"Supply chain management is concerned with achieving a more cost effective satisfaction to end customer requirements"(Christopher, 2005). Logistics traditionally represent the various activities implemented to handle goods from the supplier to the final customer. Today, these activities are included in the concept of supply chain management, where the main objective is the optimization of costs and flows linked to the goods.
In this period of economic downturn, the firms understood that the international trade and the expectations of the markets have changed. Today, they have to improve their supply chain management, as they must face new issues and expectations of the markets. Firstly, the prices of goods have rocketed because of the economic crisis and the Mideast wars have created an increase of oil rates.
Then, the United Kingdom became in a decade a massive importing country and a major part of these importations come from the Far East Asia. Besides the importation forecasts show that they should more than double by 2030. Finally the populations are getting more and more concerned by the environmental issues, concerning the relief of road traffic congestion, the reduction of CO2 emissions and the way of making their lives greener through the consumption. So, in the way of creating a modern supply chain, companies have to face the pressures to reduce the costs, the demands of increased efficiency, the reduction of lead times, while keeping in mind that the environment must be protected as much as possible.
[...] et al, (2008) Global logistics and supply chain management, Chichester McKinnon,A.C. and Woolford.R,E. (2011) The effects of Port-centric Logistics on the carbon intensity of the maritime supply chain: A preliminary review, Logistics Research Centre, Heriot-Watt University, Edinburgh Notteboom,T. et al, (2011) Current Issues in Shipping, Ports and Logistics, University Press Antwerp Notteboom,T. et al, (2009) Ports in proximity: Competition and coordination Among adjacent Seaport, Analytiqa Newspapers and magazine articles Mangan.J. et al (2008) “Port-centric Logistics” Vol 19, N°1, The International Journal of Logistics Management Norman.S. [...]
[...] Teesport is not just a geographical asset for Asda, but also a way to reduce significantly their environmental footprint. The principle is to move the goods not the containers, so one of the objectives of Port centric logistics is to reduce the running of empty containers handled through the UK, reducing by the same way their utilisation of trucks and rail. Actually, the new import centre in Teesport will enable Asda to empty the containers within the port structure without having to fit a limitation of road weights. [...]
[...] How to reduce Asda's Logistics Costs? The logistics costs include inventory, warehousing, material handling, transportation, packaging and security costs. In this part we see how Asda can save money on these costs The management can help to reduce the inventory size, so the warehouse can be more little, and help to reduce the cost per product. Then, if Asda ask for fully laden containers, as they do not have to be worried about the road limitations, they are able to use 1200 fewer containers per annum. [...]
[...] In 2006, they were opening their new import centre in Teesport, in the North of the United Kingdom, making a significant change in their supply chain management. Indeed, before this establishment in Teesport, Asda were using inland distribution centres. In logistics warehouses have a strategic role to play. Actually, they provide a local inventory, permit manufacturing economies and procurement efficiencies; they enable the company to perform value added services for the customers such as customization of the goods, or product mixing. [...]
APA Style referenceFor your bibliography
Online readingwith our online reader
Content validatedby our reading committee