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In a process-oriented Quality Management System, what primarily drives the 'Process Realization' stage?
In a process-oriented Quality Management System, what primarily drives the 'Process Realization' stage?
According to the model, what directly follows 'Process Realization' in a Quality Management System?
According to the model, what directly follows 'Process Realization' in a Quality Management System?
What is the primary purpose of conducting audits within a Quality Management System?
What is the primary purpose of conducting audits within a Quality Management System?
In the context of a Quality Management System, what is the role of 'Resource Management'?
In the context of a Quality Management System, what is the role of 'Resource Management'?
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What is the relationship between ‘measurement & analysis' and ‘Management responsibility’ in the given model?
What is the relationship between ‘measurement & analysis' and ‘Management responsibility’ in the given model?
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Which of the following activities is considered a Value Added Service?
Which of the following activities is considered a Value Added Service?
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What is an example of a Value Added Transformation?
What is an example of a Value Added Transformation?
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Why might a company delay the insertion of manuals and electrical cords into a product until after order receipt?
Why might a company delay the insertion of manuals and electrical cords into a product until after order receipt?
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In successful Value Added Logistics (VAL) implementation, what should both the shipper and the service provider focus on?
In successful Value Added Logistics (VAL) implementation, what should both the shipper and the service provider focus on?
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Which of the following is NOT typically a responsibility of freight forwarders?
Which of the following is NOT typically a responsibility of freight forwarders?
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What should both parties develop through step by step implementation to achieve successful VAL?
What should both parties develop through step by step implementation to achieve successful VAL?
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In regards to time, when do Value added Services become a win-win situation?
In regards to time, when do Value added Services become a win-win situation?
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What is a key advantage of using a freight forwarder over a logistics company, according to the text?
What is a key advantage of using a freight forwarder over a logistics company, according to the text?
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What is required of both parties during the negotiation phase regarding Value Added Logistics?
What is required of both parties during the negotiation phase regarding Value Added Logistics?
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What is a main function of a logistics company?
What is a main function of a logistics company?
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What does this text suggest regarding specifics that one should know after learning about commodity systems?
What does this text suggest regarding specifics that one should know after learning about commodity systems?
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Freight forwarders often have extensive knowledge regarding which of the following?
Freight forwarders often have extensive knowledge regarding which of the following?
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According to the material, what does a freight forwarder typically ensure regarding pricing?
According to the material, what does a freight forwarder typically ensure regarding pricing?
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Besides price, what other advantage is typically offered when using a freight forwarder over a direct logistics company?
Besides price, what other advantage is typically offered when using a freight forwarder over a direct logistics company?
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What does the text suggest about the variety of logistics companies that a freight forwarder works with?
What does the text suggest about the variety of logistics companies that a freight forwarder works with?
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A freight forwarder's expertise includes the requirements for shipping goods by what means?
A freight forwarder's expertise includes the requirements for shipping goods by what means?
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Which supply chain technique is characterized by its adaptability to market unpredictability?
Which supply chain technique is characterized by its adaptability to market unpredictability?
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What is a key characteristic of an agile supply chain model?
What is a key characteristic of an agile supply chain model?
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What is the ultimate goal of customer service in logistics?
What is the ultimate goal of customer service in logistics?
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Which of the following is NOT typically included in a company's customer service?
Which of the following is NOT typically included in a company's customer service?
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How can companies maximize their profit margin?
How can companies maximize their profit margin?
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Which department is primarily responsible for determining the retail price of products?
Which department is primarily responsible for determining the retail price of products?
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What is the relationship between customer service and logistics?
What is the relationship between customer service and logistics?
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What does the price to be paid for customer service depend on?
What does the price to be paid for customer service depend on?
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What is the primary focus of the problem definition phase in a logistics project?
What is the primary focus of the problem definition phase in a logistics project?
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Which of the following data points is essential to collect during the initial stages of a logistics project?
Which of the following data points is essential to collect during the initial stages of a logistics project?
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What is a critical precondition that should be considered while starting a new logistics project?
What is a critical precondition that should be considered while starting a new logistics project?
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What is the main purpose of concluding the problem definition phase with a report?
What is the main purpose of concluding the problem definition phase with a report?
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In which phase of a logistics project are solutions for material and information flows developed?
In which phase of a logistics project are solutions for material and information flows developed?
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What type of information should be gathered about the goods during initial data collection?
What type of information should be gathered about the goods during initial data collection?
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What aspect of the project is typically described in the 'project organization' section?
What aspect of the project is typically described in the 'project organization' section?
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Besides the commercial strategy of the client, what other kind of precondition might be listed before starting a logistics project?
Besides the commercial strategy of the client, what other kind of precondition might be listed before starting a logistics project?
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Which of the following best describes the primary focus of supply logistics?
Which of the following best describes the primary focus of supply logistics?
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In the context of logistics, which subsystem is primarily concerned with the movement of finished goods to the end customer?
In the context of logistics, which subsystem is primarily concerned with the movement of finished goods to the end customer?
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Which logistical subsystem focuses on the handling of goods being returned by customers?
Which logistical subsystem focuses on the handling of goods being returned by customers?
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What is the main difference between supply logistics and production logistics?
What is the main difference between supply logistics and production logistics?
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Which of these is NOT an activity as part of a logistics company, according to the order in which goods flow?
Which of these is NOT an activity as part of a logistics company, according to the order in which goods flow?
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Which logistical subsystem only occurs in production companies?
Which logistical subsystem only occurs in production companies?
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What are the four main subsystems of logistics as mentioned in the text?
What are the four main subsystems of logistics as mentioned in the text?
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Considering the flow of goods, where does supply logistics fit within the overall logistics process?
Considering the flow of goods, where does supply logistics fit within the overall logistics process?
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In the logistics process flow, what generally occurs directly after supply logistics?
In the logistics process flow, what generally occurs directly after supply logistics?
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What is the key similarity between supply logistics and return logistics?
What is the key similarity between supply logistics and return logistics?
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Study Notes
Introduction to Logistics
- A presentation by Abenet Belay, a certified FIATA trainer, on the subject of International Freight Forwarding.
Learning Objectives
- Learners will be able to describe the role of a forwarder in logistics and define logistics systems.
- Learners will know the main steps in a logistics project.
- Learners will become acquainted with logistics terms such as Just-in-Time (JIT), pull systems, and physical distribution within a supply chain, and tailor-made services in logistics.
- Learners will be familiar with warehouse procedures, types of warehouses, and financial aspects of storage.
Module Contents
- Logistics and Forwarding
- Logistics Concept/Project
- Physical Distribution Systems
- Subsystems in Logistics
- Information Handling and Control Issues
- Value Added Logistics
- Commodity Related Systems
Logistics & Duties of Warehouse, Operator & Customer
- Rights and duties of the warehouse operator and customer
- Types of warehouses
- Warehouse documents & IT (information technology) for warehouses
- Warehouse construction, layout and safety
- Debit of warehouse charges / rent
- Inventory control
Chapter 1: Logistics & Forwarding
- Introduction to Logistics
- Historical Development of Logistics
- Major Logistics Activities
- The Freight Forwarder in the Supply Chain Process
- Logistics Service Provision Forms
- Quality Management in Logistics Services
1.1 Introduction to Logistics
- Defined by the Council of Supply Chain Management Professionals as the part of the supply chain that plans, controls, and implements an effective flow of goods and services from commencement to consumption, aiming to satisfy customer needs.
Introduction to Logistics (continued)
- In a business sense, logistics deals with the flow of goods between origin points and consumption points to meet the needs of customers and corporations, encompassing the management of physical items (e.g., food, materials) and abstract items (e.g. time, information).
- Logistics involves the integration of information flow, material handling, production, packaging, inventory, and warehousing/transportation.
- The goal of logistics in a business sense: "Having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer."
1.2 Historical Development of Logistics
- Started with the introduction of transport enabling trade between villages (early form of global trade).
- Originated from the military, referring to the supply of troops with necessities.
1.2 Historical Development of Logistics (continued)
- Alexander the Great utilized a logistics system for supporting troops.
- Romans established supply lines and depots.
- Napoleon recognized logistics as a top priority.
1.2 Historical Development of Logistics (continued)
- World War II saw a heightened focus on logistics, particularly in the Pacific theatre during "island hopping" operations. The need for efficient delivery of materials, in the right quantities at the right place and time was critical to success.
1.3 Major Logistics Activities
- Logistics covers a diverse range of activities, encompassing the transport, storage, and dealing with all aspects of manufacturing and trading of goods.
Logistics and Value Addition
- Logistics adds value through form utility, i.e., machine processing like heating, cooling, construction and demolishing, and providing location and time utilities.
- Storage of goods enables them to be available at certain points in time.
Chapter 2: Logistics Concept/Project
- Overview of logistical activities as project
- Phased approach
- Controlling of logistics projects
2.1 Overview
- Logistics (general activities) activities can be interpreted as a project
- A project defined as a group of activities performed to achieve a particular goal.
- Characteristics - complex, unique, and can be described by several technical and economic parameters. Can be determined by cost, time, and scope.
2.1 Overview (continued)
- Project concept is the mission statement of a project, to define its purpose.
- Project strategy - defines the direction, scope and purpose of a project.
- Phased approach – an increase of oversight which is done by a division of the logistics project into several phases.
2.2 Phased Approach
- Logistics projects feature significant uncertainty that changes depending on the type, scope, size, and other factors during the planning and execution stages of a project.
- Reduced availability of resources and a rapidly changing environment can impact project implementation.
2.3 Controlling of Logistics Projects
- Level of uncertainty is high in the early stages, particularly during planning.
- Uncertainty decreases nearing the end of project.
- It's critical that the project fulfill all guidelines, expectations, and goals.
- Internal and external factors influence project execution.
Chapter 3: Physical Distribution Systems
Chapter 3: Physical Distribution Systems Learning Objectives
- Understand physical distribution and its importance
- Know the different categories of logistics service providers
- Know the main techniques for inventory management
3.1 Physical Distribution (continued)
- Movement of goods from production to the customer via various actions
- Warehousing, storage, and customer materials handling are all important logistics aspects for successful physical distribution
- Physical distribution and the ability to quickly, efficiently, and economically deliver goods to the customer directly impacts customer satisfaction.
3.2 Range of Services
- Forwarders: worldwide solutions, integrating different transport methods.
- Carriers: road haulers, rail operators, shipping lines, airlines, and warehouse operators.
- Integrators/system providers: worldwide parcel distribution, using various transport modes for a standardised service
3.3 Level of Outsourcing
- 1PL: all activities performed internally.
- 2PL: some specialised operations outsourced.
- 3PL: complete tactical and operational activities outsourced.
- 4PL: all activities outsourced with a facilitator providing strategic solutions
- Decisions regarding the level of outsourcing depend on factors such as cost, required expertise, and other specifics
Chapter 4: Subsystems in Logistics
4.1 Logistics Subsystems
- Operations in logistics companies are categorised as subsystems
- Supply, production, distribution, and return logistics are the four main subsystems
- The functions can be summarised as:
- Procurement
- Production
- Distribution
- Return flows
4.2 Just-in-Time (JIT)
- Minimising stock and production series
- Minimizing stock
- Training
- Developing team spirit
- Simplifying management
4.3 Supply Chain Management
- Network of firms (logistics processes, flows, inventory, and operations) that work together to fulfil the needs of the ultimate customer.
- Efficient and effective logistics can only be achieved through collaboration between various company functions within a supply chain.
- Effective logistics aims at the optimal performance of the flows of goods within a company.
- Logistics process includes various steps for transforming goods between companies and ensuring it’s available to the users
4.4 Customer Service
- Essential aspect of logistics
- Customer service is best measured by the service provided to the customers (e.g., providing products at the right time, in the right place, in the right amount and with the right quality).
- Important links between sales and logistics.
4.4 Customer Service (continued)
- Customer service is seen as an activity and a measure of performance
- Customer service performance is frequently expressed as a percentage of deliveries that are completed on time and in the required quality.
- Customer service is a significant factor that impacts customer satisfaction.
4.4 Customer Service (continued)
- Customer service as a supply chain responsibility
- Supplier reliability
- Lead times
- Service level agreements
Chapter 5: Information Handling and Control Issues
- Importance of ICT and EDI
- POS and GPS
- Customer-centered data
- Information Technology (ICT) and EDI system
- Point Of Sale (POS) information
- Benefits of ICT
- Data management in parallel to cargo management
Chapter 6: Value-Added Logistics
- Main examples of value-added logistics
- Reasons why shippers may delay these activities for logistics service providers
6.1 Value Added Logistics
- Global expansion and liberalization
- Growing importance of supply chain management.
- More effective supply chain management needed to manage these changes.
6.1 Value Added Logistics (continued)
- Three forms of Value Added Logistics
- Value Added Shipment
- Value Added Servicing
- Value Added Transformation
6.2 Important Factors
- Shipper and service provider partnership to effectively enhance the entire supply chain with sub-optimisation steps
- Foresight on the investments intended to reduce the lack of knowledge of the business transactions that may occur.
- Importance of understanding and addressing the issues of time.
Chapter 7: Commodity-Related Systems
- Automotive and Food industries (specifics)
- Information and communication technology (ICT)
- Global communications
- Market demand data, broken down by part and/or component, to reduce lead time and inventory costs
7.1 Automotive Industry
- Characteristics of the supply chain in the automotive industry
- The illustration features the flow of goods and the supply chain with related parties
7.2 Food Industry
- Traceability (critical to public health)
- Removal of irregular products (food safety control)
- HACCP (Hazard Analysis and Critical Control Points) system requirements
7.2 Food Industry (continued)
- Ensuring consistent compliance with food safety requirements during all stages
- Importance of traceability for better response to food safety issues
Chapter 8: Rights and Duties of Warehouse Operators and the Customer
- Introduction to warehouse and warehouse management
- Warehouse functions
- Duties and Liabilities of Warehouse Operators
- Terms of Warehouse Related Contracts
8.1 Introduction: Warehouse and Warehouse Management
- Significance of warehouses in today's global business practices for managing freight operations through receiving, identifying, holding, and assembling inventory.
- Warehousing provides a multitude of utilities (place utility for raw materials and space for storage of perishable goods) and other advantages to businesses
- Requirements for warehouse operations such as adequate storage and working space, infrastructure, proper procedure for safety of employees, accurate inventory data, etc.
8.2 Warehousing Functions
- Receiving, storing, order generation/processing/picking and dispatch
8.3 Duties and Liabilities of Warehouse Operators
- Operators are responsible for taking delivery of goods, storage, picking, and packing, ensuring delivery to production lines according to the needed standards, and keeping records of stock and inventory.
- Liability of warehouse owners for loss or damages
8.4 Terms of Warehouse Contracts
- Details of the legal contract terms to be included in warehousing contracts between the warehouse owner and operator and clients.
- Relevant information include required activities, description of goods, performance indicators, quality standards, prices, and other miscellaneous items (payment clauses, specific regulations).
Chapter 9: Types of Warehouses
- Types of logistics services
- Warehouse Types Based on Users (private, public)
- Warehouses Based on Goods Status (bonded)
9.1 Type of Logistics Services
- Transport centres
- Distribution centres
- Logistics centres
9.2 Type of Warehouses Based On Users
- Private warehouses owned and/or managed by the manufacturer, producer, or trader
- Public warehouses available for rental, possibly for one or multiple users; often owned by an individual, a partnership or an organisation
9.3 Types Based On Goods Status
- Bonded warehouses (type B,C, D, E)
Chapter 10: Warehouse Documents and IT (Information Technology)
- Characteristics of main warehousing documents
- Need for warehouse laws and regulations
- The role of Information Technology (IT) in warehousing documents and operations
- FIATA documents and their implementation for the warehousing system.
Chapter 11: Warehouse Construction, Layout, and Safety
- Warehouse location choice
- Construction, relative size, and layout considerations
- Warehouse equipment and systems; types of racks
- Warehouse-related safety concerns; (e.g - fire dangers, use of chemicals in storage, emergency exit access, lighting, suitable clothing and other safety precautions)
Chapter 12: Debit of Warehouse Charges / Rent
- Activity-based costing
- Warehouse tariffs
12.1 Activity-Based Costing
- Method focusing on individual costs attributable to transactions. Ensures accurate costing
12.1 Activity-Based Costing (continued)
- Costs of buildings, handling, administration, management, and overhead costs; adding them to the storage price.
12.2 Warehousing Tariffs
- Cost prices of buildings and equipment (e.g. per square meter per day).
- Indirect costs over storage and/or handling, divided into categories to accurately calculate costs specific to the type of warehoused goods and work.
Chapter 13: Inventory Control
- General characteristics of warehouses (first-in, first-out (FIFO) method, last-in, first-out (LIFO) method)
- Warrant storage
- Consignment storage
- Compulsory storage
- Inventory control as a process to maintain and monitor inventory levels according to the needed demand
- Inventory control aims to optimise customer service, inventory costs and operating costs
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Test your knowledge on key concepts within Quality Management Systems, including process realization, resource management, and value-added services. Explore the essential components and roles that contribute to effective quality management practices in an organization.
