Transportation in globally competitive environment:
There are innovative ways in which firms are combining Â Transportation and distribution systems to increase their efficiency in the globally competitive environment. Though the transportation logistics systems vary with type of product and geographical scope of the market for raw materials, components and finished products, there is a common objective underlying the various strategies. The common objective is to get the right product to the right place at the right time so the cost of holding inventory is minimized.
Logistics is increasing in importance as restructuring of firms often entails relying on external vendors – an attribute of Just in Time production systems. Considerable research attention has been devoted in recent years to Just in Time or lean production systems, as well as to â€˜flexible specializationâ€™ in production, which has Â merged in the context of rising wages in advanced economies and overall excess capacity relative to demand (Piore & Sabel, 1984; Storper & Scott, 1992). The flexible specialization theory maintains that manufacturing 5 production chains are switching from vertical integration, representative of the mass or Fordist production Â systems, to fragmented and vertically disintegrated forms. Consequently, the advantages of scale economies in mass Â production are being replaced by economies derived from horizontal, globally based input-output linkages (Markusen, 1996). A discussion of the difference between mass production and lean production from an from an engineering perspective can be found in Preiss (1997). A variety of organizational, and geographic arrangements have emerged, in practice, to capture the upstream and downstream advantages of such globally based material-component-output linkages. Efficient and reliable transportation and distribution are crucial for inventory management in such global production chains.
In early stages of transportation and distribution logistics, the focus was on local optimization, that is, optimizing inbound logistics or outbound logistics for particular shipments. The current trend is toward global optimization, that is, across the whole value chain. The objective of integrated logistics is to synergize delivery while reducing shipment costs and cycle time. It includes adding of flexibility and accuracy of shipments. Agility or flexibility is important as inventories are to be kept at a minimum and logistical firms must be able to respond to shifting production and customer needs. Accuracy is important as shipment errors mean loss of time by not getting the right goods
As reliable delivery of input materials and component parts to manufacturing centers and of delivery of product to markets have become crucial, the pressures for cost minimization are transforming transportation, storage and handling practices. Moreover, the increasing trend in intra-firm trade, resulting from intra-firm division of labor on a global basis, is also dependent on reliable delivery schedules.
Last Mile Logistics provideÂ Either you can make your own transportation arrangements, or we will do it for you. A dedicated fleet of tractor / trailers, 5-ton with tailgate is available for local 24/7 delivery. We work with a reputable transportation service for deliveries throughout Western Canada.