Logistics Test 1

Explain Collaborative relationship in a strategic alliance

2 or more business organizations cooperate and willingly modify their business objectives and practices to help achieve long term goals

Describe a 3PL

3rd Party logistics- a firm may be defined as an external supplier that performs all or part of a company's logistics functions. Multiple logistics activities included; integrated or managed together and they provide solutions.

What are the 4 factors that are drivers for forming relationships?

Asset/cost efficiency, customer service, marketing advantage, profit stability/growth

What are the 3 factors relating to the cost and importance of logistics?

Competitive relationships, product relationships, spatial relationships

What are the 4 factors that are facilitators for forming relationships?

Corporate compatibility, management philosophy and techniques, mutuality of commitment to relationship formation, symmetry on key factors such as relative size, financial strength

Increasing sales by $1000 has the same impact on profit as a cost savings of $1000. Do you agree or disagree?

Disagree. If logistics cost saving increases profit buy the same amount, the revenue equivalent of this cost saving is found by dividing the cost saving by the profit margin.

What are the product related factors that affect the cost and importance of logistics?

Dollar value, density, special handling and susceptibility to damage

5 ways in which relationships between organizations may differ.

Duration, obligations, expectations, interaction/communication, cooperation, planning, goals, performance analysis, benefits and burdens

Primary difference between export management versus export trading companies?

Export management- act as agents for domestic firms in international areas. Obtain orders, selecting appropriate markets, distribution channels, and promo campaigns. They work for you to sell your product and have your interests. Export Trading- export goods and services to overseas buyers and handles most of the export arrangement. Allows small to medium sized firms to engage in foreign trade. Not working for you but will take and sell your product.

What are the 5 forms of utility that add value to a product?

Form Utility, Time utility, place utility, quantity utility, possession utility

What forms of utility does logistics add to the value of a product?

Form utility refers to the value added to the goods through a manufacturing or assembly process.

What are the primary forces driving the rate of change in economic and political landscape?

Globalization, technology, organizational consolidation and power shift, the empowered consumer, government policy and regulation

What are the 5 primary activities in the value chain?

Inbound logistics, operations, outbound logistics, marketing and sales, service

What is C-TPAT?

It is a cooperative effort to secure the global supply chain and to facilitate legitimate cargo and conveyance

What is the relationship between logistics and supply chain?

Logistics is a critical part of supply chain management. The coordination and integration of the logistics systems of all the organizations in a supply chain are necessary requirements for successful management of the supply chain.

We are comparing 2 systems. See paper

Lower fixed cost is preferred in the beginning but lower variable cost is preferable in the end.

What are nodes and links?

Nodes are fixed spatial points where goods stop for storage or processing. Links represent the transportation network and connect the nodes in the logistics system.

What is a bonded warehouse?

Operates under custom's agency's supervision and are used to store, repack, sort, or clean imported merchandise entered for warehousing without paying import duties while the goods are in storage.

What are the 4 competitive related facts that affect the cost and importance of logistics?

Order cycle, sustainability, inventory effect, transportation effect

Logistics can be divided into two major categories. What are they?

Outbound and inbound logistics. they provide opportunities for increases efficiency and improved customer service.

How does SCOR model define reliability and agility?

Reliability- the performance of the supply chain in delivering the correct product to the correct place (7 R's) Agility- the flexibility of the supply chain in responding to marketplace changes to gain or maintain competitive advantage

What are the 7 R's of logistics?

Right product, right time, right quantity, right quality, right cost, right destination, right customer

What are the 4 important characteristics of global markets?

Standardization reduces complexity, global competition reduces the product life cycle, additional organizational structures and business models frequent change, and globalization introduces more volatility.

When did the most recent era of globalization start? What are the 2 important characteristics of this era?

Started in 2000, it is powered by individuals and smaller organizations. Provided the ability to collaborate and connect 24/7

Who are freight forwarders?

Supplies expertise to international shippers. Consolidate small shipments into more economical sizes. Derives income from fees for service

What is a SCOR model?

Supply chain operations and reference. used to measure the performance of a process

What is the 'bullwhip' effect?

The amount of change at your wrist is small but at the end of the whip there is a lot of change. all the small changes add up to make up huge changes.

What is Logistics?

The art and science of obtaining, producing, and distributing materials and products in the proper place and in proper quantities

What is a supply chain?

The global network used to deliver products and services from raw material to end customers through an engineered flow of information, physical distribution and cash.

What are the 3 levels that describe the intensity of involvement?

Transactional- both parties in a vendor relationship are said to be at arms length. Collaborative- the relationship suggested by a strategic alliance is one in which 2 or more business objectives to help achieve long term goals. Strategic- may imply greater involvement than the partnership or strategic alliance. Nothing always just falls in just one category, it is usually a combo.

Different types of 3PL providers

Transportation bases, warehouse/distribution based, forwarder based, financial based, information based

Identify 6 logistics activities

Transportation, warehousing and storage, industrial packaging, materials handling, inventory control, order fulfillment, demand forecasting, production planning/scheduling, procurement, customer service, facility location

3 types of collaborative relationships

Vertical Collaboration- the relationship between buyer and supplier in the supply chain. Horizontal- buyer-buyer or seller-seller relationships Full collaboration- dynamic combo of both vertical and horizontal

The difference between vertical and horizontal relationships.

Vertical relationships- the traditional linkages between firms in the supply chain such as retailers, distributors, manufacturers, and parts/materials. Horizontal- includes those business arrangements between firms that have 'parallel' or cooperating positions in the logistics process. Each have some benefits they can get out of it.

How has technology enhanced globalization?

We are able to connect on a 24/7 basis and are able to collaborate all over the world.

How do the following effect the inventory, transportation, and packaging costs? a)product value b) product density c) susceptibility to damage d) special handling

a) as the product's dollar value increases the cost in each identified area also increases. Transportation also increases. Products with higher value are more susceptible to damage and packing also increases because protective packaging. b) As density increases for a product its transportation and warehousing tend to decrease c) The greater the risk of damage to a product, the higher the transportation and warehousing cost. d) usually increases warehousing, transportation, and packaging costs.

Index

combines 2 or more metrics into a single value

5 characteristics of a good measure?

is it quantitative? Is it easy to understand? encourages appropriate behavior? is it visible? is it multidimensional? facilitates truth?

Briefly explain why a reduction in the throughput time is beneficial to the organization.

it will lead to higher turnover rate, keeping shelves full and creating more efficient systems

What are the two main evolving directions in global manufacturing?

locating factories in countries that use or consume products and focused production

What are the 4 primary modes of global transportation?

ocean, air, motor, rail

Name the 4 principal areas of marketing that logistics interacts with.

price, promotion, place, product

Metric

requires calculation and often contains several measures

Measure

requires no calculations and are unidimensional