Samenvatting Service Provider Logistics

Service Provider Logistics

Week 1:

Third party logistics:
 It is a company’s use of other businesses to perform parts of its operations or other
business functions
 Third-party logistics providers typically specialize in integrated operation,
warehousing and transportation services

Outsourcing:
 Buying goods or services rather than producing goods or performing services within
the organization
 To reduce overhead, gain flexibility, take advantage of supplier’s expertise
 A 3PL relationship is a form of business process outsourcing focused on the strategic
operation of the client’s supply chain
o Enterprises may contract with a number of 3PL’s to manage specific traffic
segments or customer bases
o Or they can outsource the entire supply chain
 Reasons to outsource
o Transfer of risk
o Cost saving
o Access to expertise
o Focus on core processes
o Capacity management
o Technology know-how
o Saving of valuable time
 What can be outsourced
o Entire functions
 HR
 IT
 Facilities
 Real estate management
 Accounting
o Elements of functions
 Marketing department
 Tele marketing
 Web development
 Market research
 Operations
 Computer aided design (CAD)
 Drafting
 Manufacturing
 Engineering
 Customer support
 Call center functions
 Offshoring

,  Moving activities to another country
 Risks and disadvantages of outsourcing
o Financial costs
 May have higher cost due to cost and difficulty in managing suppliers
 Transaction costs
 Conducting negotiations
 Managing and tendering process
 Oversight of supplier performance
 Loss of control
 Possible loss in continuity of supply or quality control should
supplier not perform as expected
o Industrial action
o Bankruptcy
o Not able to supply support
 Loss of competitive knowledge
 Opens opportunities for competitors
 Companies lose ability to introduce new designs based on own
agenda
 In using several suppliers may prevent the development of
new insights, innovations, and solutions that usually require
cross functional teamwork
o Conflicting objectives
 Increased flexibility (adjust production rates as requested) for buyer,
hence outsourcing; supplier wants long term and stable commitment
o Increase in risk
 Loss of in-house expertise that might never be regained
 Losing experts may make it difficult to manage contract effectively
 May have commercial secrecy and confidentiality with suppliers as
they become more aware of customers’ operations and performance

Balancing act:
 Prioritizing
o What is needed, when and how much
 Capacity
o Capacity to produce what is needed at the right time
 How can differences between priorities and capabilities best be resolved?

Sales and operations plan:
 Management sets objectives, the strategic business plan
o Realise the strategic plan and objectives and to give feedback to revise the
strategy
 Based on product and marketing plans, production and sales plans are drawn up:
Sales and Operations Plan
 This indicated the total volume that should be generated
o The quantities to be produced each month per product family
o Different units of measure can be used
 Multi-disciplinary

, o Sales, marketing, R&D, production maintenance, procurement, HRM and
finance
 Provides management visibility of production, inventory and backlogs
 Who does what?
o .




 Sales in airline terms
o PAX capacity sold
o Cargo bookings
 Operation plan in airline terms
o Passenger flight schedule
o Bags forecast
o Cargo flight schedule

Relation between the SOP, MPS, MRP and CRP:
 SOP
o Sales and Operations Plan
 MPS
o Master Production Schedule
 MRP
o Materials Requirement Plan
 The results from the MPS form the gross
requirements for the MRP-I schedule
 CPR
o Capacity Requirements Plan
 Schedule drawn up for the planned capacity

Stakeholders:
 Assessing operational performance: judge impact an operation has on its
stakeholders
 Stakeholders
o People and groups with legitimate interest in operation’s activities
 Internal stakeholders
 Employees
 External stakeholders
 Customers