Logistics is the science that deals to manage and control the flow of goods, energy, information, products, services, and people from the source of production to the market place. Without the support of logistics, it is not possible to accomplish the task of marketing and manufacturing. Logistic support is the integration of information, transportation, inventory, ware housing, material handling, and packaging. The operating responsibility of the logistics includes geographical reposition of the raw materials, work in process, and finished inventories based upon the requirement at the lowest possible cost.
A. Background of the two companies Fed Ex and DHL: Fed EX: Fed Ex Corporation is a cargo, airline, printing, and courier company. The company offers overnight courier, ground, heavy freight, and document copying and logistics services. The honorably discharged US marine Fred Smith in Little Rock, Arkansas, originally founded the company in 1971. In April 1973, the official operations of the company began at Memphis Tennessee, by utilizing the network of 14 Dassault Falcon 20s that connected 25 US cities. The company, the first cargo airline used only jet aircrafts for its services.
There was a great expansion of the company when there was deregulation in the cargo airline sector. Fed Ex has several operating units. The Fed Ex supply chain services provides logistic services, which includes critical inventory logistics, transportation management services, fulfillment services, and other services. DHL: Founded in 1969 by Adrian Dalsey, Larry Hillblom, and Robert Lynn, DHL is a Duetsche post company. The company provides international shipping of documents and freight and the contract logistics.
The global headquarters are located in Bonn, Germany and London, UK. The American headquarters are located at Plantation, Florida, and the Asian head quarters are located at Singapore. Among the three divisions of the DHL, the DHL logistics is sub divided into DHL global forwarding, DHL excel supply chain and DHL freight. B. Stage of the international development: Fed Ex: The company uses hub spoke distribution paradigm in the airfreight, which made the company to become the world leader in its field. The company’s Memphis hub operates most of the US over night freight.
The Canadian hub operates from the Toronto International Pearson Airport. The upcoming new Asian-Pacific super hub in Guangzhou Baiyun International Airport in South China the intention to develop this super hub in china is to help the demand for the increasing levels of service. DHL: The company began as a courier service in Sanfransico and Honolulu, and expanded its operations to Pacific and Europe. The Company is famous for its ability to offer worldwide services for freight, package, and shipping to areas such as Iraq and Burma.
DHL is as German company, embargoes of the US cannot affect the services of the company to Cuba or North Korea. The company has won the contract worth 1. 6 pound to run the NHS supply chain; through this, the company provides logistics services to products that support 600 Hospitals over England. ii. Transportation and Operations Management: The corporate strategy linked to the strategic decisions in a supply chain that guide supply chain policies from a design perspective.
The efforts of these decisions will effectively manage the product flow in the strategically planned supply chain. The decision on transportation or distribution comes under the category of strategic decisions. Transportation is more than thirty percent of the logistic costs, and operating efficiently makes good economic sense. Shipment sizes, routing and scheduling of the equipment are the key in effective management of the firm’s transport strategy. A. Equipment scheduling:
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