General

The Panama Canal

Just like the saying, Rome was not built in a day; the same can be said of the Panama Canal which is the realization of a dream that has seen two stages of construction amidst heavy losses. To put it simply, the idea of splitting two continents was incredible, but the benefits to create a safe passage for ships along a stretch of 77 miles would save time and mileage when traveling between the Atlantic and the Pacific Ocean, and vice versa.

The first stage of construction found itself grinding to a screeching halt as due to issues with funding as well as diseases such as malaria and yellow fever which resulted in several workers dying or needing to be hospitalized.

However, the second stage of the construction took adequate measures to deal with these illnesses as well, and under the strict supervision of the Army and adequate funding managed to complete the canal by August 15, 1914.

This modern miracle creates a safe and shorter passage for about a thousand ships annually since the time of its opening in 1914 to about 15000 ships annually as accounted for to date making it one of the most routes used by the international maritime industry, and completely exceeding the capacity which the engineers has in mind when it was built.

The Panama Canal Authority decides the toll to be paid according to the type and size of the vessel as well as the type of cargo it carries, as well as accommodates ships that are of a particular size known as Panamax ships, determined by the dimensions of the lock chambers and the depth of the water in the canal.

The History of the US Postal Service

If you watched Seinfeld, the popular sitcom in the 90s, you’ll remember what Newman had to say about the US Postal Service. Yes, the mail never stops coming in. The U.S Postal Service has indeed come a long way since the government created the Post Office department (although being an independent agency) with Benjamin Franklin as its first Postmaster General in 1775, a position that was automatically guaranteed its holder a position as one of the member of Cabinet. This department was created based on the vision that George Washington had, in dreaming of a country which was connected by postal roads and office, facilitating the free flow of information (in the form of newspapers) at low costs.

The Postal Act of 1792 further established clear guidelines that the Post Office or its officials were not allowed to open any letter unless they were undeliverable, which was clearly to protect the privacy of its citizens.

With the realization that mail has to be delivered to all parts of the country, the Post Office used steamboats to carry mail to towns which had no roads, and with the development of the railroads the Postal Service switched to using this method of transportation from 1832 on one line in Pennsylvania.

Another method of transportation was adopted in 1918, which involved taking over air mail service from the US Army Air Service, and by the year 1920 had delivered 49 million letters using this method.

With the Postal Reorganization Act in 1970, the Post Office became an independent government organization, and even till this day has the distinction of being the second-largest civilian employer after Walmart, employing 656000 workers working in 32, 741 locations in the United States delivering 660 million letters every day.
No wonder the mail never stops.

Creating a Logistics Strategy

Depending on the number of products or services, its customers and the number of locations, a company creates its logistics strategy based on these factors. Very simply, the term ‘logistics strategy’ is the definition that a company uses to describe its service levels in the situation where its logistics organization is cost-effective in its operations.

But why should an organization have a logistics strategy in place?

With the supply chain constantly evolving and changing, it is obvious that these changes could also affect the service levels of its logistics organization if a strategy has not been put in place that will not only allow for flexibility with these changes but also ensure that service levels are not reduced in identifying the impact of these changes as well as taking steps to make organizational and functional changes.

Normally, companies develop these strategies by looking at four levels within their logistics organization.

Strategic – This level is approached by looking at how the logistics organization matches up to the company’s objectives as well as the supply chain decision.

Structural – At this level, the structural issues of the logistics organization should be taken into consideration.

Functional – In this step, one should examine how each function can achieve high service levels.
Implementation – Finally, this step should take a close look at how the logistics organization strategy can be implemented successfully at all levels in the organization.

In addition to these levels, there are important components that one must examine in developing a logistics strategy. There components include transportation, outsourcing, logistics systems, its competitors, the flow of information and the company’s overall strategy review.

The History of Aramex

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

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

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

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

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.

Foundation
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.

Growth
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

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

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.

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