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Shvoong Home>Business & Economy>Management & Leadership>The speed of transport considered as a relative attribute Summary

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The speed of transport considered as a relative attribute

Article Summary by: JRNICOLETTI    

Original Author: Nicoletti, J.R.

The high level logistic performance is becoming, each more, a critical ability. It was observed in last three decades

some alterations in the transport paradigms, before aim in cost reduction, improvement of quality and increase of distribution speed. Recently, new requirements had been incorporated logistic services e, amongst other attributes, must incorporate availability, quick response and tracking (being necessary localization of the product throughout the stages of the logistic process). The information in real time became very valuable, in way that when the logistic flow is tracking, the company will be able to take corrective acts immediately.


However, the concept of a fast transport is relative. It not only depends on the speed of the transport equipment, but also depends of the availability for the attendance. It can not seem truth, but the wagon pulled by animal with the announcement of “fast transport”, or the truck with more than thirty years that stubbornly still circulate with weighed loads, can be more efficient, depending on the necessity of the customer or the attribute for valued it, of what modern tracked vehicles by-satellite. After all of accounts, it does not advance to opt to a fast transport, if it is not available when it is necessary!


The factor time started to be one of the elements most critical of the logistic process, in function of the concern of the companies with the reduction of the size of the supplies and with the search of the satisfaction of the customers, who demand the rigorous attendance of the order in the established stated periods.


Basically, a level of logistic service consists of the relation between the total delivered (on time and in full, without item missing or damaged) and the received total of orders in the same period. In this concept of perfect distribution, another element of great importance in the supply chain emerges, the factor quality.


In another side, it is necessary to certify itself if the service level offered to the customer is in accordance with its expectations. A level of service above of the client expectations means a wastefulness of resources that will not be valued or considered as important attributes for the client. In any way, the metrics OTIF (on time, in full) it cannot be considered as an isolated metrics.


In the most of the cases, the improvement of the service level is related to the reduction of the time of the attendance cycle that, in the language of some authors, is called “compression of the service window”. The pressure of the customers tends to dislocate one current point of attendance, implying in the requirement of an attendance cycle each shorter time, and an index of availability of the product or the service next to the 100%. This situation occurs, for example, when a customer wants to reduce its supply and requests that the supplying make deliveries in less quantity and with more frequecy.  It is a trend of increase of costs! 


Some authors suggest that the company could compromise with a package of common basic services to all the customers, and leave the performance premium, of high level,  as a strategic option limited to the attendance of a selected amount of clients, made use to pay more for an extra quality of the logistic attendance.


The costs nor always increase of linear form, but they can present a geometric growth in relation to the reduction of the cycle time. The  question is to find a good relation between costs, service level and the client satisfaction.


Published: July 23, 2008
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