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The History of Aramex

February 28, 2010 by · Leave a Comment 

So what do Salameh al-Aqra and Mohammad al-Sweity, two seasoned marathon runners, have to do with a small village called Dhundalwadi in Maharastra?

The logistics company based in Dubai called Aramex.

Competing with giants like DHL and Fedex, Aramex just posted a better-than-expected 28 % increase in profits in the fourth quarter of year 2009 after a steady decline of revenues during the last year. This only goes to show that the company reflects the values that its brand ambassadors exemplify in their sport, the ability to go the distance.

However, just like most global logistics giants of today, Aramex also began its journey in 1982 as an express operator. Fifteen years later, it became the first Arab company to trade its shares on the NASDAQ exchange, only to return to private ownership in February 2002.
With services that include logistics and warehousing for publication distribution as well as specialized shopping services such as the Shop & Ship U.S. mailbox and Shop the World catalog shopping and the equally competitive international and domestic express delivery and freight forwarding service, Aramex is able to provide its customers with a wide range of transportation solutions with a business network of more than 12,000 offices, 33,000 vehicles and 66,000 employees all over the world today.

With its focus on quality, efficiency, security of information as well as providing its customer with customized solutions for their logistics needs, the Aramex-led Global Distribution Alliance have moved forward from strength to strength giving it a reputation as a force to be reckoned with, in the global market.

Introduction to Supply Chain Management

February 28, 2010 by · Leave a Comment 

The concept of networking is one of the biggest contributors to success in an economy where a symbiotic (or interdependent) approach is fast becoming a reality, as opposed to the stand-alone, self sufficient approach of the past. Ask Steve Jobs what he thinks of building partnerships now in working as Apple’s iCEO as compared to the Apple that he founded in the last seventies.

Supply chain management (SCM) is building and managing these links right from the time you request your suppliers for parts until the time your customer purchases your finished product. While it can be relatively simpler for smaller businesses, it can turn out to be a complex task when it pertains to large organizations that have a plethora of products to offer in the market.

So very simply, supply chain management is a strategy adopted by an organization to track the flow of products, information and finance from the supplier to the customer with the ultimate aim to reduce inventory and create the highest level of customer satisfaction by always having stock available for purchase by the customer.

There are elements that integral to managing this process efficiently of which the customer is the most vital element of all, who on deciding to purchase a company’s product starts the entire SCM process. What will follow is production planning, the purchase of raw materials, taking inventory of raw materials obtained, the manufacturing of the product as well as transporting the product to the customer in time, therefore closing the loop of supply chain management.

Technology is also a vital component of SCM, and is applied in every organization at a strategic, tactical and operational level using Enterprise Resource Planning suites that are developed by SAP and Oracle.

The History of UPS

February 21, 2010 by · Leave a Comment 

Known for its brown trucks, United Parcel Service delivers almost 15 million packages a day to 7.9 million customers in around 200 countries. Like all companies that had their humble beginnings, UPS was founded by Jim Casey and Claude Ryan in Seattle on August 28, 1907.

However, it was only twelve years later that the name United Parcel Service was adopted, thanks to the ever-growing fleet of vehicle that was managed so efficiently by Charles W. Soderstrom. By 1930, not only did they expand their services to New York but also to major cities in the east and mid-west.

By 1959, with the acquisition of common carrier right, UPS had expanded their services that involved delivering packages between all addresses to both private and commercial customers, and in a matter of 15 years begins to service all 48 contiguous states in the United States, while also diversifying their operation in Europe and Canada.

The eighties saw UPS offering the Next day service as well as the launch of UPS airlines, and with a series of acquisitions, became a public company on November 10 1999.

Since most of UPS’ competition comes from inexpensive ground-based delivery services, with players like DHL and Fedex vying for a share of the market, its response by teaming up with the US Postal Service to create the UPS Mail Innovations, taking the delivery package service to the next level.

And in celebrating their 100th anniversary on August 28, 2007 with revenue of about $ 41.3 billion, and with a strong foothold in the logistics business for so long now, UPS will continue to grow from strength to strength in the coming years.

Logistics Functions in Sap

February 21, 2010 by · Leave a Comment 

Logistics management plays a vital role in any business today. If any organization has to ensure that its goods or services reach its consumers on time, logistics enabled systems that run smoothly in ever-changing market conditions are essential.

With over 40 years of experience in developing software tailored to customers’ needs, SAP has proven its mettle in supporting the logistics function of any organization flawlessly in its software.

Some of the components in the logistics functions in SAP include:

Materials Management

This component contains information of the purchasing functionality, inventory movements, accounts payable and the material master file that is considered the foundation of any company.

Sales and Distribution

This contains processes and information that deals with customer orders taken to the delivery of the product to the customer, also including the sales functions, pricing, picking, packing and shipping.

Quality Management

This component includes the steps detailing the planning and execution of quality inspections of products that have been finished and purchased.

Plant Maintenance

This component deals with the production process, which primarily provides information regarding the planning and execution of preventive maintenance on equipment and tools.

Production Planning

This component deals with the capacity planning of a company’s production, master production scheduling (MPS), material requirements planning (MRP) and the shop floor functions of producing a company’s finished products.

Customer Service

This component helps in setting the processes for a company’s service, which helps its customers with repairs and warranties.

Warehouse Management
This component helps the organization to manage its inventory accurately as well as maximise storage capacity.

Apart from these components, there are additional functions that can be utilized by the organization if needed.

The history of FedEx

February 14, 2010 by · Leave a Comment 

Frederick Smith, an undergraduate at Yale, wrote a paper as part of his assignment on mail delivery. His paper described that using the passenger air routes for package delivery required a better logistics system that would meet the needs of an automated society. This conception would launch a company that would later make history by becoming a $1 billion organization, without a merger or takeover, in less than 10 years.

It was not until 1971 before Frederick Smith could have the opportunity to test the idea that he wrote for that undergraduate term paper. That year he bought stake in the Arkansas Aviation Sales but found the delivery system inefficient. He then created a new model that offered a cost effective delivery system. With the help of venture capital, he was able to raise $91 million and invested $4 million of his own funds to float a new company. Thus, Federal Express was born in the April of 1973.

Frederick Smith’s new company started its operations with only 14 planes with Memphis as the company headquarters. Initially, the company served 25 American cities and took two full years for the company to see profit in 1975. The growth was rapid for FedEx and thanks to the deregulation of the airline industry by the federal government, it was able to use bigger planes and increase the efficieny of the service that FedEx provided. The company challenged the United States Postal Service by offering overnight shipping of letters in 1981. A 15-day strike at USPS enabled FedEx to steal the market share from its rival.

Impact on the Industry
FedEx was hugely responsible for bringing about a revolution in the package delivery industry by introducing economically feasible methods such as the overnight, two-day package and envelope delivery services.

The elements of reverse logistics

February 13, 2010 by · Leave a Comment 

Reverse logistics is defined as the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin.

The key reverse logistics elements are:

Gate keeping – It is the process of screening unwarranted and defective commodities at the entry point.

Compacting Disposition Cycle Time – When products come back to the distribution centers, the disposition methods should be kept as simple as possible so as to save time.

Reverse Logistics Information Systems – The returned items must be tracked and stored at a central repository, by the use of an information system in place.

Centralized Return Centers – In a centralized system, all the products of reverse logistics are sorted, processed and sent to the next destination level in the central facility.

Zero Returns – The manufacturer or distributer will not permit products to be returned. They set a return allowance and set rules for accepting disposition of products from the retailers.

Remanufacture and Refurbishment – This element can split into five categories. They are repair, refurbish, remanufacture, cannibalize and recycle.
– The first three categories involve product up gradation methods.
– Cannibalization is the process of using the product parts of a product for the same product again.
– Recycling is the process of using any part for any product.

Asset Recovery – Helps in minimizing the disposition costs and environmental problems.

Negotiation – This is the deal making or bargaining phase and is a key part of reverse logistics process.

Financial Management – This is the primary determinant in the overall structure of the reverse logistics system.

Outsourcing – The reverse logistics activities are outsourced. The efficient handling methods in a reverse logistics, produces good results.

How to Ship Animals and Pets

February 5, 2010 by · Leave a Comment 

If you intend to travel and need to have your pet come along with you too, it is obvious that your pet would have to make the trip separately. However inconvenient this separation might seem, these rules are in place for a reason. What we can do is abide by the U.S Postal Service regulations who will take sufficient care of your pet while in transit. Here are a few pointers to keep in mind when shipping your pet:

1. Understanding and agreeing to regulations laid down by the United States Postal Service regulations for shipping live animals is the first step. The first thing to consider is the list of animals that can or cannot be shipped.

2. The appropriate packaging material has to be used for shipping pets and animals. The container used should be double-walled, weather-resistant fiberboard that is corrugated as well. Importantly, the package has to pass a 275-pound mandatory test. Proper ventilation in the container is another important factor to be considered. This is to ensure that in the event of any mishap, the container will protect your pet inside.

3. The shipment has to be properly labeled. A short description of what is contained in the package and a return address is necessary while shipping live animals.

4. A visit to the local post office would help, as the postal worker will assist you in selecting the appropriate postage for your shipment.

5. Even if you have followed all the regulations laid down by the United States Postal Service, your shipment may not be accepted. The reason for refusing to accept your shipment could be that the animal you are trying to ship would not be able to travel the distance or that prevailing weather conditions might not be suitable for the pet animal being shipped etc.

The bottom line is that there is nothing to worry about, when it comes to the safety of your pet while travelling. However, it is important to ensure that these precautionary steps are taken so that your pet has a comfortable journey in your absence.

History of DHL

February 4, 2010 by · Leave a Comment 

DHL Worldwide Express began its operations in 1969 by providing express mail delivery services between the United States mainland and Hawaii. Larry Hillbloom, Adrian Dalsey and Robert Lynn founded DHL, which is now a multi-billion dollar organization that has its footprints around the globe and is the main competitor for FedEx and UPS. What started out as a humble operation with just three employees now employs close to 300,000 people operating in about 200 territories and countries.

DHL’s key success factor has been its ability to adapt to the growing demands of the logistics market. It has always kept pace with its competition through continuous improvements in service levels. In a move to expand their operations one of the founders of DHL, Adrian Dalsey traveled to Hawaii, Micronesia, Guam and other parts of Asia in 1980, and sold his share and interests in DHL laying the foundation for what is now a global empire. In 1983, it became the first carrier to offer services to Eastern European countries. DHL opened a deluxe center in Brussels in 1985 that soon handled 150,000 orders every night. The period between 1993 and 1998 saw DHL expand their business to the Middle East and Southeast Asia. The massive growth of DHL attracted Deutsch Post, the world’s largest logistical company, which began buying shares and stocks of DHL in 1999. Eventually, it completed the acquisition in 2002 with a majority ownership in the company. DHL now covers all forms of delivery services like air, overland, freight and sea shipping and is the top logistical delivery organization in the world.

Importance of Injection Speed

February 1, 2010 by · Leave a Comment 

Many plastics companies working in manufacturing today utilize the process of injection molding. It can be a complicated process, which means there are plenty of places where errors can occur, causing a variety of defects in the finished products. One of the factors that must be carefully monitored is the speed at which the plastic is injected into the mold.

Why is speed such an important factor in plastics injection molding? Speed affects the temperature of the plastic. If it is injected too slowly, the plastic will have a chance to cool. This can cause wavy lines (flow marks) in the finished product or even a mold that was only partially filled, resulting in an unfinished product. On the other hand, if the injection speed is too high, the product can end up deformed or even have burn marks. It’s important to have an experienced manufacturer for your essential parts.