Logistics strategies for europe

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Logistics strategies for europe

  1. 1. Logistics strategies for Europe<br />
  2. 2. Introduction<br />There are two logistics strategies we will focus about them<br />The trend to concentrate production & Storage in fewer but larger manufacturing & stockholding sites<br />A flexible manufacturing strategies Has Been Just-in-time production <br />
  3. 3. the key role of logistics is To integrate the function of buying production & distribution with in a company<br /> <br />the scope & need to develop new logistics strategies has been stimulated by the steps taken to create a<br />Single European Market (SEM) from 1 Jan. 1993<br />
  4. 4. SEM Factors Encouraging<br />* the desire to encourage the development of European companies able to compete on level terms with companies from Japan & USA<br /> <br />* to create the Single European Market certain barriers have to be removed<br />1-physical Barriers (border crossing controls)<br />2-technical Barriers ( such as different product standards in different member states)<br />3-Fiscal barriers ( such as different taxation regimes)<br />4-Reduce the need for product differentiation<br />5-Expand the Opportunities for European branding & marketing<br />6-Reduce research & development costs<br />7-Reduce Unit Costs of Production<br />
  5. 5. The Factors which strongly influence the concentration<br />Of production & storage are :<br />1-the value per tonne of product<br />2-the frequency of delivery<br />the concentration production at fewer sites will generally increasing transport costs because products need to be carried further to markets<br />
  6. 6. *not All products readily lend themselves to these pan- European logistics strategies<br /> <br /> <br /> the factors will favour some degree of localization in logistics<br /> <br />1- products with relatively low value densities<br />2-limited economics of scale in production<br />3-need to produce in local markets as a result of political consideration<br />4-uneven development of markets with some regions taking much more of a product that Others<br />
  7. 7. Flexible production<br />The best known and most widely documented flexible production method is that of JUST-IN-TIME production<br />European reference to JIT tend to emphasize rapid transport &control of suppliers<br /> <br />in a European context , JIT <br /> has the following implications:<br />1-A closer relation between suppliers & manufacturer<br />2-A closer relationship between manufacture & transport company<br />3-More frequent delivery but smaller Amounts <br />4-Intensive flows of information between supplier ,manufacturer & Transport Operator<br /> <br />
  8. 8. Logistics service<br />Logistics service providers need to be clear about which of the following strategies :<br />
  9. 9. 1-Pan-Europeans<br />providing a Europe-wide service offering distribution both within & between a number of European Countries<br />
  10. 10. 2-Multidomestics<br />providing national service which are in several European countries<br />
  11. 11. 3-Eurolinkers<br /> providing a network of mainly international service between major European markets<br />
  12. 12. The choice of strategy for any one company providing logistics service will be influenced by:<br />1-Company culture & background<br />2-Customer profile<br />3-Customer culture<br />

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