Exam Intralogistics Management

David Businelli N8841

Self-assessment
April 2020
School of Logistics
Degree Programme in Logistics
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Contents
1 Intralogistic Management.......................................................................................2
2 Economy Intralogistics............................................................................................2
3 Investments.............................................................................................................3
4 Outsourcing.............................................................................................................3
5 Leading people........................................................................................................4
6 Key performance indicators....................................................................................4
7 Cost calculating.......................................................................................................5
8 Safety management................................................................................................5
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1 Intralogistics Management
- Relation between art (leadership: human skills, imagination and expression.
and science (management: understanding how environment works.
Coordination, budgeting and making things work)
- Motivation: give clear objectives and support the personnel to achieve it
- Feedback: very useful to improve the work
- Commitment: struggle to become successful  benefits
- Critique: constructive critique are needed to improve ourselves
- Continuous improvement (PDCA): always struggle to achieve goals
- Process charts and mindmaps to understand better how to Economy
Intralogistics

2 Economy Intralogistics
- Important for managers in the phase of “decision making”, to understand
which is the problem how to deal with it.
- Intralogistics costs. Categorized in 3 types:
o Profit & loss statement based method (variable and fixed costs),
Process based method (warehouse: receiving, picking, shipping,..),
Cost type based method
 Capital costs, Personnel costs (salaries, insurance, taxes, ..)
depends on the country you are, Warehouse space
costs(building and land use cost, depreciation, rent or
property, Heating and other resources costs), Technology
costs (vehicles or machines, ..), Others (trainings, insurances,..)
- Costing: Process costing (Total costs are divided by production units), Job
Order Costing (Used when products sufficiently different from each other Job
cost + assinged overhead costs), Activity based costs (Work is divided into
different activities and costs are alleged to each activity)
- Operating capital: This money comes (in normalsituation) from sold products
and services
- Inventory value (FIFO, LIFO,..)
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3 Investments
Def.: To make sure that investmentis worth to make, some calculations are
needed.
- Investement cost: Amount of money that has to be used. Normally companies
aim to cheapest option (even if is not always the best choice).
- Redemption period: How long does it take to earn back the invested money
Redemption period = investement costs/ annual savings
- Depreciation: Investment have to be paid to supplier(s) in agreed schedule. 2
methods: declining balance method of depreciation & straight-line method of
depreciation
- Residual value: If an investment has a residual value after depreciation period
it changes the formula of redemption period. Also considered to calculate
depreciation.
- Buying vs. leasing: 2 possible options of investing. How to know what is the
best? A method could be the PV. Future leasing costs are discounted into
”single fee” that can be compared to investment cost

4 Outsourcing
- Make or buy decision Pros and Cons
-
- Outsourcing: reasons  capacity, special skills, own quality, price, investment
- Different type of terms (fully outsource, LCO countries, incountry
- The 5 PLs
- Outsourcing process: strategic phase  changeover  operational phase
o Select supplier: preliminary qualification, bidder’s list, FRI, RFQ, select
o Contract (buying services). Complexity to buy services
o Intralogistics pricing ( work hour, incoming /outcoming order, space)
- Supplier auditing
o Why auditing? To assure best possible suppliers, create value.
o Targets: Ensuring processes, sustainability, ensuring future business
o 7 M test
o How to find suppliers? SRM,agents, understanding of suppliers market
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5 Leading people

6 Key performance indicators

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7 Cost calculating

8 Safety management