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Logistics and SCM: Difference between revisions
moving stuff around, clarifying on the order cycle system
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= Logistics and SCM = | = Logistics and SCM = | ||
== Fundamental definitions == | == Fundamental definitions == | ||
* '''''[[w:Logistics|Logistics]]''' is a practical science concerned with the mananagement of the ''' | * '''''[[w:Logistics|Logistics]]''' is a practical science concerned with the mananagement of the '''flows''' of '''materials, money and information'''. It deals with businesses' and organizations material flows' physical, informational and financial control from procurement to customer ( Finnish Wikipedia on logistics translated by jubo-jubo ) | ||
* '''''[[w:Logistics|Logistics]]''' is the [[w:process|process]] that integrates and co-ordinates the elements within the [[w:supply chain|supply chain]] to ensure the best possible [[w:material flow|flow of materials]] and [[w:information|information]]'' ( Teacher slide core wikified ) | * '''''[[w:Logistics|Logistics]]''' is the [[w:process|process]] that integrates and co-ordinates the elements within the [[w:supply chain|supply chain]] to ensure the best possible [[w:material flow|flow of materials]] and [[w:information|information]]'' ( Teacher slide core wikified ) | ||
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* '''''[[w:Logistics|Logistics]]''' deals with the flows and storages of [[w:good (economics)|good]]s, [[w:services (economics)|services]] and related information'' ( Council of Supply Chain Management ) | * '''''[[w:Logistics|Logistics]]''' deals with the flows and storages of [[w:good (economics)|good]]s, [[w:services (economics)|services]] and related information'' ( Council of Supply Chain Management ) | ||
* '''''[[w:Logistics|Logistics]]''' is the [[w:management|management]] of the flow of [[w:resources|resources]] between the point of origin and in order to meet some requirements, for example, of customers or corporations. | * '''''[[w:Logistics|Logistics]]''' is the [[w:management|management]] of the flow of [[w:resources|resources]] between the point of origin and in order to meet some requirements, for example, of customers or corporations. ( Wikipedia ) | ||
:::The resources managed in logistics can include physical items, such as food, materials, equipment, liquids, and staff, as well as abstract items, such as time, information, particles, and energy. | :::The resources managed in logistics can include physical items, such as food, materials, equipment, liquids, and staff, as well as abstract items, such as time, information, particles, and energy. | ||
:::The logistics of physical items usually involves the integration of information flow, [[w:Materials management|material handling]], [[w:Production (economics)|production]], [[w:packaging|packaging]], [[w:inventory|inventory]], [[w:transportation|transportation]], [[w:warehousing|warehousing]], and often [[w:security|security]]. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation.'' ( Wikipedia ) | :::The logistics of physical items usually involves the integration of information flow, [[w:Materials management|material handling]], [[w:Production (economics)|production]], [[w:packaging|packaging]], [[w:inventory|inventory]], [[w:transportation|transportation]], [[w:warehousing|warehousing]], and often [[w:security|security]]. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation.'' ( Wikipedia ) | ||
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:::* '''''[[w:fi:Toimitusketjun hallinta|fi:Toimitusketjun hallinta]]''' (Supply Chain Management, SCM) tarkoittaa tavaroiden toimituksen ja palveluketjun optimointia. Kaikkien toimitusketjun osapuolien; toimittajien, jakelijoiden, alihankkijoiden ym. liikekumppaneiden yhdistämistä ja koko ketjun tehokasta hallinnointia. Tavoitteena on lisätä kaikkien jäsenten välistä kommunikointia ja siten alentaa kustannuksia, lisätä myyntiä ja tehostaa asiakaspalvelua.'' ( Suomenkielinen Wikipedia ) | :::* '''''[[w:fi:Toimitusketjun hallinta|fi:Toimitusketjun hallinta]]''' (Supply Chain Management, SCM) tarkoittaa tavaroiden toimituksen ja palveluketjun optimointia. Kaikkien toimitusketjun osapuolien; toimittajien, jakelijoiden, alihankkijoiden ym. liikekumppaneiden yhdistämistä ja koko ketjun tehokasta hallinnointia. Tavoitteena on lisätä kaikkien jäsenten välistä kommunikointia ja siten alentaa kustannuksia, lisätä myyntiä ja tehostaa asiakaspalvelua.'' ( Suomenkielinen Wikipedia ) | ||
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:::::[[w:Containerization]] ( 1960's) - | :::::[[w:Containerization]] ( 1960's) - | ||
::::::[[w:liquified natural gas|LNG powered ships]] ( 2010's )'' | ::::::[[w:liquified natural gas|LNG powered ships]] ( 2010's )'' | ||
TODO: history of land and air transport | |||
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* The '''[[w:waste hierarchy]]''' is a classification of [[w:waste management]] options in order of their environmental impact, such as: [[w:Reduce (waste)|reduction]], [[w:reuse]], [[w:recycling]] and [[w:Energy recovery|recovery]]. | * The '''[[w:waste hierarchy]]''' is a classification of [[w:waste management]] options in order of their environmental impact, such as: [[w:Reduce (waste)|reduction]], [[w:reuse]], [[w:recycling]] and [[w:Energy recovery|recovery]]. | ||
== Practical logistics == | |||
'''[[w:Material flow|Material flow]]s''' and '''[[w:warehousing|warehousing]]''' | |||
'''Order cycle system''': | |||
:# Order transmittal - Electronic or paper order from customer | |||
:# Order processing - Electronic or paper order processed by supplier | |||
:# Order preparation - Order is the goods being readied for shipment | |||
:# Order shipment - Order is the package of goods shipped to customer | |||
* A '''[[w:flowchart|flowchart]]''' is a type of [[w:diagram|diagram]] that represents an [[w:algorithm|algorithm]], workflow or process, showing the steps as boxes of various kinds, and their order by connecting them with arrows. ( Wikipedia ) | * A '''[[w:flowchart|flowchart]]''' is a type of [[w:diagram|diagram]] that represents an [[w:algorithm|algorithm]], workflow or process, showing the steps as boxes of various kinds, and their order by connecting them with arrows. ( Wikipedia ) | ||
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* '''[[w:Total quality management|Total quality management]]''' / '''TQM''' is an integrative philosophy of management for continuously improving the [[w:Quality (business)|quality]] of products and [[w:business process|processes]]. ( Wikipedia ) | * '''[[w:Total quality management|Total quality management]]''' / '''TQM''' is an integrative philosophy of management for continuously improving the [[w:Quality (business)|quality]] of products and [[w:business process|processes]]. ( Wikipedia ) | ||
== Related concepts == | |||
== | |||
* '''[[w:Supply chain management software|Supply chain management software]]''' | * '''[[w:Supply chain management software|Supply chain management software]]''' | ||
* '''[[w:Supply chain optimization|Supply chain optimization]]''' is the application of processes and tools to ensure the optimal operation of a manufacturing and distribution [[w:supply chain|supply chain]]. ( Wikipedia ) | * '''[[w:Supply chain optimization|Supply chain optimization]]''' is the application of processes and tools to ensure the optimal operation of a manufacturing and distribution [[w:supply chain|supply chain]]. ( Wikipedia ) | ||
* The '''[[w:Demand chain|Demand chain]]''' is that part of the [[w:value chain|value chain]] which drives demand. ( Wikipedia ) | * The '''[[w:Demand chain|Demand chain]]''' is that part of the [[w:value chain|value chain]] which drives demand. ( Wikipedia ) | ||
* '''[[w:Demand chain management|Demand chain management]]''' (DCM) is the management of upstream and downstream relationships between [[w:supply chain|suppliers]] and [[w:customer|customer]]s to deliver the best value to the customer at the least [[w:cost|cost]] to the [[w:demand chain|demand chain]] as a whole. ( Wikipedia ) | * '''[[w:Demand chain management|Demand chain management]]''' (DCM) is the management of upstream and downstream relationships between [[w:supply chain|suppliers]] and [[w:customer|customer]]s to deliver the best value to the customer at the least [[w:cost|cost]] to the [[w:demand chain|demand chain]] as a whole. ( Wikipedia ) | ||
* [[w:|w:]] | * A '''[[w:value chain|value chain]]''' is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable [[w:product (business)|product]] or [[w:Service (economics)|service]] for the [[w:Market (economics)|market]]. ( Wikipedia ) | ||
* '''[[w:Value chain management capability|Value chain management capability]]''' refers to an organisation’s capacity to manage the internationally dispersed activities and partners that are part of its [[w:value chain|value chain]]. ( Wikipedia ) | |||
== Learn further == | |||
* [[Entering Target Markets]] | |||