Chapter 1: Introduction & Key Terms Flashcards
Please define the first meaning of logistics!
Logistics = Picking, Packing, Placing and Pacing
Logistics is the art of
- transfer in space → transport
- transfer in time → storing / warehousing
- transfer in order → picking and packing
Please define the second meaning of logistics!
Logistics stands for the “Plowman Rights” (X-R-Definition)
According to Dr. E Grosvenor Plowman logistics is the art to get:
- the right product,
- at the right place,
- at the right time,
- in the right amount,
- …
Why is transport so important?
- Globalization and increased work-split have a direct impact on the increase of transport distances
- Transport bridges the global gaps between different localities of restricted resources
- Transport enhances social and international cohesion
Please name distinguishing features of transport as a service!
What are the consequences out of these service characteristics?
Distinguishing features → managerial / logistics consequences:
-
Non-materiality
→ non-storability (consequence = focus on “readiness rather than on output) -
Uno-Actu principle
→ services are very “situational” driven and communications-oriented -
The inclusion of an external factor
→ interaction between producer and client is often necessary
→ two-stage process of “pre-combination” (for readiness) and “end combination” (for the performance of the service)
What is the conventional measurement of transport services and why is this indicator difficult to use?
The conventional measurement of transport services is ton-kilometer “tkm” (the transport of 1 ton for 1 km)
The indicator tkm does not regard (as a product of ton x kilometer) other important transport characteristics - for example, what is the average transport distance. Nevertheless, tkm is a good indicator in the comparison of how important transportation modes are for an economy.
Please define the third meanings of logistics!
The third meaning of logistics sets the focus on two new terms:
- producing value of the internal and external customers
- object flows / processes in logistics networks/systems
Definition:
Logistics is the “art” of configuring, programming and operating flow systems/networks with the focus on speedy, direct, smooth, loss- and congestion - free movement of objects (e.g. goods, people, information, ideas) to create value for customers.
What is the difference between “transportation mode” and “transportation mean”?
Transportation mode covers all companies providing the specific mode, e.g. railway traffic, road transport
Transporation mean are the technical solutions which are performing the transport, e.g. railways, trucks, planes.
What are the three main process flows in the internal “Supply Chain”?
Give for each flow examples of relevant processes!
The three flows are:
- Demand Flow (order entry, forecasting, MRP)
- Physical Fulfillment Flow (inbound logistics, production, distribution)
- Payment Flow (payment, receivables, invoicing)
In which situations you have traffic without a transport? Why?
Traffic without a transport is in the case of empty runs [Leerfahrten].
Transport alone is defined as the movement of transport objects in space (changing the space coordinates of freight). Traffic in an empty run moves the truck (= traffic) but not freight (= transport).
How would you define the “internal Supply Chain”?
The internal Supply Chain is the “Order-to-Payment”-Process. This process covers three main flows:
- the demand flow (information flow) from the customers through the company to the suppliers
- the physical fulfillment flow (material flow) from the suppliers through the company to the customers
- the payment flow (money flow) from the customers to the suppliers
What is the written out version of the abbreviation “DRP”?
DRP stands for “Distribution Requirements Planning”
How would you define the “external Supply Chain” of a company?
The external Supply Chain is a sequence of internal Supply Chains (OTP-Processes) of all partners in the value chain of a company.
There is not only one external Supply Chain of a company because a final product includes very often different components. Each component creates a separate external SC.
What is a process?
A process is a sequence of activities with a measurable input and a measurable output. The input objects/resources are transformed or transferred to the output/resources by the activities.
Each process (or activity as the smallest increment of a process) has a specific (external or internal) supplier and a specific (external or internal) customer. So each process can be seen as a “chain of customer-supplier -relationships”.
What are the “Four Generic Processes” of a company? What is the function of each generic process type?
The “Four Generic Processes” and their functions are:
- the Order-to-Payment Process (= internal Supply Chain)
→ the core value-creating business process of each company - the “Idea-to-Market”-Process
→ supporting processes for R&D and domain choice - the “Business Readiness Process”
→ all operational processes supporting and preparing the OTP-Process (for example: recruiting, finance, investments in infrastructure) - the “Accounting, Controlling and Business Development Processes (= “Shadow flows”)
→ documentation of the three other generic flows for controlling, monitoring and reporting
Please name the activity focus, objects of investigation, main goals and examples of important KPIs for the third meaning of logistics (flow)!
Flow-Logistics:
- Focus: analyze and design internal and external value chains/logistics networks
- Objects of investigation: all processes
- Goals: Network design according to the fundamental principles of efficient logistics networks (Network-Configuration, Network-Programming, Network-Mobilization)
- Important KPIs: Time-to-Market, Days of Supply
