LOGISTIEK EN SUPPLY CHAIN MANAGEMENT
HOOFDSTUK 1: INTRODUCTION
1. Operation Management
What is operation management?
= the management of systems or processes that create good and/or provide services.
Every aspect of business affects or is affected by operations.
Many service jobs are closely related to operations:
- Financial services
- Marketing services
- Accounting services
- Information services
The 3 S:
- Service
- Sustainable
- Skills
2. Good and service
Goods are physical items that include raw materials, parts, subassemblies, and final products.
F.e: automobile, computer, oven, shampoo tangible
Services are activities that provide some combination of time, location, form or psychological
value.
F.e: air travel, education, haircut, legal counsel not tangible.
Products are typically neither purely service- or purely goods-based.
1
, 3. Supply chain
= A sequence of activities and business involved in producing and delivering a good or service:
- Suppliers
- Manufacturer
- Distributor
- Retailer
- (Final) customers
Bv. Local baker: he is a manufacturer, distributor (from oven up to front) and retailer.
Retailer is B2C relation.
Distributor is B2B exception: Danone yoghurt: they are not a retailer so no contact with customers,
but everyone knows them. Danone doesn’t want to be dependent from a retailer. Some
manufacturers (like nutella, danone) will still be known even if they don’t promote to you.
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:
• Oscillating inventory levels.
• Inventory stock-outs.
• Late deliveries.
• Quality problems.
In 2024…
Stay-at-home and reduces workforce availability supply
Border restrictions and lockdown measures delivery
Demand pattern fluctuations demand
Covid broke supply chains.
Shift from linear supply chains to more integrated networks. More focused on environmental and
sustainability goals. Race is on for digital enablement and automation.
Covid redesigned supply chains.
Shift from linear supply chains to more integrated networks.
• Risk of indispensable parts of the global supply chain.
Shortening supply chains
• Working with a more concentrated group of suppliers, fostering stronger relationships and
collaboration.
• Consisting of local or regional suppliers. often more dominant players will do this
• Strengthening food security and lower carbon emissions.
Supply chains become shorter because companies and customers wants it. It is not leaving parties
out of the chain, also not about shortening the actual distance. It is about reducing the
concentration on some parties.
Bv. Nike
2
,Elements of the supply chain
Translating customer demand into activities at each level of the supply chain using:
• Forecasting.
• Capacity management.
• Inventory.
• Purchasing.
• Logistics.
• Enterprise Resource Planning.
3.2. Logistics and Supply Chain Management
Difference between logistics and Supply Chains:
• Both are sometimes used interchangeably, or supply chain management is the “new”
logistics. TRUE*?
• Logistics
• Refers to the movement, storage, and flow of goods, services and information within
the overall supply chain.
• Activities – transportation, warehousing, packaging and more – that move and
position inventory.
NOT TRUE*
TRUE*
Logistics
• Terminology that has been around for a long time, while supply chain management
is a relatively new term.
• It is a (key) activity within the supply chain.
Logistics Performance Index (LPI) of The
World Bank:
• Our logistics performance is in a
downwards ‘trend’. Belgium is
#7 in the world.
• Covid has reshaped the logistics
landscape.
• Impact of Brexit is clearly visible
#25 in the world (LPI=3.7)
3
, 4. The 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.
4.1. Decision-making process
Most operations decisions involve many alternatives that can have quite different impacts on costs or
profits.
Typical operations decisions include:
• What: What resources are needed, and in what amounts?
• When: When will each resource be needed? When should the work be scheduled? When
should materials and other supplies be ordered?
• Where: Where will the work be done?
• How: How will the product or service be designed? How will the work be done? How will
resources be allocated?
• Who: Who will do the work?
4
HOOFDSTUK 1: INTRODUCTION
1. Operation Management
What is operation management?
= the management of systems or processes that create good and/or provide services.
Every aspect of business affects or is affected by operations.
Many service jobs are closely related to operations:
- Financial services
- Marketing services
- Accounting services
- Information services
The 3 S:
- Service
- Sustainable
- Skills
2. Good and service
Goods are physical items that include raw materials, parts, subassemblies, and final products.
F.e: automobile, computer, oven, shampoo tangible
Services are activities that provide some combination of time, location, form or psychological
value.
F.e: air travel, education, haircut, legal counsel not tangible.
Products are typically neither purely service- or purely goods-based.
1
, 3. Supply chain
= A sequence of activities and business involved in producing and delivering a good or service:
- Suppliers
- Manufacturer
- Distributor
- Retailer
- (Final) customers
Bv. Local baker: he is a manufacturer, distributor (from oven up to front) and retailer.
Retailer is B2C relation.
Distributor is B2B exception: Danone yoghurt: they are not a retailer so no contact with customers,
but everyone knows them. Danone doesn’t want to be dependent from a retailer. Some
manufacturers (like nutella, danone) will still be known even if they don’t promote to you.
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:
• Oscillating inventory levels.
• Inventory stock-outs.
• Late deliveries.
• Quality problems.
In 2024…
Stay-at-home and reduces workforce availability supply
Border restrictions and lockdown measures delivery
Demand pattern fluctuations demand
Covid broke supply chains.
Shift from linear supply chains to more integrated networks. More focused on environmental and
sustainability goals. Race is on for digital enablement and automation.
Covid redesigned supply chains.
Shift from linear supply chains to more integrated networks.
• Risk of indispensable parts of the global supply chain.
Shortening supply chains
• Working with a more concentrated group of suppliers, fostering stronger relationships and
collaboration.
• Consisting of local or regional suppliers. often more dominant players will do this
• Strengthening food security and lower carbon emissions.
Supply chains become shorter because companies and customers wants it. It is not leaving parties
out of the chain, also not about shortening the actual distance. It is about reducing the
concentration on some parties.
Bv. Nike
2
,Elements of the supply chain
Translating customer demand into activities at each level of the supply chain using:
• Forecasting.
• Capacity management.
• Inventory.
• Purchasing.
• Logistics.
• Enterprise Resource Planning.
3.2. Logistics and Supply Chain Management
Difference between logistics and Supply Chains:
• Both are sometimes used interchangeably, or supply chain management is the “new”
logistics. TRUE*?
• Logistics
• Refers to the movement, storage, and flow of goods, services and information within
the overall supply chain.
• Activities – transportation, warehousing, packaging and more – that move and
position inventory.
NOT TRUE*
TRUE*
Logistics
• Terminology that has been around for a long time, while supply chain management
is a relatively new term.
• It is a (key) activity within the supply chain.
Logistics Performance Index (LPI) of The
World Bank:
• Our logistics performance is in a
downwards ‘trend’. Belgium is
#7 in the world.
• Covid has reshaped the logistics
landscape.
• Impact of Brexit is clearly visible
#25 in the world (LPI=3.7)
3
, 4. The 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.
4.1. Decision-making process
Most operations decisions involve many alternatives that can have quite different impacts on costs or
profits.
Typical operations decisions include:
• What: What resources are needed, and in what amounts?
• When: When will each resource be needed? When should the work be scheduled? When
should materials and other supplies be ordered?
• Where: Where will the work be done?
• How: How will the product or service be designed? How will the work be done? How will
resources be allocated?
• Who: Who will do the work?
4
