Logistics - Block 4
Exam preparation
Subject: Advanced Logistics
Chapter’s summarized: Chapter 2, 3, 4, 6, 9, 11, 13
Final grade: 7,3
CHAPTER 2
Data; are simply facts - recorded measures of certain phenomena
Information; is a body of facts in a format suitable for decision making
Six types of information management systems:
Office Automation System
Provides effective ways to process personal and organisational business data,
perform calculations, and create documents. >> The most relevant general
software package for logisticians is the spreadsheet (excel).
Communication System
Helps people who work together, (stakeholders, employees, suppliers, customers)
by interacting and sharing information in many different forms. >> Voice-based
order picking - virtual meetings via computer technology (Skype).
Transaction Processing System (TPS)
Collects and stores information about transactions; controls some aspects of
transactions. >> Electronic data interchange, Automatic identification
technologies such as bar codes, point-of-sale systems.
Management information system (MIS) and executive information
system (EIS)
Converts TPS (Transaction Processing System) data into information for
monitoring performance and managing an organisation; provides executives
information in a readily accessible format. >> Logistics information system, can
be defined as ‘the people, equipment, and procedures to gather, sort, analyze,
evaluate, and distribute needed, timely, and accurate information to logistics
decision makers.
Decision Support Systems (DSS)
Helps people make decisions by providing information, models, or analysis tools.
>> Simulation (is a technique that models a real-world system, typically using
mathematical equations to represent the relationships among the system’s
components), Application-specific software (which has been developed to help
managers deal with specific logistics functions or activities) such as warehouse
management systems, Data mining.
Enterprise system
Creates and maintains consistent data processing methods and an integrated
database across multiple business functions. >> Logistics modules of enterprise
resource planning system.
Electronic Procurement, e-procurement; uses the internet to make it easier,
faster, and less expensive for an organisation to purchase goods and services.
You have advantages and disadvantages; one is that you are concerned about
the security of information that is transmitted.
, CHAPTER 3
From a financial perspective, improvements to an organisation’s reverse logistics
system could provide cost improvements and/or revenue enhancement
opportunities.
Cost leadership strategy requires an organisation to pursue activities that will
enable it to become a low-cost producer in an industry for a given level of quality.
A differentiation strategy entails an organisation developing a product and/or
service that offers unique attributes that are valued by customers and that the
customers perceive to be distinct from competitor offerings. Finally, a focus
strategy concentrates an organisation’s effort on a narrowly defined market to
achieve either a cost leadership or differentiation advantage.
The income statement shows revenues, expenses, and profit for a period of
time.
The current ratio, which is calculated by dividing total current assets by total
current liabilities, measures how well an organisation can pay its current liabilities
by using only current assets.
Return on assets (ROA) indicates what percentage of every dollar invested in
the business ultimately is returned to the organisation as profit.
The Strategic Profit Model (SPM) provides the framework for conducting ROA
analysis by incorporating revenues and expenses to generate net profit margin,
as well as an inclusion of assets to measure asset turnover. Net profit margin
measures the proportion of each sales dollar that is kept as profit, while asset
turnover measures the efficiency of the capital employed to generate sales.
The balanced scorecard (BSC) is a strategic planning and performance
management system used extensively in industry, government, and non-profit
organisations. It is based on the belief that management should evaluate their
business from four distinct perspectives: customers, internal business processes,
learning and growth, and financial. The BSC approach forces managers to look
beyond traditional financial measures when conducting a strategic logistics
analysis. To develop an effective logistics scorecard, management first defines
the organisation’s vision and goals. Next, logistics strategies are designed to
ensure achievement of this vision and goals. Finally, appropriate measurements
are established for each activity.
CHAPTER 4
Two organisational structures:
Fragmented Logistics Structure (More operational)
Logistics activities are managed in multiple departments throughout an
organisation. In a fragmented structure, it’s possible for the various logistics
activities to be managed in two, three, four, or more departments. Like - raw
materials, work in process, and finished goods.
Unified Logistics Structure (More operational)
Multiple logistics activities are combined into, and managed as, a single
department. Regardless of how many, or what type, of logistics activities are
managed, the unified logistics structure should be better positioned than the
fragmented structure to achieve coordination across the various activities. For
example, efficient and accurate communication among inbound and outbound
transportation, warehousing, inventory management, procurement, and so on
should be facilitated when they are combined into one department.
Exam preparation
Subject: Advanced Logistics
Chapter’s summarized: Chapter 2, 3, 4, 6, 9, 11, 13
Final grade: 7,3
CHAPTER 2
Data; are simply facts - recorded measures of certain phenomena
Information; is a body of facts in a format suitable for decision making
Six types of information management systems:
Office Automation System
Provides effective ways to process personal and organisational business data,
perform calculations, and create documents. >> The most relevant general
software package for logisticians is the spreadsheet (excel).
Communication System
Helps people who work together, (stakeholders, employees, suppliers, customers)
by interacting and sharing information in many different forms. >> Voice-based
order picking - virtual meetings via computer technology (Skype).
Transaction Processing System (TPS)
Collects and stores information about transactions; controls some aspects of
transactions. >> Electronic data interchange, Automatic identification
technologies such as bar codes, point-of-sale systems.
Management information system (MIS) and executive information
system (EIS)
Converts TPS (Transaction Processing System) data into information for
monitoring performance and managing an organisation; provides executives
information in a readily accessible format. >> Logistics information system, can
be defined as ‘the people, equipment, and procedures to gather, sort, analyze,
evaluate, and distribute needed, timely, and accurate information to logistics
decision makers.
Decision Support Systems (DSS)
Helps people make decisions by providing information, models, or analysis tools.
>> Simulation (is a technique that models a real-world system, typically using
mathematical equations to represent the relationships among the system’s
components), Application-specific software (which has been developed to help
managers deal with specific logistics functions or activities) such as warehouse
management systems, Data mining.
Enterprise system
Creates and maintains consistent data processing methods and an integrated
database across multiple business functions. >> Logistics modules of enterprise
resource planning system.
Electronic Procurement, e-procurement; uses the internet to make it easier,
faster, and less expensive for an organisation to purchase goods and services.
You have advantages and disadvantages; one is that you are concerned about
the security of information that is transmitted.
, CHAPTER 3
From a financial perspective, improvements to an organisation’s reverse logistics
system could provide cost improvements and/or revenue enhancement
opportunities.
Cost leadership strategy requires an organisation to pursue activities that will
enable it to become a low-cost producer in an industry for a given level of quality.
A differentiation strategy entails an organisation developing a product and/or
service that offers unique attributes that are valued by customers and that the
customers perceive to be distinct from competitor offerings. Finally, a focus
strategy concentrates an organisation’s effort on a narrowly defined market to
achieve either a cost leadership or differentiation advantage.
The income statement shows revenues, expenses, and profit for a period of
time.
The current ratio, which is calculated by dividing total current assets by total
current liabilities, measures how well an organisation can pay its current liabilities
by using only current assets.
Return on assets (ROA) indicates what percentage of every dollar invested in
the business ultimately is returned to the organisation as profit.
The Strategic Profit Model (SPM) provides the framework for conducting ROA
analysis by incorporating revenues and expenses to generate net profit margin,
as well as an inclusion of assets to measure asset turnover. Net profit margin
measures the proportion of each sales dollar that is kept as profit, while asset
turnover measures the efficiency of the capital employed to generate sales.
The balanced scorecard (BSC) is a strategic planning and performance
management system used extensively in industry, government, and non-profit
organisations. It is based on the belief that management should evaluate their
business from four distinct perspectives: customers, internal business processes,
learning and growth, and financial. The BSC approach forces managers to look
beyond traditional financial measures when conducting a strategic logistics
analysis. To develop an effective logistics scorecard, management first defines
the organisation’s vision and goals. Next, logistics strategies are designed to
ensure achievement of this vision and goals. Finally, appropriate measurements
are established for each activity.
CHAPTER 4
Two organisational structures:
Fragmented Logistics Structure (More operational)
Logistics activities are managed in multiple departments throughout an
organisation. In a fragmented structure, it’s possible for the various logistics
activities to be managed in two, three, four, or more departments. Like - raw
materials, work in process, and finished goods.
Unified Logistics Structure (More operational)
Multiple logistics activities are combined into, and managed as, a single
department. Regardless of how many, or what type, of logistics activities are
managed, the unified logistics structure should be better positioned than the
fragmented structure to achieve coordination across the various activities. For
example, efficient and accurate communication among inbound and outbound
transportation, warehousing, inventory management, procurement, and so on
should be facilitated when they are combined into one department.
