRANSPORTATION &

BUSINESS LOGISTICSBUSINESS LOGISTICSMANAGEMENTMANAGEMENT

Laurenti S. Masui

Department of Procurement & Logistics Management


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GENERALGENERALINTRODUCTION TOINTRODUCTION TOTRANSPORTATIONTRANSPORTATION

Lecture 1


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IntroductionIntroductiony Defined: vital factor in the cultural and

economic development of the humanrace

y e.g coastal cities , inland centres e.t.c


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Importance of TransportationImportance of Transportation

(General)(General)y Enables the supply of goods inward andoutwards due to different endowments;raw materials, power, skills etc

y Enables mobility of our population foreconomic, social, educational or otherpurposes

y Reduces or eliminates isolationy Promotes economic, social and political

developments =the unity in the country


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Importance of TransportationImportance of Transportation

(To the economy)(To the economy)y It enhances the geographicalspecialization/territorial division of labour= trading is possible in this regard.

y Such specialization enables the existenceof a large-scale production. This leads tobenefits into

Economies of scaleProduction efficienciesLower prices


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ctdctdy The availability (accessibility) of different areas (and

would mean that the land value is increased= time,effort and cost involved in getting to and from theland is greatly reduced.

y NB in some other cases it reduces the value of landas it takes away the attention to it

y It enhances competition among sellersy = this leads to better quality, lower prices etcy It brings about the economic development of any

geographical areay = this depends on the quantity, quality and cost of

transportation services availabley For national defence?


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Importance to the User Importance to the User y who are the users?y = freight shippers, receivers,

passengers, business firms etcy most of them also apply here but

specifically this can be said of the users


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Importance to the User Importance to the User

((ctdctd))y It saves timey It brings goods/and gets them to a place:

Time and Space (Place) utilityy It affects the users decision making

x Product decisionsx Market area decisions

x Purchasing decisionsx Location decisionsx Pricing decisions


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Transportation as a costTransportation as a cost factorfactory Depending on number of factors

x The kind of firm it is (wholesaler, manufacturersetc)

x

Kinds of products transportedx The distance involved.x The number and size of individual shipmentx The peculiarities of the transportation rate

structure.


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Transportation as an element in aTransportation as an element in a

users logistics systemsusers logistics systemsy Logistic system includesTransportation, warehousing, inventorymanagement, materials handling etc.others that have to do packaging with thephysical movement of goods both in boundand out bound


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The Decision Makers inThe Decision Makers in

TransportTransporty The stakeholders:Users of transportation services

y Shippers, receivers, and passengersProviders of transportation services

y C arriers (5 modes, rail road, highway,water, pipeline air

y The Government


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And now for Logistics..And now for Logistics..

y Defined: The C oordination of the physicalmovement aspects of an organisations

operations so that a flow of raw materials,parts, and/or finished goods is achieved,cost minimized for the level of servicedesired.


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LogisticsLogistics ctdctd

Put it differently Logistics Managemententails

y Guiding the process of planning, allocatingand controlling financial and humanresources committed to physicaldistribution, manufacturing, support and

purchase operations.


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The Objective of The Objective of LogisticsLogistics

It aims

to get the right things

in the right quantityto the right place

at the right timeat the right cost and

in good condition


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W hy this increased W hy this increased interest ininterest in

LLogistics Management?ogistics Management?It is a result of y C ompetitiony Narrow profit marginy Rising physical movement costsy Proliferation of productsy Increased customer orientationy Availability of computersy Lack of attention in the past.


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The EndThe End

Thank You

Documents

lecture 1 Introduction to Trans & Logistics Mgt