Logistics and Tender Management Quiz

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Questions and Answers

What type of operator is described as asset-heavy with its own car fleet?

Specialised companies (correct)

Standardised service operator

Orchestrator

Individual service provider

What revenue mechanism involves transactions based on the utilized quantity of service?

Variable cost revenue

Indirect revenue

Direct revenue (correct)

Flat fee revenue

Which activity is included in the implementation phase of value-added activities?

Design of new logistics systems

Identification of customer needs

Development of marketing strategies

Purchase of terminal services (correct)

Which of the following is NOT considered a loading unit mentioned in the revenue mechanism?

Standard truck (C) Signup and view all the answers

What is a primary characteristic of an orchestrator in the configuration of value-added activities?

Individual service focus (C) Signup and view all the answers

What is the primary objective of internal project processing in tender management?

To define who will perform each task and how (D) Signup and view all the answers

Which aspect is NOT typically included in the contract logistics business model?

Product pricing strategy formulation (A) Signup and view all the answers

What is a malus regulation in the context of logistics contracts?

Penalties for non-compliance with terms (C) Signup and view all the answers

What role do interfaces play in logistics services?

They facilitate the flow of information and processes (C) Signup and view all the answers

When preparing an offer in tender management, what key element should be defined?

Unique Selling Proposition (B) Signup and view all the answers

What is a primary challenge service providers face during the tender process?

Missing tool for calculations (B) Signup and view all the answers

Which factor is crucial in managing delivery areas in contract logistics?

Service package specifications (B) Signup and view all the answers

In contract review, what often deviates from specifications?

Contract descriptions (B) Signup and view all the answers

What issue arises from an overloaded and technically complex presentation?

Increased time overruns (B) Signup and view all the answers

What is primarily determined during the process of defining a product/service in tender management?

The method of delivery and resources employed (D) Signup and view all the answers

In what context is seasonality most relevant for logistics companies?

Fluctuations in demand and supply (D) Signup and view all the answers

Which of the following is a consequence of wrong team composition?

Ineffective service delivery (C) Signup and view all the answers

What can lead to unnecessary discussions regarding contract limits?

Ambiguities in contract descriptions (D) Signup and view all the answers

What is a key aspect of effective tender management in logistics?

Comprehensiveness of service offerings (A) Signup and view all the answers

Which legal question is associated with contract review?

Transfer of business according to §613a BGB (B) Signup and view all the answers

What does inadequate capacity for inquiries typically result in?

Reduced clarity in negotiations (C) Signup and view all the answers

What is the primary goal of the kick-off meeting for the interdisciplinary team?

To benefit from a diverse range of expertise (D) Signup and view all the answers

Which process is essential for determining the direction of a project after the kick-off meeting?

Decision GO or NOGO (A) Signup and view all the answers

What should be included in the preparation of a bid?

Internal presentation of concept alternatives (D) Signup and view all the answers

What is a key output of defining target processes during the development of solution approaches?

Concept alternatives (A) Signup and view all the answers

What is one of the main contents analyzed during the kick-off meeting?

Liability and insurance conditions (D) Signup and view all the answers

What is the purpose of the 'submission of the offer presentation to the customer' in tender management?

To gain customer trust through calculation disclosure (C) Signup and view all the answers

What is typically decided after evaluating operational feasibility during bid preparation?

The product offer (D) Signup and view all the answers

Which of the following is NOT a focus area during the kick-off meeting?

Development of marketing strategies (D) Signup and view all the answers

What is the primary purpose of a contract in a business negotiation?

To provide a legally binding agreement outlining obligations (B) Signup and view all the answers

Which aspect is crucial for a customer during the adaptation phases of contract implementation?

Integration of change management strategies (B) Signup and view all the answers

What does the Open Book procedure aim to achieve during the implementation phase?

Encourage contractual adjustments due to unforeseen events (A) Signup and view all the answers

Which of the following best describes the composition of the project team in tender management?

A mix of management and operational level representatives (A) Signup and view all the answers

How does the complexity of a project affect the project team?

It necessitates the integration of more subcontractors (B) Signup and view all the answers

What is a fundamental aspect of the project tasks defined within a contract?

They should include responsibilities and milestones for both parties (C) Signup and view all the answers

Why is it essential to document the responsibilities in a project team?

It facilitates joint decision-making and clarity (A) Signup and view all the answers

Which type of contract is likely to require more detailed adaptation during implementation?

A complex contract for work encompassing various parties (D) Signup and view all the answers

Which of these aspects is emphasized as crucial for successful contract logistics, based on the provided text?

Having experienced, motivated, and long-serving employees with deep logistical knowledge (B) Signup and view all the answers

What is a key characteristic of contract logistics, according to the provided text?

It involves the outsourcing of logistical functions to specialized third-party providers. (C) Signup and view all the answers

What does the example of Ekol Logistics illustrate about the operations of contract logistics companies?

Their ability to manage complex, multi-modal logistics operations across borders. (C) Signup and view all the answers

Which of the following is NOT mentioned as an important element for knowledge transfer in contract logistics?

Developing a standardized training program for all employees (B) Signup and view all the answers

What does the statement "Contract logistics is a trusted good" suggest about the sector?

It involves a high level of trust between the logistics provider and its clients. (B) Signup and view all the answers

Based on the information provided, which of these is NOT a key factor contributing to Ekol Logistics' success?

Its focus on developing new technologies and automation for logistics operations. (C) Signup and view all the answers

How does the emphasis on "experience" in contract logistics relate to the concept of a "trusted good"?

Experience creates trust by demonstrating the company's competence and reliability in fulfilling commitments. (A) Signup and view all the answers

Which of these is NOT a key aspect of contract logistics as presented in the text?

Emphasis on developing sustainable practices and reducing environmental impact. (A) Signup and view all the answers

Study Notes

Strategic Logistics Management

This is a lecture on business models of logistics companies
The course is part of the WiSe 2024/25 semester
The professor is Prof. Dr. Ralf Elbert
Topics covered include contract logistics, tender management, and the business models of different players in transport chains.

Learning Objectives

Students should learn the definition of contract logistics.
Students should learn how to define tender management.
Students should learn how the business models of different players in transport chains are structured.

Agenda

Business Models of Logistics Companies
- Goals and elements of a business model
- Business models of logistics service providers
- Contract logistics
- Business Models of different actors in transport chains

Contract Logistics

Contract logistics is a demanding, interdisciplinary, and fastest-growing area of logistics.
It involves the long-term provision of complex logistics service packages by freight forwarders.
It combines various services like transport, storage, handling, assembly, and packaging, tailored to customer needs.
The service provider becomes a system supplier for customer logistics services.
Contract logistics generates approximately 40% of the German logistics sector's total turnover.
The global market for contract logistics has grown annually by approximately 6-8% until 2015.

Contract Logistics Global Growth

Global contract logistics experienced significant growth, with different regions showcasing varying rates.
Key regions showed substantial growth in the contract logistics market (e.g. North America, Western Europe, China).
Asia Pacific (APAC) and EMEA regions saw notable global growth.
Data from different years (e.g. worldwide market for 100% = 115€ billion) and figures (e.g. 2010, 2015e) show this trend.

Value-Added Services

Contract logistics providers increasingly offer value-added services beyond basic transport, handling, and storage.
Value-added services include, among others, information services (e.g., key figures, credit assessment), coordination services (e.g., replenishment responsibility for retail shelf-filling), financial services (e.g., debt collection), and other services (e.g., quality inspections, article picking, packing, pre-assembly, return management).

Contract Logistics Characteristics

Employees and organizational structures are key aspects of contract logistics.
Contract logistics is characterized by the "Uno-Actu principle" (production = consumption) and external factor dependency.
Knowledge based on experience must be complemented with organizational structures that support methodological knowledge and learning processes.
Employees with lasting experience are vital due to the difficulty of storing this knowledge in databases.
Knowledge must be transferable to new customers, other target segments, and new employees.
Examples include service engineering (service libraries).
Contract logistics is considered a "trusted good."

Contract Logistics in Practice

Ekol Logistics, a company founded in 1990, has evolved to becoming a contract logistics service provider and has a turnover of € 616 million in 2021.
The company supplies JIT's truck production in Aksaray, Turkey, using 150 trucks per week.
A 50-person IT team can track goods within the textile industry completely using barcode on every textile, hook, and box.

Contract Logistics from the Customer's Perspective (BMW Leipzig Example)

The example of BMW Leipzig illustrates the cooperation with a logistics service provider (LSP).
Goods receipt areas, storage areas, and sequencing warehouses are crucial for managing the assembly line efficiently.
Pre-assembly activities are carried out in the Supply Centre East.
Parts are transferred between containers and AGVs (automated guided vehicles).
The LSP facilitates timely delivery and replenishment of parts to the assembly line.

Relationship Between Customer, Logistics Provider, End Customer

The relationship follows a structure: customer (contractee) --> logistics service provider (contractor) --> end customer.
Tenders are used to create this relationship
There are no contractual relations between the end customer and the logistics service provider.

Sub-processes of Tendering and Vendor Selection

For contractors (logistics providers), processes include analysis of tender documents, risk assessment, cost calculation, and quotation submission. Negotiation and e-auction occur. Letter of intent (LOI) signing follows.
For contractees (customers): Their processes include internal data collection, tender creation, provider preselection, negotiation, and provider selection for LOI.

Tender Management: Evaluation of the Request

Questions LSPs should ask themselves when evaluating a tender:
- Is it a reputable company?
- Is the market segment expanding?
- Is the customer truly seeking a new provider?
- Are there suitable benchmarks existing?
- Are there suitable references for similar work?
- Can the client's objectives be achieved?
- Does the task fit existing company strategy?
- Are necessary resources available?
- Are locational advantages available?
- Does the company have relevant know-how?
- How costly is new development? What are competitors?

Process Steps of Tender Management, Description of the Request (Hornbach)

Various criteria and steps are involved in the tender management process, exemplified with Hornbach.
Key elements include initial situation, objectives, service packages, pricing, discounts, legal bases, regulations, guarantees, quality assurance, and various aspects of contract terms.
Key components like internal data collection, creation of tender, tender specifications, and service providers' preselection are part of the process.
Tender negotiations, LOI, and contract preparations are addressed within different tender management stages.
Other processes and factors such as site plans for central warehouses, delivery areas, deadlines, service packages, and employee qualifications are also part of this process.

Process Steps of Tender Management, Internal Project Processing

Kick-off meetings, cost estimations, requirements analysis, and decisions on solutions are initial steps.
Development of concepts, alternative evaluations, and bid preparations are subsequent stages.

Process Steps of Tender Management, Submission of Quotations

Submission and presentation of offers are described.
Quotation validations and reaching next steps in the process are crucial parts of the process.
Important points for reaching agreement with the customer and reaching the next discussion phase are emphasised.
Customer questioning of offers in detail is a key part of the process.

Proces Steps of Tender Management, Implementation

Formation of a project team, and implementation plan design and budget are part of tender implementation.
Operational implementation of the tender including time management, costs, quality, and risk management is required
Communication among the parties and the implementation will proceed accordingly.

Efficiency Killers in the Tender Process

External factors harming the process (in the viewpoint of both customers/businesses and providers) are listed.
Factors that negatively impact tender processes (e.g. data quality, inexperienced managers, internal power struggles, wrong estimation of costs, lack of staff, etc.) are identified from both the customer and provider perspectives, respectively, are included.

Excursion: Tender Management in Rail Freight Transport

Effective tender management is essential for full-service logistics providers.
Transport contracts, optimizing network utilisation, and tender management in rail transports are discussed.
Consideration of standardizing and rationalizing processes and offering different services based on pricing options are emphasised for providers to be effective and efficient.

Business Models of Different Actors in Transport Chains

Different actors in transport chains (e.g., road carrier, deep-sea carrier, cargo airline, railway undertaking, and CT Operator) with distinct business models have been described.
Key elements and traits of each business model are outlined.

Business Model of a Road Freight Carrier

Key aspects of the business model of a road freight carrier are described, including product, market combination, configuration, and revenue mechanism.

Business Model of a Sea Freight Forwarder

The business model of a sea freight forwarder, including its product/market combination, configuration, and revenue mechanism, is discussed.

Business Model of a Cargo Airline

Key components of a cargo airline business model, including product, market, configuration, and revenue mechanism, are explained.

Business Model of a Railway Undertaking (RU)

The model for Railway Undertakings (RU) is described, outlining its products, market, configuration, and revenue elements.

Business Model of a CT Operator

The business model for a Container Transport Operator (CT) is detailed, explaining its products, market, configuration, and revenue aspects.

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Description

Test your knowledge on logistics operations, revenue mechanisms, and tender management with this quiz. Explore topics such as value-added activities, loading units, and contract logistics business models. Perfect for students and professionals in supply chain management.