Operations, Logistics and Supply Chain Management

Inhaltsverzeichnis

1. Frontmatter

2. Introductory Chapters

   1. Frontmatter

   2. Chapter 1. Objectives, Educational Developments and Structure of the Book

      Matthias Klumpp, Henk Zijm, Sunderesh Heragu, Alberto Regattieri

      Abstract

      Operations, logistics, and supply chains are essential enablers in a modern economy. At the same time, operational, logistics, and supply chain systems are changing fundamentally as a result of technological and societal developments, requiring both researchers as well as skilled professionals to rethink them and to incorporate new functionalities. This in turn poses new demands on the way vocational and academic learning, as well as on-the-job training programs for operations, logistics, and supply chain management are designed. This book is an attempt to serve students, researchers, and business practitioners by providing information and background material at various levels. In this introductory chapter, we discuss the scope and structure of the book. Reading this chapter is recommended to determine how to use the book in classroom lectures and seminars, gather background information or for studying specific topics. In each chapter, suggestions for further reading and resources for the growth of lateral and critical thinking are provided in order to spread the learning curve—sometimes even slightly beyond the operations, logistics, and supply chain management domain. Readers are encouraged to explore the additional material for their own development and to build general learning and research capacities.

   3. Chapter 2. Perspectives on Operations Management Developments and Research

      Henk Zijm, Sunderesh Heragu, Matthias Klumpp, Alberto Regattieri

      Abstract

      In this chapter, we discuss major technological and societal developments that determine our lives to a large extent, not in the least the way we organize our resource needs and hence logistics and supply chains. After outlining these developments globally, we give some examples of truly disrupting business models that are fundamentally changing our logistics and supply chain operations. Next, we look in more depth at the manifestation of the digital revolution in manufacturing and supply chains, as well as the many opportunities that these technologies offer in addressing a number of major societal challenges.

   4. Chapter 3. Operations, Logistics and Supply Chain Management: Definitions and Objectives

      Henk Zijm, Matthias Klumpp, Sunderesh Heragu, Alberto Regattieri

      Abstract

      Operations, logistics and supply chains are catalysts in any modern economy and therefore essential contributors to economic prosperity and societal welfare. This chapter briefly sketches the origins of the field and presents a case study on the importance of a balanced logistical organization from the 17th century, after which formal definitions and objectives are introduced. In addition, we discuss relations with other management areas as well as with other science domains such as law or social and political sciences. Topics and concepts in this chapter are discussed at an elementary level, aiming to provide an introduction to the topical field of operations, logistics, and supply chain management.

3. Key Domains of Supply Chains

   1. Frontmatter

   2. Chapter 4. Purchasing and Supply Management

      Holger Schiele

      Abstract

      Purchasing is the function in a firm responsible for the professional management of a firm’s interface with the supply market, to ensure its supply with the necessary goods and services provided by other organisations, i.e. suppliers. Industrial firms spend more than half of their turnover on supplies, which is why the purchasing function has become a central success factor for modern firms. Purchasing can be distinguished into strategic sourcing (supply planning, supplier selection and contracting) and operative procurement (material ordering, expediting and paying). The activities of a purchasing department can be organised in a purchasing year cycle, which repeats on an annual basis. Next to ensuring a safe and timely supply, purchasing has the target to achieve good costs as well as to contribute to innovation and improve the strategic position of a firm. For that several tools have been developed, such as the Kraljiĉ-Matrix (which helps to develop sourcing tactics), the lever analysis (used to systematically achieve cost savings) or the preferred customer approach (used to achieve competitive advantages through smart purchasing).

   3. Chapter 5. Manufacturing Systems

      Henk Zijm

      Abstract

      This chapter starts with a basic definition of manufacturing and a brief history on how the discipline developed throughout time, from initial craftsmanship via mass production to flexible and digital manufacturing. In this chapter, we use the term manufacturing to describe the process of converting raw materials or purchased components into physical products. We discuss basic performance measures to assess a manufacturing company’s efficiency and effectiveness. A major part of this chapter is devoted to a categorization of functions that together constitute an organizational framework for manufacturing, with a brief treatment of the essential elements of each function (advanced). Finally, we discuss the future of manufacturing by means of a short review of some important innovations induced by either technology progress or societal demands (state-of-the-art). We do not discuss prominent manufacturing planning and control systems, for this the reader is referred to Chap. 12 of this volume.

   4. Chapter 6. Marketing Concepts and Instruments in Supply Chain Management

      Thomas Neukirchen, Oliver Gansser, Matthias Klumpp

      Abstract

      Logistics and Supply Chain Management as a subfield of management science have their roots in the production and distribution of goods. In this chapter the basic objectives, principles and links about marketing and their relationship to logistics and supply chain management are outlined. The first—basic—part addresses the definition, logistics interaction, basic concepts, and a case study regarding marketing as a management philosophy and principle for corporate leadership. Here, “distribution channels” and “time to market” are two marketing topics particularly relevant to logistics. The advanced part of the chapter outlines detailed instruments for marketing strategies and market research. The final state of the art part of this chapter describes modern forecasting methods as well as innovation fields, including a further case study regarding future trends.

   5. Chapter 7. International Trade, Global Supply Chains and Compliance

      Albert W. Veenstra

      Abstract

      International supply chains require the movement of goods across borders. While moving goods internationally is already operationally complex, the regulatory requirements that need to be met complicate this further. In this chapter, we explain how and why international regulatory issues enter the supply chain. At the basic level, we discuss in some detail concepts such as arm’s length trading, origin, customs declaration and the role of trade agreements. We then introduce, as part of the advanced level, the basic principles of customs supervision in supply chains. Most customs regulations contain principles that are designed to facilitate international business and allow for the postponement of duty and tax payment to the right time and place. In the supply chain literature, these concepts are virtually unknown, but they play an important role in the design of international supply chains in practice. We also introduce a new vision on customs enforcement that was developed as a spin off of several European research projects. In this vision, so-called trusted tradelanes are introduced as the next step in supply chain compliance. We end with the state of the art discussion on the design of trusted tradelanes and the necessary and sufficient conditions that need to be met to achieve this trusted tradelane status. Throughout the chapter, we have included case studies from practice to illustrate specific insights, or offer a basis for further discussion.

4. Overarching Topics

   1. Frontmatter

   2. Chapter 8. Information Technology

      J. Rod Franklin

      Abstract

      It is hard to envision the rapid globalization of industry and supply chains without a similar rapid advancement in information and communications technologies (ICT). The increase in organization size and complexity that occurred as businesses expanded their operations across the globe required ever more powerful computer systems to effectively manage operations. Similarly, the expansion of business supply chains needed more advanced communications technologies to enable organizations to manage them properly. With each advance in ICT and each expansion of business operations, the tight relationship between ICT and business growth has become even more important. This chapter provides an introduction to the various systems and technologies that are being used to manage modern global businesses and their supply chains. Since there are myriad different systems and technologies available to industry today, a single chapter does not provide sufficient space for an in depth discussion of any of them. What the chapter does attempt to do is introduce the reader to the various technologies that are currently being used by industry to manage their extended business (basic and advanced sections) and provide insights into some of the new and exciting technologies that will play an important role in the interaction between ICT, business and society in the future (state-of-the-art section).

   3. Chapter 9. Actionable Sustainability in Supply Chains

      Árni Halldórsson

      Abstract

      Supply chain management offers companies a great opportunity to work with all three dimensions of sustainability—profit, planet and people. The level of achievement depends upon how well these three are addressed both up-stream towards the supplier base and down-stream together with customers and consumers (basic). Actionable sustainability requires managers to relate root causes to impact of sustainable performance, to engage relevant with actors, and to determine system boundaries for their actions (advanced). Further, converting goals into actions is likely to require logistics service innovations, which can range from ad hoc to radical innovations (state-of-the art).

   4. Chapter 10. Human Resource and Knowledge Management

      Matthias Klumpp, Sascha Bioly, Thomas Neukirchen

      Abstract

      Future innovations in logistics and supply chain management are driven by technological, regional, economic and social changes as well as sustainability and resource restrictions. They will not occur without sufficient attention for the human contribution, in particular the qualification, competence and motivation of the workforce in the logistics domain. Worldwide, about 50 million people—or the entire population of South Korea—are employed in the SCM, logistics and transportation sectors. Consequently, human resource and knowledge management plays an important role, more so when considering demographic developments (ageing, migration) and increasing globalization. Whereas in the past, many blue-collar jobs in logistics such as truck driving merely required a basic school education and rudimentary qualification levels, these jobs now require increased competences due to improved technology interaction, e.g., barcode and RFID systems, fleet management or toll and truck steering concepts and finally artificial intelligence applications. The same is true for many white-collar jobs in logistics, exemplified by the increasing number of university graduates employed in the sector. This is especially true for specific fields such as logistics information technology, contract logistics and supply chain innovation and design, which in turn leads to the question of how to assess qualitative and quantitative competence levels in the SCM and logistics sector. Such an analysis example is provided here with the Berufswertigkeit concept (reference framework for competence levels). This may lead to a new paradigm in HR and knowledge management for SCM and logistics: whereas past education was mainly driven by formal qualifications and therefore personnel groups (white-collar/blue-collar), future concepts may focus on an individual analysis of gaps and potentials based on elaborate evaluations. In addition, modern concepts like edugaming are outlined as examples for future qualification and training concepts for logistics personnel.

5. Functions in Production and Logistics

   1. Frontmatter

   2. Chapter 11. Inbound Logistics

      Stefan Minner

      Abstract

      In this chapter, we discuss selected concepts and decision support models for inbound logistics. Inbound logistics comprises all activities that secure supply for manufacturing, assembly, and retail operations. The associated information and materials flow involve different strategic and operational decisions that will influence transportation, handling and inventory costs. They depend on various parameters, such as the variety and volumes of material requirements, the supplier base and respective locations. Section 11.1 introduces the basic concepts, key performance indicators, and problem parameters. Section 11.2 presents advanced decision support models for the design, implementation and operation of the concepts. Section 11.3 includes a case study. Selected state-of-the-art research and recent advances are discussed in Sect. 11.4.

   3. Chapter 12. Manufacturing Planning and Control Systems

      Henk Zijm, Alberto Regattieri

      Abstract

      In this chapter, we discuss essentials of the best-known manufacturing planning and control systems. Each of these systems has its merits but each one also requires a number of conditions to be fulfilled in order to perform near-optimally, often without being explicit about these conditions. The focus of this chapter will be on discrete manufacturing planning and control with limited attention to process industries. We begin the discussion at a basic level with the most elementary result of efficiency-driven production, the Economic Production Quantity, and an extension to non-stationary deterministic demand. Next, we continue with an introduction to Materials Requirements Planning (MRP) and Manufacturing Resources Planning (MRP II), followed by a discussion of capacity oriented Hierarchical Production Planning (HPP). On a more advanced level, we introduce an entirely different approach based on the adoption of the Just-in-Time (JIT) and Lean Manufacturing (LM) philosophies. JIT and LM are more than just other planning models; they propose an entirely different approach to organizing manufacturing and assembly processes. A case study on the Toyota production system helps to understand key concepts of Lean Manufacturing. We continue with the concepts of Workload Control and the Theory of Constraints, which can be seen as means to keep internal lead times stable and hence predictable. Finally, we provide a glimpse on state-of-the-art and future developments, with a focus on digital and cloud manufacturing.

   4. Chapter 13. Packaging Logistics

      Alberto Regattieri, Giulia Santarelli, Francesco Piana

      Abstract

      The chapter discusses the important role of packaging as part of a company’s market and operations management. Packaging has been evolving for centuries and continues to do so, forcing consumers to change their habits. From simple protection tools to safeguarding carried items, packaging has become a marketing and communication instrument as important as contents. E-commerce and online-retailers growth change again the packaging role during purchasing, bring it back as mere logistics and protection tool. In the first basic section, a brief history of packaging is described. Starting from the most important steps, which characterize packaging from the very beginning, in prehistory, followed by the commercial discoveries of the Middle Ages, the industrial revolution, until the present day with the newest and most ingenious packaging solutions. With a focus on marketing, design, logistics, environmental impact, and costs, a complete reference framework underlining how each of these aspects change along the supply chain steps is presented. The advanced and second section of the chapter presents case studies, models and methods for packaging costs evaluation and unit load design. Logistics and packaging are fundamental business leverages for a modern company, therefore any improvements can represent opportunities and generate profits. The chapter ends with a discussion about state-of-the-art research in packaging: the last decade showed a strong development of the e-commerce market, and the central role of packaging changed. Furthermore, the evolution of technologies, materials and Internet Communication Technologies in the last few years have improved the packaging world as well creating, for example, intelligent packaging that can communicate with consumers or interact with products, allowing the traceability of a single item within the entire supply chain. Packaging is a fundamental resource for end-customers and all actors involved in the entire supply chain.

   5. Chapter 14. Outbound Logistics and Distribution Management

      Matthias Klumpp, Sunderesh Heragu

      Abstract

      Distribution and outbound processes are important for many companies because they directly connect them with the customers in a value chain. Market and customer demands relative to quality, speed as well as information and service orientation of logistics processes matter in terms of overall evaluation and satisfaction. At the same time, there are significant cost advantages or disadvantages. In the trade and retail sector, this operational field is especially of high strategic importance and closely connected to e-commerce or multi-channel strategies. It can be said that all the excellence as well as product and service quality built up throughout the value chain can be delivered or destroyed within these last miles of distribution, point of sale, and customer contact. This chapter outlines the core definitions and objectives for outbound logistics and distribution management (Sect. 14.1) before providing an extensive case study for this specific topic (Sect. 14.2). It then provides the operational concepts for distribution in Sect. 14.3 (basic level). In Sect. 14.4 (advanced level), it describes differentiations in terms of multi-echelon inventory models and multi-objective concepts (service levels, cost optimization, batch and emergency deliveries etc.). Current trends and developments such as sharing economy and customer integration concepts as well as cooperation and new technologies are elaborated in Sect. 14.5 (state-of-the-art). Future topics for distribution management research are discussed briefly and further reading materials are listed in Sect. 14.6.

   6. Chapter 15. Warehousing

      Sunderesh Heragu

      Abstract

      In this chapter, topics of interest in the design, analysis, management, and operations of warehouses are discussed. An overview of how warehouses have been in use since the dawn of civilization and how they have changed recently is first provided. Then, the basic elements of a warehouse are discussed and illustrations of the elements of a warehouse, including the materials-handling systems currently used in warehouses are presented. A simple model for determining the warehouse footprint is discussed. A case study involving a consumer goods manufacturer, followed by advanced models for allocating products to a warehouse (and thereby determining the size of the main functional areas in a warehouse), storage policies, corresponding models for the two policies, as well as routing strategies for order pickers are also presented. The chapter is concluded by providing a discussion of state-of-the-art topics in warehousing.

   7. Chapter 16. Closed Loop Supply Chain Management

      Erwin A. van der Laan

      Abstract

      This chapter provides an overview of concepts within the field of closed loop supply chain management. First, using some qualitative frameworks we categorize and characterize the many different closed loop supply chains that are found in practice. Then, we identify key processes and potential bottlenecks that need to be addressed for efficient and effective management. Several modeling approaches are presented, moving from very basic via more advanced to state-of-the-art models that make complex trade-offs and generate more refined insights. The mathematical models presented are meant as simple illustrations of broader concepts. Hence, this chapter is certainly not meant as a comprehensive review of the logistics and operations management literature within the field. Rather, we hope that it can inspire newcomers to the field and specialists who would like to broaden their view.