lecture 1 Introduction to Trans & Logistics Mgt.
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Transcript of lecture 1 Introduction to Trans & Logistics Mgt.
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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