The Dubai Logistics Industry

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  • 1. .
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    Logistics & Retail Business Vertical
    Optimizing the efficiency of Supply chain Cycle
    Presented by :-
    Akash Jauhari
    Aniket Pandey
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  • 2.
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    Dubai Logistics industry
    Strategic Geographic Location between Eastern and Western
    Hemispheres
    Rated Best in Logistics Infrastructure in Middle East by World Bank’s Logistics Performance Index 2010
    Has One of Lowest Average Logistics Costs in the World
    UAE also has good internal road network, including The Emirates Road (140 Km) connecting all emirates.
    Availability of World Class Logistics Infrastructure facilities including free Trade Zones for Transshipment and Re-exporting
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  • 3.
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    Dubai Logistics industry
    UAE Transportation Infrastructure
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  • 4.
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    Dubai Logistics industry
    UAE warehousing Infrastructure
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  • 5.
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    Dubai Logistics industry
    Leading players in logistics Industry
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  • 6.
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    Dubai Logistics industry
    Strategic Analysis of SCM Cycle of Foreign Players in UAE
    DHL
    Full RMA-RTV tracking and visibility
    Customer Business rules embedded in software
    Strategically positioned storage locations
    Express Logistics Centers
    Strategic Parts Centers
    DHL Worldwide Express Transportation network
    Logistics Customer Service Center
    Dedicated DHL Airways
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  • 7.
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    United States
    Europe, Africa
    Middle East
    45
    Asia Pacific
    109
    93
    Latin America
    35
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    Dubai Logistics industry
    Strategic Analysis of SCM Cycle of Foreign Players in UAE
    DHL
    Global Network SPCs & ELCs
    9 Express Logistics Centre's
    273 strategic parts centers
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  • 8. 8
    13
    14
    7
    9
    4
    6
    10
    11
    2
    Event
    Info flow
    Breakdown occurs
    Pick & Pack
    1
    8
    Physical flow
    Customer request spare part
    Dispatch Confirmation
    Optional (EDI only) : Dispatch Confirmation to CUST
    2
    9
    10
    CUST validates order (Optional :
    request can be direct to LCSC)
    Delivery of part to destination
    3
    11
    Transmission to DHL LCSC
    Stock level ELC drops below reorder level
    4
    12
    DHL LCSC validates order
    Parts ordered
    5
    13
    Optional
    Order confirmation
    New parts delivered to ELC
    6
    14
    Order to pick and pack
    7
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    Dubai Logistics industry
    D.E.I- Direct Express Inventory
    CUST Suppliers
    5
    LCSC
    8
    12
    ELC
    CUSTCustomers/Engineers
    CUST
    3
    1
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  • 10.
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    Advanced Exchange Business Model
    Manufacturing
    Repair
    Defective Repair
    process
    6
    New Stock
    process
    7
    DHL CRC
    DHL ELC
    Order attributed
    to SPC or ELC
    3
    5
    Defective
    Returned
    to ELC
    Auto replenishments from ELC to SPC
    4
    DHL SPC
    4
    2 or 4 hour
    Order delivery
    from SPC
    Overnight
    Order delivery from ELC
    4
    Lucent Customers (FLM)
    Lucent EMEA CRC
    triggers maintenance order
    via DHL web
    2
    Lucent Customer
    suffers maintenance
    failure
    1
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    Dubai Logistics industry
    Strategic Analysis of SCM Cycle of Foreign Players in UAE
    DHL
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  • 11.
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    Dubai Logistics industry
    Key Challenges faced by local players to compete against Foreign Major Players
    1.How to identify interdependencies in process networks, while doing the modeling of a Supply Chain Cycle.
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  • 12.
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    Dubai Logistics industry
    Key Challenges faced by local players to compete against Foreign Major Players
    E-SCM IMPROVEMENT PROCEDURE
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  • 13.
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    Dubai Logistics industry
    Key Challenges faced by local players to compete against Foreign Major Players
    STEP 1 :- Standarzation of Business Process
    Using SCOR Reference Model ( Supply Chain Operational Reference ) Version 6.0.
    The model is built on the concepts of BPR, benchmarking, and process measurement
    STEP 2 :- Business Process Modeling ( IDEF01 )
    How Business Should be executed by a firm
    Decomposition and Assigning the Nodal Numbers
    Vertical & Horizontal Interdependencies
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  • 14.
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    Dubai Logistics industry
    Key Challenges faced by local players to compete against Foreign Major Players
    2. How to Minimize the total expected delivery transshipments cost from Warehouse to Customer/Retail and Vice-Versa in uncertain Demand Situation
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  • 15.
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    Dubai Logistics industry
    Key Challenges faced by local players to compete against Foreign Major Players
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  • 16.
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    Dubai Logistics industry
    Key Challenges faced by local players to compete against Foreign Major Players
    For simplicity, we aggregate all customers from one regional market into one customer located at the DC in that market, which implies no distance difference among customers in the same market
    delivery costs follow the basic geometric axiom—that is, Cij+Cjk≥Cik, for any i, j, and k
    n=number of distribution centers in the system
    Si=current inventory position at DC i (i=1, 2,…, n)
    λj=expected periodic demand rate at market j (j=1, 2,…, n)
    Cij=unit transshipment cost from DC i to market j
    Dj=expected remaining demand within the current period from market j
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  • 17.
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    Dubai Logistics industry
    Key Challenges faced by local players to compete against Foreign Major Players
    Optimal Transshipment Rule to find Optimal Dynamic Shipment Strategy
    Although the market demand is dynamic and uncertain, it follows a Poisson distribution with rate λj. So the probability that the next unit demand comes from market j is λj/λ.
    To the extent that shipping cost is roughly proportional to distance, it appears reasonable to transship from the closest DC with stock on hand. This intuitive approach is widely adopted in practice. We name the first decision rule as theNearest Rule.
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  • 18.
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    Dubai Logistics industry
    Key Challenges faced by local players to compete against Foreign Major Players
    3. Application of RFID technology at various interface of Supply Chain Cycle and creating platform between Data and ERP Interface
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  • 19.
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    Dubai Logistics industry
    Key Challenges faced by local players to compete against Foreign Major Players
    BENEFITS TO SUPPLY CHAIN STAKEHOLDERS
    Benefits to Manufacturers
    Benefits to Distribution Centers
    Benefits to Warehouses
    Benefits to Logistics Company Administration
    Benefits to Retailers
    Benefits to the Whole Supply Chain
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  • 20.
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    Dubai Logistics industry
    Key Challenges faced by local players to compete against Foreign Major Players
    ADOPTION STRATEGY
    Shared Understanding
    Goal Setting
    Justification
    Read Rate Accuracy
    Security
    Privacy
    Moraitis Fresh
    Australian Post
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    Dubai Logistics industry
    Key Challenges faced by local players to compete against Foreign Major Players
    4. Implementing ERP with Supply Chain for the better flow of Information and better tracking of Job ID
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  • 22. Company website
    Flight details receipt custom clearance
    Air Freight
    CRM
    Warehouse 1,2,3….n
    Customer
    Service delivery team
    Feedback free receipt
    Delivery Vehicle Space
    Sea freight
    3rd Party Agent
    Loading company
    General Flow Process For Logistics Company
    Port No
    Vessel no
    Route No
    Custom clearance
    Receipt
    Recipient
    Feedback
    Job no = close
  • 23.
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    Dubai Logistics industry
    References
    http://somweb.utdallas.edu/centers/c4isn/documents/c4isn-Impact-RFID-SC-Perform.pdf
    http://www.dhl.co.ae/en.html
    http://www.dhs.gov/xlibrary/assets/foia/US-VISIT_RFIDattachI-redacted.pdf
    RFID utilization and information sharing: the impact on supply chain performance
    Pamela J. Zelbst
    Department of Management and and Marketing, College of Business Administration,
    Sam Houston State University, Huntsville, Texas, USA
    Kenneth W. Green Jr
    Department of Management, Marketing, and Management Information Systems,
    College of Business, Southern Arkansas University,Magnolia, Arkansas, USA, and
    Victor E. Sower and Gary Baker
    Department of Management and Marketing, College of Business Administration,
    Sam Houston State University, Huntsville, Texas, USA
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  • 24.
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    Dubai Logistics industry
    End of Slides
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