Whether a business is making money or losing

money while trying to deliver its goods or services

depends on the optimization of their supply chain
processes. While logistics play a central role in the
supply chain it holds the key to success of the
business as a whole.

Logistic and Operations In the age of globalization, we consume

products and services on a daily basis that come to us
Management through unseen channels; these are logistics and
operations. The management of operations processes
has been strongly affected by the technological
advances of the last decade and companies, more than
ever, need to innovate in this area in order to meet the
high consumer demand for quality and efficiency.
 What is LOGISTICS and OPERATIONS
MANAGEMENT

 At the most fundamental level, SUPPLY CHAIN MANAGEMENT (SCM) is management of the flow of goods, data, and finances
related to a product or service, from the procurement of raw materials to the delivery of the product at its final destination.

 What is Logistics Management?

The Council of Supply Chain Management Professionals (CSCMP) then define logistics management as:
...part of supply chain management that plans, implements, and controls the efficient, 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.

 What is Operations Management?

The Business Directory definition of Operations Management is:
The design, execution, and control of operations that convert resources into desired goods and services and implement a company's business
strategy.
SUPPLY CHAIN MANAGEMENT /
LOGISTICS

 While LOGISTIC and SUPPLY CHAIN MANAGEMENT (SCM) are often used interchangeably, they
are not the same. Logistics focuses on the process of moving products out of the warehouse and to the
consumer in a timely and efficient manner, which includes routes, load shipments and freight audits. SCM,
on the other hand, encompasses all of the processes and resources needed to execute a product's movement,
starting from the warehouse as goods or raw materials, through production and distribution of the final
product to the consumer.
OPERATIONS AND LOGISTICS
 What is Logistics?

LOGISTICS focuses on planning and executing the delivery of goods or services. It involves managing the transportation, storage, and distribution
of goods from point A to point B. Logistics also includes activities that support the movement of goods, such as warehousing, packaging, tracking, and
customer service.

Put otherwise, LOGISTICS refers to the activities needed to deliver a product or service to the customer.
Here’s a quick look at the five elements of logistics:

 Storage, Warehousing, and Material Handling: Here, goods are stored, retrieved, and managed. This includes stock control, loading & unloading of
goods, and the physical movement of items.
 Packaging: Packaging is essential for protecting goods during transportation. It also affects how customers perceive the product – ensuring appropriate
packaging to protect against damage and create a good impression.
 Inventory Management: As mentioned above, inventory management tracks stock levels of goods available for sale. It’s a key logistics component, as
the correct inventory levels must be maintained to ensure that orders are fulfilled on time and in the right quantities.
 Transport: Transport covers the physical movement of goods from one place to another. This includes selecting suitable transportation methods and
managing associated costs.

 Information and Control: Information & control covers the collection and management of data related to logistics operations. This includes tracking
shipments, monitoring stock levels, and ensuring orders are fulfilled on time.
 FILL IN THE GAPS WITH THE PROPER WORD FROM THE BOX:

Packaging, storage management, transportation methods, inventory, storage facilities,

Information and control systems , Information systems

1) _________________are essential for monitoring supply chain processes and making informed decisions in
logistics and operations management.
2) Choosing the right _______________is a key aspect of logistics, impacting both delivery speed and cost.
3) The systematic arrangement of goods in __________________is pivotal for streamlining the retrieval process
and maintaining an organized logistics system.
4) ____________________plays a vital role in logistics, ensuring that products are protected during transit
and arrive in optimal condition.
5) Managing _________________effectively involves analyzing demand, optimizing stock levels, and meeting
customer expectations.
6) _____________________enable real-time tracking of shipments, while control mechanisms ensure
deviations are addressed promptly in the intricate unity of logistics and operations management.
7) Proper _________________________is crucial for easy access to products and efficient order fulfillment.
 KEYS

 Information and control systems are essential for monitoring supply chain processes and making informed decisions in
logistics and operations management.
 Choosing the right transportation methods is a key aspect of logistics, impacting both delivery speed and cost.
 The systematic arrangement of goods in storage facilities is pivotal for streamlining the retrieval process and
maintaining an organized logistics system.
 Packaging plays a vital role in logistics, ensuring that products are protected during transit and arrive in optimal
condition.
 Managing inventory effectively involves analyzing demand, optimizing stock levels, and meeting customer
expectations.
 Information systems enable real-time tracking of shipments, while control mechanisms ensure deviations are addressed promptly in
the intricate unity of logistics and operations management.
 Proper storage management is crucial for easy access to products and efficient order fulfillment.
 What is Operations?

Operations focuses on the production, development, and maintenance of services or products. It is responsible for all activities that
take place within a company, such as marketing, finance, customer service, production, and distribution. Operations aim to maximize efficiency and
ensure quality control.
Put simply, operations refers to the activities needed to create a product or service and make it available for sale. Regarding delivery
management, there are three primary categories of operations: purchase order management, transactional procurement of goods, and inventory
management. Here’s a closer look:

 Purchase Order Management: POM involves the management of orders and purchase information. It includes tracking the order from placement
to delivery, including any changes or cancellations. Moreover, POM ensures that every purchase is justified, necessary, and cost-optimized.

 Transactional Procurement of Goods: Transactional procurement involves purchasing goods from suppliers and ensuring they are delivered on
time and in the right quantities. It is vital to have solid processes for this operation, as it can be complicated and require coordination between
multiple parties.

 Inventory Management: Inventory management is tracking and managing the stock of goods available for sale. This includes knowing the quantity
of goods, their condition, and where they are stored. It’s crucial to have a comprehensive inventory management system in place to ensure that items
are ready for sale and delivery when needed.
Match the words to create a meaningful
collocation.

1. to have comprehensive a) procurement

2. cost – optimized b) services
3. transactional c) delivery
4. product d) inventory management
5. maximize e) a product
6. maintenance of f) coordination between multiple parties
7. ensure g) purchases
8. create h) the order
9. tracking I) efficiency
10. require j) quality control
KEYS

 1. d
 2g
 3a
 4c
 5I
 6b
 7j
 8e
 9h
 10 f
 Why should a company perform operations and
logistics management?
PUT THE UNDERLINED WORDS IN THE CORRECT FORM.

 Logistics and operations also have a SIGNIFICANCE impact on the overall supply chain because
they are the two key elements that work together to ENSUARANCE streamlined supply chain
management process. With a well-managed logistics system, goods are shipped and DELIVERY at
the right time and place.

 At the same time, EFFICIENCY operations help OPTIMIZATION production processes,

ensuring that items are manufactured in the most efficient way possible. By streamlining operations
and logistics, businesses can REDUCTION inventory costs, optimize deliveries, and increase
customer SATISFY.

 Last but not least, ACCURACY information & control systems are NECESSATY for the efficient
supply chain management. A well-managed information system helps businesses track the status of
orders and shipments, while a robust control system ensures that all processes are running smoothly.
 KEYS
 Logistics and operations also have a significant impact on the overall supply chain because they
are the two key elements that work together to ensure a streamlined supply chain management
process. With a well-managed logistics system, goods are shipped and delivered at the right time
and place.

 At the same time, efficient operations help optimize production processes, ensuring that items are
manufactured in the most efficient way possible. By streamlining operations and logistics,
businesses can reduce inventory costs, optimize deliveries, and increase customer satisfaction.

 Last but not least, accurate information & control systems are necessary for the efficient supply
chain management. A well-managed information system helps businesses track the status of orders
and shipments, while a robust control system ensures that all processes are running smoothly.
 How is the operations and logistics
management done?

The operations and logistics are done according to a business plan and a schedule. This planning
takes into consideration the characteristics of each business.
Thus, it is necessary to deeply know each type of company first and then make a plan to optimize the
production processes. In summary, the organization must:

 HAVE A GOOD PLAN;

 MONITOR ALL PROCESSES;
 MAP ALL ORDERS;
 OFFER CONSTANT TRAINING AND QUALIFICATION.
Start with planning

The first step in implementing operations and logistics management is planning. It

involves every move; from product reception to the delivery to the final consumer.
It is during the planning that flaws in the most varied phases are identified. Planning
can be both strategic and tactical, and allows the business owner to have a broader
view of the entire process.
Strategic planning is the one focused on the organization as a whole –in which the
manager dives into all the processes, while tactical planning is oriented to a part of
the process, such as stocking, for example.
Monitoring the processes

 After identifying all the processes and correcting the gaps, the company needs to
create mechanisms to keep tracking them.
 For example, the organization can create indicators to evaluate the delivery time
of the raw material after an order is made. This time can be monitored, and if it is
increasing, it might be necessary to consider purchasing from other suppliers.
 Here is when the effectiveness of the current applied methods will be identified,
as well as an eventual need for improvement. When errors and waste are spotted,
it is essential to get rid of them.
Creating the order map

 For the logistics and operations management process to be efficient, the

organization needs to elaborate an order map.

 This map helps to develop a better strategy in production, as well as to define the
best routes and most favorable means of transportation to move the cargo.
Offer constant training and qualification

 Another key point that cannot be left aside is the constant training and qualification that must
be offered. Human resources, that is, employees, are the most valuable assets of an
organization.

 This is one way to accomplish a high level of quality for the operation, making sure that your
team knows how to handle the tools, technologies and resources as efficiently as possible, on a
daily basis.

 Furthermore, trained professionals are more motivated and usually perform their jobs with
much more dedication.
 What are the key steps in a operations management in logistics
Logistics and operations management encompass numerous vital processes that are essential for the
seamless functioning of supply chains. Let's explore some of these processes:

 Forecasting and predicting demand: Having a precise forecast of how much needs to be produced,
procured and stocked allows companies to save upto 40% of their sunk costs. By looking at historical data
companies are able to forecast to a certain extent the expected load. But adding macro-economical factors to
the mix takes the forecast to another level of precision.
 Procurement: This part of the supply chain business involves sourcing and procuring raw/ semi finished
products required for the finished product/service. An efficient procurement process leads to cost-effective
business which in turn leads to lesser waste and more profitability.
 Delivering and transportation: It is no hidden fact that transportation costs the most in a supply chain since
that includes a lot of moving parts, humans and assets. There is substantial cost involved in setting up
networks for transportation.
What are the key steps in a operations
management in logistics ( continue)

 Warehousing and inventory keeping: Warehousing is a critical part of fulfillment. For every delivery waiting to
happen there needs to be a product that is ready and stocked in a warehouse which is strategically located to
reduce the cost of delivery. The cost of holding the product should also be factored while looking into the overall
profitability of the warehousing operations. Practices such as JIT (just in time) and vendor-managed inventory or
shared warehousing are becoming crucial to the success of the healthy supply chain
 Distribution and fulfillment: the final part of the supply chain process is the order fulfillment and successful
distribution. The fact that consumers are looking for same-day or next-day deliveries and expecting the cost of
deliveries to go down each day leads to companies finding smarter ways into how orders are to be fulfilled. This
is where micro-fulfillment centers are coming. An efficient last mile operation not only makes the overall
operation more cost effective but also helps in reducing the overall impact of distribution on the supply chain.
 Read the sentences and decide if the statements are
TRUE or FALSE

 1 Having a precise forecast of demand can save companies up to 40% of their sunk costs.
 2 Adding macro-economical factors to the forecast can increase its precision.
 3 Efficient procurement leads to more waste and less profitability.
 4 Transportation costs the most in a supply chain.
 5 Warehousing is not a critical part of fulfillment.
 6 JIT (just in time) and vendor-managed inventory are becoming crucial to the success of
the healthy supply chain.
 7 Distribution and fulfillment are the first steps in the supply chain process.
 8 Micro-fulfillment centers help reduce the overall impact of distribution on the supply
chain.
KEYS

 1True
 2True
 3False - - Efficient procurement leads to cost-effective business, which in turn leads to lesser waste and more
profitability.
 4True
 5False - - Warehousing is a critical part of fulfillment.
 6True
 7False - - Distribution and fulfillment are the final part of the supply chain process.
 8True
 The importance of automation in logistics
operations
 1. Supporting business growth Companies looking to grow their business and increase throughput often turn to automation as a
solution. Automation technologies like AGVs are proven in many circumstances to help businesses increase productivity along with an
attractive return on investment.
 2. Bridging the labour gap Retaining warehouse staff can be a challenge for logistics businesses. Warehouse jobs can be repetitive,
demanding and stressful, with lots of movements to cover over short to long distances. By using automation in areas of repetitive work,
employees can be freed up to perform other added-value tasks, which will be more motivational and opens up for new job
opportunities. AGVs can also present several new career opportunities in the field of maintenance.
 3. Reducing costs AGVs can reduce costs by working day, night and weekends, without a wage or overtime payments. This improves
just-in-time logistics operations, which in turn, reduces costs and stock levels. It also creates a leaner operation, enabling your business
to reduce waste and increase the throughput of stock leaving the warehouse.
 4. Lowering the risk of accidents Employees can be vulnerable to the risk of workplace incidents due to the busy environment in
which they operate, where forklifts and workers pass each other regularly and the opportunity for collisions and damage is high. Our
range of automated trucks are designed with safety in mind. AGVs can replace manual trucks, which reduces the likelihood of
workplace incidents. Toyota’s automated vehicles are equipped with safety scanners that continually look for hazards in the
environment they operate. Upon detecting a potential hazard, an AGV will automatically stop to avoid collision.
 5. Improved sustainability Companies looking to move towards making their sites more environmentally friendly can benefit
significantly by using automated guided vehicles. Their efficiency and smooth driving behaviour mean that automated trucks contribute
to reduced waste and require lower energy consumption than traditional fuel sources.
 https://www.youtube.com/watch?
v=YdTbM4XlizY&ab_channel=ShipBob
 1. What does Shipbob do?
A Provide e-commerce software  3 What happens when a customer places an order online?
B Manage inventory for e-commerce brands A Shipbob scans the product dimensions and calculates the
C Offer affordable shipping options optimal packing solution.
D Provide fulfillment services for brick-and-mortar stores B The order is automatically routed to the nearest fulfillment
center with available inventory.
 2 How does Shipbob manage order fulfillment? C Shipbob generates a shipping label and applies it to the
package.
A By using distributed inventory algorithms
D The order is picked, packed, and handed off to the carrier.
B By offering custom branded shipping materials
C By providing kitting and returns processing services  4 What value-added services does Shipbob offer?
D By integrating directly into e-commerce stores
A Standard packaging at no extra cost
B B2B fulfillment services
C Returns processing services
D All of the above
 https://www.youtube.com/watch?
v=YdTbM4XlizY&ab_channel=ShipBob
 5 How does Shipbob ensure accurate sorting and
shipment?
A By using an automated carrier sort machine  6 What happens after the carrier picks up the package?
B By verifying package dimensions and weights
A The package is transported to the outbound dock area.
C By recording sorting information in the dashboard
B The package is assigned to a sort lane.
D All of the above
C The package is updated in the log as out for shipment.
D The package is delivered to the customer's front door.

 7 What is one benefit of using Shipbob's services?

A Fast and affordable shipping options
B Access to fulfillment centers worldwide
C Efficient delivery based on speed and costs
D All of the above
KEYS

 1b
 2d
 3b
 4d
 5d
 6c
 7d
 A TEST ON THE TOPIC

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VIDEO

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