Week 1 - Introduction Flashcards

1
Q

How is capacity shortage a challenge for supply chains? (2)

A

• It has led to disruptions such as several delays throughout the supply chain
• The average freight vs available space ratio was 78:22 compared to previously being 73:27 (According to TIMOCOM data)

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2
Q

What is the impact of capacity shortages on European logistics? (6)

A

• High transport price
• Frame contracts not respected
• Inflexible transport management system
• Inefficient warehouse capacity usage
• Delivery and pick up delays
• Low service levels

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3
Q

What are the key characteristics of logistics services? (5)

A

• Intangibility
• Inseparability
• Variability
• Perishability
• Cannot be owned

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4
Q

What is meant by intangibility in logistics services? (4)

A

• Services cannot be assessed by sight, feel, smell, taste
• Processes are as equally important as outcomes
• Service can only be evaluated after it has been consumed
• Services purchases may be perceived as more risky than goods - mainly due to the wastage and storing unused services compared to goods

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5
Q

What is meant by inseparability in logistics services? (3)

A

• Production of a service can’t be separated from its consumption
• Customers are co producers of a service
• Example are airplane or vehicle capacity

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6
Q

What implications does inseparability have for accessibility to services (3)

A

• Focuses on relationships rather than exchange
• Customer involvement includes self-service and cooperation with service personnel “partial employees”
• Service sold first then produced

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7
Q

What is meant by variability in logistics services? (3)

A

• Each producer-consumer encounter may be unique
• Difficult to maintain a quality control and consistency
• Seek to improve productivity through standardisation, and by training both employees and customers (role of communication)

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8
Q

What are the implications with variability in logistics services?

A

Need to have effective services recovery policies in place because it is more difficult to protect customers from service failures

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9
Q

What is meant by perishability in logistics services? (3)

A

• Services can’t be stored
• If the sale is not used the sale is lost
• Important to effectively manage supply and demand to smooth out the demand irregularities (forecasting)

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10
Q

When can services be stored?

A

When some information-based output can be recorded in electronic/printed form and re-used many times CRM

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11
Q

What are the implications with perishability?

A

Market definition and segmentation are essential

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12
Q

What is meant by ‘services can’t be owned’ in logistics services?

A

• Buyers have the right to a service but can’t re-sell the service once experienced
• Most services have no residual value (no value once it has been used)

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13
Q

What are the implications of logistics services being unable to own? (2)

A

• Customers obtain temporary rentals, hiring of personnel or access to facilities and systems
• Pricing often based on time

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14
Q

Define supply chain management (Christopher, 2005)

A

Is the management of upstream and downstream relationships. With suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole

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15
Q

What is the aim of supply chain management?

A

To evolve the company’s supply chain into an optimally efficient, customer-satisfying process, where the effectiveness of the whole of the supply chain is more important than the effectiveness of each individual department

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16
Q

Define logistics

A

Logistics implements and controls the efficient, effective flow and storage of goods, services and related information from the point of origin to the point of consumption in order to meet customers’ requirements

17
Q

What is the overall objective of logistics?

A

To overcome gaps between suppliers and customers (Waters 2009)

18
Q

What are the different gaps that logistics aims to overcome? (5)

A

• Space - suppliers are physically distant from customers
• Time - difference between the time to product is available and when customers wants to buy it
• Quantity - amounts suppliers produce and the demand from customers
• Variety - customers want a wider variety of products than those from one supplier
• Information - customers don’t know the availability of a product and suppliers don’t know the demand

19
Q

What is transport logistics? (Kappauf et al. 2011) (3)

A

• Is a cross-sectional function that takes on the task of booking the transport planning and transport itself
• At the end of the sales procedure an invoice is produced for the customer
• The goal is to provide the required material to the right place at the right time as inexpensively as possible

20
Q

Define intermodal

A

Is the transfer of goods from origin to destination using intermodal transport units (ITU) and using two or more modes of transport

21
Q

How is a resilient supply chain defined?

A

It is defined by its capacity for resistance

22
Q

Define intermodality

A

Involves creative and innovative thinking in transport

23
Q

Characteristics of road transport

A

• 79% of UK freight is transported by road (DFT 2020)
• The empty running (vehicle kilometres driven empty) 30%
• Loading rate: rigids: 56% artic 63%

24
Q

Characteristics of passenger transport

A

The average time taken to work in 2019 was 30 minutes ranging from an average of 14 minutes for walking to 58 minutes for travelling by rail

25
Q

Characteristics of Fluvio-maritime (2)

A

• Use boats with draft characteristics that allow them to navigate different water densities
• These vessels can carry in Europe around 2000 tonnes of cargo with a hold volume of around 4000m^3

26
Q

What does TEN-T stand form?

A

Trans European Network - Transport

27
Q

What are the declared objectives of the TEN-T? (3)

A

• To enable citizens of the union, economic operators and regional and local communities to derive full benefit from the setting up of an area without internal frontiers
• Promote interconnection and interoperability of national networks as well as accessing them
• Contribute to strengthening economic social cohesion

28
Q

What is interoperability?

A

Is a characteristics of a product or system to work with other products or services

29
Q

What are the areas of relevance of the main modes of transport? (3)

A

• Car/classic rail offer - travel time of less than 1h/1h30
• TGV (train high speed) - travel time between 1h/1h30 and 3h
• Plane - travel time of more than 3 hours

30
Q

Pros of HS2 (High speed rail) (2)

A

• Investment will provide jobs for building and running it
• Quicker journey times across the country e,g London to Manchester or Birmingham

31
Q

Cons of HS2 (High speed rail)

A

• May only benefit a small section of the population
• Forecast for the number of passengers is unpredictable

32
Q

Transport loading ratios:
Maritime, road/rail, air

A

• Maritime: 1 tonne = 1m^3
• Road/rail: 1 tonne = 3m^3
• Air: 1 tonne = 6m^3