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1. Write one paragraph to answer one of these questions. Please
include the Option # in your answer. Reflect on your answer and
then include at least 3 sentences in your answer.
· Option # 1. How can a firm design and develop a more
resilient supply chain?
Responses:
1. A quality comment on class member's discussion postings
begins with 2 sentences that enhance, support, or debate
appropriately your peer’s answer.
Discussion 6
Top of Form
Supply chain resilience is a company’s ability to react to issues
and recover from them with a big impact to the company’s
operations. I believe for a firm to design and develop a more
resilient supply chain is focusing on the three core enables
which are, the people, the process, and technology.
For companies to complete work, they need employees. People
to help run the company, so they hire people with the skill set
and knowledge to run departments and to use machinery etc. the
next step is process. It has been proven that employees perform
at their best when they are empowered by an effective process.
To manage shortages and to increase supply chain resilience
company’s need to be that they have an effective process in
place that employees can follow for the flow to run smoothly.
Technology can help company’s complete processes more easily
and accurately. Real time analytics and decision support tools,
including enterprise resource planning also known as ERP and
electronic data interchange platforms, can help provide
data needed to help run the company.
Bottom of Form
Discussion #6
Top of Form
What is -procurement?
E-procurement is the process of buying and selling supplies and
services over the Internet. E-procurement opens the lines of
communication between a company and a supplier by creating a
direct link and facilitating interactions such as bids, purchase
orders, and emails.
What are the benefits of E-procurement?
E-procurement offers substantial benefits to the function of
procurement management within a purchasing organization,
including: Cost Savings, Built-in monitoring tools help control
costs and maximize performance, reducing overhead and
paperwork. Fully automated systems streamline processes and
can result in a faster cycle from creating an order to fulfillment.
The shorter purchasing cycles centralized transaction tracking
simplifies: reporting on orders, payments, and requisitions, as
well as ensuring contract compliance, all of which can reduce
delivery time. Buyers have electronic access to available
products, services, and prices.
Improved Inventory Control-Procurement professionals can
quickly locate products from preferred supplies and are limited
to the purchases they can make, so inventory is better
controlled.
Transparency- All information is centralized and can be made
available to management, stakeholders, shareholders, or the
public, as appropriate.
Davila, A., Gupta, M., & Palmer, R. J. (2010). Moving
procurement systems to the Internet: The adoption and use of e-
procurement technology models (Tech. Rep. No. 1742).
Retrieved March 22, 2010 http://ssrn.com/abstract=323923
Each discussion below needs a response of 150 words minimum
Discussion 2
Top of Form
Essential logistics services, transportation, and storage enable
trade. The overall strategy of trade-based economic growth was
mercantilism, which maximized exports through subsidies while
minimizing imports through tariffs. In 1776, Adam Smith
published the concept of absolute advantage, using labor
productivity to explain that all countries can simultaneously get
rich if they focus on their definite advantages and practice free
trade.
This case study helped understand logistics clustering of growth
and popularity among policymakers and private agents.
- Key benefits forgiven to companies with about agglomeration
of logistics.
- Helps in creating value-added services by creating
collaboration with logistics clustering and facilities
- It provided career mobility within the workforce and promoted
job growth at multiple levels.
- Helps in justifying public authorities along with private
agencies to invest in the logistics phenomenon.
- Logistics cluster helped in the easy availability of products.
- Helped in availing efficient transportation at bargain prices
and sharing of resources.
Thus, logistics clusters help in effective and efficient physical,
financial and informational infrastructure and provide a wide
range of economic benefits to the economies in the local.
Logistics clusters likewise have various drawbacks that clients
ought to know. Some neighborhood networks despise the
commotion, hefty traffic, and contamination that accompany
logistics clusters.
Rising energy costs and protectionist exchange measures can
sabotage the feasibility of logistics clusters. These substances
are helpless against the financial slumps and international
dangers of an integral part of worldwide exchange. The
mechanical change can likewise influence their seriousness. The
port of Singapore, for example, is putting resources into cranes
that lift four compartments at the same time, making port
activities quicker and more productive.
Likewise, it ought to be noticed that only one out of every odd
logistics group is an example of overcoming adversity;
defective dynamic and deficient assets can hinder their turn of
events. Areas that at first gave off an impression of being an
ideal fit end up being less favorable. A model is Port Said at the
northern mouth of the Suez Trench, which has not formed into
the significant worldwide logistics center conceived by its
makers.
Worldwide rivalry is another factor to consider. Take, for
instance, the extension of the Panama Trench and the creating
logistics clusters along the channel. This raises the severe
stakes on three fronts. In the first place, there will be rivalry
with parcel ports in the Caribbean. Also, ports along the
Atlantic Bank of the US and Latin America will contend to deal
with the giant holder sends that the broadened channel will
draw in. Furthermore, rivalry with other, non-channel courses is
normal, explicitly between the trench and the US Pacific Coast
and rail mixes.
Bottom of Form
Discussion 2
Top of Form
Natural geographic features might explain why some areas have
more logistics activities than others, and why they may be
initially attractive for transportation and logistics
developments. But someone must still make investments in
infrastructure, train the workers, lobby for favorable
regulations, and attract companies to the area to support cluster
formation. The only one of every odd logistics group is a model
of overcoming adversity, a defective dynamic and deficient
assets can obstruct their turn of events. Areas that at first
impression of being an ideal fit can end up being less positive.
A model is Port Said at the northern mouth of the Suez Trench,
which has not formed into the major worldwide logistics center
conceived by its makers. Some changes may create new
logistics clusters on the East Coast and could partially reduce
the logistics force of activities in the western US ports and on
the railroads carrying containers from the West Coast to the
large clusters in Chicago, Kansas City, Memphis, and Dallas/Ft.
Worth.
This case study facilitates the understanding of logistics
clustering which is of progress and popularity among policy
makers and private agents. Key benefits for given to companies
with pertaining to accumulation of logistics. It helps in creating
value added services by creating collaboration with logistics
clustering and facilities. This case study provided career
flexibility within the workforce and promoted job growth at
multiple levels. It supports reasoning for public authorities
along with private agencies to invest in the logistics
involvement. Logistics cluster helped in easy availability of
products as well as taking advantage of the efficient
transportation bargain prices and sharing of resources. As a
result, logistics clusters help in effective, efficient physical,
financial, and informational infrastructure and provides wide
range of economic benefits to the local economies.
The extension of the Panama Trench and the creating logistics
clusters along the channel raises serious risks such as the
rivalry with parcel ports in the Caribbean, ports along the
Atlantic Bank of the US and Latin America will struggle to deal
with the bigger holder that directs the broadened channel will
draw in. Another rivalry is with other, non-channel courses
which is the normal, explicitly between the trench and the US
Pacific Coast and rail mixes.
Since logistics clusters likewise have various drawbacks that
clients should know about. Some local networks dislike the
commotion, heavy traffic, and contamination that accompany
logistics clusters. These elements are helpless against the
financial collapses and international dangers that are an integral
part of worldwide exchange. Rising energy costs and
protectionist exchange measures can sabotage the possibility of
logistics clusters. Their importance can also be influenced by
mechanical change. The port of Singapore, for example, is
putting resources into cranes that lift four compartments at the
same time, making port activities quicker and more productive.
Bottom of Form
Discussion 3
Top of Form
Clients should be aware that logistics clusters have a number of
disadvantages. The commotion, heavy traffic, and pollution that
come with logistics clusters irritate some neighborhood
networks. These substances are helpless in the face of monetary
downturns and global threats, which are a fundamental part of
global trade. The viability of logistics clusters may be
jeopardized by rising energy costs and protectionist trade
policies. Mechanical modification can also have an impact on
their sincerity. The port of Singapore, for example, is putting
assets into cranes that can raise four compartments at once,
making port operations more efficient and profitable.
Advantages
1) Items are easily accessible.
2) It revealed and private experts to invest resources in it by
providing avocation.
3) A value is created by collaborating with coordination groups
and offices.
4) It aids in the acquisition of coordinations.
5) By bartering expenses and sharing assets, it was possible to
obtain efficient transportation.
Consequences / Risks
1) Increasing energy costs and exchange measures may
jeopardize the ability of groups to coordinate.
2) Significant traffic is framed as a result of the coordinating
group in the area.
3) An example of overcoming adversity insufficiency assets and
turning events around is one out of every odd coordinations
bunch.
It should also be noted that just one out of every odd logistics
group is an example of overcoming hardship; a faulty dynamic
and a lack of resources might block their new development.
Zones that gave off the impression of being a perfect fit from
the outset end up being more negative. Port Said, at the northern
mouth of the Suez Trench, is an example of a concept that has
not developed into the significant global logistics hub
envisioned by its creators. Another thing to consider is global
competitiveness. Consider the expansion of the Panama Trench
and the creation of logistics hubs throughout the channel. On
three levels, this raises the stakes. In any case, package ports in
the Caribbean will compete with ports along the Atlantic Bank
of the United States and Latin America to manage the increased
holder shipments that the extended direct will draw. Third,
competition with non-channel courses is common, particularly
between the channel and the US Pacific Coast, as well as rail
mixes.
Bottom of Form
Discussion 3
Top of Form
In this chapter, Yossi Sheffi reveals the reasons why people
select particular areas for their operations. He noted that supply
and flow of goods, demands, taxation, and real estate
dynamics as the significant factors that informed the locations
of the operations. Notably, geographical factors also heavily
influence the decision, the proximity to ports, locations, and
distribution and distribution factors. However, Yossi Sheffi
delves into another angle by analyzing the advantages that
specific clusters enjoy in some locations; for example,
industrial and logistics clusters enjoy the operational benefits,
characterized by the interchangeability in logistics services.
Yossi contends that operational advantages offer several
benefits to industries and operators; first, it results in
consolidated operations, which goes a long way in providing a
natural location for transport and storage. For example, the
Singapore, Hong Kong, Hamburg, and Dubai has been
consolidated, which has boosted accessibility and easy flow of
good with the Europe and America countries at relatively cheap
costs. The analysis of operation advantages has a couple of
consequences that cut across companies and nations. Direct
operations have been established, which offers reduced
traveling time, and reduced time spend by shippers when filling
conveyance to make operation economical. Furthermore, the
operation advantages have resulted in a conveyance cycle;
because some regions have more outgoing products and others
have more incoming products; hence the transportation vessels
have to travel back and forth, picking loads.
To maximize the company's revenues and operational
advantage, companies should endeavor to reduce conveyances.
Companies should embrace a trade balance that will ensure that
the imports and deports are balanced. When a carrier transports
a good to a foreign country, it will have another load to not
return empty. Collaboration is also important, especially
horizontal cooperation, which will ensure sharing of
conveyance, which will go a long way in improving
distribution.
Bottom of Form
Discussion 4
Top of Form
This case study is about the availability of low -cost, high
performance logistic services found in logistic clusters that
attracts manufacturers, distributors, and other shippers that
depend on efficient logistics. Logistic providers and shippers’
logistics operations within a cluster add value to the goods they
handle in the cluster. A logistic cluster offers two main
advantages for performing certain value-added activities: it
allows for postponement of product differentiation closer to the
time the product is sold, and it typically offers a cost-effective
opportunity for performing operations beyond logistics. Along
supply chain many companies touch the products for different
purposed or reasons. For example, they transport it, store it, or
change it in some type of way, each of these touches cost money
as a result of labor associated with it. As the product moves up
the chain added value is accumulated. It controls most, if not
all, the stages along the supply chain, from production to
distribution. Some examples are assembly, consolidation,
packing, docking, direct store delivery, fulfillment,
import/export, and inspection among others. This allows for a
more comprehensive service for increasing customer
satisfaction. This is important when it comes to certain
operations based on the trust that a customer places in a
company. There is no point in going for added value if you do
not respond to what the customer needs. Added Value Logistics
is the extra that can be offered to allow a customer choose one
operator over another. The main benefit of adding value is that
when is added to a product or service, it helps companies attract
more customers, which can boost revenue and profits.
Bottom of Form
Discussion 4
Top of Form
Chapter 5 “Adding Value” demonstrates how companies can add
value to products and customer services. Some international
business ideas for non-logistics businesses are also discussed on
this chapter. We learned the difference between a traditional
facility location problem and the lesson learned from the story
of Logistics Clusters is that real business value is more
important than the location with the lowest cost.
Here are the main advantages for performing certain value-
added activities: it allows for postponement of product-
differentiation closer to the time the product is sold, and it
typically offers a cost-effective opportunity for performing
operations beyond logistics. Robust logistics services serve as
infrastructure for other economic activities, such as
manufacturing. Given the evolution of supply chain
management and the knowledge that continuing improvements
will be made to drive results, global and domestic companies
are re-evaluating what they look for in real estate site location
decisions driven by supply chain strategies. As an example,
manufacturing firms may not be as reliant on local demand for
goods and therefore might have more flexibility with respect to
geography of their location decisions. Their location decisions
depend more on local factors such as the quality and availability
of workforces, access to innovative technologies and labor costs
whereas the logistics and distribution site selection decisions
are highly focused.
As disadvantage goes, technology retailers face a significant
problem with new product returns. Consumers return about 11
percent to 20 percent of purchases of consumer electronics such
as cell phones, laptops, computers, media players, TVs, and the
like.
The first way to increase value is simply to increase the speed
you deliver the kind of value people are willing to pay for . A
person who did not realize that they wanted your product or
service until today, now wants it yesterday. The second key to
creating wealth is by offering better quality than your
competitors at the same price. And remember, quality is
whatever the customer says it is.
Bottom of Form
Discussion 5
Top of Form
Infrastructure is the material basis of a society in an economic
system that includes the productive forces and the relations of
production to create and sustain a region, it involves the set of
public works, institutions, systems of networks that supports the
functioning of nations, cities, and other forms of organizations.
In the book, Sheffi focused on logistical infrastructure which is
the set of facilities and constructions that facilitate connections
between the storage, manufracturing and consumption areas in
the framework of the supply chain. The logistical infrastructure
includes land, rivers, or sea transport. These routes help make
economic activities more feasible and is attached along with
financial, technological,and informational infrastructure.
These infrastructural hubs are located nearby to urban areas
mostly in the outskirt of major cities to facilitate the
transportation and distribution, reaching consumers, suppliers,
and distributors. Logistical infrastructure contributes to national
economic development and improve productivity and
competitiveness, which makes possible trade between nations
with great relevance for commercial growth.
Bottom of Form
Discussion 5
Top of Form
In Chapter 6 "Infrastructure", Sheffi details the various
elements of logistics clusters' infrastructure. There are three
main infrastructure components; physical infrastructure,
information infrastructure, and financial infrastructure. Physical
infrastructure can be described as trucks, ships, airplanes,
roads, railways, buildings, and equipment. Information structure
has to do with the flow of information throughout the supply
chain or logistics network. The following are examples of
such information that may be exchanged; freight weight, freight
dimensions, estimated time of arrival, and carrier name. Finally,
we look at financial infrastructure. Financial infrastructure has
to do with all of the different monetary
transactions that take place during the transfer of goods. Some
people might have the impression that once the goods are
received, a payment is sent/received, and the transaction is
complete. Well, it is much more complicated and
intricate than that. There are many additional nuances to
consider when discussing financial infrastructure, such
as customs payments, deductions for damaged or incomplete
goods, and foreign exchange rates, just to name a few.
This case illustrated the benefits that are brought about when
companies invest heavily in infrastructure. No expense should
be spared when it comes to the development of a company's
infrastructure (this includes all three forms of
infrastructure mentioned above). The higher the initial
investment, the more smoothly each process should actualize.
The main consequence I was able to extract from this case,
was the fact that many logistics clusters have reached land
capacity. This means that they have run out of available land to
expand their operations. This is mainly due to the
fact that developers flocked to areas where logistics clusters
were established, and built restaurants and high rise
office/condo buildings.
In order to mitigate the land capacity limits, some ports like
Singapore and Rotterdam, are filling in the sea to make more
land. Some companies are also extending their service hours to
nights and weekends, so that the congestion is
minimized (thereby not needing to expand physical
infrastructure). Finally, some companies are utilizing AI
technology to improve their productivity, which in turn also
reduces the need for land expansion.
Bottom of Form
Discussion 6
Top of Form
Logistics requires a significant base of physical assets, many of
which require both initial and on-going government funding and
are subject to government regulations. First, logistics relies on
government investment in transportation infrastructure such as
public roads, ports, airports, and (in most countries) railr oads.
Second, governments also control the use of land. Urban
planning, zoning regulations, and building permits directly
influence the private
creation of logistics assets such as logistics parks, intermodal
terminals, and warehouses.Third, governments offer direct or
indirect incentives to encourage new asset development and
private investment to bring “good jobs” to specific areas.
Fourth, governments provide “soft” public goods such as
educational institutions and other incentives for workforce
development. Last, governments control trade regulation,
taxation policies, immigration rules, environmental policies,
and other levers that can make a location business-friendly to
logistics operations. In addition to local concerns about the
impact of trucking on city streets, concerns about global climate
change and greenhouse gases (GHG) accumulations mean a
growing array of government regulations and taxes on fuel
consumption and CO2 emissions. Biofuels such as ethanol and
biodiesel, when produced efficiently, provide a low- or zero-
carbon footprint fuel source as one possible replacement for
fossil fuels to power trucks, railroads, and even aircraft.
Distribution to urban retailers and end consumers creates
congestion on urban roadways. This problem can be acute in
crowded cities, especially older cities in which medieval cart
routes or cow paths defined the original narrow, meandering
road networks. In the late 1990s and early 2000s, with the rise
of “Green” political parties, several city governments in
Germany launched projects to reduce urban truck
traffic.Attracting companies who can operate profitably will, in
turn, provide the tax base and economic energy that gives
governments their resources and mandates to continue
investment in the region and in the cluster.
Bottom of Form

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1. Write one paragraph to answer one of these questions. Please in

  • 1. 1. Write one paragraph to answer one of these questions. Please include the Option # in your answer. Reflect on your answer and then include at least 3 sentences in your answer. · Option # 1. How can a firm design and develop a more resilient supply chain?
  • 2. Responses: 1. A quality comment on class member's discussion postings begins with 2 sentences that enhance, support, or debate appropriately your peer’s answer. Discussion 6 Top of Form Supply chain resilience is a company’s ability to react to issues and recover from them with a big impact to the company’s operations. I believe for a firm to design and develop a more resilient supply chain is focusing on the three core enables which are, the people, the process, and technology. For companies to complete work, they need employees. People to help run the company, so they hire people with the skill set and knowledge to run departments and to use machinery etc. the next step is process. It has been proven that employees perform at their best when they are empowered by an effective process. To manage shortages and to increase supply chain resilience company’s need to be that they have an effective process in place that employees can follow for the flow to run smoothly. Technology can help company’s complete processes more easily
  • 3. and accurately. Real time analytics and decision support tools, including enterprise resource planning also known as ERP and electronic data interchange platforms, can help provide data needed to help run the company. Bottom of Form Discussion #6 Top of Form
  • 4. What is -procurement? E-procurement is the process of buying and selling supplies and services over the Internet. E-procurement opens the lines of communication between a company and a supplier by creating a direct link and facilitating interactions such as bids, purchase orders, and emails. What are the benefits of E-procurement? E-procurement offers substantial benefits to the function of procurement management within a purchasing organization, including: Cost Savings, Built-in monitoring tools help control costs and maximize performance, reducing overhead and paperwork. Fully automated systems streamline processes and can result in a faster cycle from creating an order to fulfillment. The shorter purchasing cycles centralized transaction tracking simplifies: reporting on orders, payments, and requisitions, as well as ensuring contract compliance, all of which can reduce delivery time. Buyers have electronic access to available products, services, and prices. Improved Inventory Control-Procurement professionals can quickly locate products from preferred supplies and are limited to the purchases they can make, so inventory is better controlled. Transparency- All information is centralized and can be made available to management, stakeholders, shareholders, or the public, as appropriate. Davila, A., Gupta, M., & Palmer, R. J. (2010). Moving procurement systems to the Internet: The adoption and use of e- procurement technology models (Tech. Rep. No. 1742). Retrieved March 22, 2010 http://ssrn.com/abstract=323923 Each discussion below needs a response of 150 words minimum
  • 5. Discussion 2 Top of Form Essential logistics services, transportation, and storage enable trade. The overall strategy of trade-based economic growth was mercantilism, which maximized exports through subsidies while minimizing imports through tariffs. In 1776, Adam Smith published the concept of absolute advantage, using labor productivity to explain that all countries can simultaneously get rich if they focus on their definite advantages and practice free trade. This case study helped understand logistics clustering of growth and popularity among policymakers and private agents. - Key benefits forgiven to companies with about agglomeration of logistics. - Helps in creating value-added services by creating collaboration with logistics clustering and facilities - It provided career mobility within the workforce and promoted job growth at multiple levels. - Helps in justifying public authorities along with private agencies to invest in the logistics phenomenon. - Logistics cluster helped in the easy availability of products. - Helped in availing efficient transportation at bargain prices and sharing of resources. Thus, logistics clusters help in effective and efficient physical, financial and informational infrastructure and provide a wide range of economic benefits to the economies in the local. Logistics clusters likewise have various drawbacks that clients ought to know. Some neighborhood networks despise the commotion, hefty traffic, and contamination that accompany logistics clusters. Rising energy costs and protectionist exchange measures can sabotage the feasibility of logistics clusters. These substances are helpless against the financial slumps and international dangers of an integral part of worldwide exchange. The
  • 6. mechanical change can likewise influence their seriousness. The port of Singapore, for example, is putting resources into cranes that lift four compartments at the same time, making port activities quicker and more productive. Likewise, it ought to be noticed that only one out of every odd logistics group is an example of overcoming adversity; defective dynamic and deficient assets can hinder their turn of events. Areas that at first gave off an impression of being an ideal fit end up being less favorable. A model is Port Said at the northern mouth of the Suez Trench, which has not formed into the significant worldwide logistics center conceived by its makers. Worldwide rivalry is another factor to consider. Take, for instance, the extension of the Panama Trench and the creating logistics clusters along the channel. This raises the severe stakes on three fronts. In the first place, there will be rivalry with parcel ports in the Caribbean. Also, ports along the Atlantic Bank of the US and Latin America will contend to deal with the giant holder sends that the broadened channel will draw in. Furthermore, rivalry with other, non-channel courses is normal, explicitly between the trench and the US Pacific Coast and rail mixes. Bottom of Form
  • 7. Discussion 2 Top of Form Natural geographic features might explain why some areas have more logistics activities than others, and why they may be initially attractive for transportation and logistics developments. But someone must still make investments in infrastructure, train the workers, lobby for favorable regulations, and attract companies to the area to support cluster formation. The only one of every odd logistics group is a model of overcoming adversity, a defective dynamic and deficient assets can obstruct their turn of events. Areas that at first impression of being an ideal fit can end up being less positive. A model is Port Said at the northern mouth of the Suez Trench, which has not formed into the major worldwide logistics center conceived by its makers. Some changes may create new logistics clusters on the East Coast and could partially reduce the logistics force of activities in the western US ports and on the railroads carrying containers from the West Coast to the large clusters in Chicago, Kansas City, Memphis, and Dallas/Ft. Worth. This case study facilitates the understanding of logistics clustering which is of progress and popularity among policy makers and private agents. Key benefits for given to companies with pertaining to accumulation of logistics. It helps in creating value added services by creating collaboration with logistics clustering and facilities. This case study provided career flexibility within the workforce and promoted job growth at multiple levels. It supports reasoning for public authorities along with private agencies to invest in the logistics involvement. Logistics cluster helped in easy availability of
  • 8. products as well as taking advantage of the efficient transportation bargain prices and sharing of resources. As a result, logistics clusters help in effective, efficient physical, financial, and informational infrastructure and provides wide range of economic benefits to the local economies. The extension of the Panama Trench and the creating logistics clusters along the channel raises serious risks such as the rivalry with parcel ports in the Caribbean, ports along the Atlantic Bank of the US and Latin America will struggle to deal with the bigger holder that directs the broadened channel will draw in. Another rivalry is with other, non-channel courses which is the normal, explicitly between the trench and the US Pacific Coast and rail mixes. Since logistics clusters likewise have various drawbacks that clients should know about. Some local networks dislike the commotion, heavy traffic, and contamination that accompany logistics clusters. These elements are helpless against the financial collapses and international dangers that are an integral part of worldwide exchange. Rising energy costs and protectionist exchange measures can sabotage the possibility of logistics clusters. Their importance can also be influenced by mechanical change. The port of Singapore, for example, is putting resources into cranes that lift four compartments at the same time, making port activities quicker and more productive. Bottom of Form
  • 9. Discussion 3 Top of Form Clients should be aware that logistics clusters have a number of disadvantages. The commotion, heavy traffic, and pollution that come with logistics clusters irritate some neighborhood networks. These substances are helpless in the face of monetary downturns and global threats, which are a fundamental part of global trade. The viability of logistics clusters may be jeopardized by rising energy costs and protectionist trade policies. Mechanical modification can also have an impact on their sincerity. The port of Singapore, for example, is putting assets into cranes that can raise four compartments at once, making port operations more efficient and profitable. Advantages 1) Items are easily accessible. 2) It revealed and private experts to invest resources in it by providing avocation. 3) A value is created by collaborating with coordination groups and offices. 4) It aids in the acquisition of coordinations. 5) By bartering expenses and sharing assets, it was possible to obtain efficient transportation. Consequences / Risks 1) Increasing energy costs and exchange measures may jeopardize the ability of groups to coordinate. 2) Significant traffic is framed as a result of the coordinating group in the area. 3) An example of overcoming adversity insufficiency assets and turning events around is one out of every odd coordinations bunch.
  • 10. It should also be noted that just one out of every odd logistics group is an example of overcoming hardship; a faulty dynamic and a lack of resources might block their new development. Zones that gave off the impression of being a perfect fit from the outset end up being more negative. Port Said, at the northern mouth of the Suez Trench, is an example of a concept that has not developed into the significant global logistics hub envisioned by its creators. Another thing to consider is global competitiveness. Consider the expansion of the Panama Trench and the creation of logistics hubs throughout the channel. On three levels, this raises the stakes. In any case, package ports in the Caribbean will compete with ports along the Atlantic Bank of the United States and Latin America to manage the increased holder shipments that the extended direct will draw. Third, competition with non-channel courses is common, particularly between the channel and the US Pacific Coast, as well as rail mixes. Bottom of Form Discussion 3 Top of Form In this chapter, Yossi Sheffi reveals the reasons why people select particular areas for their operations. He noted that supply
  • 11. and flow of goods, demands, taxation, and real estate dynamics as the significant factors that informed the locations of the operations. Notably, geographical factors also heavily influence the decision, the proximity to ports, locations, and distribution and distribution factors. However, Yossi Sheffi delves into another angle by analyzing the advantages that specific clusters enjoy in some locations; for example, industrial and logistics clusters enjoy the operational benefits, characterized by the interchangeability in logistics services. Yossi contends that operational advantages offer several benefits to industries and operators; first, it results in consolidated operations, which goes a long way in providing a natural location for transport and storage. For example, the Singapore, Hong Kong, Hamburg, and Dubai has been consolidated, which has boosted accessibility and easy flow of good with the Europe and America countries at relatively cheap costs. The analysis of operation advantages has a couple of consequences that cut across companies and nations. Direct operations have been established, which offers reduced traveling time, and reduced time spend by shippers when filling conveyance to make operation economical. Furthermore, the operation advantages have resulted in a conveyance cycle; because some regions have more outgoing products and others have more incoming products; hence the transportation vessels have to travel back and forth, picking loads. To maximize the company's revenues and operational advantage, companies should endeavor to reduce conveyances. Companies should embrace a trade balance that will ensure that the imports and deports are balanced. When a carrier transports a good to a foreign country, it will have another load to not return empty. Collaboration is also important, especially horizontal cooperation, which will ensure sharing of conveyance, which will go a long way in improving distribution.
  • 12. Bottom of Form Discussion 4 Top of Form This case study is about the availability of low -cost, high performance logistic services found in logistic clusters that attracts manufacturers, distributors, and other shippers that depend on efficient logistics. Logistic providers and shippers’ logistics operations within a cluster add value to the goods they
  • 13. handle in the cluster. A logistic cluster offers two main advantages for performing certain value-added activities: it allows for postponement of product differentiation closer to the time the product is sold, and it typically offers a cost-effective opportunity for performing operations beyond logistics. Along supply chain many companies touch the products for different purposed or reasons. For example, they transport it, store it, or change it in some type of way, each of these touches cost money as a result of labor associated with it. As the product moves up the chain added value is accumulated. It controls most, if not all, the stages along the supply chain, from production to distribution. Some examples are assembly, consolidation, packing, docking, direct store delivery, fulfillment, import/export, and inspection among others. This allows for a more comprehensive service for increasing customer satisfaction. This is important when it comes to certain operations based on the trust that a customer places in a company. There is no point in going for added value if you do not respond to what the customer needs. Added Value Logistics is the extra that can be offered to allow a customer choose one operator over another. The main benefit of adding value is that when is added to a product or service, it helps companies attract more customers, which can boost revenue and profits. Bottom of Form
  • 14. Discussion 4 Top of Form Chapter 5 “Adding Value” demonstrates how companies can add value to products and customer services. Some international
  • 15. business ideas for non-logistics businesses are also discussed on this chapter. We learned the difference between a traditional facility location problem and the lesson learned from the story of Logistics Clusters is that real business value is more important than the location with the lowest cost. Here are the main advantages for performing certain value- added activities: it allows for postponement of product- differentiation closer to the time the product is sold, and it typically offers a cost-effective opportunity for performing operations beyond logistics. Robust logistics services serve as infrastructure for other economic activities, such as manufacturing. Given the evolution of supply chain management and the knowledge that continuing improvements will be made to drive results, global and domestic companies are re-evaluating what they look for in real estate site location decisions driven by supply chain strategies. As an example, manufacturing firms may not be as reliant on local demand for goods and therefore might have more flexibility with respect to geography of their location decisions. Their location decisions depend more on local factors such as the quality and availability of workforces, access to innovative technologies and labor costs whereas the logistics and distribution site selection decisions are highly focused. As disadvantage goes, technology retailers face a significant problem with new product returns. Consumers return about 11 percent to 20 percent of purchases of consumer electronics such as cell phones, laptops, computers, media players, TVs, and the like. The first way to increase value is simply to increase the speed you deliver the kind of value people are willing to pay for . A person who did not realize that they wanted your product or service until today, now wants it yesterday. The second key to creating wealth is by offering better quality than your
  • 16. competitors at the same price. And remember, quality is whatever the customer says it is. Bottom of Form Discussion 5 Top of Form Infrastructure is the material basis of a society in an economic system that includes the productive forces and the relations of production to create and sustain a region, it involves the set of public works, institutions, systems of networks that supports the functioning of nations, cities, and other forms of organizations. In the book, Sheffi focused on logistical infrastructure which is the set of facilities and constructions that facilitate connections
  • 17. between the storage, manufracturing and consumption areas in the framework of the supply chain. The logistical infrastructure includes land, rivers, or sea transport. These routes help make economic activities more feasible and is attached along with financial, technological,and informational infrastructure. These infrastructural hubs are located nearby to urban areas mostly in the outskirt of major cities to facilitate the transportation and distribution, reaching consumers, suppliers, and distributors. Logistical infrastructure contributes to national economic development and improve productivity and competitiveness, which makes possible trade between nations with great relevance for commercial growth. Bottom of Form
  • 18. Discussion 5 Top of Form In Chapter 6 "Infrastructure", Sheffi details the various elements of logistics clusters' infrastructure. There are three main infrastructure components; physical infrastructure, information infrastructure, and financial infrastructure. Physical infrastructure can be described as trucks, ships, airplanes, roads, railways, buildings, and equipment. Information structure has to do with the flow of information throughout the supply chain or logistics network. The following are examples of
  • 19. such information that may be exchanged; freight weight, freight dimensions, estimated time of arrival, and carrier name. Finally, we look at financial infrastructure. Financial infrastructure has to do with all of the different monetary transactions that take place during the transfer of goods. Some people might have the impression that once the goods are received, a payment is sent/received, and the transaction is complete. Well, it is much more complicated and intricate than that. There are many additional nuances to consider when discussing financial infrastructure, such as customs payments, deductions for damaged or incomplete goods, and foreign exchange rates, just to name a few. This case illustrated the benefits that are brought about when companies invest heavily in infrastructure. No expense should be spared when it comes to the development of a company's infrastructure (this includes all three forms of infrastructure mentioned above). The higher the initial investment, the more smoothly each process should actualize. The main consequence I was able to extract from this case, was the fact that many logistics clusters have reached land capacity. This means that they have run out of available land to expand their operations. This is mainly due to the fact that developers flocked to areas where logistics clusters were established, and built restaurants and high rise office/condo buildings. In order to mitigate the land capacity limits, some ports like Singapore and Rotterdam, are filling in the sea to make more land. Some companies are also extending their service hours to nights and weekends, so that the congestion is
  • 20. minimized (thereby not needing to expand physical infrastructure). Finally, some companies are utilizing AI technology to improve their productivity, which in turn also reduces the need for land expansion. Bottom of Form Discussion 6 Top of Form Logistics requires a significant base of physical assets, many of which require both initial and on-going government funding and are subject to government regulations. First, logistics relies on government investment in transportation infrastructure such as public roads, ports, airports, and (in most countries) railr oads. Second, governments also control the use of land. Urban planning, zoning regulations, and building permits directly influence the private creation of logistics assets such as logistics parks, intermodal terminals, and warehouses.Third, governments offer direct or indirect incentives to encourage new asset development and private investment to bring “good jobs” to specific areas. Fourth, governments provide “soft” public goods such as educational institutions and other incentives for workforce development. Last, governments control trade regulation, taxation policies, immigration rules, environmental policies, and other levers that can make a location business-friendly to logistics operations. In addition to local concerns about the impact of trucking on city streets, concerns about global climate
  • 21. change and greenhouse gases (GHG) accumulations mean a growing array of government regulations and taxes on fuel consumption and CO2 emissions. Biofuels such as ethanol and biodiesel, when produced efficiently, provide a low- or zero- carbon footprint fuel source as one possible replacement for fossil fuels to power trucks, railroads, and even aircraft. Distribution to urban retailers and end consumers creates congestion on urban roadways. This problem can be acute in crowded cities, especially older cities in which medieval cart routes or cow paths defined the original narrow, meandering road networks. In the late 1990s and early 2000s, with the rise of “Green” political parties, several city governments in Germany launched projects to reduce urban truck traffic.Attracting companies who can operate profitably will, in turn, provide the tax base and economic energy that gives governments their resources and mandates to continue investment in the region and in the cluster. Bottom of Form