Inhoud
Summary Operations Management 2....................................................................................................2
Chapter 1 Introduction.......................................................................................................................2
Chapter 2 Globalisation and international trade................................................................................3
Chapter 4 Supply chain strategies......................................................................................................4
Chapter 3 Supply chain relationships..................................................................................................5
Chapter 8 Procurement......................................................................................................................7
Chapter 16 Service supply chains.....................................................................................................10
Chapter 5 Transport in supply chains...............................................................................................11
Chapter 7 Logistics service providers................................................................................................12
Chapter 9 Inventory management....................................................................................................12
Chapter 10 Warehousing and materials handling............................................................................14
Chapter 14 Sustainable logistics and supply chain systems..............................................................16
Chapter 15 Reverse logistics.............................................................................................................16
Chapter 11 Technology in the supply chain......................................................................................18
Chapter 6 Transport security............................................................................................................18
Chapter 13 Supply chain vulnerability, risk, robustness and resilience............................................19
Chapter 18 Emerging supply chain designs......................................................................................20
,Summary Operations Management 2
Chapter 1 Introduction
Higher value freight is better able to ‘absorb’ transport costs.
For many individual shipments: increased value/decreased volume= lower transport cost sensitivity.
Material substitution= the replacement of a physical product by a virtual product.
Deregulation= by removing unnecessary barriers to competition, markets become more contestable
and prices should come down and service should improve.
Positive impact on many transport markets
Increased market competition led to improvements in the management of inventory. Cost savings
were identified trough eliminating unnecessary inventory.
JIT deliveries became normal operating practice.
Too much stock were associated with higher risks
In recent years companies have become less vertically integrated and more specialised.
More outsourcing
Functions and activities across the company are more integrated.
Logistics= the process of planning, implementing, and controlling procedures for the efficient and
effective transportation and storage of goods including services, and related information.
Logistics involves getting:
- The right product
- In the right way
- In the right quantity and quality
- In the right place at the right time
Supply chain= the network of organisations that are involved, through upstream and downstream
linkages, in the different processes and activities that produce value for a product.
A number of key flows in the supply chain:
1. Physical flows of materials
2. Flows of information that inform the supply chain
3. Resources which help the supply chain to operate effectively.
SCM: the management of both relationships and flows in the supply chain.
, Purpose: create value, enhance efficiency, satisfy customers
Logistics is part of SCM; SCM is a much wider, intercompany, boundary-spanning concept, than is the
case with logistics.
Chapter 2 Globalisation and international trade
Growth in international trade
Global trade has grown in recent decades. Most of this growth has been facilitated by the reduction
of trade barriers between countries and regions.
Regional trade agreements allow more open trading (EU, AFTA)
Transfer price= when goods or services are transferred between divisions of the same company, a
value is attributes to them (minimise tax exposure)
Measuring logistics performance
LPI (logistics performance index): benchmarking tool created to help countries identify the challenges
and opportunities they face in their performance on trade logistics, and what they can do to improve
their performance. Six key dimensions:
1. Customs
2. Infrastructure
3. International shipments
4. Logistics competence
5. Tracking and tracing
6. Timeliness
One of the goals of logistics is to facilitate the process of trade, and this in turn can aid the economic
well-being of all countries.
Globalisation= an umbrella term for a complex series of economic, social, technological, cultural and
political changes, which continue to take place throughout the world.
Example: commercial shipping activity
Glocalisation: thinking on a global, world-market scale, but adapting to local wants as appropriate.
3 terms relating to how companies think and behave as they internationalise:
o Ethnocentricity: where the company when doing business abroad thinks only in terms of the
home country environment.
o Polycentricity: where the company adopts the host country perspective
o Geocentricity: where the company acts completely independent of geography and adopts a
global perspective.
Summary Operations Management 2....................................................................................................2
Chapter 1 Introduction.......................................................................................................................2
Chapter 2 Globalisation and international trade................................................................................3
Chapter 4 Supply chain strategies......................................................................................................4
Chapter 3 Supply chain relationships..................................................................................................5
Chapter 8 Procurement......................................................................................................................7
Chapter 16 Service supply chains.....................................................................................................10
Chapter 5 Transport in supply chains...............................................................................................11
Chapter 7 Logistics service providers................................................................................................12
Chapter 9 Inventory management....................................................................................................12
Chapter 10 Warehousing and materials handling............................................................................14
Chapter 14 Sustainable logistics and supply chain systems..............................................................16
Chapter 15 Reverse logistics.............................................................................................................16
Chapter 11 Technology in the supply chain......................................................................................18
Chapter 6 Transport security............................................................................................................18
Chapter 13 Supply chain vulnerability, risk, robustness and resilience............................................19
Chapter 18 Emerging supply chain designs......................................................................................20
,Summary Operations Management 2
Chapter 1 Introduction
Higher value freight is better able to ‘absorb’ transport costs.
For many individual shipments: increased value/decreased volume= lower transport cost sensitivity.
Material substitution= the replacement of a physical product by a virtual product.
Deregulation= by removing unnecessary barriers to competition, markets become more contestable
and prices should come down and service should improve.
Positive impact on many transport markets
Increased market competition led to improvements in the management of inventory. Cost savings
were identified trough eliminating unnecessary inventory.
JIT deliveries became normal operating practice.
Too much stock were associated with higher risks
In recent years companies have become less vertically integrated and more specialised.
More outsourcing
Functions and activities across the company are more integrated.
Logistics= the process of planning, implementing, and controlling procedures for the efficient and
effective transportation and storage of goods including services, and related information.
Logistics involves getting:
- The right product
- In the right way
- In the right quantity and quality
- In the right place at the right time
Supply chain= the network of organisations that are involved, through upstream and downstream
linkages, in the different processes and activities that produce value for a product.
A number of key flows in the supply chain:
1. Physical flows of materials
2. Flows of information that inform the supply chain
3. Resources which help the supply chain to operate effectively.
SCM: the management of both relationships and flows in the supply chain.
, Purpose: create value, enhance efficiency, satisfy customers
Logistics is part of SCM; SCM is a much wider, intercompany, boundary-spanning concept, than is the
case with logistics.
Chapter 2 Globalisation and international trade
Growth in international trade
Global trade has grown in recent decades. Most of this growth has been facilitated by the reduction
of trade barriers between countries and regions.
Regional trade agreements allow more open trading (EU, AFTA)
Transfer price= when goods or services are transferred between divisions of the same company, a
value is attributes to them (minimise tax exposure)
Measuring logistics performance
LPI (logistics performance index): benchmarking tool created to help countries identify the challenges
and opportunities they face in their performance on trade logistics, and what they can do to improve
their performance. Six key dimensions:
1. Customs
2. Infrastructure
3. International shipments
4. Logistics competence
5. Tracking and tracing
6. Timeliness
One of the goals of logistics is to facilitate the process of trade, and this in turn can aid the economic
well-being of all countries.
Globalisation= an umbrella term for a complex series of economic, social, technological, cultural and
political changes, which continue to take place throughout the world.
Example: commercial shipping activity
Glocalisation: thinking on a global, world-market scale, but adapting to local wants as appropriate.
3 terms relating to how companies think and behave as they internationalise:
o Ethnocentricity: where the company when doing business abroad thinks only in terms of the
home country environment.
o Polycentricity: where the company adopts the host country perspective
o Geocentricity: where the company acts completely independent of geography and adopts a
global perspective.
