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  • Logistics in China (DELIVER) - China Series Part 5 - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    trade and non tariff barriers between the provinces would be eliminated to allow the PRD to develop new markets and free up the movement of labor This area has a population of 450 million a gross domestic product of some 630 billion and encompasses a fifth of China s land a third of its people produces one third of the country s exports and almost 40 of its economic output This would be a massive undertaking given the competition from the YRD While Guangdong s exports have doubled in the past five years to reach 153 billion in 2003 those of the Greater Shanghai region including Zhejian and Jiangsu have almost quadrupled to catch up In terms of foreign direct investment Shanghai is already ahead attracting 21 billion in FDI last year against 7 8 billion in Guangdong Today there is a huge rivalry between provinces towns and local districts which explains the duplicate investment in ports and airports in Guangdong It has also led to unnecessary red tape and a host of trade barriers Goods traveling across the region are routinely loaded onto different trucks at each provincial border while tourists have to switch travel agents and guides from municipality to municipality However provincial officials are beginning to develop enlightened self interest and are starting to see the benefits of if not cooperating exactly at least not competing There are many Chinese logistics hot spots that can negatively impact on time delivery of shipments from China The most notable of these is the Long Beach port in Los Angeles during which the famous dock workers strike almost ruined every national retailer s Christmas in 2002 By the time this article is published this information will be obsolete The economic and cultural aspect of China is shifting so quickly that it is impossible to keep up without actively being involved in activities on the front lines However it does provide some insights into the types of changes that are underway Some of the biggest challenges in China have to do with their logistics infrastructure Roads are absolutely clogged in major cities Shanghai Beijing Rail bottlenecks and railcar shortages are prolific on state railway systems Even truck capacity can be a problem due to the difficulty of scheduling trucks given the tight relationships between existing suppliers and trucking companies The infrastructure is bulging the Chinese government is investing 300B in next three years to increase highway systems to create a major north south east west grid of highways in five years linking major regions of China In the interim however expect delays and even after five years access to far west mountainous regions will remain problematic One can also expect delays when switching carriers that are shipping across provincial lines In dealing with logistics problems the importance of guangzi was illustrated to us in a conversation with a major Fortune 500 executive I was unable to get my product delivered by rail so I asked by secretary to camp out in

    Original URL path: https://scm.ncsu.edu/scm-articles/article/logistics-in-china-deliver-china-series-part-5 (2016-04-30)
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  • The Logistics of the Relief Supply Chain: Help for Tsunami Victims - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    roads will be there ships can dock and airplanes can land Logistics As relief pours into the tsunami stricken nations United Nations Secretary General Kofi Annand has said that the biggest challenge is the logistics of getting it to those who need it most 1 The infrastructure of roads ports and communications was completely decimated by the tsunami Michael Elmquist head of the U N disaster relief operation in Indonesia says it normally takes about two weeks for an aid operation to begin running smoothly The lack of infrastructure will result in a longer window 2 Logistics professionals have been in high demand and are making do with what they can Some are able to communicate using cellular and satellite phones Organizations are not using complicated inventory models to track distribution of supplies but instead use a simple Excel spreadsheet 3 Some examples of challenges faced in the logistics of relief include The United Parcel Service UPS has been unable to land its planes in certain areas not due to a lack of runway but due to the size of the runways 3 Many are not wide enough to handle the larger aircraft typically used to airlift supplies in Many roads have been washed away making ground transportation impossible Some supplies have been airlifted in using helicopters In some locations even helicopters could not land because of the influx of people to the landing pad waiting for relief Relief workers could only drop supplies in these cases 4 The hitting of a cow on the runway in Banda Aceh closed airport traffic for hours Adding to the challenge is the fact that there were eleven countries affected by the disaster While some were not nearly as hard hit as others each presents its own set of challenges and relief organizations must consider the needs of each area Communications Communication has been a challenge In a rush to provide everything they can many donors fly relief supplies directly to the stricken countries The problem is that aid groups do not know what has been sent until they open the airplane making it difficult to prepare transportation and other details 2 Without telecommunications reaching transportation providers requires taking away manpower from other areas just to deliver messages Given the life and death situations faced by the affected areas logistics professionals and aid agencies continue to overcome the many challenges in the relief supply chain References 1 As pledges for tsunami victims top 1 1 billion Annan says logistics is biggest challenge UN News Center December 31 2004 2 Perry Michael Logistics nightmare as aid arrives Reuters 1 1 2005 3 Dignan Larry Tricky Currents Tsunami relief is a challenge when supply chains are blocked by cows and roads don t exist Baseline Jan 2005 4 Hattori James Geography and Logistics confound Relief NBC News January 3 2005 Categories Logistics SCM Features Facts Figures Read the Supply Chain Management Professional Newsletter Read the latest supply chain research articles and news as soon as

    Original URL path: https://scm.ncsu.edu/scm-articles/article/the-logistics-of-the-relief-supply-chain-help-for-tsunami-victims (2016-04-30)
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  • The Increasing Necessity for Reverse Logistics - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    percent to 4 percent of a company s total logistics costs Companies can save 10 percent from their annual logistics bill by implementing an efficient reverse logistics system Twenty percent of this amount is saved in labor costs and the remaining 80 percent is saved in lowered freight costs and reduced pipeline inventory 5 The Automotive Parts Rebuilders Association APRA estimates that worldwide in the automotive industry alone 155 000 railroad cars or a train 1 100 miles long could be filled annually by the raw materials saved by remanufacturing 1 The automotive industry remanufactured auto parts market was estimated to be more than 36 billion in 1999 1 This is an example of the potential of utilizing reverse logistics to save money and to practice environmental sustainability Process to implement reverse logistics system Reverse logistics includes handling storage transportation inspection repair repackaging refunds and customer service 6 Retrieving the product is the first step in the process The quality and quantity of products retrieved must be coordinated with other distributors and customers Then the product must be efficiently transported to a central location where it is inspected and sorted In this step processes must be in place to determine what products can be saved reworked remanufactured resold or disposed Automated tracking and testing systems can be used for parts of the sorting process Then the appropriate products can be reconditioned Design for disassembly DFD is a method of designing products such as electrical devices so they can be easily pulled apart reconditioned and reused 5 The products that are not reconditioned are recycled resold for parts or disposed The final step is distribution and sales of the reconditioned products Companies must create a market for the refurbished products which can be sold to the general public at cost or at a discounted price or sold to foreign markets Companies with successful reverse logistics processes Bosch an automotive and industrial technology company builds sensors into its power tools that indicate if the motor is worth reconditioning The sensors reduce inspection and disposition costs allowing the company to realize profits on the remanufactured power tools 4 General Motors GM simplified its process for returning automotive parts by allowing parts to be returned to a single facility using GM s pre printed shipping labels This less costly process enhanced GM s relationships with its customers and supply chain partners 2 Volvo a Swedish car manufacturer anticipated the Swedish government passing a resolution holding auto manufactures accountable for disposal of vehicles Volvo implemented a reverse logistics process of salvaging and dismantling cars The company generated revenues by selling the used metal plastics and car parts 2 Reverse logistics is a growing area of emphasis by many companies Each company regardless of industry can implement a reverse logistics process that saves money or even generates new profits A company can also recycle products or packaging to improve its environmentally friendly practices References 1 Rogers Dale S and Tibben Lenbke Ronald An Examination of Reverse

    Original URL path: https://scm.ncsu.edu/scm-articles/article/the-increasing-necessity-for-reverse-logistics (2016-04-30)
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  • Driving Change in the Pharmaceutical Industry: Logistics - Part I - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    For example if you walk into a GSK primary manufacturing site you will note a large V shaped mixer for mixing chemicals that is the larger version of a miniature model used in the pharmacy for the exact same purpose Further the ability to drive change is limited as the FDA is reluctant to approve any changes that may affect product quality This position has recently been reverse and the FDA is now allowing companies such as GSK to introduce new and innovative manufacturing that are not only more efficient but which will in effect improve reliability and quality of pharmaceutical products Parallel Trade The recent spate of selling pharmaceuticals from Canada into the US is only the tip of the iceberg Canadian pharmacies were buying drugs at a lower price negotiated by the Canadian government and selling them across the border into the US where pricing is higher This also occurs between borders in Europe between large wholesalers as well as through black market transactions in developing countries The danger here is that pharmaceutical companies lose the ability to know where these drugs are coming from which is one argument for RFID technology Complex Network Design Controlling the supply chain is becoming every more difficult At companies such as GlaxoSmithKline over 40 000 SKU s are distributed worldwide which in some cases includes some very specialist products A wide range of distribution channels exist including those which proceed straight to the doctor retailer wholesaler or other channel Reducing finished goods is also challenged by the size of this network GSK has over 350 factories they don t own producing goods as well as 350 which they do own located in every market in the world creating a complex supply chain with over 10 000 nodes This is very expensive to manage especially when the emphasis on placing drugs in the right place at the right time is so critical Given these challenges deploying supply chain management and logistics strategies has historically been a challenge However the world is changing These margins won t always be around and the cost of healthcare is such that society can t continue to pay Access to medicines in the third world is becoming a critical issue in the popular press and to do it effectively pharmaceutical companies will have to bring their costs down and meet that need efficiently Given these challenges what are logistics leaders in the pharmaceutical business doing to drive change into their organizations 1 Educate the upper levels of management Change begins with educating senior executives about what it is costing them to drive change GSK has established a cash to cash measure in place which took almost two years to put in place This brought about the realization of the huge amount of waste in the system The importance of price management techniques were also brought to the forefront 2 Create a strategic vision To go someplace you have to have a good sense of where you want

    Original URL path: https://scm.ncsu.edu/scm-articles/article/driving-change-in-the-pharmaceutical-industry-logistics-part-i (2016-04-30)
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  • Finding a Place for Logistics Management - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    overall economy shrinks or vice versa is to oversimplify the cause of the growth Some other factors may have played a role in the growth of the 3PL market 2 A greater complexity in logistics management functions resulting from increased acceptance of inbound logistics practices Improved 3PL performance especially at examining relationships prior to contract leading to a higher success rate and increased willingness to outsource A phenomenon labeled why buy the cow if the milk is free describes the idea that many companies are turning to the 3PLs to get the latest logistics technology instead of purchasing it themselves receiving it as part of a package or paying a usage fee A phenomenon labeled scope creep describes the idea that customers gradually reshape the 3PL s mission If handled correctly this can lead to a high level of organic growth within the market segment Branching out into short term consulting jobs Reselling logistics IT solutions without having 3PL contracts What is 4PL Fourth Party Logistics 4PL are sometimes called lead logistics providers It is the integration of all companies involved along the supply chain It is the planning steering and controlling of all logistic procedures by one service provider with long term strategic objectives In other words the goal of 4PL is to achieve benefits beyond the one time operating cost reductions and asset transfers that are gained from a traditional outsourcing relationship 4PLs manage other 3PLs and sometimes the 3PLs owned by their parent companies Examples of 4PLs include Kuchne Nagel Schneider Logistics UPS Logistics Ryder Logistics and Vector SCM 3 Vector SCM is a joint venture between GM and CNF Inc in which GM owns 20 percent It was formed in December of 2000 and is the largest 4PL to date CNF is compensated for its 80 percent share through a privately negotiated gain sharing formula Vector presents GM with case studies outlining expected savings and receives their share once GM has audited and quantified the results Why Has the 4PL Market Grown Factors contributing to 3PL segment growth are related to growth of the 4PL By definition the success of the 4PL depends on the existence of the 3PL In order for 4PLs to exist they must perform better than the 3PLs and their benefits must exceed any inefficiency caused by adding another level of management However a 4PL has a distinct advantage over a 3PL According to Dr John H Langley University of Tennessee the areas where 4PLs are generally expected to be more competent than 3PLs are as follows Managing the activities of more than one 3PL There are both operational and strategic elements to this Managing the availability and utilization of knowledge This is similar to the way a legal counsel would make a business person aware of the latest legal developments impacting the business Managing information technology 3PL s success factor no 4 labeled scope creep phenomenon has paved the way for the 4PL The breadth of the 4PL s scope is

    Original URL path: https://scm.ncsu.edu/scm-articles/article/finding-a-place-for-logistics-management (2016-04-30)
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  • Logistics Definition Articles - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    repair remanufacture and or recycling Source http www apics org 10th ed Categories Logistics Logistics Definition SCM Supply Chain Management Definitions Terms Physical Flows Outbound Logistics By Posted 01 19 2011 The process related to the storage and movement of the final product and related information flows from the end of the production line to the end user Sources Christopher M 1998 Logistics and Supply Chain Management Strategies for reducing cost and improving service 2nd Ed New York Prentice Hall http www esri com industries logistics glossary html f l Categories Logistics Logistics Definition SCM Supply Chain Management Definitions Terms Physical Flows Logistics Management By Posted 01 19 2011 Logistics management is the process of strategically managing the procurement movement and storage of materials parts and finished inventory and the related information flows through the organization and its marketing Categories Logistics Logistics Definition SCM Supply Chain Management Definitions Terms Information Flows Logistics Information Systems By Posted 01 19 2011 Converting data to information portraying it in a manner useful for decision making and interfacing the information with decision assisting methods are considered to be at the heart of an information Categories Logistics Logistics Definition SCM Supply Chain Management Definitions Terms Information Flows Inbound Logistics By Posted 01 19 2011 Following the receipt of materials parts or resale products from external suppliers the subsequent storage handling and transportation requirements to facilitate either manufacturing or market distribution constitute inbound logistics Source Bowersox D J Closs D J Cooper B M 2002 Supply Chain Logistics Management Burr Ridge Boston McGraw Hill See Interplant Transfer Outbound Logistics Categories Logistics Logistics Definition SCM Supply Chain Management Definitions Terms Physical Flows Supply Chain View from the Field Blog Robert Handfield Supply Chain Management Articles Library Supply Chain Executive Training Professional Resources SCM Articles SCM Resources SCM

    Original URL path: https://scm.ncsu.edu/scm-articles/all-articles/category/logistics-definition (2016-04-30)
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  • Logistics Management - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    Donavon Favre MA Tracy Freeman MBA Robert Handfield Ph D Jeffrey Stonebraker Ph D Don Warsing Ph D SCM Professionals SCM Research Resources SCM Pro Resources SCM Articles SCM White Papers SCM SCRC Director s Blog SCM Tutorials SCM Video Insights Library SCM Insights Polls SCM Topics SCM Research SCRC Article Library Logistics Management Logistics Management Published on Jan 19 2011 Logistics management is the process of strategically managing the procurement movement and storage of materials parts and finished inventory and the related information flows through the organization and its marketing channels in such as way that current and future profitability are maximized through the cost effective fulfillment of orders Source Christopher M 1998 Logistics and Supply Chain Management Strategies for reducing cost and improving service 2nd Ed New York Prentice Hall Categories Logistics Logistics Definition SCM Supply Chain Management Definitions Terms Information Flows Read the Supply Chain Management Professional Newsletter Read the latest supply chain research articles and news as soon as we post them Privacy Policy Related Articles Reverse Logistics Outbound Logistics Logistics Management Inbound Logistics Trends and Strategies in Logistics and Supply Chain Management An Interview with Robert Handfield Global Logistics Q A with John Camp Lenovo Global Logistics Trends Strategies Survey Logistics Information Systems Logistics in China DELIVER China Series Part 5 Driving Logistics Change in the Pharmaceutical Industry Professional Resources SCM Articles SCM Resources SCM Terms Supply Chain Management Basics SCM Basics Tariffs and Tax Primer NAICS Navigator SCM Blog Business Process Outsourcing Forecasting Healthcare Supply Management Supply Chain Analytics SCM Tutorials CPFR Forecasting Inventory Management Procurement SCM Features Hot Topics Lessons Learned Facts Figures SC Security SCM Topics Inventory Management Supply Chain Procurement Process Six Sigma SC Risk Supplier Partnerships SCM Supplier Evaluation Logistics Global Logistics Logistics Definition SCM Procurement E Procurement SCM Video

    Original URL path: https://scm.ncsu.edu/scm-articles/article/logistics-management (2016-04-30)
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  • List of Trade Unions: Tariff and Tax in International Trade - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    America Members were Argentina Bolivia Brazil Chile Colombia Dominican Republic Ecuador Mexico Peru Uruguay Venezuela Group of 15 G 15 Note byproduct of the Nonaligned Movement Established NA September 1989 Aim to promote economic cooperation among developing nations to act as the main political organ for the Nonaligned Movement Members 17 Algeria Argentina Brazil Chile Egypt India Indonesia Jamaica Kenya Malaysia Mexico Nigeria Peru Senegal Sri Lanka Venezuela Zimbabwe Group of 24 G 24 Established 1 August 1989 Aim to promote the interests of developing countries in Africa Asia and Latin America within the IMF Members 24 Algeria Argentina Brazil Colombia Democratic Republic of the Congo Cote d Ivoire Egypt Ethiopia Gabon Ghana Guatemala India Iran Lebanon Mexico Nigeria Pakistan Peru Philippines South Africa Sri Lanka Syria Trinidad and Tobago Venezuela Group of 77 G 77 Established 15 June1964 NA October 1967 first ministerial meeting Aim to promote economic cooperation among developing countries name persists in spite of increased membership Members 133 plus the Palestine Liberation Organization Afghanistan Algeria Angola Antigua and Barbuda Argentina The Bahamas Bahrain Bangladesh Barbados Belize Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Burkina Faso Burma Burundi Cambodia Cameroon Cape Verde Central African Republic Chad Chile China Colombia Comoros Democratic Republic of the Congo Republic of the Congo Costa Rica Cote d Ivoire Cuba Cyprus Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Ethiopia Fiji Gabon The Gambia Ghana Grenada Guatemala Guinea Guinea Bissau Guyana Haiti Honduras India Indonesia Iran Iraq Jamaica Jordan Kenya North Korea Kuwait Laos Lebanon Lesotho Liberia Libya Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Mauritania Mauritius Federated States of Micronesia Mongolia Morocco Mozambique Namibia Nepal Nicaragua Niger Nigeria Oman Pakistan Palau Panama Papua New Guinea Paraguay Peru Philippines Qatar Romania Rwanda Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Samoa Sao Tome and Principe Saudi Arabia Senegal Serbia and Montenegro Seychelles Sierra Leone Singapore Solomon Islands Somalia South Africa Sri Lanka Sudan Suriname Swaziland Syria Tanzania Thailand Togo Tonga Trinidad and Tobago Tunisia Turkmenistan Uganda UAE Uruguay Vanuatu Venezuela Vietnam Yemen Zambia Zimbabwe Palestine Liberation Organization Latin American Integration Association LAIA Note also known as Asociacion Latinoamericana de Integracion ALADI Established 12 August 1980 effective 18 March 1981 Aim to promote freer regional trade Members 12 Argentina Bolivia Brazil Chile Colombia Cuba Ecuador Mexico Paraguay Peru Uruguay Venezuela Observers 23 China Commission of the European Communities Corporacion Andina de Fomento Costa Rica Dominican Republic El Salvador Guatemala Honduras Inter American Development Bank Inter American Institute for Cooperation on Agriculture Italy Latin America Economic System Nicaragua Organization of American States Panama Pan American Health Organization Portugal Romania Russia Spain Switzerland United Nations Development Program United Nations Economic Commission for Latin America and the Caribbean Organization for Economic Cooperation and Development OECD Established 14 December 1960 Effective 30 September 1961 Aim to promote economic cooperation and development Members 30 Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy

    Original URL path: https://scm.ncsu.edu/scm-articles/article/list-of-trade-unions-tariff-and-tax-in-international-trade (2016-04-30)
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