Global Supply Chain and Logistics: Introduction

1. Introduction

This topic gives you a first insight into the topic of "Mobility of Goods and Logistics Systems" and its most important definitions. Besides that, you will get to know what you need to take into account while designing a supply chain. Because all kind of transport is having an environmental impact, we will show you, what measures can be taken to reduce this negative impact.

We as engineers understand "Transport Systems, Logistics and Supply Chain Strategies" as a system in one that needs to be handled by an integrated approach, in order

to make the related functions and processes more efficient and more reliable, and
also to reduce its impact on society or the environment

First, you will learn some basic definitions for understanding the topic cluster ”MoGoLo” better. Afterwards, the conceptual system model of transport and traffic will be introduced. As this system model is used to structure topics 3 – 7, it is presented in detail in topic 2. Based on this underlaying understanding you will learn how to design a supply chain and what needs to be taken into account while doing so. As all kind of transport is having an environmental impact, the last chapter of this topic will give you more information about the ecological dimension of goods movement and possible measures to reduce this impact.

A PC from around the world

As a short introduction, the following H5P-Element "A PC from around the world" (Kerkhoff 2004) shows the transport chains of different parts of a PC while the production and assembling processes before reaching its final selling point in the end.

A PC from around the world (1/2) by Prof. Dr.-Ing. Heike Flämig, Christof Kerkhoff (CC BY-SA)

A PC from around the world (2/2) by Prof. Dr.-Ing. Heike Flämig, Christof Kerkhoff (CC BY-SA)

The PC‘s transport balance sheet – TKT

The diagram "A PC's transport balance sheet" (TKT) shows the sum of tonne kilometres transported of all parts and components as well as of the finished computer. In total all transport processes of the PC and all its parts amount to 510 TKT.
Nearly 90 percent of the total TKT is covered by container vessels due to long distance transports and heavy goods.

Chartpie — A PCs transport balance sheet-TKT von Prof. Dr.-Ing. Heike Flämig, Christof Kerkhoff (CC BY-SA)

The PC's transport balance sheet - CO2-equivalent

The transport of the PC is emitting CO2.
In total the PC has a “climate relevant backpack” from 46.2 kg of CO2 emissions.
The diagram "A PC's transport balance sheet - CO2" shows that most of the climate relevant impacts result from the transport with airplanes.
Compared to the previous figure, it is clear that the decision for one mode of transport from an economic point of view is different from an ecological one.

Piechart — A PCs transport balance sheet-CO2 von Prof. Dr.-Ing. Heike Flämig, Christof Kerkhoff (CC BY-SA)

After learning, that for the production and delivery of a PC, a lot of different aspects (e.g. supply chain strategy, CO2 emissions, mode of transport) need to be considered, the following page will give you some basic definitions to understand the underlying processes better.

Literature

Kerkhoff, C. (2004): Standortverflechtungen und Verkehrsaufkommen bei Herstellung und Vertrieb eines Personalcomputers. Unpublished Thesis TU Dortmund University. Own translation