LCD Transportation

8/9/2019 LCD Transportation

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Logistics & Supply Chain

Management:

Transportation Strategies for

LCD Televisions

Presented by:

Ashwath Bereke 104Charchil Gugalia 114Ashutosh Kumar 124Rupal A Naidu 134Srotoswini Roy 144Apurva Srivastava 154


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AgendaConsider a scenario involving a company XYZ, dealing

with the manufacturing and selling of LCD Televisions.

In this context:a) Competitive Strategies of Organizations.b) Transportation Strategies to support Competitive

Strategies.c) Trade-offDecisions in designing the transportation

system.d) Contract Manufacturing and its effect on

Transportation.e) Use ofInformation Technology in transportation.


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Competitive Strategies ofOrganizations

The strategic options available to any LCD television company

can be described suitably by thePorters Generic Competitive

Strategies.


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Competitive Strategies ofrganizations

A sustainable competitive advantage can be achieved in three

ways:

1. Cost Leadership Strategy.

2. Differentiation Strategy.

3. Focus Strategy.


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1.Cost Leadership Strategy

This is usually gained by companies that are able to achieveeconomies of scale in production and marketing.

Such companies buy raw materials in bulk and they producegoods on a large-scale.

The LCD TV manufacturer can consolidate the production

and achieve economies of scale.

Thus they will be able to achieve competitive advantage viacost leadership.


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2. Differentiation Strategy

A differentiation strategy involves companies marketing aproduct that is clearly distinguishable from others in themarketplace.

In the LCD TV market, this means the product has attributesthat are distinct from others, like technology, features, serviceand support or other characteristics.

Competitive advantage is gained by these products positioneddifferently from those LCD TVs that compete on price (CostLeadership Strategy).


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3. Focus Strategy Whereas the previous two strategies are industry-wide strategies,

this involves a segmentation approach.

This strategy involves companies focusing on specific segments of

TV market, and segments - can be in terms of price ranges, features,geographies or marketing channels.

Competitive advantage is gained via a Cost Focus or aDifferentiation Focus.

A Cost Focus strategy involves a company gaining competitive advantageby being the low cost provider to the segment. The company can offercompetitive products (LCD TVs) at cheaper prices.

A Differentiation Focus strategy involves companies marketing a distinctor unique product in the target segment. The company can launchspecific LCD TVs for a particular group of customers.


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Importanceof an Effective

Transportation Strategy

Global sourcing nowadays responds to the demands ofthe LCD TV market for cheaper materials and

components.

However, resultant cost savings can only be realized ofthere are effective logistical services which permitefficient global sourcing.

There are several elements in effective logistics, however,a reliable and cost-effective transportation system isfundamental to the integrated logistic system.


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Factors Affecting Performance

Transportation performance

Cost Speed Consistency


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Requirements of Transportation

ComponentManufacturing Units

(China, Taiwan,Korea, Japan)

Point of Assembly(India)

Point of Sale(Distributors and

Retailers)


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Transportation Modes Stage 1: Most of the Electronic components are

outsourced from either Japan, Korea, Taiwan or

China. They will have to be shipped to India forfurther manufacturing and operations.

Stage 2: Upon arrival at the ports the parts arebe loaded into trucks (Road) to be transported to

the assembly plants.

Stage 3: Transportation from the assembly plantto distributors is again through trucks. (Road)


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Trade-Off Decisions Involved

Transportation and inventory cost trade-off.

Transportation cost and responsiveness trade-off.

Important decisions:

Shipment sizes i.e. consolidated bulk shipments.

versus smaller lot sizes. Routing and scheduling of vehicles.

Consumer Service levels.


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Use own Transport Medium.

Use of Public Transport.

Use of Package Carriers (while sendingIndividual Orders).

Outsource the whole Transport Channel / 3PL.

Alternatives for Transportation


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Important Considerations The Size Factor:

Size of Models vary Significantly.

Prices are falling.

Cost Pressure.

Does not support movements.

Fragility.

Poke damage.

Problem of dead Pixels.


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Importanceof Packaging

Care from heat, rain and insects.

Safety from improper road conditions.


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Use of Silica Gel.

Use of Thermocols.

Trucks are covered withTarpaulin.


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SupplyChain Strategy In LCD Industry LCD panel

makers operate in betweenupstream component

suppliers and downstreamLCD TV.

Critical for LCD industry to

attain supply chainintegration with itscomponent part suppliers.


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Contract Manufacturers

Two types:

Original Design Manufacturers (ODMs).Electronics Manufacturing Services (EMS).

By 2011, contract manufacturers will produce

more than one out of every three LCD-TVs madeworldwide.


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Impact of Contract Manufacturers


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Advantages of Outsourcing Production

for LCD TV Brands

Improving resource allocation.

Alleviating their inventory burden.

Avoiding regional tariffs.

Increasing asset flexibility.

Low labour inputs.

Transport links or proximity to markets.


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IT in Transportation (Logistics)

Transportation Planning Improve planoptimization and consolidation by optimizing

transportation plans across multi-periodtransportation and daily plans and schedules.

Transportation Procurement Enhance carrier

selection and reduce costs through constraint-based bid optimization, analysis, and awarding.Optimal bids and carriers are selected based oncombinations of lane bundles, price, and service.


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Route Planning Determine the best routesthrough sophisticated optimization, analysis,and scheduling tools to improve routing, driver,and asset utilization.

Transportation Management Improve

shipment lifecycle planning, execution, andsettlement with web-hosted planning andoptimization, execution, resolution, reporting,and analysis.


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Small Parcel Shipping (SPS) Simplify thefulfilment of parcel manifesting requirements;

expand to meet increases in order volume; benefitfrom rating, labelling, and electronic reportingfeatures for managing small parcel shipments moreefficiently.

International Trade Logistics Boost visibility andimprove compliance with product classificationtools, up-to-date trade compliance content, totallanded cost calculation, and event managementcapabilities.


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Softwares Used

I2 Transportation Management Solutions.

Infors Transportation and Logistics Solutions.

TECSYS Transportation Management Software.

Computer Support Inc.(CSI).


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Fleet Management System

GPS Tracking.

Mobile Tracking.

Customer Online Tracking.

Warehouse Management System.


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Fleet Management System


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Mobile Logistics System

Bar Code System.

RF ID System.


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Mobile Logistics System


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THANK YOU

LCD Transportation

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