Logistics and SCM: Difference between revisions

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= Logistics and SCM =
= Logistics and SCM =
 
== Fundamental definitions ==
* '''''[[w:Logistics|Logistics]]''' is the [[w:process|process]] that integrates and co-ordinates the elements within the [[w:supply chain|supply chain]]'' ( 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]]'' ( Teacher slide core wikified )
::: to ensure the best possible [[w:material flow|flow of materials]] and [[w:information|information]]
::: to ensure the best possible [[w:material flow|flow of materials]] and [[w:information|information]]
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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 )


== History ==
* 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 )


'''Mode of sea transport over time''':
* '''[[w:Material flow|Material flow]]''' (MF) is the description of the transportation of raw materials, pre-fabricates, parts, components, integrated objects and finally products as a flow of entities. The term applies mainly to advanced modeling of [[w:Supply chain management|Supply chain management]]. As industrial material flow can easily become very complex [[w:Plant Simulation|Plant Simulation]] Software has been developed to simulate, visualize, analyze and optimize these processes. ( Wikipedia )  
::''Sail -
----
:::[[w:Steamship|Steamship (S/S)]] ( approx. 1770 - early 1900's ) -  
::::[[w:Motor ship| Motor Ship ( M/S)]] -
:::::[[w:Containerization]] ( 1960's) -  
::::::[[w:liquified natural gas|LNG powered ships]] ( 2010's )''


== Modes of transport ==
== Modes of transport ==
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*'''[[w:Fleet vehicles|Fleet vehicles]]''' are groups of [[w:motor vehicle|motor vehicle]]s owned or leased by a business or government agency, rather than by an individual or family. Typical examples are vehicles operated by [[w:Car rental|car rental companies]], [[W:Taxicab|taxicab companies]], [[w:Public utility|public utilities]], public bus companies, and police departments. In addition, many businesses purchase or lease fleet vehicles to deliver [[w:good (economics)|goods]] to customers, or for sales representatives to travel to clients. ( Wikipedia )
*'''[[w:Fleet vehicles|Fleet vehicles]]''' are groups of [[w:motor vehicle|motor vehicle]]s owned or leased by a business or government agency, rather than by an individual or family. Typical examples are vehicles operated by [[w:Car rental|car rental companies]], [[W:Taxicab|taxicab companies]], [[w:Public utility|public utilities]], public bus companies, and police departments. In addition, many businesses purchase or lease fleet vehicles to deliver [[w:good (economics)|goods]] to customers, or for sales representatives to travel to clients. ( Wikipedia )


'''[[w:Reverse logistics]]''' stands for all operations related to the reuse of products and materials. It is "the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. ( Wikipedia )
== History of modes of transport ==
 
'''Mode of sea transport over time''':
::''Sail -
:::[[w:Steamship|Steamship (S/S)]] ( approx. 1770 - early 1900's ) -
::::[[w:Motor ship| Motor Ship ( M/S)]] -
:::::[[w:Containerization]] ( 1960's) -  
::::::[[w:liquified natural gas|LNG powered ships]] ( 2010's )''
 
 
----
 


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]].


=== Notes from slides ===


* '''[[w:Material flow|Material flow]]''' (MF) is the description of the transportation of raw materials, pre-fabricates, parts, components, integrated objects and finally products as a flow of entities. The term applies mainly to advanced modeling of [[w:Supply chain management|Supply chain management]]. As industrial material flow can easily become very complex [[w:Plant Simulation|Plant Simulation]] Software has been developed to simulate, visualize, analyze and optimize these processes. ( Wikipedia )
* 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]].
 


* A '''[[w:lead time|lead time]]''' is the [[:wikt:latency|latency]] (delay) between the initiation and execution of a process. ( Wikipedia )
* A '''[[w:lead time|lead time]]''' is the [[:wikt:latency|latency]] (delay) between the initiation and execution of a process. ( Wikipedia )


* 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 )
== Logistics is flow ==


* '''[[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 )
* '''[[w:Raw material|Raw material]] [[w:Resource extraction|extraction]]''' and [[w:supplier|supply]] -> '''Component [[w:manufacturer|manufacturer]]s''' ->  '''[[w:Final product|Final product]]''' manufacturing -> [[w:distribution (business)]] -> [[w:consumer|consumer]]


----
* '''[[w:Reverse logistics]]''' stands for all operations related to the reuse of products and materials. It is "the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. ( Wikipedia )
* '''[[w:Raw material|Raw material]] [[w:Resource extraction|extraction]]''' and [[w:supplier|supply]] -> '''Component [[w:manufacturer|manufacturer]]s''' ->  '''[[w:Final product|Final product]]''' manufacturing -> [[w:distribution]] -> consumer


* '''[[w:Reverse logistics|Reverse logistics]]''' is also needed in SCM ( already discussed in [[Logistics]] )
* '''[[w:International]] logistics''' vs. '''[[w:Global sourcing|Global sourcing]]'''


* '''[[w:International]] logistics''' vs.
* '''[[w:Global sourcing|Global sourcing]]''' is the practice of [[w:sourcing|sourcing]] from the global market for goods and services across [[w:geopolitical|geopolitical]] boundaries. Global sourcing often aims to exploit global efficiencies in the delivery of a product or service. These efficiencies include low cost skilled labor, low cost raw material and other economic factors like tax breaks and low trade tariffs. ( Wikipedia )


* '''[[w:Global sourcing|Global sourcing]]''' is the practice of [[w:sourcing|sourcing]] from the global market for goods and services across [[w:geopolitical|geopolitical]] boundaries. Global sourcing often aims to exploit global efficiencies in the delivery of a product or service. These efficiencies include low cost skilled labor, low cost raw material and other economic factors like tax breaks and low trade tariffs. ( Wikipedia )
== Purchasing and logistics ==


* '''[[w:Purchasing|Purchasing]]''' refers to a business or organization attempting to acquiring goods or services to accomplish the goals of its enterprise. ( Wikipedia )
* '''[[w:Purchasing|Purchasing]]''' refers to a business or organization attempting to acquiring goods or services to accomplish the goals of its enterprise. ( Wikipedia )


* A '''[[w:purchase order|purchase order]]''' ('''PO''') is a [[w:Trade|commercial]] document and first official offer issued by a [[w:buyer|buyer]] to a [[w:vendor (supply chain)|seller]], indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a purchase order to a supplier constitutes a legal offer to buy products or services. Acceptance of a purchase order by a seller usually forms a [[w:contract|contract]] between the buyer and seller, so no contract exists until the purchase order is accepted. ( Wikipedia )
* A '''[[w:purchase order|purchase order]]''' ('''PO''') is a [[w:Trade|commercial]] document and first official offer issued by a [[w:buyer|buyer]] to a [[w:vendor (supply chain)|seller]], indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a purchase order to a supplier constitutes a legal offer to buy products or services. Acceptance of a purchase order by a seller usually forms a [[w:contract|contract]] between the buyer and seller, so no contract exists until the purchase order is accepted. ( Wikipedia )
::: [[w:offer and acceptance]]


World class purchasing must accomondate
World class purchasing must accomondate