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Source: adapted from UNIDO (2000) Structure of Production Costs in Footwear Manufacture. Manufacturing costs are usually a measurement for acquiring, transforming, and distributing materials, parts, or finished goods. They commonly involve a monetary exchange (or monetary equivalence) but also include the amount of energy and time being allocated to the

In a Fordist production system, supply chains are often discontinuous and subject to delays. Links between different functions imply the accumulation of inventory (raw materials, parts, and manufactured goods) before their usage (processing, manufacturing, and distribution). The high output levels of an assembly line require warehousing of all required parts

A chain is as strong as its weakest link. This is of particular relevance for a cold chain that preserves the integrity of a product by maintaining its temperature within a specific range (2 to 8 degrees Celcius is common). Many products, such as food, pharmaceuticals, and some chemicals, can

Mode Value Volume Service Distance Truck Moderate to high Loads of less than 50,000 lbs. On-time performance above 90%. Driver can go 500 miles per day. 2/3 of tonnage carried over less than 100 miles. Rail Moderate to low Multiple car loads. No weight restrictions. 4 to 7 days delivery

Source: Dr. Jean-Paul Rodrigue, 2008 Steel is a commodity that is used for a wide variety of purposes. In the above photo, rolls of steel wire are waiting in a general cargo warehouse (breakbulk) in the port of Halifax, Nova Scotia (Canada). They were manufactured by the Brazilian conglomerate Belgo

The velocity of freight is more than merely the speed at which it moves along modes; the shipment speed (or modal speed). It also includes the transshipment speed, which concerns the effectiveness of intermodal operations. It leans on synchronization between modes and terminals. Many freight transportation modes, particularly maritime and

There are five main areas of application of information technologies in freight distribution: Freight visibility. Ability to track the status and location of shipments. Asset management. Ability to manage transportation assets such as vehicles and containers. Efficiency. Ability to improve the quality of freight information being exchanged as well as

Like the socioeconomic benefits of transportation, the benefits of better freight transport systems over value chains are direct, indirect, and induced. Direct. Benefits to the operators of transportation systems that are experiencing cost reductions, reduced transit times, and increased reliability. Indirect. Benefits to the supply chains serviced by the operators, with

Source: adapted from Rodrigue, J-P (2006) “Transportation and the Geographical and Functional Integration of Global Production Networks”, Growth and Change. Vol. 37, No. 4, pp. 510-525. Functional integration aims at linking more efficiently elements of the supply chain, namely to ensure that suppliers closely meet the requirements of customers in

In a context of intense global competition and diminishing profit margins, logistics offer additional opportunities to improve the efficiency of production through distribution strategies. In this context, global production networks (GPNs) account for an emerging and active branch of investigation of the various paradigms of globalization. While the term globalization