Plaza of Zaragoza
1380 words 6 pagesPlaza, the Logistics Park of Zaragoza
H. Wayne Huizenga School of Business and Entrepreneurship LOG 5010 - International Transport & Logistics Term
The Logistics Plaza of Zaragoza is the largest logistic park in Europe. It is a ten-year project that started in 2000, which is now at the middle of its completion. There are not many articles on logistic parks up till now because it is a very recent development. Generally, logistic activities would grow around strategic part without any pre-planning. Due to overcrowding of those areas, governments are now trying to place logistics in more decentralized regions and are trying to create services in order to attract customers.
Case Study Summary
The case of Plaza …show more content…
For Rotterdam these costs are nearly insignificant, hence the huge difference. Also the cost of delivery from PLAZA to customers in central Europe is higher for Zaragoza, the reason being the information that the distance from Zaragoza to central Europe is almost twice the distance from Rotterdam to central Europe. The risk in demand is reflected in the reorder point and safety stock. The more the inconsistency in demand, the higher will be the reorder point and the safety stock. A higher difference in demand would directly affect the safety stock levels required at the warehouses and hence, raise the inventory carrying costs. This increase would then affect the overall costs.
Besides the costs, there are other factors that customers might take into consideration. Plaza had benefits over its competitors on many occasions. Firstly, Plaza hosted the ZLC, a research and teaching institution in collaboration with the government and other industry players. This center would carry out and test on modern supply chain initiatives and help in research by running a laboratory.
The customers can take advantage from this research laboratory in Plaza by finding out any logistical problems that they face and build new techniques suited to their logistics. In addition to this, Plaza had entrance to developed infrastructure like two motor ways, a very large air strip with two cargo hold facilities capable of landing