transformation of natural resources;

Activities movement and storage of raw

materials;
involved
in supply processing of raw materials and
components into finished goods;

chain storage of work-in-progress and

operations finished goods; and,

delivering the finished product from

point of origin to point of destination.
 manufacture
wholesaler
r
Links in the
chain of
distribution
retailer consumer
Drag your dot to how you are feeling:

Keep going, I
I’m a little confused Stop, I need help!
understand
Delivering metal from an
extraction plant to a
manufacturer.
Is this statement true or false?

True False
Drag your dot to indicate whether you agree or disagree:

Agree Disagree
I wonder...
Can you think of a
local example of a
direct distribution
channel?
Can you think of a
local example of
an indirect
distribution
channel?
Connect to your own life:

What’s something interesting Can you relate this to something

you learned today? in your own life?
(How is it similar, different, or helpful
to events in your life?)
Functions of Logistics
Explain what mode of transport is needed
you to travel from Barbados to Trinidad &
Tobago
How did you come to that answer? What evidence supports your idea?
Transportatio
n
A mode of transport is
the means by which
goods are moved from
one point to another.
Factors That Determine Suitable Modes of Transport

1. Effectiveness of the Mode of Transport

2. Value of the item being transported
3. Urgency of Delivery
4. Nature of the goods
5. Reputation of the Carrier
6. Required documentation
Air Transport
Rail Transport
Road Transport
Marine Transport
 Natural Gas Pipelines in Trinidad and
Pipeline Transport Tobago
Digital Delivery
Contrasting Intermodal and Mutlimodal Transport
Intermodal transport involves the transportation of Multimodal transport involves the transportation of
freight in an intermodal container or vehicle using freight under a single contract but involving at least
multiple modes of transportation without any actual two means of transport. The carrier would then
handling of the freight itself when changing modes employ sub-carriers for each leg of the journey.
of transport.
Import Licence
Bill of Landing
Air waybill
Homework Time!!!!!!!

Step 2 Step 3
Step 1
Click classwork tab,
Go to google Logistics assignment
the scroll to graded
classroom
assignments 1 complete the
activity.
Advantages of Supply
Operations
• Improved quality of life
• People depend on the supply chain to deliver the
necessities they need to survive, such as food and
water. In addition to needs people also require things
to improve their quality of life.
 Advantages
The supply chain makes it possible to acquire
things such as refrigerators, televisions and cars.
 • As societies develop
Supports infrastructure such as; roads,
railways, ports and airports
economic enable citizens to access goods
and services.
growth
 • The supply chain creates plenty
employment opportunities, for
example; packaging, purchasing,
marketing, advertising and
Employment warehousing.
opportunities
 Globalization- You are not the only
entity with access to supplies,
products, and labor around the
world – you now have a lot of
competition scattered across the
Disadvantages globe.
of supply
chain
operations Globalization necessitates that
supply chains are highly efficient
and well-run in order to stay
competitive in a global market. 
 Having materials, factories, and
customers all over the world
means being at the mercy of
global events, from natural
disasters, to port closures, to
Greater political uprisings.
risk Globalization requires that supply
chain managers have detailed risk
management plans in place and
that they are prepared when
disaster strikes. 
 The opportunity to grow business goes
hand-in-hand with the issue of greatly
increased supply chain complexity
when it comes to management.
Large-scale
manageme Companies must scale up all aspects of
nt issues their business as it grows across
borders, which can cause problems
that stretch the globe. Inventory issues
and distribution issues are high on the
list of problems encountered by going
global.
 Operating across borders means
operating in countries that very likely
have different laws and regulations.

Legal For example, secret product details may

not be safe in China, where they have
issues. less stringent intellectual property laws.

In another example, a country where

you have a factory may have very
different employment laws than another
where you have an identical factory.
Impact of logistics and supply chain operations on the
competitiveness of business

(A) LOGISTICS IMPROVE (B) COMPETITIVE (C) COMPARATIVE COST

COMPETITIVENESS ADVANTAGE ADVANTAGE
 Logistics can improve competitiveness

The impact of
logistics and
supply chain on
It aims to meet the increasing demands of
customers at lowest possible cost.

competitiveness
in Business
Effectively managing the flow of materials,
products and information from the
supplier to the end consumer is all part of
the logistics system.
 Competitive advantage

The impact of
logistics and
supply chain on
competitiveness
in Business The success of a business depends considerably on its
ability to match or surpass services or products of its
competitors. This refers to conditions or
circumstances that put a business in a more
favourable or superior position in comparison with its
competitors.
 The impact of
logistics and • Comparative advantage
• This refers to being able to produce a
supply chain on commodity at a lesser cost than other business.
competitiveness This achieved through outsourcing.
in Business
 First party logistics (1PL) – these
are logistics provider firms that
own their own logistics activities
and sometimes outsource some of
their activities.
Types of
outsourcing
Second party (2PL) – these firms
provide their own assets For
example, planes, trucks, ships,
warehouses etc.
 • Third Party (3PL) – these firms perform logistics
Types of on behalf of another company (1PL), providing
management skills along with the physical
outsourcing assets, labour and technology to provide
logistics to part or all of the supply chain.
 • Fourth party (4PL) – these are supply chain
integrators. The (4PL) assembles and manages
Types of resources, capabilities and technology of an
organization’s supply chain and its many
outsourcing providers, that is it co-ordinates the activities of
the (3PL) designing, building and running
supply chain solutions for clients.
Types of outsourcing

• Other examples of outsourcing include payroll

and accounting, operation of call centers,
consultancy using temporary employees from
agencies
 It can free up cash flow, personnel and time
resources for the company.

It can result in cost savings due to lower

Benefits of cost labour costs.

outsourcing It enables the company to focus on its core

business competencies

It tends to be directed to organizations who

are specialists in the required services.
 Relationship between the
availability of airport, harbour
and docking facilities
Distribution
Problems
the efficient distribution of
goods
 Delayed shipment

Spoilage

misdirection of goods
Distribution
inadequate warehousing facilities
Problems
lack of proper security measures

industrial unrest

ineffective communication
Measures to
mitigate • Government intervention
• Communication network including use of the
problems in internet.
• Insurance.
distribution
Measures to
mitigate
problems in SELECTING THE MOST USE HANDLING SERVICES WITH
distribution APPROPRIATE CHANNEL OF
DISTRIBUTION BASED ON
PRODUCT.
GOOD REPUTATION
Measures to • Careful labelling and
mitigate documentation
• Avoid holding large stocks
problems in • Employing security company, use
distribution of security cameras.
The impact of
information
technology on
logistics and • Global Positioning Systems (GPS)
supply chain • Businesses engaged in transportation have three particular
operations concerns: security of their vehicles, avoiding fuel wastage
and maximum efficient use of their fleets.
GPS
• Fuel Consumption – A GPS system installed in vehicles
enables the owners to get real time knowledge of the
whereabouts of the vehicle, and to monitor vehicle idle
time, driver behaviour and fuel usage.
GPS

• Security and safety- The location tracker system enables the vehicle to be
tracked if stolen, thus facilitating increased retrieval of stolen vehicles and
their freight.
• Time predictor monitoring – One of the
biggest advantages is the ability to plan the
shortest and best possible routes for vehicles
to follow. This reduces fuel wastage and helps
GPS
to reduce idle time.
 • This is an information system designed
to capture, store, manipulate, analyze,
manage and present geographical data
such as street maps and location tags

Geographical
via social media.

Information • Typical applications include highway

maintenance, traffic modelling, accident

Systems (GIS) analysis and route planning, and

environmental assessment of road
schemes such as traffic counting. This
helps government to develop
transportation policy and planning that
results in a better road infrastructure.
Portnet

• This aims to help ports and the shipping community to increase

productivity and save costs through the greater use of information
technology and the internet. It empowers the shipping community to
manage the complexity of cargo operations and the entire shipping
process.
 • Telemarketing is the direct marketing of
Telemarketing goods or services to potential customers
over the telephone or the Internet. Four
common kinds of telemarketing include
outbound calls, inbound calls, lead
generation, and sales calls.
E-commerce

• Electronic commerce or e-commerce (sometimes written as eCommerce) is a business

model that lets firms and individuals buy and sell things over the internet. E-commerce
operates in all four of the following major market segments:

• Business to business
• Business to consumer
• Consumer to consumer
• Consumer to business
Global logistics providers

• These are leading transportation solutions companies that focuses

on the lesser-developed regions of the world. Their supply chain
design, consulting, fulfillment and transportation services help
companies become more productive, efficient and competitive.

• Examples are FedEx, DHL, and Amazon Logistics

Logistics hubs

•  Is a center or specific area designated to deal with activities related

to transportation, organization, separation, coordination and
distribution of goods for national and international transit, on a
commercial basis by various operators. For example, Jamaica.
Activity
• Complete the following sentences
• 1. _Logistics___ refers to the movement _____, storage and flow____ of
goods and services and information inside and outside the organization.
• 2. _Supply Chain operations____ is a network between a company and its
_suppliers____ to distribute____ and _prdoduce___ a specific product.
• 3. Activities involved in the supply chain includes __transformation__ of
__natural__ resources.
• 4. Links in the distribution chain includes: manufacturer _____,
__wholesaler___, _retailer____ and __consumer____.