Global logistics management

Mungunshagai Enkhbold

Global Logistics Management

Introduction

• NYK Logistics is a logistics (Transportations) provider.

• NYK Logistics is a part of NYK Group, which was founded in 1885.

• They satisfy the needs of their customers with the carriage of a variety of goods safely and securely.

NYK has more than 30,000 employees around the world and offers various logistic services:

Introduction

Container Transport

Land

Sea Air

RORO

Other servicesBulk and Energy resource transport

Terminal, and Cruises

Focus • This project will be focused on how the supply chain

management of NYK has changed as a result of information technology advances.

• Project Scope• We will be focusing on:

– Internal management of containers– External tracing management system– How NYK could compare to others in its industry by

benchmarking– Future transportation to improve SCM

Current situation of NYKThe ultimate goal of Supply Chain Management is to completely synchronize every supply chain cycle with the customer's final demands. In reality, however, this goal is difficult to meet.

•Challenges in Supply Chain Management facing NYK: - Further distances and longer lead times to manage - More complicated transportation routes and distribution patterns

Challenges in Supply Chain Management facing NYK:

- Increased risk of the Bullwhip effect due to number of additional trading partners

- More difficult to respond to Consumer demand in a timely fashion

- Communication and coordination problems increase

Challenges in Supply Chain Management facing NYK:

- Communication among multiple partners with varying technologies

- Reacting to changes and problems in an extended supply chain

- Effective communication and cooperation among supply chain partners

Case Study: NYK Logistics, Long Beach, California,

United States of America.

Case Study: NYK Logistics, Long Beach, California,

United States of America.

Main characteristics: Target’s largest distributor

70-acre site

1,200 parking slots

250 dock doors

More than 2500 gate

transactions daily during peak

24/7 operations

The main challenges of this old system were:

Difficulty keeping up with demand (volume / velocity)

Limited yard space

Level of service performance at risk

Difficulty finding containers and trailers

Difficulty Selecting ‘primary carrier’ trailers for shipping

Labor intensive yard checks

Focused on retaining business as opposed to growing business

“In the old system—with a clipboard and spreadsheet and a walkie-talkie—it was impossible to manage…”

Solution: RTLS (Real time location system)

Long battery life (5 to 7 years)

High data capacity

True Real-Time Location System

Omni-Directional

Thousands of Tags per Acre

Long Range

Indoor/Outdoor Operation

Compatible with any Wi-Fi

Changes in SCM?

• Increased speed: each truck takes just 15 to leave and take 1 container. It took at least 1 hour with the old system.

• Able to handle peak volumes more efficiently

• Increased capacity over 50%, and it´s still expandable.

• Improved level of service performance to 2 days during peaks –it was 7 to 9 days with old system.

• Eliminated daily yard checks.

• More accurate and real-time information shared with customers.

Sustainability

• More then 12 months later competitors began to

implement the same or similar systems.

• Sustainable success can be obtained by having a

sustainable innovation strategy, since innovation is about

using change to better meet human needs and values. In

other words, bring new design and smart technologies

together so offer service excellence.

Sustainability

•NYK Logistics was the first company in the USA to

implement a RTLS.

• Setting focused targets and putting in place the means to

measure performance and confirm that the targets are

being achieved. (check

progress)

NYK Logistics’ TechnologyNYK Logistics uses several technologies to provide the services to their customers. One of the most important technologies is the satellite tracking systems.

This technology is being used in several industries related to the NYK Logistics: Retail Business and Food and Beverage business. By using this technology, NYK Logistics can solve several challenges and result in the better performances.

NYK Logistics’ Technology

Satellite Tracking System is the technology that uses the application of GPS and related software to track the fleet that provides by the NYK Logistics. By using this technology, NYK Logistics can track where are their fleets, trucks, ships, containers and so on.



NYK Logistics uses the PARLMS’s technology (PAR Logistics Management Systems) which provide the tracking systems to the containers, vehicle and all kinds of fleets.

NYK Logistics, Inc., has selected PAR's GT 200 Genset Tracking system for their fleet of power units.

NYK Logistics’ TechnologyBenefits of Genset tracking systems are :• Providing the container’s status• Maximize the utilization of assets• Offering the real-time fuel level monitoring• Bringing the new level of value of business as well as to the NYK’s customers’ business.• Providing more security for the shipping and all transportations.


According to the benefits of satellite tracking

systems, NYK Logistics can provide more services to

various industries. By the innovation of the tracking

system, it can be integrated to the technology that

uses in the supply chain management.


The results of the tracking systems to the supply

chain management are either reducing the amount

of stock keeping units in the inventory, providing

more reliability for the supply chain services. These

are the reason why the NYK Logistics can win the

customers’ satisfaction because they always find

ways to improve their services

Using a competitive (benchmark performance or processes with competitors) and functional method (benchmark similar processes within an industry) with public domain information, it can be discovered that NYK logistic have opportunities of improvements in some specific business areas and specific performances:

Benchmarking OpportunitiesBenchmarking Opportunities

Operator TEU CapacityMaket Share Ships

APM-Maersk 2,031,886.00 15.5% 539

NYK 433,000.00 3.3% 119Difference 1,598,886.00 12.2% 420

Top 1st leading:

World’s top 10 shipping lines


MAERSK has been analyzed to see the improvement’s opportunities of NYK in the Vessel Performance Management, which has been worked in the industry by the MAERSK Maritime Technologies, where they study and improve the Energy Efficiency, Operational Efficiency, Hull, Propeller & Main Engine performance Management. Some specific application on the daily performances that can be applied in NYK as benchmarking could be the followings:


Benchmarking - Vessel Performance ManagementBenchmarking - Vessel Performance Management

2. Ballast Water Treatment: strategic partnership to boost protection of local maritime eco-systems. Combine the knowledge of ship technology, water treatment, and pumping technology which has now resulted in a unique and sophisticated concept based on proven technology.

1. Generating power from heat instead of fuel: Waste heat recovery (WHR) systems utilize heat contained in engine exhaust gases to generate steam.

3. Implementation of the SEA-Mate® Elemental Analyzer:

• (1) save time compared to sending oil samples ashore for analyses. The results are ready within 6 minutes .

• (2) We are able to monitor the iron content in scrape down samples from the main engine within minutes and from these results we have the capabilities to judge the condition of the cylinders while the engine is running.


3. Implementation of the SEA-Mate® Elemental Analyzer

•(3) As a result of the two factors above, we are able to optimize the cylinder oil consumption for each cylinder, thus being able to save on cylinder oil as well as maintenance cost.

• (4) From the Calcium content in the cylinder oil you are able to measure the TBN in a reliable way if needed.

• (5) From general oil samples from different machinery

we are able to judge the condition of gear wheels, bearings etc. and save maintenance cost in the long run.


DeductionDeduction

• There are more than five companies that have more market

share and capacity than NYK, therefore could be many

benchmark opportunities in the industry in different business

areas in the organization. In this research project only public

domain information was utilized, hence the benchmark scope’s

was limited to one of the main business areas in the NYK.

NYK Super Eco Ship 2030- our concept ship in the futureNYK Super Eco Ship 2030- our concept ship in the future

Super Eco ShipSuper Eco Ship

Alternative energyAlternative energy

Reshape business modelReshape business model

Future traffic infrastructureFuture traffic infrastructure

Future cargo handlingFuture cargo handling

To make it clear what NYK need to technically develop in the long term including alternative energy

To lead to think future system of shipping, such as cargo handling and traffic infrastructure

To appeal to young engineers/students in the world that the development of the future ship is challenging and hopeful

Purpose and TargetPurpose and Target

AdvantagesAdvantages

Reduce the ‘’Emission Zero’’ Reduction of CO2 Emission Reduction of weight Power generation with fuel cell Solar power Sails Increase of Max Loadable Capacity

NYK Super Eco Ship 2030 video.wmv

Diesel EngineDiesel Generator

Fuel CellBattery Motor

20082008Fossil fuel

2050 Emission 2050 Emission ZeroZero H2

2030 Super Eco Ship2030 Super Eco Ship

20202020Solar, WindH2

Road to “Emission Zero”Road to “Emission Zero”

Conclusions• For a thriving Supply Chain management NYK should deliver

and integrate activities across areas of: Transportation,

Warehousing, Information, and International management.

• knowing their customers and understand their business and

their Customer's Customer

• Comprehend their customer's current supply chain design

Conclusions• Design customized, integrated solutions that synchronize the

supply chain events to balance the responsiveness and efficiency

within the supply chain.

• Implement solutions to SCM based on:

- Dedication to customers and their businesses

- Quality, excellence and advanced information management

- Superior global network integration

- Flexibility and innovativeness their organization

- A highly trained and professional workforce

Date post:	21-Jan-2015
Category:	Business
Upload:	shagai-ebo
View:	551 times
Download:	0 times