As a global company, TNT's core businesses were involved in transport business, express worldwide, logistics and airlines. Logistics business would have an increase from 8% to 21% of revenue according to analyst forecast.
Supply chain structure
Physical goods flow
TNT's global network was from purchasing raw material with the lowest price to its customers and to store finished goods than deliver finished goods to final customers. The following graph shows the flow :
TNT Logistics information system went through operations from original supplier procurement to final consumer acceptance. The detail will be indicated behind. (From the case)
Design Logistics network
The logistics network consists of suppliers, warehouse, distribution centers, and retail outlets. It is better to achieve economies of scale for reducing the cost, so the network configuration might be a main decision that involves a series determination, including the appropriate number of warehouse, the location of each warehouse, allocating pace for products in each warehouse, and which products customers will receive from each warehouse.
Supply chain management, traditional logistics and physical distribution management
Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers' requirements.