Lecture 1 Flashcards
What is the definition of logistics?
“Logistics is the process of strategically managing the procurement, movement and storage of materials, parts and
finished inventory (and the related information flows) through the organization and its marketing channels in such a way
that current and future profitability are maximized through the cost-effective fulfillment of orders.” (Christopher, 2011)
What are the tasks involved in logistics?
› Procurement
› Movement
› Storage
What are the objects involved in logistics?
› Materials
› Parts
› Finished products
› Information
What are the goals of logistics?
› Maximizing the profitability
› Cost effective order fulfillment
What are the five core characteristics of logistics?
Adaptability Collaboration Community Visibility Mobility
What is Adaptability?
› Flexibility - scalability (up and
down)
› New: agility
What is Collaboration?
› In supply chain/network
› Handling interfaces
What is Community?
› Act jointly/fair partnership
What is Visibility?
Transparency/openness
What is Mobility?
› Essential for globalization
What are the five core fields of logistics?
Procurement logistics Production logistics Sales logistics Recovery logistics Recycling logistics
What is Procurement logistics?
Factory and Overseas
What is Production logistics?
Factory
What is Sales logistics?
Logistics Center - Retail - Consumer
What is Recovery logistics?
Disposal Center
What is Recycling logistics?
Recycling Center / Process
What is the Logistics Conception?
› Characteristic system approach (service, total costs)
› Requirements for national logistic processes
What is the role of Foreign Management?
Foreign management: Consideration of economic, political, legal and social specifics
of key activities in foreign markets
What is the role of Multinational management?
› Multinational management: synergy and standardization potentials
What is the role of Global Management?
› Global management: Collaborative worldwide processing of transnational markets
What are the particularities of international transportation?
› Additional consideration of aspects of international management when planning logistics processes
› Higher complexity due to a larger number of participating parties with potentially high impacts on the level of service and the cost structure
What are the core challenges in logistics?
The core challenges are balanced in the paradigm of cost, quality and time.
For example:
IT integration
Outsourcing
Process Optimization
MTS
Made to stock
MTO
Made to order
What is the function of a warehouse?
A warehouse gives a planned space for the efficient handling and storage of raw materials and goods.
Raw materials and finished goods enter the warehouse and are assigned a specific location.
Goods and materials get passed down to the distribution center of the customers.
Warehouse buffer function
Balancing fluctuations in
demand and supply
Warehouse speculation function
Exploit fluctuating prices of
goods and materials
Warehouse safety function
Stock supplies to adapt to
unexpected delays
What is Supply Chain Management (SCM)?
SCM has a broader perspective than logistics.
“A network of connected and interdependent organizations
mutually and co-operatively working together to control, manage
and improve the flow of materials and information from suppliers
to end users.” (Atiken 1998)
› SCM covers the whole network from the raw materials supplier to the end consumer › Focus on flow of information and goods as well as the cash flow
What is the Supply Chain Council (SCC)?
The supply chain council is the founder of the Supply Chain
Operations Reference Model (SCOR), a stand for supply chain
management across all sectors and branches
› The SCC is an independent nonprofit organization based in the US › Founded 1996 by two consulting firms › Over 900 participating companies worldwide › A collective across all sectors and industries › Associations in Australia/New Zealand, Brazil, Europe, Japan, North America, South Africa, South East Asia and China
What is the Supply Chain Operations Reference Model (SCOR)?
The SCOR model has been developed by the SCC in 1996 and defines the supply chain of an organization. It provides a standardized
approach across all branches and sectors to describe the activities of a firm with all required phases to fulfill the customer needs.
The model focuses on planning at key stages: suppliers; company; customers.
What is the importance of Planning within SCOR?
› Anticipate the upcoming demand › Identify customer needs › Detect and adjust bottlenecks between demand and capacities › Gather information about available resources
› Ensure the efficiency of the supply chain
› Develop a key figure system to
control the supply chain processes
What is Sourcing within SCOR?
› Sourcing of goods
› Select suppliers, price
negotiations, define supply
conditions, payment of suppliers
› Movement of the goods
› Acceptance and control, transport
to the production site
What is Make within SCOR?
› Manufacturing planning
› E.g. shift planning for workers and
machines
› Coordination of the required resources
› Material flow, resources, inventory,
etc.
What is Deliver/Return within SCOR?
› Coordination of the flow of goods
› Delivery to customer and
warehouses
› Coordination of the flow of information
› Manage customer orders and
invoices
› Return of products from the customer › Wear, defects, surplus › After-sales management › Support customers with potential problems of the supplied goods
What is the significance of the retail sector?
The retail sector deals with the sale of goods and services to consumers.
Transactions can occur via various channels of distribution across an ever-growing range of industries such as food, motor vehicles, apparel
and electronics.
Physical retail remains the dominant channel in this market while online retailing or e-commerce are gaining a rising market share.
Total forecasted retail sales of 2020?
2 6 . 3 6 t r U S D
Total forecasted physical retail sales of 2020?
22 . 1 3 t r U S D
Total forecasted E-Commerce sales of 2020?
4 . 1 3 t r U S D
What are industrial goods?
› Materials and parts used in the production of other
goods
› Bought and used for industrial and business use
What are consumer goods?
› Finished products that are sold to and used by
consumers
› Ready for consumption and for the satisfaction of
human needs
Who / What is highest European turnover in Europe (2017)?
Schwarz Gruppe (Lidl) - 97B
Aldi is second (59B)
Amazon (45B)
Asda (Walmart - 25B)
