The Dubai Logistics Industry

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The Dubai Logistics Industry

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

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