OBS 210 Strategic Logistics Management - Chapter 1

Vocabulary-style flashcards covering the core definitions, megatrends, and Porter's Value Chain components from Chapter 1 of the OBS 210 Strategic Logistics Management course.

Logistics management

The part of supply chain management that plans, implements, and controls the efficient and effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements.

Megatrends in SCM

Key global influences including Globalisation, Empowered consumer, Shift in global economic power, Demographic shifts, Rise in technology, COVID-19 pandemic, and Climate change and resource scarcity.

Types of Logistics

Specific categories including Military, Engineering, Business, Production, Reverse, Construction, City, and Humanitarian logistics.

Supply chain management (SCM)

The planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities, including coordination and collaboration with channel partners.

SCM Processes

Includes CRM, Customer service management, Demand management, Order fulfilment, Manufacturing flow management, SRM, Product development and commercialisation, and Returns management.

Third-party logistics (3PL)

A management structure where a third party (contract logistics/outsourcing) fulfils roles regarding logistics services between a supplier (first party) and clients (second party).

Types of 3PL service providers

Providers categorized as Transportation based, Warehouse and distribution based, Forwarder based, Shipper/management based, Finance based, or Information based.

Fourth-party logistics (4PL)

A separate entity or joint venture acting as a single interface between a client and multiple logistics service providers, managing all aspects of the client's supply chain.

LPI (South Africa)

The Logistics Performance Index, which ranks countries based on dimensions such as Customs, Logistics, Infrastructure, Track and trace, International shipments, and Timeliness.

Porter’s Value Chain

A framework consisting of primary and support activities used to describe how an organization creates value and gains competitive advantage.

Inbound logistics

A primary activity involving receiving, storing, and grouping inputs, including materials handling, warehousing, inventory management, and transportation scheduling.

Operations

A primary activity including machining, packaging, assembly, maintenance of equipment, testing, and operational management.

Outbound logistics

A primary activity referring to order processing, warehousing, scheduling transportation, and distribution management.

Marketing and sales

A primary activity including advertising, promotion, selling, pricing, channel selection, and retail management.

Service

A primary activity focused on maintaining the product after sale through installation, training, servicing, spare parts, and upgrading.

Procurement

A secondary activity including purchasing raw materials, supplies, negotiating contracts with suppliers, and securing building leases.

Technology development

A secondary activity including R&D, product and process improvements, redesign, and developing new services.

Human resource management

A secondary activity including recruitment, education, compensation, and employee retention.

Firm infrastructure

A secondary activity including general management, planning procedures, finance, accounting, public affairs, and quality management.