1. Transport, traffic and logistics key terms

Question 1

What is the difference between a product and a (logistics) service?

Answer 1

Physical product:

• is tangible
• is presentable and checkable before purchase
• the production lies before consumption
• production, sale, and consumption are separated -locally (work-split)
• is transportable and storable
• has the possibility of resale

Service

• is non-tangible
• is not presentable and checkable before purchase
• production and consumption are in parallel (Uno-actu principle)
• Production, consumption, and often sales are at the same place
• non- transferable & non-storability
• no possibility of Resale

Question 2

What are the differences between the First Meaning of Logistics and the second Meaning of Logistics?

Answer 2

The first meaning focuses on the efficiency of PPP processes- Placing, pacing, picking & packing (raw materials and finished goods)

The second meaning focuses on managing the product-related process especially in terms of reduction of cost and standardizing service level

Question 3

How would you characterize the main differences between transport, traffic, and logistics?

Answer 3

Transport are all activities changing the space coordinates (location) of transport objects

Traffic is generated using different means of transportation

Logistics is the management of the flow of goods between the point of origin and the point of destination

Without Logistics, there won’t be transport and there won’t be traffic as well.

Empty runs: when we have traffic without a paid transport service

Transport Service: is the paid performance of changing the location of transport objects

Question 4

What kinds of “logistics meanings” would you use for the following management activities:
• finding a new location for a central warehouse?
• getting cheaper prices on different transportation lanes?
• outsourcing warehousing activities?

Answer 4

finding a new location for a central warehouse? - 3rd meaning

getting cheaper prices on different transportation lanes? - 1st meaning

outsourcing warehousing activities? - 2nd meaning

Question 5

What are the key activities in the Order-to-Payment Process of UPS?

Answer 5

Demand flow: Order entry, labelling, tracking, scanning

Fulfilment flow: Delivery, packing, loading

Payment flow: Invoicing, payment

Question 6

What is the long version for the following abbreviations: UPS, DRP, MRP, SLA,PPP, TUL?

Answer 6

UPS - United Parcel Service
DRP - Distribution Requirement Planning
MRP - Materials Requirement Planning
SLA - Service Level Agreement
PPP - Placing, Pacing, Picking and Packing
TUL - Transportieren, Umschlag & Lagerung

Question 7

Take the example of UPS. What are the typical processes you have to accomplish in the four generic processes?

Answer 7

1. Domain choice & Idea to market: Technology innovation, Customer survey, Market research
2. Business readiness processes: Hiring competent workers, how many trucks needed, maintenance of means of transport
3. Order to payment process: Delivery, Tracking, Payment
4. Accounting, Controlling, & Business development process: Financing, reporting and Monitoring

Question 8

What are the generic processes that you have to manage from a logistics point of view as a service company and function of each. And give 2 examples of each process which should be accomplished in logistics service company

Answer 8

1. Domain choice & Idea to market: strategic planning, R&D. Examples: Technology innovation, Customer survey, Market research
2. Business readiness processes: activities that are involved with preparing for the OTP process. Examples: Hiring people, how many trucks needed, maintenance of means of transport
3. Order to payment process: the primary or the core business process, it is what the customer pays you for. Examples: order entry, forecasting, Delivery, Tracking, Payment
4. Accounting, Controlling, & Business development process: Financing, reporting and Monitoring