Logistics and Supply Chain Management Fundamentals

Vocabulary flashcards covering core concepts, definitions, processes, framework conditions, and system trade-offs in logistics and supply chain management.

Logistics

The process of planning, implementing, and controlling the efficient flow and storage of goods, services, and information from the point of origin to the point of consumption to deliver the right product to the right place, at the right time, in the right condition, and at the right cost.

Supply Chain

The entire network of organizations, people, resources, activities, and processes involved in producing and delivering a product or service to the final customer.

Supply Chain Management (SCM)

Integrated planning and control of all goods, information, and monetary flows along the complete value-added chain and product life cycle from the supplier's supplier to the customer's customer, involving information flow between more than 2 companies.

Procurement

The process of procuring and generating the availability of production resources, including machinery, materials, and staff.

Production

The step in value creation focused on making sure that the efficiency and cost of manufacturing matches the expected yield and performance of the product.

Distribution

The step in value creation focused on making sure product delivery meets customer expectation and quality.

Inbound Logistics

The logistical process associated with procuring materials and making the product.

Outbound Logistics

The logistical process associated with selling and delivering the product.

System Thinking

An operational mindset in logistics that means total cost orientation.

Conflicting Decisions in Logistics Systems

Typical system decisions requiring trade-off evaluations, including choice of transport carriers, choice of number of distribution centers, choice of safety stock, and choice of production lot size.

Framework Conditions

Global trends and environmental influences—such as globalization, dynamic product life cycles, resource shortages, knowledge/learning society, new and core production technology, and climate change—that force companies to develop new products and services.

Logistics Market Success Factors

Drivers that influence competitive edge and service quality, including service quality, logistical process quality, competitive price, economical power, service level, and logistical process reliability.

What is logistics?

Logistics is the process of planning, implementing, and controlling the efficient flow and storage of goods, information, and services from the point of origin to the point of consumption.

What are some examples of logistics activities?

Transportation, warehousing, inventory management, order processing, packaging, and material handling.

What is a supply chain?

A supply chain is the network of organizations, people, resources, activities, and processes involved in producing and delivering a product or service to the final customer.

What is the main difference between logistics and supply chain management?

Logistics focuses mainly on the efficient flow and storage of goods, information, and services, while supply chain management covers the broader network and activities involved in producing and delivering products to customers

What is logistics process quality?

It refers to how effectively and efficiently logistics processes are performed, helping ensure products and services are delivered as expected

What is logistics process reliability?

It is the ability of logistics processes to consistently perform as expected, such as delivering products reliably and on time.

What is the 7R definition of logistics?

Right Product, Quantity, Condition, Place, Time, Customer, Cost + Right Information

CSCMP definition key elements?

Part of SCM that plans, implements, controls efficient forward AND REVERSE flow and storage of goods, services, related information from origin to consumption to meet customer requirements

Why is logistics a competitive advantage?

When products equal, service (delivery time, reliability) differentiates. Cost share 12% of turnover, so optimization = profit

Name the 4 stages of logistics evolution

: 1. Functional optimization (60s) 2. Internal integration (70s) 3. External integration (80s) 4. SCM (90s+)

What is a System in logistics?

Set of interconnected elements with input -> transformation -> output + feedback, interacting with environment. Sub-optimization hurts total optimum

Name the 4 logistics subsystems

Supply/Procurement 2. Production 3. Distribution 4. Disposal/Reverse (+ After-sales/Spare parts)

Difference Procurement vs Purchasing vs Supply Logistics

Procurement = strategic broad (all inputs). Purchasing = subset: operational ordering of materials. Supply Logistics = physical provision/inbound flow

List 6 core logistic processes

Transport, Storage, Handling/Umschlag, Picking/Kommissionierung, Packaging, Lot sizing/Consolidation + Information flow

Most labor-intensive warehouse process?

Picking (Kommissionierung) ~55% of warehouse costs

What are the 4 components of delivery service?

Delivery Time, Reliability/Treue (most important), Flexibility, Quality (quantity, condition, info)

Name 5 logistics cost types

Transport, Warehousing, Inventory holding (capital tie-up), Handling, Packaging, Lot size, Information

What is the fundamental trade-off in logistics?

Logistics service vs logistics costs. Cannot maximize service AND minimize cost. Must find total cost optimum

Example trade-off: Transport mode

Air = fast, low inventory, high transport cost. Sea = slow, high inventory cost, low transport cost

Central vs Decentral warehousing trade-off

Central (1 WH): low inventory & storage cost, high transport cost, long delivery time. Decentral: opposite

Push vs Pull

: Push = forecast-driven, Make-to-Stock, CODP late. Pull = demand-driven, Make-to-Order, CODP early. Trend = Postponement (delay differentiation)

What is Bullwhip Effect + 4 causes?

Small customer demand variation amplifies upstream. Causes: demand forecast updating, order batching, price fluctuation, rationing/shortage gaming

How to counter Bullwhip?

Information sharing, VMI, CPFR, EDI, smaller lot sizes, stable prices, POS data sharing

What is reverse logistics?

: Planning/implementation/control of backward flow from customer to origin for returns, recycling, repair, disposal. Economic+ecological+legal goals

Supplier selection method?

Weighted scoring: assign criteria weights summing to 100% (e.g. Quality 26%, Cost 20%), rate suppliers, sum weight*rating, highest wins