LOGISTIEK EN
SUPPLY CHAIN
, 1 INTRODUCTION
1.1 WHAT IS OPERATIONS MANAGEMENT?
Operations management is the management of systems or processes that create goods and/or provide services.
Every aspect of business affects or is affected by operations
Many service jobs are closely related to operations:
o Financial services
o Marketing services
o Accounting services
o Information services
It is the engine of the car
Focuses on turning input in output
1.2 GOOD OR SERVICE?
Goods are physical items that include raw materials, parts, subassemblies and final products.
Examples: Automobile, Computer, Oven , Shampoo
Services are activities that provide some combination of time, location, form or psychological value.
Examples: Air travel, Education, Haircut, Legal counsel
Services are becoming more important in this world
Problem: products are typically neither purely service- or purely goods-based
Key differences (niet studeren maar vooral om het verschil te begrijpen):
Characteristic Goods Services
Output Tangible Intangible
Customer contact Low High
Labor content Low High
Uniformity of input High Low
Measurement of productivity Easy Difficult
Opportunity to correct problems High Low
before delivery
Inventory Much Little
Wages Narrow range Wide range
Patentable Usually Not usually
1
, 1.3 SUPPLY CHAIN
Supply chain is a sequence of activities and businesses involved in producing and delivering a good or service.
The supply chain:
o Suppliers
o Manufacturer
o Distributor
o Retailer
o Customers
Look at it as functions NOT as different organizations
o Example: local baker
Manufacturer: makes the dough for bread
Distributor: puts bread in the oven
Retailer: puts bread on the shelve to sell it
Only retailer is B2C, while the other functions are B2B
o Most B2B won’t bother connecting with customers
It doesn’t matter if you know them because they want to sell to the stores and not to you
Example: La Lorraine
o Exception: some brands want to give the customer the incentive to choose their products over the
other products in store
Example: Nutella, Danone
1.3.1 SUPPLY CHAIN MANAGEMENT
In the past, businesses did little to manage the supply chain beyond their own operations and immediate
suppliers, which led to numerous problems:
o Oscillating inventory levels
o Inventory stock-outs
o Late deliveries
o Quality problems
1.3.2 SUPPLY CHAIN IN 2024:
Covid broke supply chain because of 3 problems:
o We could not produce (workers had to stay at home)
o We could not predict (hamsteren)
o We could not provide (distributers had to stay at home)
Covid redesigned supply chains
o Shift from linear chains to integrated networks
You don’t want to be dependent on 1 supplier/buyer because if anything goes wrong
you’re in trouble
Higher risk of indispensable parts of the global supply chain
o More focus on environment and sustainability
o Race is on for digital enablement and automation
Shortening supply chains
o Working with a more concentrated group of suppliers, fostering stronger relationships and
collaboration
Still 5 functions, but businesses who take on more functions
Asked by customers: sustainability (catching the fish here and then sending it to Morrocco
to clean is no longer accepted)
Asked by providers: to get a higher margin and to become dominant (Nike)
o Consisting of local or regional suppliers
2
, o Strengthening food security and lower carbon emissions
1.3.3 ELEMENTS OF SUPPLY CHAIN MANAGEMENT
Translating customer demand into activities at each level of the supply chain using:
o Forecasting
o Capacity management
o Inventory
o Purchasing
o Logistics
o Enterprise Resource planning
1.4 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
= Both are used interchangeably
Logistics refers to the movement, storage, and flow of goods, services and information within the overall supply
chain.
Activities: transportation, warehousing, packaging and more
SCM Logistics
What Link major business processes Movement, storage and flow of
within and across companies goods, services and information
Why Competitive advantage Customer requirements
SCM: logistics + production
Logistics: key part of SCM
1.5 TRANSFORMATION PROCESS
Feedback: measurements taken at various points in the transformation process
Control: the comparison of feedback against previously established standards to determine if corrective action is
needed
If you use feedback correctly you can get a competitive advantage
Decision-making process:
o Most operations decisions involve many alternatives that can have quite different impacts on costs
or profits
o Typical operations decisions
3
SUPPLY CHAIN
, 1 INTRODUCTION
1.1 WHAT IS OPERATIONS MANAGEMENT?
Operations management is the management of systems or processes that create goods and/or provide services.
Every aspect of business affects or is affected by operations
Many service jobs are closely related to operations:
o Financial services
o Marketing services
o Accounting services
o Information services
It is the engine of the car
Focuses on turning input in output
1.2 GOOD OR SERVICE?
Goods are physical items that include raw materials, parts, subassemblies and final products.
Examples: Automobile, Computer, Oven , Shampoo
Services are activities that provide some combination of time, location, form or psychological value.
Examples: Air travel, Education, Haircut, Legal counsel
Services are becoming more important in this world
Problem: products are typically neither purely service- or purely goods-based
Key differences (niet studeren maar vooral om het verschil te begrijpen):
Characteristic Goods Services
Output Tangible Intangible
Customer contact Low High
Labor content Low High
Uniformity of input High Low
Measurement of productivity Easy Difficult
Opportunity to correct problems High Low
before delivery
Inventory Much Little
Wages Narrow range Wide range
Patentable Usually Not usually
1
, 1.3 SUPPLY CHAIN
Supply chain is a sequence of activities and businesses involved in producing and delivering a good or service.
The supply chain:
o Suppliers
o Manufacturer
o Distributor
o Retailer
o Customers
Look at it as functions NOT as different organizations
o Example: local baker
Manufacturer: makes the dough for bread
Distributor: puts bread in the oven
Retailer: puts bread on the shelve to sell it
Only retailer is B2C, while the other functions are B2B
o Most B2B won’t bother connecting with customers
It doesn’t matter if you know them because they want to sell to the stores and not to you
Example: La Lorraine
o Exception: some brands want to give the customer the incentive to choose their products over the
other products in store
Example: Nutella, Danone
1.3.1 SUPPLY CHAIN MANAGEMENT
In the past, businesses did little to manage the supply chain beyond their own operations and immediate
suppliers, which led to numerous problems:
o Oscillating inventory levels
o Inventory stock-outs
o Late deliveries
o Quality problems
1.3.2 SUPPLY CHAIN IN 2024:
Covid broke supply chain because of 3 problems:
o We could not produce (workers had to stay at home)
o We could not predict (hamsteren)
o We could not provide (distributers had to stay at home)
Covid redesigned supply chains
o Shift from linear chains to integrated networks
You don’t want to be dependent on 1 supplier/buyer because if anything goes wrong
you’re in trouble
Higher risk of indispensable parts of the global supply chain
o More focus on environment and sustainability
o Race is on for digital enablement and automation
Shortening supply chains
o Working with a more concentrated group of suppliers, fostering stronger relationships and
collaboration
Still 5 functions, but businesses who take on more functions
Asked by customers: sustainability (catching the fish here and then sending it to Morrocco
to clean is no longer accepted)
Asked by providers: to get a higher margin and to become dominant (Nike)
o Consisting of local or regional suppliers
2
, o Strengthening food security and lower carbon emissions
1.3.3 ELEMENTS OF SUPPLY CHAIN MANAGEMENT
Translating customer demand into activities at each level of the supply chain using:
o Forecasting
o Capacity management
o Inventory
o Purchasing
o Logistics
o Enterprise Resource planning
1.4 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
= Both are used interchangeably
Logistics refers to the movement, storage, and flow of goods, services and information within the overall supply
chain.
Activities: transportation, warehousing, packaging and more
SCM Logistics
What Link major business processes Movement, storage and flow of
within and across companies goods, services and information
Why Competitive advantage Customer requirements
SCM: logistics + production
Logistics: key part of SCM
1.5 TRANSFORMATION PROCESS
Feedback: measurements taken at various points in the transformation process
Control: the comparison of feedback against previously established standards to determine if corrective action is
needed
If you use feedback correctly you can get a competitive advantage
Decision-making process:
o Most operations decisions involve many alternatives that can have quite different impacts on costs
or profits
o Typical operations decisions
3
