Advanced
Logistics
Done By:
Marwan El Katib
,Chapter 2: Logistics and information technology
1) Office automation systems: provide effective ways to process personal
and organizational business data, perform calculations, and create
documents. Included are general software packages like word
processing, spread sheet, presentation and data base management apps.
The most relevant one for logisticians is spread sheet.
2) Communication systems: help various stakeholders, employees,
suppliers, and customers work together by interacting and sharing
information in many different forms.
3) Transaction processing system: collects and stores info about
transactions and may also control some aspects of transactions. The
primary objective of a TPS is the efficient processing of transactions, and
to this end, organizations can choose to do batch or real time processing.
Batch for a later time and Real time as orders are received.
4) Bar code scanners and RFID: Bar code scanners remain the most
popular automatic identification system in use. They work to integrate
suppliers and customers along the supply chain because all parties read
the same label; in addition, the transfer of goods between parties can be
recorded by simple electronic means. RFID is another automatic
identification technology that involves the use of radio frequency to
identify objects that have been implanted with a RFID tag. Compared to
bar codes, RFID does not require clean line sight between an object and
RFID hardware, can store much larger quantities of data, and can offer
both read and write capabilities.
5) Decision support system: help managers make decisions by providing
information, models, or analysis tools, and they can be widely applied and
used by logisticians. Specific use of DSS in logistics include, vehicle
routing issues, inventory control decisions, developing automatic order
picking systems, and optimization models for buyer-seller negotiations.
6) Simulation: is a technique that models a real-world system, typically using
mathematical equations to represent the relationships among the
system’s components. The advantage of simulation is that it enables firms
to test the feasibility of proposed changes at relatively little expense. In
addition, it prevents firms from experiencing the public embarrassment of
making a major change in their logistics system that might result in a
deterioration of customer service levels or an increase in total operating
7) Application-specific software: is a second type of DSS which has been
developed to help managers deal with specific logistics functions or
activities. An increasingly popular option for application specific software
is on-demand software. Which is a software that uses a per-use basis
instead of software they own or license for installation.
,8) Transportation management systems (TMS) and warehouse management
systems (WMS): are two prominent examples of logistics related
application specific software and the most likely applications to be
purchased or upgraded. TMS is a software package that automates the
process of building orders, tending loads, tracking shipments, audits, and
payments. WMS are software packages that control the movement and
storage of materials within an operation.
9) Data mining: which can be defined as the application of mathematical
tools to large bodies of data in order to extract correlations and rules.
Data mining utilizes sophisticated quantitative techniques to find “hidden”
patterns in large volumes of data; these patterns allow mangers to
improve their decision making abilities as well as enhance their
organization’s competitive advantage.
10) Efficient data mining: is dependent of data warehouses, that is, a central
repository for all the relevant data collected by an organization.
11) Enterprise systems: create and maintain consistent data processing
methods and an integrated database across multiple business functions.
The most prominent example of enterprise systems is probably enterprise
resource planning (ERP) systems which lets the company automate and
integrate the majority of its business processes, share common data and
practices across the enterprise, and produce and access info in a real
time environment.
12) Shortcoming of ERP: the most frequent shortcoming involves the cost of
installation. A second shortcoming is that implementation of ERP systems
can be a very time consuming process. A third short coming is that they
initially lacked strong application specific logistical capabilities such as
TMS or WMS.
13) Electronic procurement: also known as e-procurement uses the internet to
make it easier, faster, and less expensive for an organization to purchase
goods and services. The type of benefits that come from e-procurement
include transactional benefits, compliance benefits, management info
benefits, and price benefits. One drawback is the security of info that is
being transmitted.
14) Reverse auction: facilitates with e-procurement and is where a buyer
invites bids from multiple sellers, and the seller with the lowest bid is
generally awarded the business. Buyers tend to like reverse auctions
because they aim to generate low procurement prices, and the online
nature of reverse auctions allows buyers to drill down to a sellers low
price very quickly. However, reverse auctions can provide sellers with
valuable info such as the number of other bidders. This can be important
in the sense that a large number of bidders will likely lead to a great deal
of price competition.
, Chapter 3: Strategic and Financial Logistics
1) Cost leadership strategy: requires organizations to pursue activities that
will enable it to become a low-cost producer in an industry for a given
level of quality.
2) Differentiation strategy: entails an organization developing a product and/
or a service that offers unique attributes that are valued by customers and
that the customer perceive to be distinct from competitor offerings.
3) Focus strategy: concentrates an organization’s effort on a narrowly
defined market to achieve either a cost leadership or differentiation
advantage.
4) Logistics strategy is directly influenced by strategic decisions in the
functional areas of marketing and manufacturing.
5) Income statement: shows revenues, expenses, and profit for a period of
time. It can also be referred to as a profit or loss statement.
6) Revenues: also referred to as sales, provide a dollar value of all the
products and/or services an organization provides for its customers during
a given period of time.
7) Current ratio: which is calculated by dividing total current assets by total
current liabilities, measures how well an organization can pay its current
liabilities by using only current assets.
8) Return on investment (ROA): indicates what percentage of every dollar
invested in the business ultimately is returned to the organization as
profit. Formula = net profit margin X asset turnover
9) The strategic profit model (SPM): provides framework for conducting ROA
analysis by incorporating revenues and expenses to generate net profit
margin, as well as inclusion of assets to measure asset turnover.
10) Net profit margin: measures the proportion of each sales dollar that is
kept as profit.
11) Asset turnover: measures the efficiency of the capital employed to
generate sales.
12) SPM: has the advantage of assisting logistics managers in the evaluation
of cash flows and asset utilization decisions. It provides a way for
managers to examine how a proposed change to their logistics system
influences profit performance and ROA.
13) Logistics connections to net profit margin: net profit margins can be
influenced in many ways by managerial decisions. The most relevant
category for logistics managers to consider are sales, cost of goods sold,
and total expenses.
Logistics
Done By:
Marwan El Katib
,Chapter 2: Logistics and information technology
1) Office automation systems: provide effective ways to process personal
and organizational business data, perform calculations, and create
documents. Included are general software packages like word
processing, spread sheet, presentation and data base management apps.
The most relevant one for logisticians is spread sheet.
2) Communication systems: help various stakeholders, employees,
suppliers, and customers work together by interacting and sharing
information in many different forms.
3) Transaction processing system: collects and stores info about
transactions and may also control some aspects of transactions. The
primary objective of a TPS is the efficient processing of transactions, and
to this end, organizations can choose to do batch or real time processing.
Batch for a later time and Real time as orders are received.
4) Bar code scanners and RFID: Bar code scanners remain the most
popular automatic identification system in use. They work to integrate
suppliers and customers along the supply chain because all parties read
the same label; in addition, the transfer of goods between parties can be
recorded by simple electronic means. RFID is another automatic
identification technology that involves the use of radio frequency to
identify objects that have been implanted with a RFID tag. Compared to
bar codes, RFID does not require clean line sight between an object and
RFID hardware, can store much larger quantities of data, and can offer
both read and write capabilities.
5) Decision support system: help managers make decisions by providing
information, models, or analysis tools, and they can be widely applied and
used by logisticians. Specific use of DSS in logistics include, vehicle
routing issues, inventory control decisions, developing automatic order
picking systems, and optimization models for buyer-seller negotiations.
6) Simulation: is a technique that models a real-world system, typically using
mathematical equations to represent the relationships among the
system’s components. The advantage of simulation is that it enables firms
to test the feasibility of proposed changes at relatively little expense. In
addition, it prevents firms from experiencing the public embarrassment of
making a major change in their logistics system that might result in a
deterioration of customer service levels or an increase in total operating
7) Application-specific software: is a second type of DSS which has been
developed to help managers deal with specific logistics functions or
activities. An increasingly popular option for application specific software
is on-demand software. Which is a software that uses a per-use basis
instead of software they own or license for installation.
,8) Transportation management systems (TMS) and warehouse management
systems (WMS): are two prominent examples of logistics related
application specific software and the most likely applications to be
purchased or upgraded. TMS is a software package that automates the
process of building orders, tending loads, tracking shipments, audits, and
payments. WMS are software packages that control the movement and
storage of materials within an operation.
9) Data mining: which can be defined as the application of mathematical
tools to large bodies of data in order to extract correlations and rules.
Data mining utilizes sophisticated quantitative techniques to find “hidden”
patterns in large volumes of data; these patterns allow mangers to
improve their decision making abilities as well as enhance their
organization’s competitive advantage.
10) Efficient data mining: is dependent of data warehouses, that is, a central
repository for all the relevant data collected by an organization.
11) Enterprise systems: create and maintain consistent data processing
methods and an integrated database across multiple business functions.
The most prominent example of enterprise systems is probably enterprise
resource planning (ERP) systems which lets the company automate and
integrate the majority of its business processes, share common data and
practices across the enterprise, and produce and access info in a real
time environment.
12) Shortcoming of ERP: the most frequent shortcoming involves the cost of
installation. A second shortcoming is that implementation of ERP systems
can be a very time consuming process. A third short coming is that they
initially lacked strong application specific logistical capabilities such as
TMS or WMS.
13) Electronic procurement: also known as e-procurement uses the internet to
make it easier, faster, and less expensive for an organization to purchase
goods and services. The type of benefits that come from e-procurement
include transactional benefits, compliance benefits, management info
benefits, and price benefits. One drawback is the security of info that is
being transmitted.
14) Reverse auction: facilitates with e-procurement and is where a buyer
invites bids from multiple sellers, and the seller with the lowest bid is
generally awarded the business. Buyers tend to like reverse auctions
because they aim to generate low procurement prices, and the online
nature of reverse auctions allows buyers to drill down to a sellers low
price very quickly. However, reverse auctions can provide sellers with
valuable info such as the number of other bidders. This can be important
in the sense that a large number of bidders will likely lead to a great deal
of price competition.
, Chapter 3: Strategic and Financial Logistics
1) Cost leadership strategy: requires organizations to pursue activities that
will enable it to become a low-cost producer in an industry for a given
level of quality.
2) Differentiation strategy: entails an organization developing a product and/
or a service that offers unique attributes that are valued by customers and
that the customer perceive to be distinct from competitor offerings.
3) Focus strategy: concentrates an organization’s effort on a narrowly
defined market to achieve either a cost leadership or differentiation
advantage.
4) Logistics strategy is directly influenced by strategic decisions in the
functional areas of marketing and manufacturing.
5) Income statement: shows revenues, expenses, and profit for a period of
time. It can also be referred to as a profit or loss statement.
6) Revenues: also referred to as sales, provide a dollar value of all the
products and/or services an organization provides for its customers during
a given period of time.
7) Current ratio: which is calculated by dividing total current assets by total
current liabilities, measures how well an organization can pay its current
liabilities by using only current assets.
8) Return on investment (ROA): indicates what percentage of every dollar
invested in the business ultimately is returned to the organization as
profit. Formula = net profit margin X asset turnover
9) The strategic profit model (SPM): provides framework for conducting ROA
analysis by incorporating revenues and expenses to generate net profit
margin, as well as inclusion of assets to measure asset turnover.
10) Net profit margin: measures the proportion of each sales dollar that is
kept as profit.
11) Asset turnover: measures the efficiency of the capital employed to
generate sales.
12) SPM: has the advantage of assisting logistics managers in the evaluation
of cash flows and asset utilization decisions. It provides a way for
managers to examine how a proposed change to their logistics system
influences profit performance and ROA.
13) Logistics connections to net profit margin: net profit margins can be
influenced in many ways by managerial decisions. The most relevant
category for logistics managers to consider are sales, cost of goods sold,
and total expenses.
