Chapter 2: Logistics concept/project

2.1. Actual situation

- Project phases:
+ Problem definition
+ Design
+ Realization
+ Aftercare
2.2. Definition of the order
-
 Chapter 3: Physical distribution systems
3.1. Categories of logistics service providers
-
 Chapter 5: Information handling and control issues
5.1. Customer centred data
- ICT (Information and Communication Technology)
+ Internet: Information infrastructure
+ GPS/Galileo: Satellite positioning system
+ Improved Data Transmission: Data that can be received verbally
+ RFID-chips: Readable and writable chips
+ Optical Scanners: To read barcode information on objects
- EDI (Electronic Data Interchange)
+ Entail the electronic exchange of information
+ Standardisation is performed by the UTC (Uniform transport code) Foundation
- Extraordinary form of EDI: EFT (Electronic Fund Transfer)
- Trackin & Tracing
5.2. Data sharing system - customer and forwarder
- Most accurate information about customer demand can be obtained from the point of sale (POS): The pay-
desk
- Only largest companies have adequate economies of scale to compensate for investment costs
5.3. Data management in parallel to cargo management
- General: Before, management was accomplished only through labor intensive administrative procedures
- Stock-driven method: Guarantee the variety of products in stock and the quantity per item
- Materials Requirements Planning (MRP I):
+ A kind of Automatic goods flow management
+ Based on the forecast of demand or on the orders from clients, a task planning may be compiled -> Master
Production Schedule (MPS)
+ Applicable for Plan-driven and Order-driven goods flow
- MRP II
+ MRP I still stand central in the MRP II
+ Long-term and strategic planning
- Distribution Requirements Planning (DRP I)
+ Consolidate the orders of various clients into 1, joint demand for the central supplier and manufacturer
+ Example: Supplier -> Wholesaler -> Shop -> Customer
- DRP II: Elements:
+ i) Forecast demands
ii) Current inventory levels
iii) Safety Stock
iv) Expected Replenishment Quantities
v) Replenishment Lead Times
- Just-in-time (JIT)
+ Keep stock levels to the minimum
+ All activities (Investment costs, functions and administration) that do not add value of a product, are
regarded as waste
+ Quality can ONLY be acknowledged by the client
- Enterprise Resource Planning (ERP)
- Test questions:
+ Stock-driven method: Orders are issued through stock control
+ MRP I: Production planning is generated from forecase/quantity of orders
+ MRP II: System allows long-term planning of the goods flow and the direct dispatching of production
orders (Consider the available production capacity)
+ ERP: System combines all planning commercial, logistical and financial activities in 1 system
+ JIT: e.g. Stock is regarded as waste
f sale (POS): The pay-

ment costs

nistrative procedures
r item

be compiled -> Master

r and manufacturer

of a product, are

hing of production

n 1 system
 Chapter 6: Value added logistics
6.1. Marking
- Value added logistics (VAL): Perform manufacturing operations in the distribution stage
based on customer orders, aimed at making products client- or country specific
6.2. Packing
- Packing helps:
+ High level of customer service
+ Customize orders
+ Careful packing reduces potential for damage in-transit
+ Intelligent product routing and put-away
6.3. Retail packing
- Retail packing >< Bulk packing
6.4. Co-packing
- Outsource the packaging of a product
6.5. De-consol and Re-consol (Distribution function)
- 3 forms of VAL:
+ Value Added Shipment:
+ Value Added Servicing
+ Value Added Transformation
 Chapter 7: Commodity related systems
7.1. Automotive industry
- Production processes are executed parallel and come together in the final
assembly
7.2. Food processing industry
- HACCP (Hazard Analysis & Critical Control Point System) - 7 steps
- Critical control point: Hazards for human can be prevented
- General Food Law: Faster reaction to food safety incidents -> Product: Origin,
lot number, serial number
- ISO 22000:2005 for Food Safety Management Systems
- Enhanced standards for Food Chain