ops 3 Flashcards
Porters value chain
A chain of activities common to all businesses, divided them into primary and support activity’s
Primary activities
Relate directly to the physical creation, sale, maintenance and support of a product
List the 5 Primary Activities
- inbound logistics
- Operations
- outbound logistics
- marketing and sales
- service
Inbound logistics
All the processes related to receiving, storing and distributing inputs internally
Operation
The transformation activities that change the inputs into outputs that are sold to the customer
outbound logistics
these activities deliver your product to the customer
Marketing and Sales
All the processes you use to persuade clients to purchase from you
Service
Activities related to maintaining the value of your product
Make to stock
Produce and sell what is on stock
Make to order
Only produce after order
Logistics definition
First definition comes from Jones & Robinson: flow of goods & information
Second definition comes from Gleissner e.a.: goods, people & information
Logistics is the art of getting things from point A to point B (and sometimes back again) efficiently and effectively.
Delivery flexibility
Can clients choose delivery date
What happens in logistics
All activities concerning planning execution and control of the movement and placements of goods people and information
7R’s
- Make sure the
- RIGHT PRODUCT is available to the
- RIGHT CUSTOMER at the
- RIGHT PLACE and
- RIGHT TIME, on the
- RIGHT QUANTITY, with the
- RIGHT QUALITY for the
- RIGHT COST.
Elements of logistics
Core services
Additional services
Core services
Order processing
storage
transport
Additional services
information services
supplementary services
Order processing
receiving orders, making picking lists, creating transport documents and monitoring order until its arrival at customer’s site, including return of shipment documents.
Information Services
forwarder, recipient, type of goods, quantity, weight, volume…
Supplementary services
picking, palletizing, additional protective packaging, repackaging good from bulk into smaller package units.
Main Goals of logistics in the past
Transport & store