Guide to becoming more competitive through logistics

4 6 189

24 26 30

34 37 41

44 52 54

2
INDEX

Introduction 4

Chapter 1 - Guide to Best Logistics Practices 6

Chapter 2 - Situation of the Spanish Business Fabric 19

Chapter 3 - Solutions to logistical problems

specific developed in the PSE-Globalog 24

3.1- Analysis and configuration of the Chain of

Supply in a strategic context (SP2) 26

3.2 - Operational integration of the Chain

Supply (SP3) 30

3.3- Identification, monitoring and traceability

of systems (SP4) 34

3.4- Logistics Infrastructure: Evaluation

of the Atlantic and Mediterranean Networks (SP5) 37

3.5 - Logistics and environmental sustainability

SP6 41

Chapter 4 - Global Solution:

Integrated Services Platform 44

Chapter 5 - Success Indicators for Logistics

efficient 52

Chapter 6 - Conclusions 54

Chapter 7 - Consortium and Participating Entities 56

Chap. 8 - Annexes 58

3
 Guide to being more competitive through logistics

INTRODUCTION

Good logistics practices and

of supply chain management
supply as key measures
to enhance competitiveness

The situation of instability and the difficulties that attract When considering the logistics and management of the
Spanish companies are audited daily, which must supply chain as differentiating factors, cla-
facing an increasingly competitive global market you see to gain a competitive advantage in the market, you
repetitive, indicates the need for structural changes you can find various ways from which
profound measures to reverse this situation. this objective can be achieved, for example:

Among these structural changes, the improvements in Low cost. Through more efficient management
logistics practices and supply chain management participation in the mer can be increased
supply has been recognized as measures such as fa- to drop or improve profitability. This strategy is
key factors to improve the competitiveness of countries important in companies with little differentiation
Currently in some critical sectors for the among products (for example, the chemical industry or
Spanish economy, such as the industry of of paper). Logistics costs can exceed the
automobile, logistics costs exceed costs the- 15% of the cost of goods sold.
borales.
Better consumer service. The measures in-
Indeed, logistics and supply chain management short order cycles and availability of
ministers are configured as integrating functions and stock, accuracy in orders and invoicing, acce-
coordinators of operations and related resources Regarding the information on the status of the orders, I ha-
we need to work with the supply, production, and ability to respond to the grievances of the
physical distribution of the products. In other words, consumers, among others.
his management involves coordinating the different areas of the
company integrating material and information flows •Value-added services. This means providing
throughout the entire logistics chain, with a focus on being- highlight activities such as pricing and
customer addiction by placing the products where required product labeling, pallets with various pro-
ren and in the desired manner and timeframe. ducts, making last minute trips, direct delivery
to companies, arrangements for supply
The effective management of this area and its continuous improvement has I continue quickly and provide training and
it has a direct impact both on the quality of being- software to consumers.
vice as in the costs associated with the product. It is here
where the company delivers added value and obtains Flexibility. The system can be sufficient-
a competitive and differential advantage that positions it flexible mind to customize the service and the
in the market facing customers. offered cost to meet the needs of
the different segments of consumers or of the
individual consumers.
4
 •Innovation. The company must have several features. The analysis conducted shows that there are opportunities
important characteristics: it must have the capability of measures to improve competitiveness in logistics and in
to learn from change, information systems supply chain practices in Spain, both in
flexible ones that can adapt to new forms infrastructure topics (for example, facilities
from the business, the vision of recognizing the need for of railways and multimodal platforms) as in the
change and the direction it must take and the lead- adoption of advanced logistics and supply chain practices
reason to lead this change. supply by Spanish companies.

Even when logistics is becoming increasingly ... This publication offers companies a
your importance in companies is still present consultation catalog on best logistics practices
there are many in which the logistic function is not going detected practices worldwide, as well as an analysis
lore. This function is considered as a center of of the situation of the Spanish business fabric regarding
costs and the benefits that a to the adoption of such practices. The analysis carries out
adequate management. It shows that there are opportunities to improve the
competitiveness in logistics and supply chain practices
In anticipation of the identified need to initiate action- supply in Spain, both in terms of infrastructure
they should result in improving productivity andcom- tura (for example, railway installations and silver-
competitiveness of the country, in the year 2005 the Spanish government, multimodal forms) as in the adoption of practices-
through the Ministry of Science and Innovation and with the advanced logistics and supply chain cases by
support from the EU's ERDF funds, part of Spanish companies. Services are also offered
consent for the development of the Singular and Strategic Project advice on how to adapt these good practices
Globalog, oriented towards enhancing competitiveness and the examples of the models and technologies are explained.
dad of the Spanish business fabric, through the logis- developed in the PSE-Globalog project to facilitate
tica as a strategic factor in a global environment. to have an efficient logistics management.

The actions of PSE-GLOBALOG have been directed towards Close the gap between observed practices and the
regarding the increase in the level of competitiveness of the identified as best practices could mean
Spanish companies through logistics, exploiting a valuable boost to the competitiveness of the industry
the use of information technologies and the tria in Spain and, therefore, contribute to recovering the
communications at the service of greater efficiency in the
path to prosperity in our country, and this has been
supply chains in these globalized markets. the fundamental goal that has driven the development of the PSE-
GLOBALOG.

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 Guide to be more competitive through logistics

Chapter 1
How can a company
face the challenge that it proposes
globalization and the risks
what involves the management and
distribution of their products?

In a business environment as changeable as the one

we live, companies must reinvent themselves THE BEST COMPANIES IN THE WORLD
every day, meeting the needs that the market THEY USE A LOGISTICS MANAGEMENT MODEL
demand at every moment. WHAT IT INCORPORATES:

Leading companies transform at the pace of New logistical strategies.

market, applying innovative ways to operate that Advanced management tactics.
they allow them to obtain the correct product, deliver it in Technological innovations.
the exact place, at the right time, and in an effective way Pulled supply chain models by the
noted in costs. demand.
Close collaboration and exchange of information
They develop customized formulas where they combine action among all members of your Chain of
new management strategies and tactics using Supply.
of technological platforms, information systems and Monitoring of information (indicators of
other business practices that work efficiently management) on the performance of its Chain of
because they are key to their competitiveness. This is how Supply.
the "best logistical practices" arise, conceived Powerful platforms of Information Technologies
to respond to specific environments and circumstances Information and Communication.
sheets of each industry. New and improved versions of old practices
logistics.
Logistical know-how of its human capital.

6
Chapter 1 Guide to Best Logistics Practices

Customer orientation and process integration 1.1 Use of technological applications in the Ca-
Supply of Dena.
As a synthesis of the research on best practices
and global trends in logistics and supply chain management 1.2 Inventory Management Methodologies.
supply provided in the PSE-GLOBALOG,
it can be affirmed that, nowadays, among the strategies of 1.3 Warehouse Management Practices.
the most frequently used management are those that
they focus on customer orientation and integration 1.4 Transportation Management.
of processes.
1.5 Outsourcing of logistics services.
The following global practices and trends in...
Logistics and Supply Chain Management have been 1.6 Supply Management.
selected as models to be implemented in any
Spanish company. 1.7 Use of metrics.

Specifically, they cover the functional areas for management 1.8 Interrelations with Supply Chain Suppliers
supply chain management, such as demand, Supply.
the offer and the product:
1.9 Qualified human resources.

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 Guide to becoming more competitive through logistics

1.1 Use of technological applications in the supply chain:

The integration of systems and technological applications allows companies to better manage production flows.
and the related information. These are tools that facilitate visibility in the supply chain about
all processes, facilitating the exchange of data among all members of the Supply Chain.

In this area, the following best practices stand out for adaptation in your company:

Use of basic information and co-technology Minding, to the extent that the problems real-
communication: the use of integrated management systems concerned with security and high costs of
ERP (Enterprise Resource Planning) as well as identification systems. infrastructure has been improved. The use of
by radio frequency (RFID) are considered den- varies by industry:
within the group of essential tools,
as technology support platforms, that Retailer uses RFID to improve visibility
allow the establishment of practices such as: in the chain, reduce stock outputs
visibility in the supply chain, interchanging (out-of-stock) and reduce totalization times-
information bio and other collaborative practices inventory management.
(S&OP, CPFR, new product design, management Use it to track
of relationships with clients, etc.). in process inventory, just practices
perfect timing (JIT).
Extensive use of B2B technology: The use of sys- Automotive uses it like Manufacturing and adj-
more e-business, as a tool for the proce- It has been incorporated into the systems...
order management in product delivery more anti-theft security.
services throughout the supply chain, is Pharmaceuticals use it to guarantee legitimacy
a widely practiced activity. dad of the drugs that enter the chain evi-
taking the forgery.
Use of S&OP and CPFR systems: the best practices Health is mainly used for tracking.
they point towards demand forecasts with of assets and of patients.
very high accuracy, based on real information Logistics and distribution companies
from the client, using methodologies such as used for tracking and locating
such as S&OP and CPFR. The visibility of information transport achieving operational improvements.
from the demand throughout the entire chain and the in-
information exchange among its members is Use of barcodes: the trend is that in the
highly recommended to achieve an excellent as RFID technology becomes standardized and its
demand management. costs allow for mass use, the barcode
will be replaced by this type of systems.
Use of transport management systems: wide
extended the use of management systems Use of electronic connectivity systems
transport like the TMS. It is also recommended essential the use of some type of connectivity
the development of collaborative relationships with trans- electronics with the suppliers for the establishment
sportsmen, suppliers, and customers to create pro- lie of collaborative relationships (share in-
transportation costs that are more economical which at the same time demand formation, collaborative forecasting of
involve the use of transportation systems demand (collaborative forecasting), inventories
multimodal. managed by suppliers (VMI), among others
practices).
Warehouse Management Systems: the best
practices indicate the use of applications/systems Use of wireless technology: the use of equipment ma-
warehouse management (WMS), warehouse design our handhelds, for example, in the industry
nes and selective outsourcing of some functions the mass consumption is very high (the sales force
storage boxes. it is used for street sales, price management,
inventory management, order changes, etc.
Use of radio frequency identification systems for the possibility of connecting with the flow of
RFID (Radio Frequency Identification): its use is rapidly spreading the real-time supply chain.

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Chapter 1 Guide to Best Logistics Practices

RELATED TERMS:
ERP (Enterprise Resource Planning): Set of managerial information systems that allows integration of
certain operations of a company, especially those related to
production, logistics, inventory, shipping, accounting, and the aspects
terms related to the company's human resources.
RFID (Radio Frequency Identification): Electronic method of assigning an identification code to a product and using it
this code to identify or access additional information about this.

B2B (Business to Business) Electronic business conducted between companies.

CPFR (Collaborative Planning Forecasting and Collaborative demand forecasting, in which the process is carried out
Replenishment planning and shared information among all those who participate in the
supply chain, from suppliers to the final customer passing through the
manufacturers, distributors.
S&OP (Sales and Operations planning) Process planning that links operational areas with financial ones,
generates a single sales set that establishes basic strategies and is a
effort at the company level.

TMS (Transportation Management System) Application developed for the management of primary transport fleets
freight in interurban distances, in modalities that can be: truck
complete, consolidated cargo, shipping, air cargo, railroad and maritime.
Just in Time Industrial strategy that smooths the material flow within industrial plants
trials. JIT minimizes inventory investment by providing timely deliveries.
tunas and sequential product precisely where and when it is needed, from
a multitude of suppliers.
VMI (Vendor Managed Inventory) Process in which the seller assumes responsibility for managing the re-
Vendor-Managed Inventory stock provisioning as needed.
WMS (Warehouse Management System) - SGA Software application to manage the functions of a warehouse or center
Warehouse Management System distribution. The application's functionality includes reception, storage,
inventory management, cycle counting, task permissions, planning of
orders, resource allocation, etc.

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 Guide to becoming more competitive through logistics

1.2 Inventory Management Methodologies:

The fundamental objective of inventory management is to ensure the availability of materials in the best
economic conditions, to meet the needs of demand. This point focuses on understanding what they are
the keys to being effective when managing products efficiently, how to maintain an optimal stock
and reduce storage costs, meeting the service level desired by the customer:

Use of coding practices: recognized as more possible in the supply chain flow
a basic practice for identifying matter allows better response to demand and reduction
especially useful in the differentiation of par- of costs. It is also known as delay in the
Yes. It streamlines the purchasing, requisition, and processes. differentiation, and it is fundamental for the 'person-
material reception. Necessary for the processes mass customization
of inventory management and control (favors the es- Its goal is to produce low-cost products.
standardization and it is essential in the processes of Modularization refers to the production of pro-
quality). ducts and processes under modular architecture, it
which enables customization under the scheme of
Use of classification practices: the use of the system- postponement. That is to say, the modular architecture of
ABC classification is a way of classifying products are cost-efficient and are basic for
rank the materials according to their importance in enable postponement strategies and of person-
the processes of the company. It is another of the practices massive mobilization.
basics for inventory control.
Use of the VMI strategy (managed inventories)
Decentralized stock management in a way that is sin- by the supplier): the use of managed stocks by
chronicled: also known as multi-echelon, the supplier is also another advanced practice of
in English. It is the most recommended practice for op- manage inventories. The goal is to achieve improvements
inventory optimization (inventory reduction) in the service levels (Fill Rate) of the manufacturer
in the network and increase in service levels) and towards the end customer. Likewise, a decrease
in large organizations where there are networks of in inventory shortages (stockouts) and a decrease
multi-tier distribution, with in-stock supplies reduction of inventory levels. The costs of
inventories in various locations, structured planning and issuance of purchase orders dis-
according to service levels. they diminish because the responsibility falls on the provider
pain/manufacturer.
Use of just-in-time policy: known as
just-in-time, in English. It is one of the most Use of advanced planning systems (APS):
used to mitigate the bullwhip effect the use of these software tools named
effect) on the supply chain, maintain inventory - nadas APS (Advanced Planning Systems, in English)
bring levels to optimal and reduce costs of soul- they constitute strong support for the solution of the
dinner. planning problems in the supply chain
and in the management of operations, through the
Use of strategies like modularization and use of quantitative methods (research
postponement: the use of postponement (postpo- of operations). The use of this type of tool-
in English) as a strategy to achieve it significantly expands the capacity of the
delay the product customization the maxi- ERP systems.

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Chapter 1 Guide to the Best Logistics Practices

RELATED TERMS:

Just in Time Industrial strategy that smooths the material flow within the plants
industrial. JIT minimizes inventory investment by providing deliveries
timely and sequential product exactly where and when it is needed
from a multitude of suppliers.

Postponement The planned delay of final activities (for example assembly, pro-
production, packaging, etc.) until the last possible moment in the course of the
distribution.

Modularization Development of products and processes under modular architecture, which has
the customization under the postponement scheme.

Bullwhip effect Tendency towards excessive fluctuation of inventories and orders that are received
I am at the primary levels of supply chains.

VMI (Vendor Managed Inventory / Process in which the seller takes on the responsibility of managing the
Vendor-Managed Inventory restocking of inventory as needed.

Fill Rate (Nivel de Servicio) Measurement, in percentage, of the quality of customer service. It is usually...
percentage of customers who receive their orders within a period of days,
as a percentage of supplied references against the total references
requests, etc.

APS (Advanced Planning Systems) Software for solving planning problems in the supply chain
supply and in operations management, through the use of methods
dos cuantitativos (investigación de operaciones).

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 Guide to becoming more competitive through logistics

1.3 Warehouse Management Practices:

The warehouse is a work center of the company that can account for up to 60% of its total costs, hence
the importance of incorporating best management practices, integrating the warehouse within the logistics chain
to turn it into a dynamic goods depot. Managing the warehouse is therefore key for the com-
competitiveness of the company, and here the best practices for doing it in the most efficient way are detailed:

Use of automatic collection systems: cone- Use of regulatory warehouses: they are incorporated into
also referred to as picking systems, the systems the supply chain to achieve distribution
automatic collection increases efficiency of products more efficient, flexible and dynamic, is
CIA in the use of resources related to management of to say, ensure quick response capability, in
warehouses and therefore increase the levels of demand function. Its use also results in
productivity. cost reduction in companies and avoids bottlenecks
from a bottle. Another advantage is that it facilitates the mechanisms-
Strategic planning of the supply network: collaboration between client and supplier.
the goal is to achieve the most economical way of
send and receive the products, maintaining or me- Use of shared warehouses: The use of soul-
improving customer service levels. That is, shared scenes are recommended for small
design a plan that allows for maximizing benefits and and medium-sized companies, with demand for products
optimize service levels. geographically changing. This alternative offers
greater flexibility in location, possibility of
immediate transfers and facilitates the estimation of the
unit storage costs.

RELATED TERMS:

WMS Software application for managing the functions of a warehouse or distribution center
Warehouse Management distribution. The functionality of the application includes reception, storage, management of
System) - SGA inventario, Conteo de ciclos, permisos de tareas, planificación de órdenes, asignación
Warehouse Management System of resources, etc.

AGV: Vehicle consisting of a mobile platform, equipped with a series of sensors elec-
electromagnetic devices that are capable of tracing the path created by an buried cable
due to the radiofrequency waves sent by a transmitter through it.

Automatic warehouse: It is made up of shelves, stacker cranes, and automated transport systems.

Self-supporting warehouse: That constructed in such a way that the shelves themselves constitute the structure that
will support the enclosures, both facades and roofs, so it will not
it is necessary to erect a building to house them.

Disordered storage The allocation of slots is carried out as the merchandise is received,
(chaotic): without following any specific order but solely based on the need for placement of
This. The flexibility of the areas must be maximum.

Block storage: En este sistema la mercancía se apila una junto a otra sin dejar espacios intermedios y
without any apparent order other than that of their arrival.

Ordered storage: Allocate a unique spot for each product. In each space, only one can be placed.
song of the same type. The assigned areas must provide adequate flexibility,
especially if there is the possibility of seasonal fluctuations in one or more lines
of products. The utilization of space will never be optimal.

Pick to light: Order preparation assistance system based on light indicators in

the shelves, which help to identify the goods.

Pick to voice: Order preparation assistance system based on recognition system

it is the voice that allows operators to keep their hands free to perform the
operations.

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Capítulo1 Guide to Best Logistical Practices

1.4 Transportation Management:

Transport is another area of the company that represents a high value of its total costs. The optimization
management of transport and distribution, from the strategic decisions that influence the design of
networks, even the most tactical and operational ones, represent an opportunity to be more competitive in cost and in
service. The best practices identified for managing transportation are:

Traceability of the cold chain: more than a Uso de transporte multimodal:la tendencia actual
better practice traceability in the food chain points towards the use of multimodal transport as
It is a regulation that requires compliance. the most efficient and effective method of transportation of
The use of the appropriate technology (such as for example materials and products. The multiple contracts
RFID allows for strict temperature control. what is necessary to carry out, under the traditional modality
throughout the entire distribution process of international transport regulations are simplified to
product, monitoring and control of the tempera- through this type of transportation as it allows
turn in the supply chain and control over the the manufacturers transport their goods, from the
transport that moves the loads. The regulations- origin and up to the final destination, with a single contra-
worldwide, including those of the European Union, to transport, with technical attention to the cargo,
about the transportation of food and beverages, they require the lower transportation costs, in the appropriate amount
compliance with certain regulations in this regard. whenever and with the required frequency. Therefore, the
risk management is also favored by the cen-
Traceability and security throughout the chain of to place all the responsibility on a single operator,
Supply: traceability responds to criteria is- the OTM (multimodal transport operator).
strategic, as well as to demands and regulations
government actions. The advantages of implementing Use of Grouping: it is the consolidation of products
traceability systems are many: knowledge from different companies in one shipment
to delete the history, location, and trajectory of a pro- complete. Air and maritime transport tends to
duct in case a product return is needed use the term load consolidation, while-
from the market (or several from the same batch), control of which grouping is most used for transport
stocks, control of production processes, co- the railway and road. This practice not only
coordination and collaboration with the distributors. contributes to reducing transportation rates, but
it also reduces risks because the operator holds
Use of Crossdocking: its use contributes to sales bring the goods from the other side until receiving confirmation
such as: possibility of daily deliveries of payment information from the exporter, limiting
products to stores, the control of the supply chain the risk to your client.
ministers, the accuracy of deliveries, the greater
density and use of the palettes, with the
subsequent savings in transportation, among other things.

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 Guide to becoming more competitive through logistics

Outsourcing of transport: the current trend in the long term and the 3PLs (logistics operators) are
is oriented towards outsourcing (more cone- turn into supply chain management partners, with
referred to by its English name, outsourcing of the complete transactional transparency.
peripheral business processes, especially the
transport is one of the processes most subject to Reverse logistics: the strategic goal of use of
this practice. There are several levels of outsourcing this practice is fundamentally economic; without
(transactional, tactical, and strategic). In the service two factors have also been added
tactical and strategic outsourcing are obtained they encourage their practice: reasons of competitiveness and
greater benefits because they are based on a ecological factors. In a broad sense, the logics-
long-term contractual relationship, with systems of reverse logistics encompasses all processes and activities
integrated information technology that facilitates necessary for managing the return and recycling of
the flow of information and generate visibility in the goods in the supply chain. The lo-
the supply chain. At its most advanced level. reverse logistics encompasses distribution operations,
(strategic outsourcing) relationships are established recovery and recycling of products.

TÉRMINOS RELACIONADOS:

Cross-Docking: The direct flow of goods through a facility, of the function of re-
ception of the shipping function, eliminating the need for storage.

Multimodal Transport Operator Person who signs a Multimodal Transportation Contract and assumes the responsibility
responsibility for its compliance as a carrier.

Outsourcing: Outsourcing of commercial functions or processes such as services

logistical or transportation tasks to an external company, instead of doing them
internally.

Grouping Transport procedure through the issuance of batches of different

weight, class, or volume, which alone would not occupy a piece of equipment or medium
of transport, and that are conditioned as a single physical unit of handling
population and circulation, in order to facilitate their issuing and transport.

3PL (Third Party Logistics): Transport, storage and other services related to logistics, which
are provided by companies (logistics operators) employed to
assume tasks that were previously performed by the client.

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Chapter 1 Guide to Best Logistical Practices

1.5 Outsourcing of Logistics Services:

The current trend is towards outsourcing the peripheral processes of the business, making this a
of the best practices recognized worldwide for effective logistics management:

Use of specialized logistics providers and Companies that use LSP are beneficial
integrated logistics providers: the use of pro- the visibility tools for your ca-
logistics service providers (3PL and 4PL) have that these suppliers contribute, making use of
I have been extending as a best practice, by virtue of electronic communication tools,
de la creciente complejidad que involucra una ade- system-to-system (EDI, XML, etc.) to leverage
when global supply chain management. the capabilities of their LSPs without sacrificing the con-
control of their supply chains.
Logistics service providers are cla-
classified into three categories: the carriers, Collaborative practices with suppliers of
logistics service providers (LSP) and the logistics services: one of the management areas
specialized service providers (interm- with more progress in the collaborative relationship
diaries –LSIs). LSPs are using technology Horizontal with the 3PL is transportation. The advantages
advanced (such as WMS and TMS) to jump- of adopting this approach are the improvements that are
to provide maximum levels of service. they achieve in logistical performance (reduction of
costs, improvement in service levels, visibility,
end user satisfaction

RELATED TERMS:

3PL (Third Party Logistics): Transport, storage, and other services related to logistics, which are pro-
provided by companies (logistics operators) employed to take on tasks
that were previously carried out by the client.

4PL (Fourth Party Logistic): 4PL ("Fourth Party Logistics") represents a more advanced outsourcing formula.
deep in which the borrower is no longer in charge of the distribution of a
not only the product in a specific region, but the optimization of a chain that encompasses
as your client, the client's customers, and the suppliers. The 4PL borrower exercises
an activity of planning and coordination of information flow. Designs
both the logistics architecture and the information systems applied to these
integrated processes. Instead, it does not execute the corresponding physical flows, which
They are entrusted to different physical operators or service providers.

TMS (Transportation Application developed for the management of primary cargo transport fleets
Management System in intercity distances, in modes that can be: full truck,
consolidated cargo, package delivery, air freight, railway, and maritime.

WMS (Warehouse Management Software application to manage the functions of a warehouse or center
SGA (Management System) Distribution. The application's functionality includes reception, storage, management-
from the warehouse) inventory management, cycle counting, task permissions, order planning,
resource allocation, etc.

EDI (Electronic Data Interchange) Normalized format for exchanging commercial data.
Electronic Data Interchange

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 Guide to becoming more competitive through logistics

1.6 Supply Management:

Supply management is considered a strategic part of the business today and requires optimal
planning to align strategies and synchronize efforts for better supplier-client coordination.
The best recognized practices in this area are the following:

Inclusion of purchasing management in planning purchases and supplies have yielded the following
strategic management of the company: the management of com- best practices:
costs represents a high percentage of
the organization (from 30% to 80% in 1) The measurement of purchasing performance and its-
industries such as automotive and chemicals), for ministers must be vertically aligned with
which today is considered a fundamental part of the corporate objectives and horizontally with
business and is included in the strategy of the the strategic business units (SBUs).
company as a key tool for sustain
ner and improve competitiveness. In this area, the 2) The measurement of purchasing performance and its-
great school has been the Japanese industry that has ministers must be closely linked to
developed productive and highly efficient methods incentives based on business performance.
clients, through the strategic management of the
envisioning. That is to say, the management of provisioning- Formal long-term planning: planning
reform must be integrated into the planning the long term, or strategic purchasing plan, is vi-
strategic of the company to achieve alignment such as to face the overwhelming competitive pressure
with the business objectives. the influence that markets have today. The
expenses must be managed strategically
Good knowledge of business strategies: to achieve competitive advantages. The first step
the supply area management needs is to achieve that the supply strategy is in-
to deeply understand the business strategy of mane- integrated into the business plan. This long-term plan
to select the management that best contributes to must consider:
the achievement of the company's strategic objectives.
That is to say, the competitive priorities of the fun- Factors such as new products, ad-
supply management (costs, quality, flexibility, acquisitions, divestitures, mergers, and expansion
service levels of the suppliers) must be sessions should be considered in the process of
learn and respond in alignment based on planning
from the business competition strategy (dif-
ranching, low-cost production, etc. 2) The purchasing strategy must support the
operational effectiveness objectives
Performance measurement based on contribution
relation to business results: the relationship between 3) Financial metrics to measure performance
a good purchasing management and the results of shopping and the suppliers. Likewise, the
The business has been demonstrated specifically. Its the plan must cover a horizon of 4 to 5 years,
contribution is reflected on indicators such as forecasting capacity, collaborative relationships
like ROA, gross margin, and market share, which with suppliers, partnerships, long-term relationships
they are improved with optimal management of abas- deadline with suppliers, vision of opportunities
research. Investigations carried out in companies and reflect industry knowledge.
sas leaders in measurement systems for areas of

RELATED TERMS:

ROA (Return on Assets) Return on total assets. It is calculated by dividing the profit after
taxes on the book value of all the company's assets.

SBUs (Strategic Business Units) Semi-autonomous strategic business units, normally responsible
from its own budget, decisions on new products, hiring
decisions and pricing.

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Chapter 1 Guide to Best Logistical Practices

1.7 Use of metrics:

The formal mechanisms of measurement, control, and feedback are necessary to assess the performance of a
business. As an example of such metrics and indicators, the most commonly used are: Inventory Turnover, Cost of Goods Sold
Sales and Return on Assets (ROA). Below are the main values that have been observed.
I go as best practices to be implemented in this area:

Use of the SCOR Model: To achieve objective measurements On-time delivery: On-time delivery is measured as
challenges regarding supply chain performance the proportion of the product that the customer received at
the use of SCOR as a tool is recommended time in relation to the whole product that was given to it
diagnosis to maintain the selected strategy sent by the supplier. According to a recent study
of supply chain management. made to manufacturers around the world, the figures in-
They say a 95% on-time delivery for the best in theirs.
Logistics costs as a percentage of sales: according to class (Top 20%); 91% for the industry average
terms of the company ESTABLISH United Logistics Group, (Middle 50%); and 78% for the laggards (bottom 30%).
In 2007, the company reflected logistical costs.
as a percentage of sales in the following values: Inventory Days: It is another way to measure the efi-
Average company in the U.S.: 9.74% science in the use of inventories and the result-
• Average company in the European Union: 8.39% expressed through the number of days of rotation
According to a recent study conducted
Fill-rate / Service level: the best companies about manufacturers from the United States and Canada, the
the following values are reported: 90% for parts of the data are as follows:
replacement, and above 90% in Retailing.

RELATED TERMS:

KPIs They measure the performance level of a process, focusing on the "how" and indicating how much of
Key Performance Indicators Good are the processes, so that the set objective can be achieved.

Inventory Turnover: The cost of goods sold divided by the average level of inventory available. This in-
The indicator measures how many times a company's inventory has been sold during a period.
time. Operationally, inventory turnover is measured as the total of the go-
It is obtained by passing through the chain divided by the average inventory level for a given period.

ROA (Return on Assets) Return on total assets. It is calculated by dividing the profit after taxes.
among the book value of all the company's assets.

SCOR (Supply Chain Opera- Standard tool for diagnosing supply chain management, which integrates
Referent Model / Model concepts related to process reengineering - reflecting the current state of the pro-
operational reference and define the state that is desired to be achieved in the future-, benchmarking -by quantifying the
from the CSM) functioning of similar companies and establish objectives based on the results of the
best in their category - and the identification of best practices - when characterizing practices
management and software solutions that lead to being the best in each category.

On-time Delivery On-time delivery is measured as the proportion of the product that the customer received on time.
(On time deliveries) regarding all the product that was sent to you by the supplier.

Fill Rate (Service Level) Measurement, in percentage, of the quality of customer service. It is usually measured in percentage of
customers who receive their orders within a period of days, as a percentage of sumi references
registered against the total number of requested references, etc.

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 Guide to becoming more competitive through logistics

1.8 Interrelationships with Supply Chain Suppliers:

Supply chains must be market-driven, which entails integration.
of the key business processes in order to respond accurately and in a timely manner to the requirements
from the client. This, in turn, requires a high degree of collaboration among the members of the chain to facilitate the
integration processes.

The following is a list of practices that the supply chain manager should develop on how to
establish long-term formal relationships with their suppliers, in which mutual trust is encouraged, favorable
receiving the exchange of information, and ultimately the expected levels of collaboration are reached:

Assign resources (staff) for management of •Request the supplier for suggestions for improvement that
las relaciones con los proveedores, incluyendo ni- involve sharing the savings obtained.
executive spokespeople for managing relationships
more criticism. Involve suppliers from the beginning
stages of planning and development of new
Provide timely feedback and products.
complete the suppliers in relation to their des-
commitment, in a personal way, using tools Implement information systems for the
measurement tasks such as the scorecard. support in managing relationships with pro-
suppliers (SRM).
• Formal measurement of perception about the provider
from the perspective of the buyer as a customer. •Proveer recursos para desarrollar las competen-
supplier performance indicators.
Develop long-term contracts that include
agreements for the generation of mutual value. Hold periodic and regular meetings with
Invite suppliers to be part of a the suppliers to meet and understand their ex-
Client-Supplier Executive Council. expectations.

Emphasize those activities and actions Invite suppliers to participate in workshops

They help to foster trust. value analysis and joint improvement.

Develop cost management based on the approach Share the long-term business plans.
of mutual cooperation.

RELATED TERMS:

Scorecard Method to measure a company's activities in terms of its

vision and strategy. It provides managers with a global outlook of
the benefits of the business.

SRM (Supplier Relationship Management) Term that indicates the management of the relationship with suppliers in the
purchase process of a company.

1.9 Qualified Human Resources

Finally, regarding human resources, trained and educated personnel in logistics and management is required.
supply chain to support integration processes.

The hiring of professionally trained resources familiar with the principles of effective management
supply chains, and the ability to develop them in the practice of industry management, as generation
Relief is a critical action within the realm of best practices.
18
Chapter 2 Situation of the Spanish business fabric

Chapter 2
What is the status of the
Spanish companies
regarding the best
logistical and
supply chain management
supply?

In general, the situation of the business fabric-

Spanish currency regarding the adoption of the SITUATION OF THE SPANISH COMPANY IN
best practices in logistics and management LOGISTICS AND SUPPLY CHAIN MANAGEMENT
the supply chain is distant.
LOGISTICS COSTS: 10.7% of total sales,
For example, logistical costs about
superior in 2 points compared to other European countries.
observed sales reach 12%, although
removing from the study sample to em- SERVICE LEVEL: Around 78%.
asset-intensive pressures,
this figure can be generalized at 10.7%, LOGISTIC OUTSOURCING: Around 75%, but basically it
a value higher by more than two points than refers to the hiring of land transport services (trucks).
observed in other European countries. Minimal use of integrated logistics operators.

This is one of the quantitative gaps. Modes of transport:

more significant that have been observed Low utilization of the railway.
regarding the observed practices and to the (trucks 82%, rail 2%, air 4%, sea 13%).
identified, therefore adopting practices
PURCHASES/SUPPLIES
advancements in this sense could mean Low utilization of advanced inventory management practices
a valuable boost to competitiveness of Low utilization of information and communication technologies
any company. (ICTs) in general (such as RFID, EDI, Wireless), except for the
widespread use of integrated management systems (ERP), which is
In this chapter we are going to break down the di- relatively high.
different best logistics and Low use of advanced storage practices (e.g. WMS)
supply chain management identifi- Low use of advanced transport practices
each and what is the specific situation of the (e.g. crossdocking)
Spanish companies.
SUPPLY CHAIN MANAGEMENT
Little trust among the members of the chain
You can assess what the situation is
Merely transactional relationships, with little added value
your company regarding the overall situation Little technological leverage
describe and identify which areas of the field Little strategic collaboration
of logistics and supply chain management The relationships with suppliers are quite informal.
supply can improve to achieve Low levels of internal and external collaboration
to be more competitive.
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 Guide to being more competitive through logistics

2.1 PRÁCTICAS LOGÍSTICAS

2.1.1 Information systems and technologies

Information systems are used by Spanish companies mainly for transactional purposes. Even-
that integrated information systems (ERP) and warehouse management systems (WMS) are widely used;
the use of e-business systems, transportation (TMS) and forecasting is low, although companies report interest in the
future adoption of these technological facilitators.

Only basic technologies such as those from information technology used in the supply chain
barcodes and emails show high utilization values. The use of new technologies, such as RFID,
handheld data capture devices, and electronic data interchange (EDI) is found less
extended.

Information Systems Integrated information systems (ERP) and

Warehouse Management Systems (WMS)

E-business systems, transport (TMS) and forecasting

Information Technologies Barcodes and e-mails

RFID, handheld data capture devices,

electronic data interchange (EDI)

2.1.2 Inventory management systems

All advanced inventory practices (coding, classification, multi-tier management, JIT) show ba-
inventory utilization levels. The inventory management practices used in the supply chain (modularity,
Postponement, VMI, demand planning) show even lower levels of utilization.

The future interest in the adoption of these practices shows discrete and lower results than those indicated with tec-
information technologies, suggesting limited familiarity with these fundamental logistics techniques.

Advanced Inventory Practices Coding, classification, multi-tier management, JIT

Modularity, postponement, VMI, Demand planning

2.1.3 Use of specialized logistics services

The reported use of specialized logistics providers in road transport is relatively high, although
Interviews and comments confirm that this mainly happens in the hiring of small and medium-sized companies.
in truck transport companies. In contrast, the use of integrated logistics providers, or 4PL, is low.

Hiring of logistics services Road transport, especially small trucking SMEs.

Integrated Logistics Providers (4PL)

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Capítulo2 Situation of the Spanish business fabric

2.1.4 Warehouse and Transportation Management

The reported use of network optimization practices and warehouse management is very low. In transportation
the utilization of advanced practices (crossdocking, traceability) is low, although companies show a tendency
your interest in its future use, reinforcing the importance of the developments undertaken by some of the
Globalog partners.

Highlights the low reported value of railway transportation utilization, which is reinforced by received comments.
Despite a marked interest but terrible experiences in its usage, it suggests the importance of developing this medium.
of transport, and the associated multimodal variants.

Transport management Advanced practices (Crossdocking, Traceability...)

Use of the railway

2.1.5 Purchasing Management

In general, purchasing practices show a correct understanding (according to global best practices) of
the strategic importance of this function. Instead, it does not highlight the orientation of purchases towards the long term, which
consistent with the reported strategic environment.

Purchases Understanding its strategic importance

Long-term purchase orientation

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 Guide to being more competitive through logistics

2.2 SUPPLY CHAIN PRACTICES

2.2.1 Attitude of top management
Some attitudes of top management towards the supply chain show a good understanding of its
importance and are aligned with global best practices. Specifically, the high-level support group
addressing the activities of the supply chain and, partially, the risk propensity and attitude towards
communication from senior management (in communication variables) shows high values and is potentially im-
important for the improvement of supply chain processes.

Support from top management for Supply Chain activities

Risk propensity and attitude towards communication from senior management

2.2.2 Strategic Orientation of Companies

Companies showed a stable market nature at the time the survey was conducted, with
demand and a low volatility technological environment, and consequently a moderate risk orientation and criteria of
evaluation of personnel relatively little associated with performance. The reported strategic orientation favors
more the competition of differentiation (quality, customer service), than in costs.

Orientation towards quality and customer service

Strategic focus on cost reduction

2.2.3 Strategies with Suppliers

At the strategy level reported in selection criteria and proximity to the supplier base, companies re-
conventional criteria of efficiency and cost reductions are considered the most important in the selection of pro-
suppliers, with those of flexibility in response or in capacity for innovation. They also report criteria
low integration (for example, extensive inspection of received goods), at odds with best practices of
global supply chains.

The reported values of both similarity and complementarity with suppliers are relatively low, which
which indicates low interdependence and low exchange of common objectives. This, reinforced by relatively shared values
low joint effort and integration of logistics activities, suggests strategies for distant relationships
with suppliers.

Selection criteria and proximity to the supplier base for efficiency and cost reduction

Similarity and complementarity with suppliers, joint effort and integration of logistics activities

22
Chapter 2 Situation of the Spanish business fabric

2.2.4 Tactics against suppliers

At a more operational level of relationships with suppliers, a low level of interdependence and a degree of
coordination is more operational than strategic. The exchange of operational information focuses more on issues
in the short term than in the establishment of long-term relationships, while in terms of cooperation
The respondents show a moderate attitude towards establishing strategic relationships with the
providers. Accordingly, the level of joint decision-making with suppliers is moderate.

Operational coordination and short-term information exchange.

Interdependence, strategic coordination, long-term information exchange

2.2.5 Trust and control

The level of trust reported in relationships with suppliers is moderately high, while the degree
The level of formal control is lower, which suggests informality in relationships.

Level of trust with suppliers

Formality of the relationships with suppliers

2.2.6 Performance Indicators

Self-reported logistics and supply chain performance indicators show across all
cases with relatively low values. This is confirmed, for example, by the values of logistics costs over sales,
actively high at 10.7%, and an average fill rate of 78%.

In terms of perceptual performance indicators, the greatest impact of adopting logistics practices and
the supply chain has produced, although to a moderate extent, it is within the capacity for response and
the delivery times.

These results are consistent with the strategy reported by the companies at the time of the realization of
the survey, based more on differentiation than on cost reduction. The shift of the strategy from
companies in the current economic situation towards the search for greater operational efficiencies would increase the
impact of adopting logistics and supply chain practices.

Slightly high logistics costs (10.7%) The greatest reported impact of the adoption of best practices is
find in the response capacity and delivery times.

Low average service level rate (78%) Business strategy based more on differentiation than on
cost reduction

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 Guide to becoming more competitive through logistics

Chapter 3
How to achieve the greatest impact
competitive with the implementation of
any good logistics practice
for the company and for the Chain
of Supply?

When incorporating any improvement in the company

in the field of logistics and supply chain,
It is necessary to previously diagnose the areas regarding the
to act and select the solutions and tools
that allow for obtaining results in a more optimal way
two real competitive advantages after its application. What are they?
so the best solutions that you can incorporate
a company?

The study of trends and gaps identified in the

Spanish companies regarding the practices they carry out
they list the best companies in the world conducted in
the framework of the PSE GLOBALOG project indicates a series
of strategic actions in which it is necessary to improve
and on which to act, which would represent an impetus for the
competitiveness of the national business framework, and they are:

24
Chapter 3 Solutions to specific logistical problems
developed in the PSE Globalog

•Use of technologies (information and comu- Develop solutions to facilitate onboarding

communication) that facilitate the visibility of the chain, the efficiency of these strategic actions has constituted
the exchange of information and therefore has- the main challenge of the PSE GLOBALOG project, which is
Highlight the practices of integration and collaboration. has focused on the development of new knowledge,
among the members of the chain. methodologies and practices in the logistics field, estimu-
promoting the development of technologies that facilitate the efi-
Development of more formal relationships with pro- efficient logistical management.
providers, that foster trust and that with-
they move towards more collaborative practices. For example, work has been done on the development of simu-
evaluators of the impact of best practices
Rapid adoption of best management practices cases in companies, traceability systems through
logistics, particularly in the short term the references of new RFID technologies, in-logistics systems
you are to the inventory management systems and of versus, etcetera, and the infrastructures have been evaluated
use of integrated logistics providers, and to lar- existing and the most optimal to promote the use of
deadline, regarding the integration of pro- sustainable transport by rail and the use
operational ceasefires. of multimodal logistics platforms.

Development of qualified human resources, The main solutions are presented below.
through professional training in the field of desarrolladas en cada grupo de trabajo del proyecto y
logistics and supply chain management, with the practical cases that are a useful reference for the
mastery of the English language. application of these new models and technologies in
any company.
Development of infrastructures and use of silver
multimodal ways to promote means of
transport and distribution of supplies more efi-
clients in costs.
25
 Guide to becoming more competitive through logistics

3.1- Analysis and configuration of the Supply Chain in a strategic context (SP2)
Currently, supply chains are evolving into value creation networks, where companies
members work and experiment together in problem-solving, promote inter-organizational learning and
they share risks and benefits. Thus, the company gains access to knowledge and capabilities available in its supply chain.
minister, which is used not only to obtain operational improvements but also to create new knowledge and innovate.

It has been demonstrated that supply chains that show high levels of integration also reduce costs.
of supply and increase the flexibility of the process, also improve the innovation capabilities of their companies.
as a member. Despite the progress in the use of integration techniques, it still remains a great challenge in terms of
management the complete integration of all functions and companies involved in the supply chain.

Problem detected: differenttypesofsupplychain,learntoco-

Need to align functions and companies in- figure them through simulation and experimentation techniques
involved in the same supply chain togettheresultsinpracticalcaseswithcompanies.

Development of the solution: The following details the mechanisms and solutions
The development of competitive management models of proposed actions to achieve integration of
Supply Chain has focused the tasks of this the members of the Supply Chain and the con-
working group that has been responsible for studying the next best performance of the same:

SCOPE SOLUTION
Design and measurement of Development of a model to assess the economic impact of the implementation of a good practice
performance of the in the Supply Chain.
Supply Chain

Methodologies of Development of:

collaboration Forecasting tool for predicting the evolution of behavior in the CdS.
coordination
and contracts in the Chain Benchmarking tool for the integration of knowledge in the CdS that allows directors to
Supply (CdS) The CDS assesses to what extent they develop collaboration capabilities in the Chain.

Models for the optimization of order fulfillment (preparation and receipt of orders) consider
of different types of clients, inventory reservation, production capacity, considering differences
your booking policies, as well as various measures for analyzing the fill-rate.

Information exchange platform for integration between business networks.

Summary of best practices on innovation and inter-organizational learning in the CdS.

Analysis and characterization of client behavior in different sectors, defining the

characteristics and factors of the model that characterize the qualitative part of the CdS, proposing dis-
tinted situations and scenarios.

Application of techniques Multi-agent and multi-objective approaches, under which a model of a logistics system has been established.
of simulation. For the face of co realista that distributes goods from various warehouses to multiple geographically dispersed customers.
decision-making in specifically for a routing problem with time windows, and the algorithm has been determined
the Supply Chain resolution based on ant colonies.
and in order to validate
the meto developments Order fulfillment (preparation and receipt of orders).
methodologies of the project,
have been developed In the application to the simulation for Forecasting.
various models of
simulation in: A simulation tool for the CdS has been developed applying Artificial Intelligence that
model the behavior of the customer.

Experimentation and vi- Eight pilot scenarios have been selected with companies whose characteristics are ideal for the
visualization in environments Verification of the previous developments, from the perspective of the CdS in a strategic context.
real In each of these real scenarios, a dyad composed of two companies has been worked with.
that operate in the same supply chain.

26
Chapter 3 Solutions to specific logistical problems
developed in the PSE Globalog

In conclusion, the strategic collaboration of agen- share knowledge among the members
You are in the supply chain, allowing for greater of the Chain.
integration of its operations and achieve greater
competitive level, developing this competence Compendium of Good Practices and Indicators
cia in the market among supply chains and in the management of Supply Chains.
not between products or services, as it used to be
up to date. Benchmarking tools, with which the
companies will have the ability to value in
Usefulness of the results for companies: what measure develops collaboration capacities
The mechanisms developed in the present ration in the Chain.
subproject have proven to serve as parameters .
basics for strategic alignment, which with- Future challenges:
it carries out the operation, of the different functions and em-
preys involved in the same food chain Promotion of strategic collaboration of the
minister and the consequent better performance of the Supply Chain through Innovation
chain. Specifically, companies can access, dynamic and sustainable of the agents that it con-
through the Comprehensive Service Platform, to: foreman.

New simulation models for a design and Development of a future outlook of activity
effective measures in the Supply Chain. R&D collaboration between companies and R&D centers in
thematic issues related to the strategic context
Information management tools for supply chain Gico.

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 Guide to becoming more competitive through logistics

CASE STUDY
Integration and inter-organizational learning among agents of an International Supply Chain

Participants involved in the development of the case: problems. Therefore, integration must occur at
Port Valencia a conceptual level, beyond the operational work,
Hapag-Lloyd Spain and the members of the chain must share a
the same mental model that allows them an adequate
Detected problems: of mutual understanding.
There are a series of obstacles that hinder management.
of the most efficient supply chain, and they are: The pilot case of the Supply Chain between the
Port of Valencia and the shipping company Hapag
The lack of standardization, the processes of ne- Lloyd has demonstrated the resulting benefits of
businesses are defined differently by the the integration of supply chain management platforms
different participants. after transport, following the scenario and flows of
The existence of manual and inefficient processes work established in the port of Valencia for
are still largely dominated by the pa- el transporte terrestre de contenedores.
the fax and the email.
• The low visibility of the Supply Chain with the Developed application
existenceoflimitedinformationflowsbetweenthe AVANT information exchange platform
supplychainandtransportationprocesses.
The lack of integration with back-end systems. The methodologies developed in this subproject
office and owners. to, like forecasting systems or
the preparation and reception of orders
Background (ment), are key to an adequate collaboration,
Many times, companies discover that coordination and contracting in the Supply Chain
his efforts to increase the results in the nistro. All those systems need to have
supply chains fail, not necessarily reliable and automatic information in advance
due to lack of coordination or interruptions in the flow to be truly effective. The exchange of these
of work, but by the lack of understanding between Electronic data simplifies global management
all functional areas or areas of specialization Supply Chain Ball and allows for greater
tion about the definition and restrictions of the visibility of continuous improvement opportunities.

AVANT service architecture.

28
Chapter 3 Solutions to specific logistical problems
developed in the PSE Globalog

The Port of Valencia has a platform of Inter-organizational learning

information ([Link]), with which From the integration of data between the Port of
get the port community to exchange Valencia and Hapag Lloyd have evaluated what it is like.
all data electronically for your tran- inter-organizational learning in this chain, that
commercial and operational transactions. For example, it is one of the keys to the success of a relationship
at the port, it is not necessary to present any type business, generate trust and gain efficiency and co-
of paper that authorizes the departure of the container to competitiveness in the Supply Chain. This learning-
final safeguard after having established a procedure it has been defined from the standpoint of the concept of
Levante's No Papers statement to the Customs, between RelationalAbsorptive Capacity (RAC), es decir, la habili-
many other advancements. from a company to recognize the value of the new
knowledge of a partner in the supply chain,
Para integrar la información de Hapag Lloyd con el similar to it and apply it for mutual benefit. RAC is
Port of Valencia system, the solution has consisted of therefore the result of a stock and a flow of knowledge
tied to the development of a new In- lie, and its evidence is expressed through the flow
training that broadens its coverage to users who of knowledge among individuals, groups, and organizations
are located in the area of influence of the Port of actions, and by the number of resulting relationships from
Valencia, and in which special emphasis has been placed on the collaborations. The study indicates that the interaction
the improvement of work processes, reducing the the relationship between the two agents has been high during the project
tasks being carried out currently in management for the inclusion and implementation of the AVANT system, and
of container transportation by road. the conclusions create an agenda for development
and deepen the new knowledge learned from
The new AVANT system (Advanced Value Added Net- socio and identify the cited evidence that generates
Works for Transport) helps to overcome obstacles the stock of knowledge, from the point of view of the
thathindertheefficientmanagementoftheSupplyChain joint exploration of new ideas, of the later
tro and constitutes a set of active services that co- assimilation of these ideas in the environment of each one
they link the different exchange platforms of in- of the participating companies and finally the exploits-
trainingwithlogisticsandtransportationoperators. action of these ideas that translate into decisions that
benefit the entirety of the relationship.
The utility of the AVANT system in real environments
it has been validated through this practical case in the Results achieved
Hapag Lloyd company. On one hand, it has been used The use of the AVANT tool allows:
the message framework for land transport
three promoted by the SMDG group and used by • Efficiencythroughautomationoftheoperation
Hapag Lloyd in its global system. achievethroughapaperlessanderror-freeprocess.

A number of deficiencies have also been detected. System integration, providing tools
important data that was not transmitted in the while connectivity to companies, transits-
global system of the shipping company for the purpose rivers and port agents for processes
to provide this data and get a proce- critical business.
so automatic for its electronic exchange. In
concrete, a set of definitions have been agreed upon Connectivity that allows for the integration of the
common issues regarding practices in transportation maritime port-land operations in the systems of
land-based to facilitate this process, defining supply chain management.
who is the contracting party in the movement of
land transport of containers (the operator Modernization of logistics management integration
maritime for non-assigned transport and the transi- the agents among themselves and using solutions is-
tariff for the provided transportation) and the types of mo- industry standard.
movements of containers in transportation
land (import, export, transshipment) Innovation and inter-organizational learning
and transfer). From here, they have been defined in the has important implications for achieving
AVANT tool operational scenarios superior results in terms of a better
effective, simple, and efficient that have allowed the strategic alignment between companies,
integration of Hapag Lloyd's global system into the which ultimately results in greater competition
information platform of the Port of Valencia. activity of the companies that operate in a mission
my supply chain.

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 Guide to becoming more competitive through logistics

3.2 Operational integration of the Supply Chain (SP3)

In the current economic context, characterized by great complexity and volatility in the supply chain.
In our view, competition does not arise so much between companies as between the different supply chains in which they are involved.
participants. The supply chain is made up of different entities of raw material suppliers,
manufacturers, distributors, and end customers. To make a Supply Chain competitive, it is necessary to
synchronize the operations executed among the different agents participating in the same.

The tactical-operational coordination between the Production Management procedures of an industrial company and the Ope-
portions developed in its Supply Chain (which include transportation, shipping, storage, production,
Procurement, forecasting, etc. is necessary to ensure the competitiveness of all the agents that make it up.

Having tools that facilitate proper visibility over Business Processes (Business Process - BP)
in the Supply Chain, with the possibility of analyzing and representing the current situation at each moment of the chain,
Just as defining the desirable situation represents an essential aid for making logistical decisions.
most timely operations.

Problem detected: Development of the solution:

Need to promote Systems and Tools for In order to achieve the stated objective, it is necessary
the tactical-operational coordination of the members we need to respond to the following needs:
of the Supply Chain, which provide support to
the decision-making of operational logistics.

PROBLEM SOLUTION

Need for Planning and Control of Chains / Networks Definition of an Extended Operations Management System
Supply (Procurement, Production, Distribution), rationing (SGEO), at the tactical-operational level, in the Chain
realizando todas las funciones propias de estos sistemas de Supply and practical validation in different Chains /
collaborative form. Supply / Distribution Networks.

Development of decision-making models and genetic methodologies

rich for the processes of Forecasting, Planning, Programming
Operations and Order Management training in a context
collaborative.

Application of the previous models to valid cases

actions taken.

Development of a Performance Measurement System

(KPIs) that allows verifying the levels of objectives achieved
demanding, as well as its evolution.

Lack of tools to control performance of the Development of a procedure for the definition of
stages that take place in the Supply Chain, such Costs of Procurement, Production, Distribution and
like those of Procurement, Production, and Storage. Transport in the Supply Chain.

Lack of precision in understanding the associated costs Application in two real supply chains what per-
to the operations carried out in the Supply Chain. Its he/she issued to expand its utility to new companies.
Total control would allow for the definition of improvement actions that
would directly impact the competitiveness of the chain.

OPERATIONAL MANAGEMENT SYSTEM (SGEO) Access to SGEO is done through a service.

SGEO is a Decision Support System web that allows the user to send their data
sessions (ATD) in collaborative processes (Previ- at the outset, the execution of the mathematical model and
session, Planning and Programming of operations, the return of such results as a form of in-
and Order Management). shape.

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Chapter 3 Solutions to specific logistical problems
developed in the PSE Globalog

It is worth highlighting the different collaborative processes. Stages (Procurement, Production, Distribution
and modules that make up this tool distribution, including transportation) and their relationships.
and the main functionalities that have been brought
downloaded in this project: • Introduce the vision of Business Processes, which in
Inallcases,ithasallowedforananalysis/representation
FORECAST: allows each Supplier to make Pre- evaluationofthesituationofeachSupplyChain.
Demand visions with information coming from
from the Supply Chain itself and with the one for This vision of Business Processes has allowed
the one that even does not have Demand Plans. not only taking into account the situations
It is discussed in more detail in the case study. current (AS IS) but also and above all the
desirable / improved (TO BE), allowing for
PLANNING: the Tool allows and facilitates the make improvement proposals in the decision-making process
analysis of the problem and the identification of the constants of Group or Chain Decisions.
testsandnecessaryparameters,aswellastheInterfacewiththe
Resolutionalgorithmandobtainingresults. Allows Planning in Chain Environment
The Tool also works in a Ca- environment. Supply with uncertainty, multi-produc-
supplychainswithuncertainty,multi-product, to, multi-plant and with capacity constraints
multi-plantandwithcapacityconstraints,therefore dad, therefore allows us to model the imprecision
itallowsyoutomodeltheimprecisionofDemand. from the Demand.

OPERATIONS SCHEDULING: they have been this- The Tools / Demonstrators have been applied
bleached the Models for Predictive Programming- tothedifferentparticipatingSupplyChains
go and Reactivate, both in deterministic context and (Ceramic, Distribution, and Metal-mechanical), obtain-
of Uncertainty through Artificial Intelligence, having results to their full satisfaction in the
with special attention to the problems in Ta- Processesthateachofthemhasestablished.
Hybrid flow glasses, with changeover times of
departure, dependent or not on the Tra- Sequence A Measurement System of Ren has been established.
to be carried out. dimiento (KPI's) that allows verifying the levels
of achieved objectives, as well as their evolution.
ORDER MANAGEMENT: a Model has been developed
MathematicianfortheATP(AvailableforCommitment) A procedure has been established and implemented.
[Link] lie for the definition of Supply Costs
theclientcanproposeavalueorrangeofvaluesin Reasoning, Production, Distribution and Trans-
the Delivery Date field may require that door, as well as its Application to the Chains of
theorderbedeliveredassoonaspossible, Supply with full satisfaction of the participants
TwoObjectiveFunctionshavebeendeveloped. all considered.

SGEO también incluye unSistema de Medición de Challenges of the future

Performance (KPI's) that allows verifying the levels

of achieved objectives, as well as their evolution, Total application / implementation of the Models
and a Procedure for the Definition of Costs Decisionales / Herramientas para todos los Pro-
of Supply, Production, Distribution and cesos (Forecasting, Planning, Scheduling and
Transport in the Supply Chain as Support Order Management) that integrate the System of
to decision-making that involves a mini- Extended Operations Management (SGEO) and for
cost allocation in the Chain. each of the Supply Chains and Networks.

Usefulness of the results for companies: Application of the Performance Measurement System
lie in the context of Business Processes
For the first time in Spain, a has been established in which the SGEO has been developed.
Extended Operations Management System
(SGEO), at the tactical-operational level, in Chains of To achieve the objectives of minimization of
Existing supplies in reality. costs through the SGEO, a knowledge is required
I lie the most detailed and realistic of these for
SGEO has allowed Planning and Control use the cost calculation procedure
the Supply Chains, considering the developed.

31
 Guide to becoming more competitive through logistics

CASE STUDY
Demand Forecasting for a Logistics Platform and Shipment Load Planning
from that Platform to Stores in a Distribution Chain.

Participating agents:
CONSUM Cooperative

Problems detected to be solved:

The objective has focused on improving two aspects
fundamental keys for competitive improvement of
a Distribution Chain, in this case CONSUM,
how are they:

• The obtaining of Demand Forecast from

Stores or Points of Sale (supermarkets)
Outline of the Forecasting and Planning Processes
towards the Logistics Platform that supplied them
Collaborative Action
no, regarding boxes not regarding references.
The stores are responsible for launching the orders to the
Background:
central according to your needs.
The accuracy in Demand Forecasting is a
daily challenge to be achieved by any Chain of Dis-
•The Planning / Scheduling that must be done
distribution, which must share information between
to mobilize the Logistics Platform to serve the De-
all its members to achieve balance
future shipment to the Stores
time between the required products and the planning
or Points of Sale (supermarkets) in the form
periodic distribution of products
as regular as possible.
money to meet that demand. The incidents

Tool for Weekly Demand Forecasting

32
Chapter 3 Solutions to specific logistics problems
developed in the PSE Globalog

erroneous in the deadline and quantity of products shipped Results achieved:

two will have consequences for the entire chain. The results obtained by the Forecasting of the
Entering into the details of this case, to validate the Daily demand from each Store was satisfied
models developed in GLOBALOG in the Chain varies in terms of usage levels and response
of Distribution of CONSUM, the work unit de la Herramienta y la conexión con los Modelos
selected in the Weekly Forecast Process of the Expedition Planning to the Stores.
from the Stores to the Logistics Platform of the
cooperative was the 'box', as it is the unit In all cases, the deviation of the number of
of work most suitable for the subsequent process boxes to be sent each day with respect to the average
Expedition Planning to Stores. calculated was zero. It was achieved that all the
Days the average number of boxes is sent
It has also been intended to regularize planning, meeting the minimum necessity restrictions
since the Load Curve of the expeditions from from each Store.
the Logistics Platform of CONSUM to its Stores
presents numerous peaks, resulting in days with a • In the resolution of the Extended Model, it is compared-
very high number of boxes to be sent to the Stores. the real data of a period with the solution
proposal for said model for said period:
Developed applications:
The Daily Demand Forecast for each Store Here you can see the volume of boxes that is being sent.
it was obtained from the application of the Pattern Se- he really would have proposed the model
monthly according to the Calendar (taking into account the proposed.
mobile holidays) to the extrapolation of the Demand-
the Weekly Media.

Specifically, a Demonstrator has been designed for the

Collaborative Forecasting Process whose objective is
the implementation of a tool that self-
matrix of Demand Pattern Forecasts
from the Stores to the Logistics Platform. The
The implemented tool is based on a system
of Database Management with the algorithms of
Embedded demand forecasting; its output allows
you will perform statistical analysis of deviations
of Demand regarding the weekly average.

Regarding the Collaborative Planning Process, it

has designed and implemented a Tool for
the Decision-Making Aid whose main objective The number of boxes sent per week with the sua-
The main one is the smoothing of the Load Curve of the Ex- Workload overview, meets the needs
orders placed from a Logistics Platform from the Stores in an average of 97% of cases.
up to the Point of Sale that it supplies.

As a first approach, efforts were made to minimize

the deviation in the number of boxes sent each
day with respect to a theoretical average value calculated
from the historical data provided by
CONSUM. Nevertheless, with the initial models
proposed did not meet certain requirements
additional elements of the Distribution Chain. From this
they proposed more advanced models,
specifically an extended model, for obtaining
of satisfactory solutions according to certain objectives
identified by CONSUM.

33
 Guide to becoming more competitive through logistics

3.3 Identification, monitoring and traceability of systems (SP4)

The use of RFID technology is positioned as a key tool to ensure the security of products.
length of the supply chain. Due to its advantages over other widely implemented technologies (code
barcodes, data loggers, etc.), allows ensuring the appropriate temperature of the products in real time throughout
la cadena de frío. Este hecho hace de la tecnología RFID una ventaja competitiva respecto a otras tecnologías de control y
temperature monitoring, as it allows for more agile action in the event of possible cold loss problems.

Problem detected:
Need for greater precision in traceability Having the assurance that the products received
throughout different processes in companies of they have not suffered a break in the cold chain
Spanish business fabric. and the security of distributing products
of the highest quality to its customers
Usefulness of the results for companies:
Companies have the opportunity to advance from the Avoid errors and save time in
from the pilot phase to the implementation phase of the solution the expedition zone, as well as a greater vi-
since the results of the subproject indicate so visibility of the goods shipped to the customer
This step will bring them benefits, such as:
Future challenges of RFID technology:
Have a traceability solution that allows you RFID technology has weaknesses in environments
provides total visibility of the quality of its liquids and/or [Link] there are investigations
products throughout the transport until the in progress to solve these problems and even they
client's facilities. has developed ad-hoc products for these disruptions
These weaknesses must be the subject of strong
Know in real time what products have been research efforts by companies
loaded on the truck as well as its exact position manufacturers or research centers for obtaining
through the coordinates of the GPS module to obtain viable low-cost products.
and the temperature (at the time of checking it
and of the history of the entire trip).

SCOPE PROBLEM SOLUTION

CHAIN In the cold chain, currently only Development of an embedded team composed of
OF COLD the temperature of the truck box is controlled an active RFID reader, a GPS module, and a system of
at the time of delivery but is not monitored communication that is responsible for taking measures of the
in real time the previous history of the temperatures logistics units labeled with RFID sensors and
routes to which the product has been exposed. send the information of the position and the temperature of
each of the products to the main server, access-
In any case, they are indeed used in some cases. possible for all agents in the supply chain.
time-temperature sensors that report on During the course of the project, the system has been designed and
that the product arrives in bad condition, but I do not it has been tested in different pilot tests in which they have
It has a preventive control. collaborated with the participating companies.

CHAIN A specific case has been studied, the transport of RFID-labeled box pallets have been used to which
INDUSTRIAL special pieces of complex morphology between two they are given the hierarchy of temporary storage. As
INTERNAL warehouses in the ceramic sector. Due to its difficulty the products are introduced, they are assigned that location
many pallets are used for trans- temporal and subsequently an auto-validation is performed
carry products of different sizes and the process of mathematics when the transfer is made.
Verification of each product can be vague. The solution is validated with the implementation of a pilot case.

TRANSPORT In long-distance transport, it has been studied Labelshavebeenaddedtothetransportedproducts.

LONG how transportation vibrations affect the RFIDlabelwithvibrationsensorthatmonitorsvibrations
DISTANCE product transported in real time. receivedactionsenablingactionintheeventofappearance
ofdangerousvibrationsforthetransportedgoods.

WAREHOUSES The need to study the me- has been detected. Practical cases have been made on how to improve the efi-
best logistical practices in the warehouse relatio- picking science through higher degree technologies
you have the traceability of the products. automation that ensures proper traceability.

34
Chapter 3 Solutions to specific logistics problems
developed in the PSE Globalog

CASE STUDY Application developed:

Real-time temperature control in a ca- In the different pallets of the transported product
ice cream supply company. RFID tags with sensors were incorporated.
temperature. Specifically, all the
Participating agents. logistic units with RFID tags that integrated
Ice Cream Factory Comaker. a temperature sensor.
Transfrigo Canarias.
Consum Cooperative. Meanwhile, in the truck cabin, an equi-
embedded, which incorporated an RFID reader and a
Problems detected to be solved: GPRS and GPS system. The system operates in a
Competitive advantage associated with monitoring such that the reader interrogates the labels every minute
continues with the temperature of the ice cream during the and this is how a real-time temperature is obtained, which
transport is sent remotely to the control center of the
company. There it is possible to know and control in each
Background: moment the place where the merchandise is located and
Food security is a priority. the state of this to prevent breakages in the chain of
particularly for refrigerated and frozen foods, it cold. Additionally, the companies that make up the
what implies the need to have a system the supply chain of this product has access-
of effective traceability at all stages of the ca- to the data of this server over the Internet.
supply chain.
Results achieved.
As a general rule in this sector, both in the al- The incorporation of identification technology
warehouses like during transportation, it is controlled the by radio frequency (RFID) represents a step of gi-
ambient temperature. However, during the dis- it is crucial for food security, as
distribution of products has critical points, for cost reduction in companies to the evi-
such as the shipments or receptions of goods, to lose product, as well as increased agility.
Where the temperature is not controlled. reliability when performing operations thank you
to the advantages offered by RFID technology for the
With the development of the system, successfully tested at logistics, specifically for:
through this pilot experience and based on eti-
radio frequency identification tags (techno- Real-time temperature control.
technology called RFID), the information is available- active tag
noble in real time and for each of the pallets, it is
to say that it can be obtained at any time Data transmission via GPRS.
information about where and under what conditions
The merchandise is located. Data processing and interpretation.

35
 Guide to becoming more competitive through logistics

SOLUTION DEVELOPED FOR REAL-TIME TEMPERATURE CONTROL

RFID technology allows for temperature control.

real-time tracking of goods as it
observe in the graph of the test performed in
this case study.

36
Chapter 3 Solutions to specific logistical problems
developed in the PSE Globalog

3.4 Logistics Infrastructure: Evaluation of the Atlantic and Mediterranean Networks (SP5)
The improvement of information on available logistics infrastructures is a key element in decision-making.
Sessions of the companies, as it is an effective tool to reduce the level of uncertainty in their operations
of logistics and transportation, as well as in supply chain management.

SCOPE PROBLEM SOLUTION

Infrastructure Need to have a database Constructionofaninventoryoflogisticalinfrastructuresforthecommunities

journey homogeneous on logistics infrastructure datafromAragón,Asturias,Catalonia,Galicia,Navarre,BasqueCountry,andLaRioja.
logistics from the Atlantic-Mediterranean Network, as well as Thedatareferstoroadnetworks,railways,airports,centers
available of the real demands according to modes of gradesofmerchandise,[Link]
transportation between origin and destination by Comu- ahomogeneousbaseofeconomicandfinancialvariableshasbeenbuilt
Autonomous Entity. oftrafficfromtheSpanishPortAuthoritiesfortheperiod1986-2005.
AllthisinformationallowedthedevelopmentofaGeo-InformationSystem.
graph(GIS),availableforconsultationbycompanies.

KnowledgeCenter Needforthecreationofaspecificsystem TheSemanticInformationSystemonlogisticshasbeendeveloped.

lieandintelligence ofsemanticsearchinthefieldoftrans- thatalongwiththeinfrastructuredatabaseswillbepartoftheOb-
Competiveinteligence transportandlogistics. Transportobservatory,hostedonthePSEGlobalogwebsite.

Ranking of in- Necesidad de construcción de un ranking de Indicators of infrastructure usage have been established and eva-
infrastructures infrastructures of the RAM (Atlantic Network - highlighting the importance of specific infrastructures, such as the Port of Gijón
more profitable Mediterranean. or the Plaza Logistics Platform. Functions have also been estimated for
potential demands for the transport of goods and passengers according to
modes. Pollutant emissions associated have also been estimated
to the road freight transport.

Profileorganizes- Inthefaceofthecomplexityoftheindustryandtheintensity The key variables that allow for the improvement of the levels have been identified.
tivoandhumanof inhumancapital,thereisaneedtoknow the economic and social efficiency of transportation companies
thecompaniesof theorganizationalandhumanprofileofcompanies goods by road.
transport roadtransportintheRAM.

Utility of the results for companies: Theproposedresearchwillbeveryusefulfor

The estimation of demand functions for goods finishtheeconomicgrowthareasandcorridors
byroad,ofpassengersandgoodsbyrail, [Link]
andofgoodsandpassengersbyairtransport balance and territorial cohesion, providing opportunities
theAtlantic-MediterraneanNetworkservesthecompanies frombalanceddevelopmenttothedifferentareasoftheterritory
beastsofthesectortoprofileyourcompetitivestrategy. [Link],itwil contributetotheimplementation.
ofpoliciesaimedatimprovingconditions
It is also noteworthy that the information obtained about of the lives of people who work in transportation,
the psycho-social characteristics of the industry of bothgoodsandpassengers,favoringthe
road transport of goods is of interest reconciliation of work life with social/family life
morethanahundredcompaniesinthesector,because ofthesepeoplethroughtheconstructionofInfraes-
theyperceivethatitlaysthefoundationsforthedevelopmentofpo- logistical structures that also allow for growth
policiesandstrategicmanagementsystemsthatallow itsproductivity.
theincreaseofitscompetitiveness.
The economic impact analyses of the infrastructure
UtilityoftheresultsforAdministration: logisticaltoursandtheirlevelofutilizationcanbeuti-
The preparation of complete and comprehensive databases made by the PublicAdministrations in the deci-
tablesonlogisticsinfrastructuresandtheirindices constructionsessionsofthem.
useconstitutesafundamentaltoolfor
serviceofthePublicAdministrationsforthe Along the same lines, it is particularly relevant for
Itistheimplementationoftransportpolicies. public organisms such as Port Authorities,
tothoseinterestedinadetailedandofca-
Furthermore, the results obtained in terms of pre- global framework to evaluate possible lines of expansion
dictions of potential future demands, upon re- oftheirbusinessandimprovementintheiroperatingfigures.
relate them to the capacity of the infrastructures, it
theybecomeanessentialelementforthecorrectpla- Futurechallenges
unification of the investments to be made in the system of The promotion of intermodality.
nationaltransportbythedifferentadministrations. 2. Organizational improvements.
[Link] reduction of emissions.
37
 Guide to being more competitive through logistics

CASE STUDY
Competitive Intelligence System to support knowledge exchange and promote
innovation in the field of logistics and transportation

Problem detected show explicit results about the information

The business dispersion of the sector makes it difficult existing. For example, when looking for information related to...
knowledge of all sector-related information and the related to "transport operators" the system
technological advances in transportation and logistics. it will return not only information that contains expli-
quote this lexical chain, but also all
For this, access to intelligence tools those concepts that have been related, such as
competitive is key to promoting innovation Iberia, Alsa and all those operators of trans-
vacation, although it requires large resources for airports included in this class.
part of the companies.
To obtain the information, a has been developed
Antecedentes intelligent agent that tracks those news,
The logistics and transport sector in Spain is communications, official bulletins, databases,
strongly characterized by its heterogeneity and technical articles and other multiple sources relate
its dispersion. This lack of homogeneity and the dis- vantes and current. This information is catalogued
business pressure makes the creation of necessary and classifies into areas of interest and is introduced into
una herramienta de comunicación capaz de llegar a document manager. All of this has been integrated into
to everyone, that enables the transfer of information a web system through which users can
specific interest in the sector and through to access this tool.
from which the dissemination of knowledge is possible
to, novedades y avances tecnológicos que atañen a Benefits for companies
this area of activity.
The Knowledge Center is an effective system of
Access to statistical and market data on smart information at the service of users
the sector and the competitors of the companies themselves belonging to the transportation and logistics sector
it is key to making the most timely decisions in Spain.
to facilitate companies' access to this
information has generated a knowledge center • Anycompanycancarryoutsurveillancetasks.
I lie that, in addition to offering this data, it does so. technologicalinanautomatedmanner,thatistosay,withoutadheringto
achieving a considerable time saving and theneedtodedicatelargeresourcesandtime.
of resources of the companies allocated to the search
information leak. • Promotesinnovationandcompetitivenessincompanies
yes,sinceitprovidesthemwithinformation,ononehand,
Application developed aboutwhattheircompetitorsdoandontheotherhand,
A knowledge center has been developed, cadeloquepublicasobreellosenlosmediosdigitales.
built following the guidelines of the applications Provides updated information about others
Web 2.0 with innovative technology like Computa- general aspects of interest for the sector of
Grid, Semantic Web, Intelligent Access to the quick and efficient way.
information (Searches, Personalization and Localization
natural language processing. • This tool is part of the Observatory of
transport, which means that companies have
To define the semantic search model, one ... an essential tool at your disposal
they have selected more than 100 sources and it has been defined information retention that decreases the level of
an ontology that has 130 classes, 46 attributes uncertainty in their logistics operations and
and a knowledge base of 13,000 instances with transport, as well as in supply chain management
the intention to model all the available information supply.
the field of logistics and transportation.
Companies can access the Observatory of
The hierarchy of these search concepts Transport from the OTRAM section of the portal
and the relationship with the different attributes allows project website: [Link]

38
Chapter 3 Solutions to specific logistical problems
developed in the PSE Globalog

How it works

ACCESS TO THE PORTAL

Access to the portal is designed to be done through
of registered users, which allows for greater
control and also enables some functionalities
explained below.

2. PRESENTATION
Upon accessing the portal, the user finds themselves in
first place with a presentation page in the
that briefly summarizes the objectives of the project
GLOBALOG.

3. SEARCH
Semantic search by keywords: Given some
palabrasclave(logística,transporteferroviario,terrestre,
etcetera), results are shown in order
according to the utility criterion of each document (obtained
thanks to the readers' experiences.

Semantic search by natural language: It is one of

the key aspects of the tool, as it allows
obtain accurate answers to the search strings
to be carried out. In the upper left part,
you can enter the term directly or access
the advanced search, where it is possible to fence and refine
plus the search, being possible to restrict by type of
transport, source dates, what results particularly
useful for obtaining specific information. In the example
we introduce the C02 theme and filter by Transport
Land-based to know all the data and initiatives
relacionadas con este campo semántico.

39
 Guide to becoming more competitive through logistics

4. DOSSIER
The portal provides the registered user with the option to
store those news items that interest you and create
files with them. It is possible to generate press reports
based on those files, thus enabling the creation of
bulletins that spread the selected news.

When the news appears in the search engine, they count.

with a red cross on the left, which when clicked, the
automatically stores in the user's file.

By accessing the "My dossier" tab, you access the

news that had been previously selected
and it is possible to collect them in a PDF document that is
will be generated automatically when clicking on the section
Generate report.

5. THE MOST WATCHED

En esta sección se recogen aquellas noticias que mayor
number of visits they have received. It can be selected
the most consulted on the same day or during the three
previous. The user can thus consult the data more
consulted by the sector.

6. CLOUD OF CONCEPTS
Highlight the terms included in the ontology that with
more frequently have been mentioned in the pieces of
recently captured information. In this way
it is important to highlight that the appearance of a term in the
Tag Cloud does not strictly obey its frequency,
but also to its present. The font size
used in the Tag cloud corresponds to a
normalization of a function of its frequency and its
news (the larger your size, the more recent)
the recurrent is).

40
Chapter 3 Solutions to specific logistical problems
developed in the PSE Globalog

3.5 Logistics and environmental sustainability (SP6)

In operations that have traditionally been associated with logistics, such as movement and storage that
it facilitates the flow of products to the point of sale, making it essential to include those logistical operations capable
to place in the hands of the manufacturer or recycler the products discarded by consumers. That is to take into account
not only the direct flows but also the return flows of products, from the consumer to the manufacturer or recoverer,
in what is called the Inverse Logistics Function or Reverse Logistics.

There is a need to manage these returns and waste correctly from an economic point of view.
it determines the viability of the company, and most importantly, from the perspective of sustainability, in such a way that
the company can maintain a policy that generates economic and environmental competitiveness.

Problem detected and solution. In this project, we • Inthepracticalapplicationofthedevelopedtools

they have addressed various problems related to the Inpracticalcases,thefolowingresultsstandout:
logisticsandtheenvironment:returnpolicies,plani- - Benefits of up to 18% on the re-kilometers
qualification, sequencing, container return, packaging routines in the collection of waste from appliances
portmanagement...Thefollowingarementioned electrical and electronic devices through redesigning
más destacados y las soluciones adoptadas: the network established in Galicia.
- Inthecaseofemptycontainermanagement,the
Usefulnessoftheresultsforcompanies: thedevelopedmodelalowstogeneraterecommendations
Identification of the most relevant factors for onesthatminimizeemptymovementsintheHin-
maintain an environmental management policy thelandofthecontainersofashippingcompany.
as a competitive strategy in the company.
Reduction of the impact of the return of pro- Challengesofthefuture:

ducts in the distribution. • Everydaytheenvironmentalimpactofactivities

Incorporation of logistics and sustainability practices logisticsrelatedtotheeffectsonclimatechange
qualities that allow increasing satisfaction of the Ticoismoreworryingforsocietyandthego-
customer and cost reduction. laws,whichestablishstricterregulations.
Improvement of the company's image with the possibility • Adaptingtotheminimizationofthisimpact,heuseofmo-
toimplementaneco-labelingtocertifyquality twomoreeficientmodesoftransportandbeterplanning
environmentalimpactoftheproducttoconsumers. Itwilbeafuturechalengeforcompaniesinthesector.

SCOPE PROBLEM SOLUTION

Logistics Thereisnotmuchknowledgeabouthowtoincreasethe A series of interviews have been conducted in a few sec-
inverse interestofthecompanyingoodreverselogisticsnortowhat selected stores to understand the reality of companies. As a result of
[Link] Hello, different product return policies have been proposed.
mainbarrierstotheimplementationoflogisticspractices at the retailer level.
inverse,andproposemanagementpoliciesforthemby
partoftheretailers.
Design of Logistical networks are sometimes designed in a way Developmentofnewmodelsforthelocationoffacilitiesandnetworks
nets not very formalized. The design of the needs to be improved. logisticsforproductreturns,focusingonthecaseofreturns
logistics product collection networks at the end of their life ofWEEE(WasteElectricalandElectronicEquipment).Developmentfor
inverses sliding the process. aSpanishregionandvalidationofbenefitsobtainedbyredesigningthenetwork.
Process- Once the products return to the treatment workshops Analysisoftheadaptationofdisassemblysequencingmodelsand
lieof It is necessary to plan those operations with tools. planningusingreverseMRP(MaterialRequirementPlanning)for
products similar measures to those developed years ago for the [Link].
returnedin direct [Link] for processing need to be proposed. andtheuseoffuzzyinformationtypicalofsituationswithreturnof
theendoflife handling of returned products at the end of life. materialattheendofitslife.
Movement The logistics of the empty container is one of the costs DevelopmentofmodelsforthedesignofDSS(DecisionSupportSystems)
of the count- most relevant for shipping companies. It is necessary to thathelpmakedecisionsoncontainermovementinthe
not yet define models for better container management [Link](China
in empty empty. ShippingatthePortofValencia
Management Environmental management in ports needs Definitionofnewmethodologiesforthedevelopmentofmemoriesof
average formalized tools, being necessary the defi- sustainability.
environmental in definition of a methodology for preparing reports Developmentofsoftwarethatallowsthecalculationofeconomicindicators
the ports sustainability in the maritime sector. environmentalandsocialfortheeditingofthosememories.
Eco-label Consumersareincreasinglybasingtheirdecisionson Proposal for the creation and feasibility study of an eco-label
ecological purchasetakingintoaccountnotonlytheaspectsofquality, specific for packaging and packaging that includes a series of
priceandavailability,butalsotheeffectsoftheown ecological criteria to be met by the products. Most of the
productandthepackagingthatcontainsitontheenvironment surveyed companies see positive factors in the implementation of
[Link],thereexists an eco-label, among which the improvement of the image of the
aneedforatoolthatcertifies company.
theenvironmentalqualitytoconsumersnotonlyof
ownproduct,butalsoofitspackaging.
41
 Guide to being more competitive through logistics

CASESTUDY:
Modelforthemanagementoftheemptycontainerandapplicationintheportarea.

Participatingagents: to differentiate two levels: The international level that has

ChinaShippingSpainAgency,S.L. what to see with container movement at scale
international as a consequence of the imbalance of
Problemsdetectedtobesolved: the main trade routes (the management of it-
The logistics of the empty container is one of the costs the shipping company carries out these movements.
most important for shipping companies given the centralized form). And the regional or local level that
great imbalance existing on the main routes it has to do with the terrestrial movement of con-
commercial. Any improvement in its management can re- empty forks between terminals, depots and insta-
interesting to consider from an economic point of view and relationships of chargers and receivers (The management of
environmental. these movements are carried out by the shipping agent or
consignee, responsible for the management of the equipment
Background from the shipping company in its area)
In the last four decades, the container as
the load unit has reached an undeniable importance Developed application:
importance in maritime cargo transport to Inthepresentcase,theproblemisaddressedfromtheop-
international level. With the increase of the count- localshippingagent'spractices,whichcontrolthelogistics
narrowing, the number of maritime terminals of [Link]
Containers have been on the rise. inthedevelopmentofamethodologytoachieve
the best assignment of the empty container for the mo-
The location of empty containers is considered movementstobemadeinthecomingdaysbasedon
one of the main problems that we face thedemandsforcontainersthatareavailable.
they face the distribution logistics and the companies of
maritime transport: the management of imports For this, a mathematical model was developed.
empty containers in anticipation of the future esc MILP (Mixed Integer Linear Programming) that brings-
the same or the export of containers to minimize those movements. Specifically, the
empties in order to reduce their excess in a implementation of this mathematical model helps
port. to decide the optimal movement of containers goes-
keys applied to the hinterland of the port of Valencia.
It is worth mentioning that the relevance of this problem
but is backed by the fact that the replacement The data is loaded from the computer system
Empty containers do not produce any benefit from the shipping company and through a user interface
but, on the contrary, only increases costs. the results are offered. Some screens that
In the logistics of the empty container, various ... The benefits of this new application are as follows:

42
Chapter 3 Solutions to specific logistical problems
developed in the PSE Globalog

Achieved results: Query of the input data file.

This application was initially developed offline for

test its effectiveness and the quality of its solutions.
Subsequently, it successfully integrated with the data and
available formats from the shipping company China Shipping.

The model researched and developed allows

generate recommendations that minimize the mo-
movements in vacuum in the Hinterland of the conte-
navigational references of the shipping company. The solutions of the system

help in decision-making minimizes transfers from

empty containers between depots and terminals.

The developed application is general for which-

any shipping company that wishes to implement development
realized.

Detailed data of an empty container allocation calculation. Consultation of the calculated data file.

(a)

(b)

(a) To consult the input data file.

(b) If the state is finalized, to consult the results file

43
 Guide to becoming more competitive through logistics

Chapter 4
How to access the
developed tools
to improve logistics
and the management of the chain of
supply?

44
Chapter 4 Global Solution: Integrated Pilot Globalog (SP7)

Nowadays it is proven that inter- their forces to create synergies and for that they need
business can allow offering products at prices solutions based on Information Technology
lower due to the potential savings existing in all (IT) that allow them in an agile and robust way to inte-
the points of the supply chain. In Spain, with to grow and interoperate.
logistics costs around 10.7% and, therefore, their-
better than other European countries by more than two points and In this context, after validating the usefulness, sustainability
with a low average service level rate (above the and the positive cost-benefit ratio of the results of
78%), companies have the possibility of queue- the research in the PSE GLOBALOG has been defined
to erase in order to eliminate unnecessary costs an Integrated Platform of Technological Services that
in the productive phases as in the entire commercial cycle. streamlines the integration between entities of the chain
supply and its staff in mobility and promotes the in-
Interoperability is a challenge for manufacturers and operators. exchange of information and logistical visibility between
distributors, that is to say, to allow the processes of dis- the participating companies.
ink companies are able to work in a way
joint even if they have been developed locally and This platform incorporates the most effective contributions
its execution is supported by different tools those carried out in the different working groups of
However, in practice, this becomes very complicated in the face of the this unique and strategic project, and integrates them into
lack of tools that facilitate that common space a tool that, in addition to providing added value
necessary to achieve such interoperability. allows access from a single environment to the different
these tools developed to improve the com-
Therefore, greater efficiency will only be achieved if we... competitiveness of companies.
both protagonists of the supply chain unite
45
 Guide to becoming more competitive through logistics

Comprehensive Platform for Technological Services PSE-Globalog

On many occasions, a differentiated view occurs among the different links in the supply chain, and
a large part of the investment in various objectives (promotions, product launches, etc.) does not yield results
of those anticipated, which implies an additional cost.

Therefore, tools such as the Integrated Platform for Technological Services are highly valued, whose objective is
increase business collaboration and enhance the visibility of partners throughout the entire chain, and not just
each company's own part. This allows companies to anticipate possible incidents in their processes, which to
through a series of situational indicators, it helps them make timely strategic decisions to measure
the impact and risks in various everyday situations.

In the development of this Platform, a new way to deliver services to SMEs has been aimed at.
and end customers in general through a SaaS (Software as a Service) service delivery architecture,
the services obtained and exchanged are perceived based on need, and their impact on the bill
Customer satisfaction is based on its use and not on the investment in the acquisition of owned product.

Areas of the Platform different entities that carry out various activities.
It is an open service platform for Likewise, having information related
any company that allows for a quick adaptation withthesectorimpliesanunavoidablenecessity.
ask for the needs of each one of them. Test
its versatility is demonstrated by the fact Below is presented schematically
having been tested in supply chains the technological services developed and adapted
as different as the following: two to each pilot scenario.

Industrial chain, covering the domain related Services

with the established value chain between em- The following briefly describes the
caught in an industrial environment, involving ade- most relevant services included in the platform
but to other actors necessary to achieve that my PSE-GLOBALOG, indicating in parentheses the
end. The objective is to demonstrate the improvement in ef- subproject under which they have been developed.
science in the internal operations of the company
as well as the possibility of adding new services and Collaborative demand forecasting (SP2)
communication channels with their partners. Service that integrates data from all the different
agents involved in the chain (providing-
•Distribution/consumption chain, covering the pro- res, clients, logistics operators, etc.), with the
specific problem that arises in the sector of Objective of achieving a management of forecasts and
distribution and consumption. In this scenario, they result unified planning.
of great importance the different inter-
intermediaries (transporters and logistical operators) Demand-distribution integration (SP3)
necessary to distribute the product from the em- Service that calculates the optimal distribution of
manufacturer to the marketer. Ade- products to stores based on demand
more coordination among companies in this from the forecast and definitive and of the available stock. The
the context is particularly relevant to monitoring the service aims to smooth the load of
and traceability of products, especially in work of logistics centers.
especially "sensitive" products, such as
those of consumption, and those that must adjust to Collaborative order management (SP3)
special transport conditions. Under the function of reallocating reservations of in-
inventory to orders, this service optimizes the allocation
• Infrastructures/Intermodality,whichaimstobe- product nation to orders based on different
be useful to those companies that focus their criteria. It allows simulating different scenarios
activities in the area of transportation and logistics in and compare the results obtained.
[Link]-
twoscenarios,ashappensforexampleinthepuers- Collaborative planning (SP3)
it is necessary to facilitate the integration of di- Service that allows defining both the Agre Plan-

46
Chapter 4 Global Solution: Integrated Pilot Globalog (SP7)

cattle (tactical level) as the Master Plan (level [Link],whathasallowedthemtobeeliminatedLevan-

operational) of Production for a chain of conditioned for perishable goods and
supply in the industrial field. improve the procedure of Paperless Lifting
containerized merchandise for import.
Cold traceability (SP4)
Service that obtains position information Traffic incidents (SP7)
current temperature and vibrations to which Service that connects to public servers
a certain mer is subjected General Traffic Directorate and Department
canción. This service has been developed using of the Interior of the Basque Government) to obtain in-
using GPS receiver technologies, RFID Tag training on the real state of traffic as
active, temperature and vibration sensors. works, accidents, delays...

Traceability of special parts (SP4) Temperature alert on merchandise (SP7)

Service that records the movements of mate- Service that detects serious deviations in the
rial among geographically dispersed warehouses temperature to which a mer- is subjected
This service has been developed using song. It makes use of other services of the silver-
RFID and Barcode tag technologies. form (cold traceability, scheduled execution
of services and notice message.)
Semantic portal associated with the observatory of
transport Generic services available in GLOBALOG
Semantic capture and indexing tool (SP7)
of funds that will be associated with the observatory of The comprehensive technology services platform
transport, which will be operational in 2010. provides a series of services for general use
complementary services to the rest of the tech services
Empty containers (SP6) technological and accessible to all users of the
Tool that allows you to assign the movements platform. Among which stand out: Service
local land terminals for empty containers Document Management, Messaging Service and
trying to minimize the costs derived from Scheduled Execution of a Service.
movement and storage of the same.
As an example, the following is presented
Inspection request Inspection Post available utilities for the large con- scenario
Borderline (SP7) sumo. Due to its special interest, it has focused on the
New system, available on the valen platform scope of traceability of cold goods.
47
 Guide to being more competitive through logistics

Utility of the platform for companies: The efficiency of chains is improved.

supply by improving interoperability and co-
Companies engage in a process of collaboration of the partners. The cycles are reduced
improvement that leads them to analyze the flows of in- of the processes and operational risks to the
training and assets in their daily operations. so that the quality of the products improves and
services.
It facilitates various companies in a chain of
supply the sharing of relevant information Costs are reduced in Information Technologies.
in an agile manner and even come to infer new training, making IT investments profitable
valuable information. thanks to greater possibilities of reuse
and a better use of the sys-
Allows access through a unique environment to available management topics in companies.
the various tools commonly used Likewise, based on a SaaS architecture
lying in the performance of their duties, inde- the services obtained and exchanged are per-
regardless of its location. they are based on the need and its repercussions in
invoicing to the client is obtained based on their
Allows hiring services from different use and not to the investment in the acquisition of
suppliers with the advantage that it entails (re- hardware and software owned.
cost reduction, supplier independence,
investment protection,...

48
Chapter 4 Global Solution: Integrated Pilot Globalog (SP7)

PRACTICAL CASE OF USE OF THE PLATFORM: Delivery is not immediate. Orders with fe-
Pilot Scenario Industrial Chain non-immediate delivery dates that have "yielded" their
products assigned to other more urgent orders
Participating agents. they will remain incomplete and, in the future, they will have
Supply Chain of the KERABEN Group that need to be completed for their delivery.

Problems detected to be solved. Due to the product reservations for pedi-

The KERABEN Group (one of the production companies it is initially done from the stores, consul-
Floor tiles and ceramic cladding more while the availability of finished products or
important areas of Spain) has detected two areas planned (also ATP) of KERABEN, any
susceptible to improvement such as coordination modification made by KERABEN in the reassignment
operations and the traceability of operations of the ca- reservation management of the global order portfolio
supply chain, where it is required that the in- will affect local commitments or particu-
necessary training is available for the resources acquired by each store with their customers. By
different nodes that make up the network have access Hello, collaboration is considered essential.
immediate to it. between the stores and KERABEN. Through an ade-
each collaboration can better manage the
Collaborative Order Management. orders, based on the joint study stores- KE-
The KERABEN Group requires that different entities RABEN (the stores have a local point of view or
by acting in a synchronized manner, can achieve partial of your order portfolio, while KE-
adequately manage the Collaborative Management of Pe- RABEN has the vision of the global portfolio of pedi-
didos. In this sense, within the framework of the process of two of all the stores) of the priorities of each
order management, there is a critical subprocess of- order, of the available products (ATP) and of the
nominated Reassignment of Reserves (RR), taken to products assigned to other orders.
head of the Commercial Department of KERABEN,
through which the products are redistributed Collaborative Operations Planning
assigned to the orders according to the delivery dates (production and storage).
and the expedition plans. Likewise, the KERABEN Group requires a uti-
dad for Collaborative Operations Planning
This HR subprocess allows closing orders and production and storage of the different
meet immediate delivery dates using the manufacturing plants and warehouses in your chain
products reserved for other orders of the car- of supply. Planning is required.
Tera global of KERABEN orders whose dates for the different levels both centrally-

49
 Guide to becoming more competitive through logistics

slid as distributed. In order to materialize Application developed: solution.

this vision, it is necessary to allow that the informa- In this pilot scenario, the proposed solution main-
generation generated at one level, serves as input for mainly has relied on results obtained
the following can make their own planning, in the subprojects SP3 (Reassignment services
generating information on needs for the level of Reservations and Collaborative Planning) and SP4
immediate predecessor and so on. (service for Tracking of special parts).

Product localization and traceability. Under the auspices of the SP3, the Reassignment function
On the other hand, the problem for localization and From inventory reserves to orders is optimized the
traceability of products throughout their cycle assignment of products to orders based on distinct
of life is another of the points that, today, still your criteria. In addition, it allows simulating different
are not resolved in many companies. An exa- scenarios and compare the results obtained.
an example of this is the case of "special pieces" that On the other hand, the integrative pilot of the SP7 makes
They are made in KERABEN. In this case, it is necessary possible that Collaborative Planning is dis-
to transfer those products from the factory to available for the other related companies
the warehouse, geographically dispersed points, and KERABEN has a tool that allows them
for what is done with trucks. Until the mo- allows knowing in advance not only the
regarding the transfer, the special parts are not needs of the manufacturer but also generate
identified and their exact final location in the soul- the information that your own suppliers need
who is not known, which makes its management and its satellite. As shown in the following figure,
the expedition may not be as swift as it could be. With the main functionalities of the Pro service
this new service is intended to, for example, Collaborative programming is the generation of the Plan
if a customer files a complaint they can co- Added and the generation of the Master Plan of Pro-
to know all the manipulations suffered by one duction.
piece. Or at the moment when it is urgent to send.
al cliente una pieza pueda agilizarse el proceso al As can be seen, in both cases it is ne-
know the exact location of the part and claim it will cease the interaction with various actors such as
his transfer to the shipping area, if he is still suppliers and customers. Although the generation of
find in the warehouse area. the plans are the ultimate competition of the company,

50
Chapter 4 Global Solution: Integrated Globalog Pilot (SP7)

the adjustment of dates and batch sizes planned in As emphasized by the KERABEN Group,
in relation to raw materials, or the dates of in- one of the benefits obtained is the notable help
delivery, quantities and stores that are planned what it entails for the assimilation by the em-
send the final articles, they are aspects that have capture of the concepts of internal, external logistics
have been improved through the use of the platform. and of extended supply chains, researched
in the various subprojects that otherwise could
In coordination with SP4, in the integrated pilot. they could easily remain within the realm of the theory-
work has been done on the development of advanced services Its application in more real situations facilitates
tools for commercial management and expeditions its validation and paves the way for its adoption, it
regarding the special pieces. For pieces is- that will progressively have a beneficial impact
Specials are understood as those pieces with purpose. I care a lot about the company's results as
decorative or complementary to the ceramics for for those members to whom it is being transferred
achieve certain finishes or trims. They are manufactured the new work philosophies.
in a lower percentage than the tiles and because of their mor-
Morphology is not packaged in the same way as the To conclude, with the use of the Platform
rest of the factory production. In this defin- Integral Services provides benefits such as
For example, small dinners can be included, like:
strips, molding or trims, baseboards, steps, etc...
Common collaborative framework that helps to compare
Thanks to such services provided by SP7 and ba- to share information among the partners of the chain
issues in RFID Tag and Barcode technologies, KE- supply, which allows responding in a way-
RABEN will considerably reduce efforts faster to the requests and needs of the
necessary in expeditions while improving clients.
its image by equipping the salespeople with a tool-
lie that simply allows them to give a Optimization of production processes and
quick and reliable response to the customer. gistics.

Results achieved: Improvement in distribution processes and trans-

In this case study, companies participate. door within the supply chain, thank you
that are working on improving their methods to monitor its traceability.
and current management procedures with the aim
to reduce or eliminate the inefficiencies that produced Reduction of inventory levels.
It aims to improve the management of its chains
supply chain trying to redefine the relationship Greater quality assurance of processes,
conventional between client and supplier to take out vices and products obtained.
the most out of the resources of the compa-
so that significant savings are generated Increase in the competitiveness of the chain and me-
economics for both parties and, in the end, these be- positioning within the market.
benefits may result in a better service to
final consumer. Improvement of the corporate image.

51
 Guide to becoming more competitive through logistics

Chapter 5
What factors indicate the
development of management
logistics that generates
competitiveness for the company?

There are a series of basic indicators that reflect, in a way

simple and straightforward, if the management and logistics operations are being
carried out in the most efficient way possible in a company, and
therefore, throughout the entire supply chain.

Here are some of them and you can recognize how-

they are met or not in their organization and act accordingly
with the incorporation of good practices and the tools that
They have been described in the previous chapters. They are as follows:

52
Chapter 5 Success indicators for efficient logistics

TRANSPORT AND DISTRIBUTION CUSTOMER SERVICE

Low levels of emissions in transportation. High level of customer service.
• Useofintermodalityintheirtransportationoperations. Reduction of the process cycle, minimum time
Use of efficient means from the point of view from the moment the supplier receives an order until
environmental. is distributed to the end customer.
Low index of traceability losses in the chain. High quality of billing.
Low index of cold break cases. Positive corporate image of the company.

INVENTORY SUPPLY CHAIN MANAGEMENT

High inventory turnover rate. High integration of knowledge in the Chain of
Low levels of merchandise longevity. Supply.
Inventory accuracy. Use of Collaboration, Simulation, Expe-
feeding and visualization.
STORAGE Reduction of operational risk by providing visibility
Low index of search requests for a product to the Supply Chain and provide services of
I am in the warehouse. help with decision making.
Low storage cost per unit. Low total transaction costs between partners
Low shipping cost to the customer for the alma units. business, suppliers, and clients.
cenadas.
ORGANIZATION
SUPPLY AND PRODUCTION Continuous application of organizational improvements.
Low procurement and production costs. High flexibility with suppliers and customers.
Purchase orders made without delay. High levels of Innovation.
Low percentage of returned orders. High levels of logistical performance.
High level of compliance from suppliers. Minimization of logistical operations.
Flexibility in response to market changes.
Increase in the level of compliance of the products
terms/services.
53
 Guide to being more competitive through logistics

Chapter 6
What actions are there?
what to undertake
to improve the
logistics of the
companies
Spanish?

The analysis shows that there are opportunities Use and future interest in logistics practices
ways to improve competitiveness in logistics and in Graphically, the following shows the re-
supply chain practices in Spain, both in results of the survey conducted with the companies
infrastructure topics (for example, facilities about its current use of good practices
of railways and multimodal platforms) as in characteristics and which of them are of more interest to you
the adoption of advanced logistical and supply practices future adoption.
supply chain from Spanish companies
Close the gap between the observed practices The included bubble charts indicate in the
and those identified as best practices could horizontal axis the degree of utilization of the practice
signify a valuable boost to competitiveness descriptive tactics (measured on 5-point Likert scales)
industry in Spain and, therefore, contribute to closing the intervals), and on the vertical axis the degree of interest
trade deficit gap. future (measured on a three-interval scale:
smaller, equal, greater). The diameter of the bubble
indicate the number of responses.

54
Chapter 6 Conclusions and future interest in the adoption of logistics practices

Short-term actions Support the training of qualified human resources

One of the short-term actions to achieve this data on logistics and supply chain
The objective is to stimulate the development of tec- others, with proficiency in the English language.
technologies that facilitate efficient logistics management.
PSE-GLOBALOG has focused on development of Encourage Spanish companies to adopt
many of these technologies (for example simulate- of the best logistics and supply chain practices
Supply Chain pain points, tracking systems supply, particularly regarding the inter-
feasibility, reverse logistics systems, the Platform- operation processes management. The change of in-
my Integral Services, etc. competitive Spanish context will facilitate this transformation
information, which may be accelerated by actions of
It is also advisable, in the short term, to stimulate the disclosure such as this publication and the diffu-
rapid adoption of best management practices session held in the subproject SP8.
logistics, in particular those related to systems
of inventory management and use of suppliers As a final conclusion, the analysis conducted suggests
integrated logistics. many opportunities for improvement. The hypothesis stands
regarding the relative situation of low competitiveness
Long-term actions logistics and supply chain in Spain is the
It is important to highlight another series of long-term actions. product of a decade of low opportunity costs
that companies and the government could undertake nidality (due to very low real interest rates),
to close the identified competitive gaps: which caused a high level of spending of the with-
drainage and the construction sector, and in the
Review of Spanish logistical structures real decrease in value-added activities.
to promote rail transport and use
of multimodal logistics platforms. The subpro- Whatever the final verdict on the causes of
Project SP5 has developed a current evaluation this situation, the analysis of the situation and the de-
inventory of existing infrastructures in the Atlán axis- a roll of technologies that facilitate efficient management
Mediterranean tico, and whose extension to the whole of logistics actions carried out in the PSE-GLO project
the Iberian Peninsula is recommended. BALOG can help recover the path of the
prosperity in Spain.

55
 Guide to becoming more competitive through logistics

Chapter 7
Consortium and entities
participants in the
PSE-GLOBALOG

WORK AREAS

The members of the PSE-GLOBALOG consortium wish to thank the Spanish Ministry of Science and Innovation and to the
European Union is firmly committed to this project, which represents a decisive step for the improvement of competitiveness.
national business tissue through logistics.

56
Chapter 7 Consortium and entities participating in PSE-GLOBALOG

PARTICIPANTS COMPANIES
Thefollowingentitieshavebeenpartofthisinitiative, ICE CREAM FACTORY COMAKER, SA
pioneerinpromotinglarge-scalelogisticalcollaboration: KERABEN, SA
RESEARCH CENTERS NEXTPOINT SOLUTIONS, SL
Center for Energy Research, TRANSFRIGO CANARY ISLANDS, SA
Environmental and Technological (CIEMAT) ULMA MAINTENANCE S. Coop.
Research Center for Management and Engineering
Production (CIGIP-UPV) COLLABORATORS
Foundation Technology Center in Logistics COMPANIES
Integral Cantabria (CTL) AR SYSTEMS, SA
ECOLEC Foundation CONSUM Cooperative
European Virtual Engineering (EUVE) CHINA SHIPPING SPAIN AGENCY, SL
Port Authority Institute Foundation for Studies and Cooperation VALENCIA COMMERCIAL DOCKS, SA
representation of the Valencian Community (FEPORTS) EBHI, SA (European Bulk Handling Installation)
VALENCIAPORT Foundation ECHEVERRIA MECHANICAL CONSTRUCTIONS, SA
ICIL Foundation GEFCO SPAIN, SA
ROBOTIKER Foundation HAPAG-LLOYD SPAIN, SL
Zaragoza Logistics Center Foundation (ZLC) ITESAL, SL
Institute of Business (IE) LEROY MERLÍN Spain, SLU
Institute of Territorial Studies (IET) MARS ESPAÑA INC AND COMPANY FOOD SRC
Aragon Technological Institute (ITA) NORBERT DENTRESSANGLE GERPOSA, SA
Technological Institute of Packaging RAMINATRANS, SL
Transport and Logistics (ITENE) INFRASTRUCTURES
UNIVERSITIES Logistics and Industrial Activities Zone
University of Cantabria from Asturias (ZALIA)
University of Oviedo Port Authority of Gijón
University of Zaragoza Logistics Platform of Zaragoza (PLAZA)
University of A Coruña

57
 Guide to being more competitive through logistics

Annexes Dillman D., (2006), Mail and Internet Surveys: The Tai-
For the preparation of this publication, it has been Lored Design Method. 2007 Update with New Internet,
result from the following sources, both reports and references Visual, and Mixed-Mode Guide, Wiley
bibliographic references, where they can expand the information: Dyer, J. H., Singh, H., (1998), The relational view: Coo-
imperative strategy and resources of interorganizational
Report "Selected Bibliography Regarding Best competitive advantage, Academy of Management Review
global practices and trends in logistics and supply chains 23(4)
supply, (To-be). Gallo & Villaseca (1996), Finance in family business,
Report "Executive Summary of Best Practices and Family Business Review, 9(4): 387–401.
global trends in Logistics and Supply Chains Gammelgaard B., Larson P. (2001), Logistics skills and
tros. Available on the Globalog website. Competencies for supply Chain Management. Journal of
Report 'Updated Bibliography Regarding the Environment Business Logistics, Vol. 22 Issue 2
Spanish logistics. - Griffis, S. E., Cooper, M., Goldsby, T. J., Closs, D. (2004)
Reports and execution memorandums of the different Performance Measurement: Measure Selection based on
subprojects, as well as contributions made by the Firm Goals and Information Reporting Needs. Journal of
different leaders of subprojects 1 to 8. Business Logistics, 25(2)
Bibliographic references consulted in the development - Griffis, S. E., Goldsby, T. J., Cooper, A. C., & Closs, D.
from the reports: (2007), Aligning Logistics Performance Measures to
Auramo J., Kauremaa J., Tanskanen K. (2005), Benefits the Information Needs of the Firm. Journal of Business
of IT in supply chain management: an explorative study Logistics, 28(2)
of progressive companies. International Journal of Phy- Hull, C. H., N. H. Nie., (1981), SPSS update 7-9, New York:
Physical Distribution & Logistics Management, V.35 I.2 McGraw-Hill
Balkin, D. B., Gomez-Mejia, L. R. (1987), Toward a Con- Ketokivi, M.A., Schroeder, R.G., (2004), Perceptual mea-
tingency Theory of Compensation Strategy. Strategic Measures of performance: fact or fiction, Journal of Opera-
Management Journal, 8(2): 169-182. tions Management (22, 247-264)
- Balkin, D. B., Gomez-Mejia, L. R. (1990). Matching Com- Kulp S., Cohen L., Lee H., Ofek E. (2004), Manufacturer
Compensation and Organization Strategy. Strategic Manage- Benefits from Information Integration with Retail Customer
Management Journal, 11: 153-169. Management Science, Vol. 50 Issue 4
- Chen I., Paulraj A. (2004), Towards a theory of supply - Lee H., Whang S. (2000), Information sharing in a supply
chain management: the constructs and measurements. chain. International Journal of Technology Management,
Journal of Operations Management, Vol. 22 Issue 2 Vol. 20 Issue 3/4
Cristiano J., Liker J., White I., Chelsea C. (2000), Customer- - Lee H., So K., Tang C. (2000),The Value of Information
Driven Product Development Through Quality Function Sharing in a Two-Level Supply Chain Management
Deployment in the U.S. and Japan. Journal of Product Science, Vol. 46 Issue 5
Innovation Management, Vol. 17 Issue 4 Loch C., Terwiesch C. (2005), Rush and Be Wrong or Wait
Cronbach L. (1951), Coefficient alpha and the internal and Be Late? A Model of Information in Collaborative
structure of tests. Psychometrika 16 Processes. Production & Operations Management, V14 I3
- Cruz, C., Gomez-Mejía, L., Becerra. M., In press. CEO - Lockamy A., McCormack K. (2004), Linking SCOR
perceptions of TMT benevolence in family firms. Acade- planning practices to supply chain performance. An
my of Management Journal. exploratory study. International Journal of Operations &
Delen D., Hardgrave B., Sharda R. (2007), RFID for Better Production Management, Vol. 24 Issue 12
Supply-Chain Management through Enhanced Information - Norusis M. (2005), SPSS 13.0, Statistical Procedures
tion Visibility. Production & Operations Management, Companion, Prentice Hall, New York
Vol. 16 Issue 5 Sanders N., Premus R. (2005), Modeling the Relationship
Díaz A., Lorenzo O, Solís L. (2004), Key Processes in Between Firm IT Capability, Collaboration and Performance
Collaborative Networks. The case of Small and Medium ce. Journal of Business Logistics, Vol. 26 Issue 1
Enterprises. Proceedings of EurOma Conference, Fon- Srinivasan S., Pauwels K., Nijs V. (2008), Demand-Based
Tainebleau Pricing Versus Past-Price Dependence: A Cost-Benefit
Díaz A., Lorenzo O., Gimenez JL. (2006) 'A proposed Analysis. Journal of Marketing, Vol. 72 Issue 2
framework of best practices for the optimization of spare Vokurka R., Lummus R. (2000), The Role of Just-In-Time
parts in asset-intensive industries”. Proceedings of in Supply Chain Management. By: International Journal of
EurOma Conference, Glasgow Logistics Management, Vol. 11 Issue 1
Díaz A., Claes B., Revilla E. (2008) "Logistics and Supply Voss M., Calantone R., Keller S. (2005), Internal service
Chain practices in Spain. A methodological approach. Quality: Determinants of distribution center performance.
Proceedings of the 7th International Meeting for Re- International Journal of Physical Distribution & Logistics
search in Logistics, Avignon. Management, Vol. 35 Issue 3
- Díaz A., Solís L., Claes B. (2009) "Improving Logistics and - Zaheer A., Venkatraman N. (1995), Relational governance
Supply Chain Management Practices in Spain. as an interorganizational strategy: An empirical test of
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hop on Global Supply Chains, Coimbatore, 2009 Management Journal, 16

58
MORE INFORMATION
For further information, consult the address-
Internet connection:

[Link]
Or contact:

ITENE (Technological Institute of Packaging, Transport

and Logistics)

Coordinator of the PSE-Globalog project

info@[Link]
Tlf: 96 182 00 00 - Fax: 96 182 00 01

The project PSE-370000-2008-8 has received funding-

section of the Ministry of Science and Innovation within the
National Plan for Scientific Research, Development and
Technological Innovation, 2008-2011

59
Strategic Singular Project
Enhancement of the competitiveness of the fabric
Spanish business through Logistics
as a strategic factor in a global environment.

[Link]

The project PSE-370000-2008-8 has received fi-

financing of the Ministry of Science and Innovation
action within the national research plan
Scientific, Development and Technological Innovation
2008-2011