1. Transport Logistics From Negril Point to Morant Point

2. Team Lean Kevon McAnuff Lascelles Virtue Osawaki Wickham 2 The Lean Team

3. Contents The Transportation Link 2 Reference 6 Introduction to Logistics 1 Conclusion 5 Modes of Transportation 3 3 The Lean Team An Invaluable Insight 4

4. Introduction  Customer satisfaction and development of brand loyalty are two competitive advantages that firms strive to achieve.  Achievement is however dependent on the firms’ ability to make available quality products when they are needed. In other words, firms need to optimize the economic utility of their products. The Lean Team 4

5. Introduction cont. A firm’s ability to optimize economic utility has become more difficult due to :  Relaxation of economic regulations  Changes in consumer behavior  Globalization  On line shopping Logistics/Logistic management assist firms in their effort by: 1.Optimizing existing production process 2.Making the distribution process more efficient 3.Increasing the competitiveness of the firm The Lean Team 5

6. Introduction cont. The Lean Team 6 Lean Logistics Right Amount Right Thing Right Time Right Place

7. Introduction cont. The Lean Team 7 Logistics Flow Inbound Logistics Material Management Physical Distribution External Logistics

8. Introduction cont. The Lean Team 8 Logistics Services (transport, storage etc.) Logistics Services (transport, storage etc.) Logistics Information System Logistics Infrastructure & Resources Logistics Infrastructure & Resources The Logistics System The Logistics System

9. Introduction cont. The Lean Team 9

10. The Transportation Link The Lean Team 10 Transportation involves the movement of goods and raw materials. This includes shipment of raw materials to the manufacturer and movement of finished product to the customer. Transportation also includes the movement of parts to assembly areas as they are assembled.

11. The Transportation Link cont. The Lean Team 11 Key element of Logistics Services because it links all other activities Key element of Logistics Services because it links all other activities It is required throughout the entire production process It is required throughout the entire production process It’s efficiency and effectiveness influences the performance of the entire Logistics System It’s efficiency and effectiveness influences the performance of the entire Logistics System The Transportation System The Transportation System

12. The Transportation Link cont. The Lean Team 12 Objectives of Transportation System Low Cost Fast Delivery Quality Service Low Energy Usage Maximize Resources

13. The Transportation Link cont. Transport Costs and Goods Characters in Logistics.  Transport system makes goods and products movable and provides timely and regional efficacy to promote value- added under the least cost principle.  For those products with small volume, low weight and high value, transportation cost simply occupies a very small part of sale and is less regarded.  For those big, heavy and low-valued products, transportation occupies a very big part of sale and affects profits more, and therefore it is more regarded. 13 The Lean Team

14. The Transportation Link cont. The Effects of Transportation on Logistics Activities Basically, production/manufacturing plants, warehousing services, merchandising establishments are all about doing transportation.  Production or manufacturing plants required the assembly of materials, components, and supplies, with or without storage, processing and material handling within the plant and plant inventory.  Warehousing services between plants and marketing outlets involved separate transport.  Merchandising establishments completed the chain with delivery to the consumers. 14 The Lean Team

15. The Transportation Link cont. The Role of Transportation in Service Quality  By means of well-handled transport system, goods could be sent to the right place at right time in order to satisfy customers’ demands.  It brings efficacy, and also it builds a bridge between producers and consumers. Therefore, transportation is the base of efficiency and economy in business logistics and expands other functions of logistics system.  In addition, a good transport system performing in logistics activities brings benefits not only to service quality but also to company competitiveness. 15 The Lean Team

16. Modes of Transportation 16 The Lean Team Airfreight Marine Transport Land Transport

17. Modes of Transportation cont. 17 The Lean Team SpeedCost Capability Flexibility Reliability Capacity Mode Selection

18. Marine Transport 18 The Lean Team Pros  Cheap  High carrying capacity conveyance for consumers  Ideal for transporting crude oil, grains and cars Cons  Need longer transportation time  Schedule is strongly affected by weather factors  Lacks flexibility Uses  Crude oil  Motor vehicles  Wheat  Cement

19. Marine Transport cont. 19 The Lean Team

20. Airfreight 20 The Lean Team Pros  Delivery speed & Flexibility  Security - lower risk of damage  Accessibility and good frequency for regular destinations Cons  High delivery fee.  Air freight logistics is selected ‘when the value per unit weight of shipments is relatively high and the speed of delivery is an important factor. Uses  Fast delivery of important machine and motor vehicle parts.

21. Airfreight cont. 21 The Lean Team

22. Land Transportation 22 The Lean Team Modes Road Railway Pipeline Express Delivery

23. Railway 23 The Lean Team Pros  High carrying capacity  Lower influence by weather conditions  Lower energy consumption Cons  High cost of essential facilities  Difficult and expensive maintenance  Lack of elasticity of urgent demands  Time consumption in organizing railway carriages Uses  Currently used only by Bauxite companies

24. Railway cont. 24 The Lean Team

25. Road 25 The Lean Team Pros  Cheaper investment funds  High accessibility, mobility and availability Cons  Low capacity  Lower safety  Slow speed Uses  Most dominant means of land transportation  Large number of trucking companies  Free market pricing

26. Road cont. 26 The Lean Team

27. Pipeline 27 The Lean Team Pros  No need for vehicles and vehicle operators  Reliability  Capacity Cons  One-way transportation  Limited capability  High Initial Cost  Flexibility Uses  Petrojam Limited to JPS

28. Express Delivery 28 The Lean Team  Door-to-door service (efficient) DHL FedEx Tara Couriers Air-Pak Express Doorway Express Just Call Couriers

29. Express Delivery cont. 29 The Lean Team

30. Express Delivery cont. 30 The Lean Team

31. Regulating Authority 31 The Lean Team Transport Authority Airport Authority Port Authority Marine Authority Jamaica Railway Corporation Ministry of Transport & Works Ministry of Transport & Works

32. An Invaluable Insight What methods of transportation are being used?  Land - Trucks for Domestic  Sea - Ships for Containerized Shipment  Air - Plane for sensitive goods How is the right method selected for a particular product? The right method is selected based on:  Cost effectiveness  Distance  Products parameters  Time  Location  Customer’s request. The Lean Team 32

33. An Invaluable Insight cont. Which industries mostly require the service of Transport Logistics in Jamaica?  Distribution (Commerce) and Passenger. What types of products/goods are mostly transported?  Mainly convenience goods - food Items How effective is Transport Logistics in Jamaica.  The Transport Logistics in Jamaica is effective as it have been achieving the desired outcome. The Lean Team 33

34. An Invaluable Insight cont. Is there room for improvement?  Yes Where?  While the Transport is effective it is not efficient:  There are very few freight forwarders.  Little or no alternatives for road transport (domestic).  Congestion in cities and towns.  More containerized ports needed in strategic locations. The Lean Team 34

35. An Invaluable Insight cont. The distribution process.  The distribution process is very mundane.  Orders place by customer.  Based on satisfying the above stated pre-requisite the correct mode of transportation is chosen. How are the locations for distribution centers chosen?  Cost,  Proximity to majority of your customer.  Proximity to competent labor, suppliers and ports. The Lean Team 35

36. An Invaluable Insight cont. How is the scheduling of deliveries completed?  All deliveries are made within 24hrs.  The transport department group orders according to their size (to chose the size container or truck) and their geographical location.  Orders are then dispatch for Picking, Staging, Checking, Invoicing, Loading and Delivery.  Once the goods are delivered both the customer and delivery personnel are required to sign each copy of the invoice. The Lean Team 36

37. An Invaluable Insight cont. What software is utilized?  SAP  WM Is tracking service widely available in Jamaica?  Yes, this service is available in Jamaica from some of the security companies - Guardsman, Hawkeye etc. The Lean Team 37

38. An Invaluable Insight cont. What are some of the disadvantages of poor transport logistic?  Increased Distribution Cost,  Increase in Price of Goods and Services offered,  Dissatisfied Customers etc. What are the main challenges with providing an efficient Transport Logistics service?  Cost  Proper infrastructure  Discipline within the system  Incompetence The Lean Team 38

39. Conclusion  Logistics system has a more and more important position in our society activities.  Transportation and logistics systems have interdependent relationships. That is, logistics management needs transportation to perform its activities while a successful logistics system could help to improve traffic environment and transportation development.  Since transportation contributes a significant cost, the improvement of transport efficiency could change the overall performance of a logistics system.  Without the linking of transportation, a powerful logistics strategy cannot bring its capacity into full play. The Lean Team 39

40. Reference  Contemporary Logistics, 9th Edition  http://www.btre.gov.au/docs/wp49_contents.htm  http://www.cscmp.org  http://www.siam.org/journals/plagiary/1657.pdf  http://en.wikipedia.org/wiki/Logistics  http://www.prospects.ac.uk/industries_transport_logistics _overview.htm  http://ec.europa.eu/transport/logistics/index_en.htm  http://www.portjam.com/  http://www.mto.gov.on.ca/english/ The Lean Team 40

41. We hope you enjoyed our presentation The Lean Team