Todays’ class have been about  distribution network design.

The main contents seen have been:

  1. Phisical ditribution Network
  2. Clients & Intermediaries
  3. Distribution Networks Taxonomy (which is not the same of typology)
  4. Third and fourth party logisics providers

Referring at point 3 as teacher has said and as explained in it’s webpage is not the same a typogy or a taxonomy. Referring to it’s webpage: 

One typlogy is a classification of conceptual models, assuming a prioris that should be empirically verified when one element is part of one type.

One taxonomy classifies real things, referring to dimensions that should be measured or defined. And once classified in one taxonomy is when is verified if they have common elemnts.

Here is an article, on typology and taxonomy.

Continuing with the class have been underlined the importance of the almost only objective that have a Logistics Manager: reduce cost fulfilling the service levels. This means give a better price to the final clients without affecting the final service that nowadays is seen as a design factor. Could be said that Logistics should be where one company differentiate from another in today World.

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Posted by: mgeps | April 30, 2010

Class 4 – Part I – 30/04/10 – WAREHOUSING


Warehousing is not about storing products, is about making them flow trough.

Main operations in a warehouse are two:

  1. Receiving
  2. Put away to storage

Main warehousing operations – sequence of operations:

  1. Order Picking
  2. Order grouping/unitizing
  3. Shipping

Read More…

Posted by: mgeps | April 30, 2010

Class 4 – Part I – 30/04/10 – FLEET MANAGEMENT

FLEET MANAGEMENT PP presentation by Sina Maier and Janina Nemeth


Fleet management is the management of a company’s vehicle fleet. Fleet management includes commercial motor vehicles such as cars, vans and trucks. Fleet (vehicle) management can include a range of functions, such as vehicle financing, vehicle maintenance, vehicle telematics (tracking and diagnostics), driver management, fuel management and health & safety management.


At the beginning was more related with vehicle maintaining and selling before the devaluation would have been too much. The original was related to repairing and selling.


  • Object tracking (vehicle tracking)
  • Health and safety tracking (ambulances for ex.)
  • Fuel and speed management (for ex related with pollution taxes etc.)
  • Sales order transmission
  • Route Planning
  • Driver Management (i.e. avoid people from driving too much or too away from home)
  • Vehicle diagnostic

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Posted by: mgeps | April 30, 2010

Class 4 – Part I – 30/04/10 -INCOTERM 2000


What is it? Just an abbreviation of IN.ternational CO.mmercial TERMS.

Incoterms or international commercial terms are a series of international sales terms, standard definitions of ocmmercial terms, published by International Chamber of Commerce (ICC) and widely used in international commercial transactions. They are used to divide transaction costs and responsibilities between buyer and seller and reflect state-of-the-art transportation practices. This set of commercial terms have been in use since 1936 and are accepted by international traders around the world. At prsent these have last release in year 2000 but soon this year (2010) new Incoterms will be released.

What do they do:

-Define key elements of international contracts

-Reflect Parties’ agreement

– Can be used for purchasing pars both within EU and outside EU.

What they do not:

– Cover transportations right

Note: they should change from USA to E.U.


We are mainly dealing with movement of goods from the manufacter until the final user. We could than identifying the 13 Groups depending unti which point of the route ihe responsibility isof the buyer or of the seller.

Here attached a table of these13 Groups:


Or even a Picture:

Posted by: mgeps | April 30, 2010


This is a short rewiev of the study case issued last week in class.

The following is just the solution in an Excel File to Question 1.

Shortly will be also updated an explanation on the work done, and with the Teacher’s help also response to Question 2.

Posted by: mgeps | April 30, 2010

ZARA LOGISTICS by Prof. Felipe Caro

By serching on the net I’ve found the following video where Professor Felipe Caro, assistant professor in decisions, operations and technology management explains it’s investigation work on Zara, a brand of the Inditex Group.

He especially underline the dynamic assortment capability that the firm possess and which distiguish it from the rest of its competitors. This capbility consist in the firm ability to revise it’s product assortment during the selling season.

In a fast changing environment as it is actual World market, this gives to the firm a tremendous flexibility and capacity or adaptability to the market market demand. Indeed Logistics in Zara is a core company value. 

Following an interesting video about Logistics in Zara (inditex Group):

Posted by: mgeps | April 23, 2010

PLAZA – Plataforma Logística de Zaragoza

During this week I’ve been for work in Zaragoza and got impressed by the huge Logistica park of the city: PLAZA.

Once back at home I decided to search for some info on the largest logistic park in Europe.

In the year 2000, the Government of the Autonomous Community of Aragón, Spain, made public a project for the development of a large-scale logistics park in the outskirts of the city of Zaragoza. With an area of nearly 13 square kilometers, PLAZA (an acronym for Zaragoza Logistics Platform) is today by far the largest logistics in all of Europe.

The government and industry have invested millions of Euros to develop infrastructure for distribution centers, intermodal transportation, customs clearance, and value added activities alongside areas for commercial, educational, and sports & leisure facilities.

The logistics park is adjacent to a major freeway exchange, the high-speed railway connecting to Madrid and Barcelona, and has direct, secure access to the 24/7 airport, which can accommodate the world’s largest cargo planes. It’s geographical situation is the secret of the project, being the city either in the half way between the three biggest cities in Spain: Barcelona, Madrid and Valencia and therefore two huge ports and an airport. 

Compared to other Logistics parks: GVZ in Germany (340 hectars), french Eurocentre (300 hectars), the italian park if Turin (280 hectars), the CET at Coslada, Madrid (100 hectars) and the ZAL in Barcelona of 67 hectars, is pretty clear that PLAZA with its 12000 hectars is by far the Largest European logistic Park.

Unfortunately after the Expo the crysis arrived in Zaragoza and most of the companies that had already signed a contract with PLAZA saw themselves in need to broken it, and so by stopping the growthing importance of this Logistic area. The only solution to see how this would end is to wait and see what will happen.

Posted by: mgeps | April 16, 2010

Class 3 – Part II – 16/04/10


Consignment Inventory allows you to ship products to your customers transferring ownership at the time of consumption.

Some previous notions:


  • Ship products to your customer and retain ownership until the product has been consumed.
  • Maintain accurate financial physical inventory records from shipment through consumption.
  • Receive consumption notices electronically.


  • New fields in Warehouse Master allow you to flag a warehouse for use as a consignment warehouse.
  • Create inventory transactions for receipts and adjustments in the consignment warehouse.
  • Utilize new inquiries and reports for tracking consignment inventory balances and customer orders.
  • Create the consignment relationship between a product, customer, and warehouse in one master file.

Study case solution will be uploaded shortly.


Study case solution will be uploaded shortly.

Posted by: mgeps | April 16, 2010

Class 3 – Part I – 16/04/10

Today we started our Logistics Class by reviewing the Class Blogs.

Teacher introduced its statistical way to review our works thanks to Google reader and

By revising the Blogs some questions (how not) about the topics come out…

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Posted by: mgeps | April 14, 2010

1.4 Inventory Management – Just in time

Just in time

Just-in-time is a movement and idea that has gained wide acceptance in the business community over the past decade. As companies became more and more competitive and the pressures from Japans continuous improvement culture, other firms were forced to find innovative ways to cut costs and compete. The idea behind JIT, or lean manufacturing, is to have the supplies a firm needs at the exact moment that they are needed. In order to accomplish this goal a firm must constantly be seeking ways to reduce waste and enhance value. A recent survey of senior manufacturing executives showed that 71% used some form of JIT in their processes (Pragman). This simple statistic illustrates that JIT is here to stay and also that firms must constantly be searching for ways to cut costs and achieve an advantage. JIT is one way to achieve that end result.

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