Intro to Supply Chains

 

After watching the videos talking about Supply Chains, I feel that I have a better understanding of supply chains but also some definitions. A distribution center is a building that distributes products coming and out. When Amazon receives packages and products, they all get scanned and placed into spots at a distribution center then after an online purchase, they are found and shipped to the buyer (FulfillmentbyAmazon, 2013). Subway also uses distribution centers to hold bread, meats and vegetables and ship to franchises as needed (YSN Your Success Now, 2013). The next term is a public warehouse and this is a place that many companies can use to store short or long term, offering inventory management, physical inventory counts and shipping functionality (BusinessDictionary, n.d.b). These warehouses can be also called intermediate warehouses and companies like Apple will us them to store products before they are shipped by logistic companies like UPS and FedEx (Jigsaw Academy, 2015). Next is the common carrier which is basically UPS and FedEx as well because they transport goods to the same specific places on a regular basis. Apple, and Amazon will use these services on a regular basis to transport goods to either a store/restaurant or person. Now some companies will use private fleets instead of common carriers because they want to be inclusive and keep all of the transportation in house without paying out for transportation. The main company from the videos that would do this is Subway because they have their own trucks but I do not think Apple and Amazon have their own. After these trucks go out to deliver the goods inside, they will be returning with a backhaul or the “return journey back to the point of origin with a non-paying load” (BusinessDictionary, n.d.a). So, since Subway owns their own trucks they will backhaul after every delivery and carriers like UPS and FedEx experience the same on their trips back to their hubs. This is a very rare type of transportation but sometimes carriers will experience deadheading or the act of completing a trip without paying passengers or freight (Dictionary.com, n.d.). This means the carrier is transporting for free! And lastly freight equalization, where a government will pay the shipping costs to keep goods the same price inside of a country (English Encyclopedia, n.d.). Each of these terms can be seen in each of the companies that I watched videos for. First is Apple, and they use distribution center, public warehouses, common carriers, backhauls, and freight equalization (Jigsaw Academy, 2015). Next is Subway and they use, distribution center, private carriers, backhauls, maybe deadheading and freight equalization (YSN Your Success Now, 2013). And finally Amazon and they use distribution centers, public warehouses, common carriers, backhauls, and freight equalization (FulfillmentbyAmazon, 2013).

 

Reference List

BusinessDictionary. (n.d.a). backhaul. Retrieved November 24, 2017, from http://www.businessdictionary.com/definition/backhaul.html

BusinessDictionary. (n.d.b). distribution center. Retrieved November 24, 2017, from http://www.businessdictionary.com/definition/distribution-center.html

Dictionary.com. (n.d.). deadhead. Retrieved November 24, 2017, from http://www.dictionary.com/browse/deadhead

English Encyclopedia. (n.d.). Freight equalization policy. Retrieved November 24, 2017, from http://www.encyclo.co.uk/meaning-of-Freight%20equalization%20policy

FulfillmentbyAmazon. (2013, December 23). How Amazon receives your inventory [Video file]. Retrieved from https://www.youtube.com/watch?v=dAXdeqcHBp4

Jigsaw Academy. (2015, October 6). Story of an iPhone: Analytics in supply chain decisions [Video file]. Retrieved from https://www.youtube.com/watch?v=YbM_LydRlnM

YSN Your Success Now. (2013, November 17). SUBWAY story: Supply chain, farming & logistics [Video file]. Retrieved from https://www.youtube.com/watch?v=SRq-U1m2dwg

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