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Organisational Structure

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  • "[DOCUMENT TITLE][Document subtitle] Table of ContentsIntroduction: .................................................................................................................................... 21. Organisational Structure ......................

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  • "[DOCUMENT TITLE][Document subtitle] Table of ContentsIntroduction: .................................................................................................................................... 21. Organisational Structure .......................................................................................................... 52. Upstream and Downstream Companies / Main Product Supplied .......................................... 73. Internal Supply Chain .............................................................................................................. 84. Logistics Functions .................................................................................................................. 95. Quantitative Information on Business ................................................................................... 106. Information System in the Company ..................................................................................... 117. Objectives/ Success Factors / Performance Measurements ................................................... 128. Competition / Other Issues .................................................................................................... 139. Future Trends / Environmental Issues ................................................................................... 14References:................................................................................................................................... 15 1 | P a g e Introduction:The United States of America and Canada have a solid exchange relationship for over threedecades. The exchange relationship between the two nations is smooth and proficient whichcovers all commercial enterprises and is critical to both countries' advancement andaccomplishment as every nation is the biggest exchange accomplice of the other. The USA- Canada Free Trade Agreement (FTA) laid the basis for a multilateral assention between, theUnited States, Mexico and Canada, called the North American Free Trade Agreement (NAFTA),which has lighted more exchange among these north American nations. More than 1 billion us dollars measure of day by day Canada-U.S. exchange is completed. Themeasure of exchange that passes every day along the Ambassador Bridge between Windsor, Ont.what's more, Detroit, the busiest fringe crossing in North America is more than 500 million.There are in total 119 border crossings between USA and approximately 30000 trucks cross theborder daily.Day and Night Cargo Inc. is a transportation and logistics company located in Mississauga, theheart of transportation hub of Ontario Canada. Mississauga serves as a transportation port withover 350+ companies that are in this business. Within a hundred kilometer range of USA borderit serves as an ideal place to carry shipping and transportation operations. The company has avast geographic market which extends from Canada, USA to Mexico. Supply Chain Management is significantly more than a materials development or transportationactivity. It is additionally another state of mind about business connections. A few associations,nonetheless, are attempting to receive supply chain management practices, (for example, in thenick of time renewal or vital sourcing) without likewise executing an association wide inventorynetwork theory and society. Yet, a contemptible exertion just delivers apathetic results. To trulygrasp production supply chain management, organizations must execute both store network2 | P a g e procedures and inventory network logic. Grasping supply chain management (SCM) is similar todriving in the Daytona 500. From the earliest starting point, you have to comprehend what youare doing, be legitimately prepared, and have the right devices, or will be stuck in an unfortunatesituation! Perhaps this is not the most ideal similarity, but rather it surely highlights thecharacteristic danger connected with both exercises. Stockcar drivers dashing at 200 mph aretaking their lives into their hands, thus too are organizations executing production supply chainactivities. A fizzled SCM execution won't just motivation an organization to lose a lot of cashhowever it likewise will truly disturb its effectively existing structure and forms and perhapsabandon it fit as a fiddle than some time recently. We would never consider hopping in a raceauto with no arrangement and go charging around the track at a high rate of pace just creeps farfrom others going dangerously fast. But then we hear a trendy expression or read about somesuper example of overcoming adversity, and we settle on a choice to actualize another systemwithout being completely prepared to do as such.On the off chance that grasping SCM is such a test, then why isn't that right? Once more, it issimilar to driving that 300 HP exceptionally manufactured dashing machine around the verymanaged an account track at Daytona. On the off chance that you can do it and do it well, theprizes are awesome. You can lead your group to the front of your rivals, keep up your lead, andtake home the prize. Considerably more imperative, you can really have a constructive outcomeon your association's adequacy, efficiencies, gainfulness, and therefore its wellbeing.Nonetheless, such as being a fast race driver, achievement takes preparing, learning, a feeling ofcontrol, or more all else, commitment to being a champ in an exceptionally focused environment.SCM is more than a basic device to assess and advance a production network; it is an intricate,organized business relationship model. It mulls over all parts of the occasions required to createyour organization's item or administration in the most productive and practical way conceivable.3 | P a g e SCM really has two unmistakable and similarly imperative parts: the SCM logic and the SCMsystem. It is conceivable to have restricted accomplishment by grasping one and only of theparts, yet you can't accomplish finish production network advancement, the arrival on venture ofSCM, without grasping both. Essentially, a driver can race in Daytona with just the rightinstruments (the auto) or with just the right group (the pit team). Be that as it may, by not havingthe two together, he or she winds up just "partaking" and continuing, not succeeding.The interlinking of these needy components is the premise of the SCM reasoning. The rationalitypowers organizations to move far from an authoritative structure composed around usefulstorehouses and towards one planned around the end-to-end stream of business procedures. Toperform this change, you have to make what Kevin P. McCormack portrays in his book BusinessProcess Orientation as, "An association that, in all its reasoning, accentuates process rather thanprogressions with extraordinary accentuation on results and consumer loyalty." According toMcCormack, all associations moving from an utilitarian style of association to one that works inthe inventory network logic of end-to-end administration must embrace this business processintroduction (BPO) idea for working together. To completely comprehend this reasoning, it isbasic to extend the customary meaning of a production network to incorporate the stream ofmaterials as well as the stream of data (for instance, buy requests, conjectures, and plans). Inmany associations these streams are consolidated into a "work process." One stream bolstersalternate as they are interlocked in a reliant relationship that specifically impacts the last item.This stream of data and material is basic to all operations and must be overseen and observed togenuinely grasp the SCM theory. Other conventional business definitions additionally should beextended all together for production network administration to be effectively actualized. Thesedefinitions are incorporated into the sidebar beneath. 4 | P a g e 1. Organisational StructureDay and Night Cargo Inc. comes in the Transportation segment of supply chain. The companyhas customers such as warehouses, manufacturers and suppliers who want to get their cargotransported from one place to another. The following diagram will help explain the customerbase of Day and Night Cargo Inc.Day and Night Cargo Inc. performs functions which include transportation and warehousing. Ithas four departments to carry out day to day functions. These departments include a Receptiondesk, Dispatch, Accounting, Invoicing and payments, Safety and Compliance and storage.5 | P a g e The internal organisation layout of is shown in the diagram belowThere are 2-3 employees working in each department. The warehouse and storage area has adedicated licensed fork lift operator to load and unload cargo to and from warehouse and truck.6 | P a g e 2. Upstream and Downstream Companies / Main Product SuppliedDay and Night Cargo Inc. transports mainly chocolate and candies produced by Hershey’s andFerrero Canada. This product is picked up right from the factory located in Brantford Ontarioand from the factory located in Granby Quebec. Chocolates from these facilities take up to 60%of Day and Night Cargo Inc.’s total cargo transported.The Following table includes information on the pick up and drop off places and information onthe companies:Product Pick up Location Delivery LocationChocolate Eric Marchessault Hershey Distribution Facility960 Rue Georges Cros 602 W 400 N, Ogden, UTGranby, QC J2J 2E2 84404, United StatesChocolate / candy Ferrero Canada Ltd./Hershey's Hershey Distribution Facility3 Ferrero Blvd, Brantford, ON 602 W 400 N, Ogden, UTN3V 1G3 84404, United StatesThe Ferrero Canada Ltd./Hershey's located in Brantford Ontario Canada receives raw materialssuch as chocolate mix, wrapping papers, packaging boxes from several small suppliers inCanada. The manufacturing facility in Brantford Ontario then processes these raw materials andconverts them in final chocolate product. The transportation on these final products is thencontracted to Day and night cargo Inc. which transports the products from the manufacturingunits to the distribution centre located in Utah United States. The distribution center thendistributes the products to retailers such as Walmart, no frills from where the product reaches inthe hand of final consumer.The rough supply chain of this product is shown in the diagram below:7 | P a g e 3. Internal Supply ChainThe internal supply chain of Day and Night Cargo Inc. is a complex process which ultimatelymakes the product reach in the consumer’s hands. This chain of events is organised andcustomised according to the needs and demands of the sender, receiver, customs and duties,weather checks, nature of goods (perishable, non-perishable, delicate, fragile etc.).The chain starts when an order call is placed by the manufacturing facility to the logisticscompany. The date of pick up and delivery is fixed on the phone. Both company quotes pricesfor the deal and a contract is made between the supplier and the logistics company which quotesall the prices decide and the contingency factors. The second step is to arrange the proper equipment for the shipment. This equipment are thetruck and trailers that are to be used in transportation. The driver is contacted to deliver thegoods. The nature of product makes a big deal in driver selection. If the delivery is requestedurgently then a team of driver is assigned so that the truck could run non stop on road and thedelivery can be done on time.The third step includes the paperwork specific for the shipment. Bonds, manifests and othercontracts and border duty forms are filled up and prepared by the logistics company which arevery important to properly identify the shipment and its contents. Any mistake in this paperworkcan cause serious delays and unnecessary checks at the border.8 | P a g e The fourth step is the actual shipment of the commodity from the manufacturer to the receiverwhich includes product pick up and delivery, loading and unloading to and from the trailer.This internal supply chain is described in the rough diagram below:Step 1: Step 2:Step 3: Step 4: Order recieved/Contract Resourcing equipmentcompleting paperwork Pick up / Delivery prepared and driver allocation 4. Logistics FunctionsLogistics has various components which have different functions each of which play animportant role in the logistics process. The major components and its functions are in the tablebelow:Component FunctionDrivers The drivers main function is to transport the goods andcommodity from one place to another with minimum delaysand to see that the cargo is safe and secure at all timesDispatchers A Dispatcher is a person who takes the orders from thesuppliers and is responsible for the completion of paperworkrequired for the shipmentShippers A shipper can be a supplier, manufacturer or a distributor whichdelegates the transportation duty to a logistics company and isresponsible for the quality and quantity standards of the product9 | P a g e which is to be shipped.Receivers A receiver can be a manufacturer, distributor, wholesaler whichcheck the cargo for the quality and quantity and ensures for anydamages to the cargo Safety and compliance The safety and compliance is responsible to look after thesafety of the drivers and vehicles on the road, whether they aremaking and mistake or if a vehicle is due for a maintenancecheck and ensures proper functioning of the vehicles.Accounting The accounting department is responsible for maintaining theaccounts of the firm and issuing payments to drivers and othercompany personnel. It also functions to maintain and keep acheck on the inflow and outflow of the funds in the firmMachine Operator The machine operator functions as a license operator of theforklift and other machines used to move the cargo in thewarehouse and to and from the trucks.5. Quantitative Information on BusinessDay and night cargo Inc. is a successful logistics company which handles the logistics operationsall over the north America. Their major suppliers are located in Utah, Texas, Quebec andOntario.Lead time is the delay between the initiation of an order and the completion of its fulfillment.Day and Night Cargo Inc. manages to make maximum utilization of its resources and tries tomake the lead time as small as possible.10 | P a g e The company generates a monthly revenue of approximately 300 k $. The company pays around30-35 k $ weekly to the drivers and approximately 20 k $ in repairs and maintenance of thevehicles. Other expenses include the traffic tickets, day to day necessities.The company has a fleet of 30 trucks and 30 trailers and 27 full time drivers.The company charges 3600$ for a single shipment deal from Granby Quebec to Ogden Utah and3000$ for the shipment from Brantford Ontario to Ogden Utah.6. Information System in the CompanyDay and night Cargo uses the latest technology available to handle its functions. The companyhas all day, every day access to our driving experts through a blend of advancementsincorporating into taxicab correspondences from Shaw, Trans-plus dispatch frameworks andGPS following. With checking innovation in each taxicab they likewise can impart shipment informationprogressively to customers and as of now utilize a proactive email ready framework for customershipment points of interest.The company uses latest updated desktops with windows XP as their daily operating systems.The dispatch department uses software called Load Link online administration, making businessless demanding and more practical for trucking organizations looking to discover the moststraightforward approach to move heaps of all shapes, sorts and sizes. It guarantees trucks werenot working between occupations with unfilled or half full loads and improves the procedure fororganizations and people hunting down trucks to convey their merchandise from point A to pointB. The organization likewise utilizes programming known as Xpert IT for simple armadaadministration. It gives them a complete control over all parts of the trucking business. It handleseverything from dispatching to invoicing. Rapidly get to the status of requests, trucks, trailers. It11 | P a g e incorporates settlement, planning and organization at the same time interfacing with most otherprogramming vital to the business, for example, bookkeeping, mileage, fuel cards, remote driverdispatch. It is basic, dependable, simple to utilize, fabulous backing and reasonable.7. Objectives/ Success Factors / Performance MeasurementsDay and Night Cargo Inc. is a transportation organization that gives its clients security, offices,speed, and so on. They endeavor to accomplish what no other transportation organization canfurnish its clients with and that is the 'whole bundle'. That incorporates Security, Safety,Reliability, and Speed. They offer an individual touch in customer connections and a dynamic workplace. They takepride in the demonstrable skill and productivity of our staff and drivers. All representatives andcustomers are treated with the most extreme regard and are urged to add to their own particularactivities. Meeting and going past the transportation necessities in the middle of Canada and key US urbanareas is a center administration of the organization. They have the assets, innovation, scope andability to meet each logistic need. They keep up the most elevated amount of value controlguaranteeing sheltered, solid and auspicious transport of client's imperative burdens. Day andNight Cargo Inc. makes Its prosperity methodology which depend on the accompanyingadministrations: Give security, affirmation and generally speaking a superior affair to our customers and Full- truckload administrations. Continuously on time and ensuring we never fall behind to fulfill thecustomers. The organization utilizes shiny new gear to address each issue secured office that isunder steady observation. 12 | P a g e 8. Competition / Other IssuesDay and Night Cargo Inc. is located in Mississauga Ontario which is known for its commercialactivities. There are more than 350 companies in direct competition of the company. So of thebig competitors in direct competition of the company include Trans 99 Logistics, R.M. Platinum,North Eastern Trucking Inc., Fastlane Trucking, M.K. Transport etc. There are also several smallcompanies in direct and indirect competition.The company faces competition not only with other logistic companies in Mississauga but alsofrom other cities of Ontario as well. Day and Night Cargo Inc. faces some issues that arecommon in the logistics industry:Consumers Expectations differ:The expectations of customers are on the rise. Areas which offer comparatively less expectationsare now requiring high standards in both product quality and relationship with the companies andclients. Cultural differences also play an important role in business expectations and logisticcompanies are being challenged to meet higher consumer demands.The difference in standards and quality: A product or service considered high quality in some part may not be of equal quality in other. Itis difficult to judge all these discrepancies which can become a logistic nightmare. It can alsoresult in lost business opportunity.Tightening of laws, taxes, and more:The laws levied by the government and the ministry of transportation are getting more tough dayby day which also decreases the freedom to operate for these logistics companies.Technological Advancements:The importance of updating systems in the business structure and implementing newertechnologies is mandatory nowadays to compete. 13 | P a g e 9. Future Trends / Environmental IssuesSome of the future trends of Logistics and supply chain are as follows:Flexibility: Consumer’s requirements are different that require multiple locations with multipletransport modes. These multiple locations and mode of transport requires a flexible supply chainwhich adapts easily and reacts accordingly to unexpected changes and situations.Information technology: Complex and dynamic supply chains require an advanced InformationTechnology systems and software solutions.Continuity: A carrier with must reduce risk of delays, use alternative transport methods androutes that are required to support the increasing trend of outsourcing services.Compliance: The ministry of transportation levies new and updated rule set every year whichmakes it important for logistics companies to comply to these set of rules.Partnerships: Its really important to maintain a healthy relationship with clients for a futurechance of partnership with manufacturers and suppliers to gain an upper hand on competition. Complexity: Today’s supply chains have become increasingly complex and dynamic. Nowpurchase orders becoming smaller and more frequent and the logistic companies have to dealwith them more frequently.There are some of the environmental issues that these companies need to focus on such as thepollution and carbon-dioxide emissions from the motor vehicles, solid waste disposal, efficientpackaging and Recyclable packaging. Congestion problems in major cities are also anenvironmental issue faced by logistics companies. 14 | P a g e References:http://www.freepatentsonline.com/article/Transportation-Journal/16529040.htmlhttp://www.trans99.net/services.phpGoogle imageshttp://www.wecantruck.com/canamex-logistics-profile.html15 | P a g e "

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