Module 0: Intro to Logistics

Question 1

What is the definition of supply chain?

Answer 1

Supply chain is the network of organizations involved, through upstream and
downstream linkage, in the different processes and activities that produce
value in the form of products and services to final customers.

Question 2

What is logistics?

Answer 2

Is the process of planning, implementing and controlling procedures for
the efficient and effective transportation and storage of goods including
services, and related information from the point of origin to the point of
consumption for the purpose of conforming to customer requirements

Question 3

Who are the key players in Logistics?

Answer 3

Manufacturers
Wholesalers and Retailers
Freight forwarders and Carriers
3rd party logistics providers (3PL)
Policy makers
Research institutes

Question 4

What are the 3 decision levels?

Answer 4

Strategic level:
Long-term (more than 3 years)
Planning: How you want to run your logistics to achieve the
strategic targets of your business
Network design
Number, locations and size
of manufacturing plants and
warehouses

Tactical level:
Mid-term (1-3 years)
Planning and control: decisions can be reconsidered after some
time
Inventory management
- Identifying stocking points
- Make-To-Stock, Make-To-Order or Assemble-To-Order
Transportation management
- Fleet composition
- Container location in ports
- Allocation of demand (interact with the strategic decision on
network design)

Operational level:
Short-term (up to 1 year): sometimes everyday, or every minute
Control: re-routing and re-scheduling of resources through your
logistics network
Real-time dispatching for rapid
courier operations
Real-time vehicle routing and
dispatching
Management of berthing
operations in ports
Can be intensively data-driven

Question 5

What is the challenge in logistics?

Answer 5

complexity vs. service

Question 6

How is data used in logistics?

Answer 6

Data is essential to understand the dynamics of logistical systems

Thanks to technological developments (e.g. sensors,. . . ), a huge
amount of data became available. We can speak of “Big Data”

Companies are still struggling to unlock the benefits of this big
data. Traditional optimization, forecasting tools and software
packages are not designed to deal with Big Data

Still a lot of research needs to be done in this field!

Data analytics allow for, e.g.:
Real-time routing and distribution
Improving last-mile delivery of parcels
Crowd based pickup and delivery