Summary: Logistics & Scm

Read the summary and the most important questions on Logistics & SCM

• 1 Introduction

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• How has the reduced transport intensity of freight chnaged logistics and SCM?

  Earlier only big raw materials were transported. Now they tend to add the value to the products and make sure the prodcucts are smaller with a higher value to absorb transportation costs (reducing transport cost sensivity).

• How have the falling product prices have an imparct on logistics and SCM?

  Because of the falling product prices companies are forced to reduce their cost to gain profit, this means they try and keep the transport sensitivity as low as possible and they try to minimize their storage and movement of inventory costs

• How important was the deregulation of transport for Logistics and SCM?

  Because of the deregulatin of transport competitive barriers have come down so that it's easier and cheaper for companies to transport their products.

• What productivity improvements change Logistics and SCM?

  First of all the containerisation reduced costs of maritime transport and it is way more efficient because you can put the containers on top of each other. 
  But also big changes in technology, like barcodes and online tracking of freight.

• How has the inventory reduction changed Logistics and SCM?

  Unnecessary costs because of unnecessary inventory, it is important to manage your inventoy well, for example with JIT.

• How have changes in companies structure changed logistics and SCM?

  Because the structures of companies are less centralised, outsourcing became more popular and functional of silo-based thinking.

• What is the main conclusion of all these changes?

  All the 6 trends have led to a supply chain revolution.

• Distinguish logistics and SCM:

  Our perspective on this matter is the unionist point of view.
  
  Logistics is a part of SCM; SCM is a much wider, intercompany, boundary-spanning concept than in the case with logistics.

• What are 2 reasons for logsitcs and SCM?

  -  Reducing costs 
  - Enhancing service
  
  A good example of  a company that is really good at this is IKEA. Ex p. 14

• 2 Globalisation and international trade

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• What is the global logistics performance index (LPI) and what are its 6 key dimension?

  A tool created by the world bank to measure logistics performance per country. 
  
  - customs
  - Infrastructure
  - International shipments
  - Logistics competence
  - Tracking and tracing
  - Timeliness