ASSIGNMENT ON LOGISTCS & SUPPLY CHAIN PRACTICE BY 3 FIRMS

SUBMITTED BY: RAHMATH RAHMAN ROLL NO 32 ON 24TH OCT-2011

SUBMITTED TO:PROF. BIJU M.K MESCE

LOGISTICS PRACTICE BY TOYOTA COMPANY

Toyota Tsusho Logistics provides national service in Australia, Warehouse in Laverton North was established as a showcase facility using state of the art equipment, technology, methods, and working practices to satisfy customers requirements for quality, service and cost competitiveness. These services are providing to Automotive and non automotive customers. Toyota Tsusho (Australasia) utilizes the Kanban and TPS (Toyota Production System) in all aspects of its logistics operation. The Kanban system allows our customers to pull stock for Just in time delivery and we use the same system to handle inventory for our domestic customers. All products are inspected for shipping damage and obvious deterioration. The logistics centre in Melbourne is 25,095 sq. metres, Adelaide is 10250 sq. meter and another 7000 sq meters in Orange NSW, servicing Electrolux. The logistics centre is in Melbourne is located in Laverton North, which is close to the Ring Road, Western Highway and Westgate freeway. The ports of Melbourne are only 15 minutes away. Toyota Industries aims to help its customers reduce their total logistics costs and address their needs for logistics improvements by tapping into its wealth of accumulated experience gained from the production and sales of lift trucks, automated storage and retrieval systems, and other materials handling equipment, as well as our production know-how, which is best represented by the Toyota. Toyota industries considers logistics to be an ongoing process that continues until a product passes the checkout counter at a retail store. From the perspective of optimizing the overall flow of goods, we aim to build original business models that enable extensive improvements which include logistics reforms within retail outlets. In addition to the flow of goods we have added operations to control the flow of money and the flow of information in order to provide overall optimized logistics solutions that have never existed before. In addition to cargo transport and warehousing operations. Toyota Industries carries out the Logistics Solutions Business to help companies reduce their logistics costs. We handle all aspects of customers' logistics by combining our extensive business experience in lift trucks, automated storage and retrieval systems, and other materials handling equipment with our production and logistics know-how that has been cultivated from monozukuri (creating things). We are building original business models that strive to optimize the overall flow of goods, money, and information from the manufacturer to the customer, and thereby contribute to the optimization of the customer's overall logistics.

The Logistics Division provides

Warehousing Distribution (Local, Interstate and Overseas) Customer Service

3rd Party Logistics Inventory Control Shipping Container Packing for Export Shipping Container Devanning Kanban Deliveries (Just in time) EDI System Barcode System Labeling, Re-packing etc Inspection to Standards Assembly operations Web-based warehouse management system

Toyota Tsusho (Australasia) encourages full participation by all employees in Kaizen (improvement) activities and suggestion schemes to ensure continuous improvement in operations. Toyota Tsusho (Australasia) Logistics brings the benefits of globalization by supply chain management.

The Seven Deadly Wastes of Logistics

While The Seven Deadly Wastes were originally intended for production operations, the concept is rapidly catching on in the service sector. What follows is an application of TPS principles that can be applied to the logistics area. Within logistics, we have determined that there are also seven areas of waste. We call these The Seven Deadly Wastes of Logistics. 1.Overproduction: Delivering products before they are needed is overproduction. More serious for the entire supply chain is demand information overproductionwhat Toyota calls created demand. Created demand is caused by requesting a quantity greater than needed for end use or requesting it earlier than needed. Created demand typically adds 40% to supply chain volume fluctuation at the part number level. 2. Delay/Waiting: Any delay between the end of one activity and the start of the next activity. Examples include the time between the arrival of a truck for a pick-up and the loading of the trailer, and the delay between receiving the customers order information and beginning to work on fulfilling the order. 3. Transportation/Conveyance: Unnecessary transport that results in added cost. Examples include out-of-route stops, excessive backhaul, and locating fast-moving inventory to the back of the warehouse causing unnecessary material handling distances to be incurred. 4. Motion: Unnecessary movement of people, such as walking, reaching and stretching. Examples include extra travel or reaching due to poor storage arrangement or poor ergonomic design of packaging work areas.

5. Inventory: Any logistics activity that results in more inventory being positioned than needed or in a location other than where needed. Examples include early deliveries, receipt of order for a quantity greater than needed, and inventory in the wrong DC. 6. Space: Use of space that is less than optimal. Examples include less than full/optimal trailer loads, cartons that are not filled to capacity, inefficient use of warehouse space, and even loads in excess of capacity. 7. Errors: Any activity that causes rework, unnecessary adjustments or returns. Examples include billing errors, inventory discrepancies and adjustments, and damaged/defective/wrong/mislabeled product.

SUPPLY CHAIN MANAGEMENT SOLUTIONS IBM

Adapt to changing markets and customer demand
Are you effectively collaborating with your supply chain partners? Are you practicing just-in-time manufacturing? IBM's supply chain management (SCM) solutions can help you meet customer demand by accelerating time to market while keeping your costs low through a reduction in inventory. From manufacturing and electronics to retail and pharmaceuticals, IBM offers comprehensive solutions with metrics to help you monitor inventory, receiving, manufacturing and logistics. Distinguish your business by delivering high-quality products and services-with speed and agility-to meet changing customer demands. The credentials of IBM SCM Services' practitioners are exemplary, with resources spanning virtually all geographic regions.
y y y y

More than 25% of our staff members hold advanced degrees. Forty percent of our SCM professionals have more than 10 years of supply chain experience. We hold more than 14 supply chain-related patents. Our consultants have written more than 45 books and articles on SCM.

Our integrated solutions facilitate collaboration and logistics automation to expedite receiving, verification, shipping, payment and returns. Proven industry-based best practices and processes promote efficient just-in-time manufacturing to reduce inventory holding. Whether your supply chain partners are national or global, IBM and our Business Partners such as Oracle, SAP, Infor, Lawson Software, Manhattan Associates, or Symphony Technology Group offer innovative ideas to provide you with the competitive advantage. SCM solutions Cross-channel optimization for retail from IBM and Manhattan Associates Your retail customers have many choices when it comes to finding the products they want or need. By presenting one unified brand image across all channels, you can avoid frustrating and disappointing customers who expect to find, buy and return merchandise easily and hassle-free, regardless of how they choose to shop. Electronics value chain management from IBM and SAP Optimizing your supply chain for speed and flexibility can shorten product cycle times, enhance customer service and ultimately increase profitability and market share. IBM and SAP can help streamline your business allowing you to focus on your products, not your processes, so you can turn great ideas in to profits. Integrated manufacturing productivity from IBM, Cisco and Rockwell Automation

Boost factory throughput. Cut costs. Drive efficiencies across global supply chains. Comply with new regulations. Today's automotive manufacturers must connect information from customers, operations, corporate functions and suppliers. That's why three technology leaders have teamed to offer powerful productivity tools. Merchandising and supply chain solution from IBM and SAP Are your systems stocking Florida stores with turtlenecks in May and Alaska stores with bikes in December? Base your decisions on near real-time visibility into consumer demand and market conditions to optimize your inventory levels. Merchandising and supply chain solutions from IBM and SAP can help you predict and respond to market changes. Secure wireless supply chain for automotive from IBM and Cisco Changes in consumer behavior, continued pressure to reduce costs and growing complexity in supply chain management increase the need for a tighter link between suppliers and automotive manufacturing. Our solution facilitates data sharing to decrease miscommunications, while enabling you to sense and respond to change. Supplier relationship management from IBM and SAP Intelligently and flexibly manage procurement operations. IBM and SAP offer fresh ideas to unlock business value and promote sustainable financial advantage. By streamlining communication processes you can make more informed, timely decisions and cost-effectively execute supply management, sourcing and procurement.

Supply chain management from IBM and SAP Intelligently and flexibly manage supply chain and procurement operations. IBM and SAP offer fresh ideas to unlock business value and promote sustainable financial advantage. Optimize business processes to make more informed, timely decisions and cost-effectively execute supply management, sourcing and procurement. Supply chain optimization for chemical and petroleum from IBM and SAP With mergers on the rise, you need to standardize processes and operate globally. IBM and SAP can help you intelligently and flexibly manage supply chain and procurement operations. Optimize business processes to make more informed, timely decisions. And costeffectively execute supply management, sourcing and procurement.

LOGISTICS PRACTICES BY DELL

Our Dell Global Fulfillment and Logistics (GF&L) organization aims to develop and sustain a global transportation and logistics network that uses the most efficient and effective means for us and our transportation providers to distribute our products to our customers. Our job is to get the right product, to the right place, at the right time. Furthermore, our Dell logistics teams must do this at the right cost. We continue to optimize transportation costs while improving quality and striving to exceed the service expectations of our customers. In fiscal year 2011, many dynamic changes within the Dell fulfillment model challenged our teams. As a result, there were and will continue to be refinements to our transportation and logistics processes that affect the entire life cycle of our products from the distribution of inbound materials to our manufacturing and fulfillment centers, to the delivery of our finished products to our customers, to the disposal and recycling of end-of-life systems. During the past year, our teams continued to do the following:
y Optimize our inbound, outbound, reverse and service transportation networks, focusing

on using the most efficient use of air, land and ocean modes of transportation
y Work green initiatives that demonstrate that we recognize our roles and responsibilities in

being good stewards of the environment y Collaborate with the best logistics and transportation providers, who are focused on providing our customers with timely and damage-free deliveries and operate their businesses within the principles of environmental stewardship

Optimizing Transportation Networks In every region across the globe, our GF&L teams strived to stay ahead of the challenges that were presented by the strategic changes within Dells fulfillment model. We have exceeded our performance targets and this was done while transforming our supply chain and redesigning the end-to-end transportation network. We accomplished this feat through the implementation of globalized processes and tools. That work has allowed us to deploy new capabilities to support the timely and efficient distribution of our products to our customers.

For example, in the Americas, when some facilities were closed or their functions changed, our logistics team modified the transportation lanes from those facilities to our transportation and logistics partner networks and then to our customers. Furthermore, as we increased the production level of original design manufacturers (ODMs), we made more adjustments to the products. These adjustments added new carriers and transportation lanes from those ODMs to existing inbound transportation networks within those regions. We expanded our relationships with more retail partners around the world. In the

Americas, we optimized our outbound transportation networks to deliver retail products. In Europe, we have expanded fulfillment center distribution network for mainland Europe retail orders. In addition to the retail initiative in Europe, we were also able to reengineer our delivery model for accessories, reducing truckload volumes and fuel consumption. At a larger scale, the EMEA parcel delivery program also achieved financial and environmental success. In Australia and New Zealand, our multipack program has had a positive impact toward our global objectives by reducing waste. These examples can be viewed as a sample of global initiatives that support our objectives. These initiatives allowed the consolidation and completion of retail orders closer to end customers, thus reducing the travel distance, fuel consumption and carbon emissions across the world. Our Dell Logistics Teams continued to explore the use of every mode of transportation and sought opportunities to ship more freight using modes that offer greater reduction in fuel consumption and carbon emissions. Our regional teams examined the ability to upgrade the attach rates for freight that was best moved by sea instead of by air, and then executed the plan. Feasibility studies are planned for various transportation modes, such as rail from Asia to Europe, and also from China to South Asia. In Asia-Pacific/Japan (APJ), the optimal mode of transport is ocean shipment to countries such as Japan, Australia and New Zealand. In the Americas, certain aspects of our business dictate that we ship notebooks from Asia to the United States. In the past, we relied primarily on air service. However, last year we enjoyed improvements in our supply chain by shipping more freight from Asia to the U.S. via ocean carriers. Furthermore, we have also implemented the use of rail transport from ocean terminals to Dell fulfillment centers within the United States. This process has also become a standard practice to deliver notebooks to customers in Latin America and EMEA.

To provide world-class logistics support for Dell and our customers, our logistics teams must also leverage the best transportation and logistics providers available in the industry. During the past year, we made changes to the relationships we had with some of our carrier partners, which again required significant adjustments to networks and processes, as well as great attention to detail. As volumes shifted from one carrier to another, we ensured that there were no disruptions in customer service (such as delays in delivery times or an increase in the number of incidents with missing, wrong or damaged products) that would have negatively affected our customers' purchase and delivery experience. Dell's Logistics Teams Green Initiatives

In 2010, Dell was named Newsweeks Greenest Company in America. This is a significant accomplishment for the company, and the Global Fulfillment and Logistics team understands the responsibility that comes with such recognition. To that end, Dell drives internal processes and external partnerships to ensure we continue to drive improvement over time.

Trailer/Aircraft/Sea Container Optimization: Our Dell Logistics Teams continued to work collaboratively with manufacturing and packaging teams to optimize transport mode utilization. When we ship trailers and containers with higher densities, the amounts of fuel consumed and carbon emissions are reduced. In the past year, we examined and refined our processes to get better pallet build processes and better trailer loading utilization, which helped optimize our trailer loads. Transportation Mode Conversion: In the past year, we have reduced costs and our carbon emissions. While air freight remains to be a necessity for specific segments of our business, we have witnessed significant increases in efficiency by shipping to our international destinations via ocean freight. By understanding more about customer requirements and developing the right channel network to serve each type of customer, we now are able to reduce unnecessary fuel consumption and carbon emission by working with our ocean carriers. We have developed a network that has reduced the carbon footprint in each region and we continue to expand our service to more destinations.

Alternatives to Wood Pallets: Last year, the logistics, packaging and procurement teams continued their evaluation of pallets made from alternative materials, such as foam. There are numerous reasons to use a foam pallet as a means to ship products (especially those that we ship using aircraft). Weight reduction and reduced logistics costs are the most significant reasons. We have implemented this program, and we are realizing benefits in freight cost and CO2e emissions. We are launching more programs with our suppliers to gain cost and operational benefits from an inbound transportation perspective (freight transported from an Asia based facility to a Dell regional fulfillment center). This initiative has proven to significantly reduce the number of wood pallets consumed by Dell in the logistics process. And most exciting from a green perspective, the pallets are reusable and recyclable. Packaging: We continued our efforts from previous years to reduce the volumes of paper consumed in the processes of shipping our products. In addition to reducing paper and corrugated materials used for packaging and shipping, we continue to search for new areas to reduce the use of paper. In each region, there are ongoing initiatives to engage with logistics fulfillment centers in recycling packaging dunnage and reducing material volumes that end up in landfills. Dell has driven innovation in the packaging arena. One example is the program to increase the use of bamboo packaging for lightweight consumer products. For servers, which are much heavier and have different requirements, we have worked on a pilot program with major customers that introduced the use of mushroom based packaging. Innovations in this arena have very beneficial implications to the environment.

Reverse Logistics: Our global Logistics team leverages reverse logistics as a key strength in our sustainability efforts. We start by reducing transportation and fulfillment activities through the elimination of the root causes of returns. We then look to reuse as much of the return assets as possible, with over 90 percent of our returned product being made available through our Dell Outlet. We use fully recyclable packaging, including innovative sling boxes for notebooks. And, by shipping products from our Dell Outlet from a strategically located shipping point, we reduce our carbon footprint.

Dells Logistics and Transportation Partner Initiatives: We rely on the best logistics and transportation partners in the industry to ship our products to our customers. We ensure that our transportation and logistics partners are as committed as we are to being outstanding stewards of the environment. Our partners meet and exceed these requirements by engaging in initiatives such as the following: SmartWay/ISO14001/Green Terminals: We work with our carrier partners to capitalize on their efficiencies and to transport our products in an environmentally sound manner. To achieve this goal, we participate in the SmartWay program and expect our carrier partners to participate in this program as well. For example, UPS has been a long-time partner of many voluntary programs sponsored by the U.S. Environmental Protection Agency (EPA). These include a charter partner of the SmartWay Transport Partnership program in 2003, the Green Power Partnership, Waste Wise and the Energy Star program. Furthermore, many of our partners voluntarily comply with the standards of ISO 14001, which provides requirements for environmental management systems and confirms its global relevance for organizations wishing to operate in an environmentally sustainable manner. And like us, many of our partners strive to ensure that their facilities are operated as Green Terminals. Our carrier partners have their own initiatives to comply with ISO 14001 in their facilities. For example, they are using electronic data interchange (EDI) standards to transmit shipping documents and reduce paper use and are also using recycled cardboard as shipping dunnage to protect freight. Greenhouse Gas Protocol: In addition to Smart way, Dell also participates in programs such as the GHG Protocol Initiative. As they state on their website: The Greenhouse Gas Protocol (GHG Protocol) is the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions.

Fleet Optimization/Energy Efficiency/Innovative Technology: For our transportation and logistics partners to remain viable and profitable within their own industry, they must also demonstrate best practices throughout their operations. Our Dell Logistics Teams have worked aggressively to identify and collaborate with those carriers who have demonstrated that they are doing the best to improve their fleets and to achieve and sustain the levels of energy efficiencies in their operations. This strategy ensures that our partners are able to provide us and our customers with the best price for the best service and do so while maintaining high-service standards. Several of our partners are charter members of global organizations that aim to be recognized for their innovative initiatives. As an example of how one of our partners is demonstrating its continued commitment to sustainable business practices, UPS announced its participation in the EPA's Climate Leaders program. UPS is the first shipping company to join the program. The Climate Leaders program is an industry/government partnership that works with companies to develop comprehensive climate change strategies. Partner companies commit to reducing their impact on the global environment by completing a corporate-wide inventory of greenhouse gas emissions, setting aggressive reduction goals and annually reporting their progress to the EPA. Changing Behavior/Sharing with Customers Our transportation and logistics partners strive to be environmental leaders in the transportation industry. They participate in the development of sound environmental policies and the promotion of effective environmental management by their suppliers and contractors. Our carrier partners maintain their own robust corporate responsibility programs. Like us, they publish their own sustainability reports to share those activities that are a part of their corporate commitment to social, economic and environmental responsibilities. Look at some of these carrier partners' Web sites to see for yourself that we have chosen partners within the transportation and logistics industry that take their responsibilities of global citizenship and environmental stewardship seriously.