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Introduction

Lecture
”Internationale Transportketten”
”Internationale Logistik/International Logistics”

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Heike Flämig: Introduction (04.04.2007)

Agenda

• Preliminaries

• Introduction into the lecture

• First definitions of the lecture topics

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Heike Flämig: Introduction (04.04.2007)

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World-wide Transportation Flow of Bananas

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Heike Flämig: Introduction (04.04.2007)

Global production network of BMW (only EU, Asia)

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Source: GPN Working Paper 3, May 2003


Heike Flämig: Introduction (04.04.2007)

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A PC from around the world

casing
power supply unit
motherboard
processor
processor cooling unit
memory card
graphics card
hard drive
floppy drive
CD-RW drive
DVD drive
production area
interim storage air
destination area sea

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Heike Flämig: Introduction (04.04.2007) Source: Kerkhoff, 2005

PC - routes in Europe

casing
power supply unit
motherboard
processor
processor cooling unit
memory card
graphics card
hard drive
floppy drive
CD-RW drive
DVD drive
complete PC

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point of arrival in Europe carrier
Source: Kerkhoff, 2005
central warehouse company ‚Wrede‘
Heike Flämig: Introduction (04.04.2007) carrier final customer

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The PC‘s transport balance sheet - tkm
other road
transport
1% air
8%

road transport,
Germany
2%

100% = 510 tkm sea


89%

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Source: Kerkhoff, 2005

Heike Flämig: Introduction (04.04.2007)

The PC‘s transport balance sheet – CO2-equivalent

sea road transport,


13% Germany
3%
100% = 46.2 kg

other road
transport
< 1%

air
83%

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Source: Kerkhoff, 2005

Heike Flämig: Introduction (04.04.2007)

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Introduction to the conceptual systems model

To illustrate the possibilities of different transport chains and the


inherent characteristics of their elements as well as the interactions
between these elements we use a framework for transportation
systems analysis and development, which was developed by Ridley
and Sjöstedt (1996). It is based on a conceptual model for
transportation presented by Manheim (1979).

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Heike Flämig: Introduction (04.04.2007)

Conceptual Systems Model


Persons
Persons Transport Mobiles
Goods Mobiles
Goods

Accession Activities Traffic

Immobiles
Immobiles Land use Infrastructure
Infrastructure

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Source: Flämig, Heike/ Sjöstedt, Lars/ Hertel, Chrisof "Multimodal Transport: An Integrated Element for Last-
Mile-Solutions?" In: Conference Proceeding of the International Conference “Freight Transport
Automation and Multimodality. Organisational and Technological Innovations, 23. - 24.05.2002,
Heike Flämig: Introduction (04.04.2007)
Delft, Niederlande.

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Activities
• Human activities driving the system.
• Human activities require the presence of persons and goods at specific
facilities that are specially designed to incorporate certain types of activities.
• Each such activity creates the demand to ensure accession to the facility
where the activity is scheduled to take place.
• This creates the demand to create transport options.
• When the transport option is realised, traffic is generated.
• Thus all demand are derived demands, which are all generated by the
planning and execution of human activities.
• Traffic is where most of the resulting metabolism of the system (energy use to
drive the systems) takes place. Traffic is also the last in the chain of derived
demands and therefore the most difficult to change. This must be
remembered e.g. when carrying out environmental analysis and suggesting
changes of traffic systems.

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Source: Flämig et. al. 2002

Heike Flämig: Introduction (04.04.2007)

Systems Model – Main Groups of Goods

Persons
Persons Vehicles
Goods Vehicles
Goods
-Agricultural and forestry products
-Raw oil
-Iron, steel and NE-metal
-Chemical products
-Food and feed
-Mineral oil products
-Stones and grounds
-Vehicles, machines, half-finished and finished goods
-Coal
-Ores and metal waste
-Fertiliser

Facilities
Facilities Infrastructure
Infrastructure

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Source: Sjöstedt, Lars/Flämig, Heike
(unpublished)
Heike Flämig: Introduction (04.04.2007)

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Persons and Goods
• Passengers and goods are the objects of flow.

• The two important differences between passengers and goods are:


– Goods need to be handled (loaded and unloaded), while most
passengers are capable of using their legs (built in movement
tools) while embarking and disembarking a vehicle/vessel.
– Passengers are intelligent and require much less planning support
than (today) the goods which are entirely dependent on someone
carrying out the forwarding function for each movement stage.

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Source: Flämig et. al. 2002

Heike Flämig: Introduction (04.04.2007)

Co-ordination of charge carrier and loading good (form, character)


categories of goods

liquid/gaseous goods
general cargo bulk cargo

large small packed unpacked packed unpacked

geometrically geometrically
defined undefined

uniform non-uniform

pressure pressure
insensitive sensitive

load carrier with supporting load carrier with supporting,


load carrier with supporting function, and enclosing function, e.g. enclosing and locking function,
e.g. flat pallet box pallet e.g. silo and tank pallet
Source: Vahlens Großes Logistik Lexikon 1997, p. 472
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Heike Flämig: Introduction (04.04.2007)

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Systems Model - Vehicles
Persons
Persons Vehicles
Goods Vehicles
Goods

-trucks / cars
-trains
-ships
-airplanes
-[pipelines]

Facilities
Facilities Infrastructure
Infrastructure

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Source: Sjöstedt, Lars/Flämig, Heike
(unpublished)
Heike Flämig: Introduction (04.04.2007)

Vehicle or vessel

• A vehicle/vessel is a tool designed to perform movement in an


infrastructure for the purpose of carrying a load of persons and/or goods.
• A vehicle/vessel needs to have the following basic function:
– A system to support and safely contain its load.
• In addition it as a minimum needs the following functions:
– A system that supports it relative to its infrastructure. If the supporting
medium is the ground the tool is called a vehicle. It is a vessel if it is
mainly supported by air or water.
– A system for forward propulsion by muscle of machine power relative to
the infrastructure
– A system for steering, i.e. change direction.
– A system for braking.

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Source: Flämig et. al. 2002

Heike Flämig: Introduction (04.04.2007)

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Systems Model - Facility
Persons
Persons Vehicles
Goods Vehicles
Goods

-Companies (trade, manufacturing, services)


-Facilities for logistics services, transport terminals
-Households
-Public facilities

Facilities
Facilities Infrastructure
Infrastructure

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Source: Sjöstedt, Lars/Flämig, Heike
(unpublished)
Heike Flämig: Introduction (04.04.2007)

Facility

• Facilities are the immovables of the systems.


• A facility is a fixed (stationary) structure, in most cases some
type of building or open arena, which is dedicated to some
specific types of human activities.
• Important categories of facilities are homes, schools, offices,
shops etc.
• Two especially important categories of facilities for logistics are
production facilities and storage facilities.
• Note: Although in the general version of the conceptual model
the transportation system does not include any facilities, a
closer analysis of a transportation system often requires the
incorporation of specific facilities. This is due to the hierarchical
character of transportation systems.

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Source: Flämig et. al. 2002

Heike Flämig: Introduction (04.04.2007)

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Systems Model - Infrastructure
Persons
Persons Vehicles
Goods Vehicles
Goods

-streets
-railways and stations
-water-ways and harbours
-air corridors and airports
-pipe lines
-information facilities

Facilities
Facilities Infrastructure
Infrastructure

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Source: Sjöstedt, Lars/Flämig, Heike
(unpublished)
Heike Flämig: Introduction (04.04.2007)

Infrastructure
• … is the underlying (invisible) structure of a human society.
• … is often assumed to be limited to publicly accessible space, such as
schools, theatres, sports arenas, roads, railways, paths in the wilderness
etc.
• … often means our systems of roads, railways, airports and harbours. In
academic language this is a too narrow interpretation that neglects the
abstract dimension of the concept.
• In this course the following definition is used: Infrastructure is the structure
of all human made systems that are created to enable some kind of man
made flow of information, energy, materials and/or living organisms,
including the positions of all facilities that are served by these systems.
• Transportation infrastructure is limited to enabling flows of persons and
goods

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Source: Flämig et. al. 2002

Heike Flämig: Introduction (04.04.2007)

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System Model

Abstract process Transaction process

Goods Transport Veh./Vessels

Accession Traffic

Facilities Land use Infrastructure

Activity

Transaction process Physical process with metabolism

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Source: Sjöstedt, Lars (unpublished)

Heike Flämig: Introduction (04.04.2007)

Accession

• … is an interaction between persons/goods and facilities.


• … is the provision of options to move persons and goods between
the locations of two facilities A and B at specific times.
• … can be just the theoretical possibility of moving between at any
time, of could be the planned and even reserved possibility to
carry out a transport at a specific point of time. In the first case
accession is often measured in required transport time and (if
relevant) frequency (time distance between options). In the latter
case arrival/delivery within a specific time window is the normal
criterion (JiT).

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Source: Flämig et. al. 2002

Heike Flämig: Introduction (04.04.2007)

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land use

• … is the location of facilities at specific sites.

• … is the combined result of public planning and complex market


mechanisms.

• … may be seen as an interaction between a planned facility and


infrastructure in its widest sense.

• … results in giving the facility a permanent address.

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Source: Flämig et. al. 2002

Heike Flämig: Introduction (04.04.2007)

Traffic

• … is an interaction between vehicles/vessels and infrastructure.


• … is the movement of vehicles or vessels.
• These movements take place in an infrastructure.
• Movements in traffic requires space, and since space is
restricted, every traffic system has a maximum capacity.
• Traffic flow and capacity are measured in traffic units per hour
that are passing a specific segment of infrastructure, such as an
airport field, a road crossing.
• Traffic density is measured in the number of traffic units that at a
specific point point of time is enclosed within a traffic segment.
• Traffic occupation is the percentage of available space within a
specific segment that is used by vehicles/vessels at a specific
point of time, such as the number of quay meters in a harbour
used by ships at a certain hour.

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Source: Flämig et. al. 2002

Heike Flämig: Introduction (04.04.2007)

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Transport

• Excluding here pedestrians, who only use their legs (manual


tools) transport is an interaction between persons/goods and
vehicles/vessels.
• … is the change of address from A to B of persons and goods.
• A change of position is a change of system state. There are
only three system states relating to the transport:
– it has not yet left A,
– it has left A but not reached B and
– it has reached B. In contrast traffic has an unlimited number
of possible states.

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Source: Flämig et. al. 2002

Heike Flämig: Introduction (04.04.2007)

Transport (continued)

• … is measured either by volume (tonnes) or by transport work


(tonnekms).
• … capacity is the maximum load of a specific vehicle/vessel in
tonnes or m3 or the maximum amount of goods in tonnes or m3
that can be moved from A to B per time unit, usually day or week.
• Thus transport statistics is almost given in tonnes or tonnekms,
which says nothing about the value added by the transport. This
is a growing problem as supply chain grow longer and the
average specific goods value increases.
• In e.g. air transport is seems to make little sense to talk about
how many tonnes of micro chips that have been transported.

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Source: Flämig et. al. 2002

Heike Flämig: Introduction (04.04.2007)

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Definition of transport chains

• The DIN 30781 defines transportation chains generally as a “...


series of technically or organisationally linked procedures, in which
persons or goods are moved from source to destination. The
transportation chain is to be understood as a system.”

• Thus international transportation chains can be termed as


definable sections in corporate comprehensive logistic chains.

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Heike Flämig: Introduction (04.04.2007)

Comparison of the value-adding role of the different means of


transportation

Source: Jünemann, R.: Materialfluß und Logistik, Berlin u.a. Springer-Verlag 1989. p. 337
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Heike Flämig: Introduction (04.04.2007)

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Logistics management process

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Source: M. Christopher: Logistics and Supply Chain
Management. 2.Ed. 1998. P. 13
Heike Flämig: Introduction (04.04.2007)

The three basis functions of logistics and their utility

Logistics  Utility

Handling  Order

Storage  Time

Transport  Space

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Heike Flämig: Introduction (04.04.2007)

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Definition of Logistics

• “Logistics is the process of strategically managing the


procurement, movement and storage of materials, parts and
finished inventory (and the related information flows) through the
organisation and its marketing channels in such a way that current
and future profitability are maximised through the cost- effective
fulfilment of orders.” Source: M. Christopher: Logistics and Supply Chain
Management. 2.Ed. 1998. P. 4

• Thus international logistics is related to the management of


international procurement, production and distribution.

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Heike Flämig: Introduction (04.04.2007)

Summary

• Reasons for international transport chains.


• First understanding of the necessarily of logistics.
• Knowledge of the system model with elements, processes and
definitions.
• Definitions of (international) transport chain and logistics.

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Heike Flämig: Introduction (04.04.2007)

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