L_LSR L-Logistics services

Effectiveness of logistics services

 Key words:

Evaluation of logistics variables, basic characteristics of logistics indicators, requirements on a set of logistics indicators, structure of logistics indicators, effectiveness of logistics services, matrix model

 Chapter objectives:

  • understanding the importance of evaluating logistic quantities,
  • acquiring knowledge about the basic characteristics of logistics indicators and requirements on a set of logistics indicators,
  • getting acquainted with the structure of the logistics system and the term of logistics services effectiveness,
  • understanding the importance of the matrix model for evaluation of the effectiveness of logistics services.

 Time required to study the chapter: 8 hours

 Interpretation:

Evaluation of logistics variables:

Application of logistics integrated supply chains to achieve defined logistics goals means necessarily to evaluate their logistics variables.

Knowing the values of logistics indicators is used:
- for assessing the capabilities and their comparing with customer requirements and competitors capabilities,
- for identifying the problem processes, their bearers and causes,
- for identifying threats and opportunities for improvement,
- for determining logistics goals and measuring the achieved improvement.

 

Basic characteristics of logistics indicators, requirements for a set of logistics indicators:

Basic characteristics of logistics indicators:
- Representing the material and information flow properties and associated logistics processes,
- Interconnecting to enterprise logistics goals,
- Simplicity and clarity,
- Enable to compare,
- Ensuring connections in the logistics chain,
- Ensuring connections to a specific variant of requirement and a specific customer or market segment.

 

Structure of logistics system - effectiveness of logistics services:

When fulfilling the logistics goals, an effective overcoming of space and time is being monitored (tracked) to ensure the satisfaction of customer requirements for goods and services (logistics efficiency - effectiveness of the logistics services).

Logistics efficiency (effectiveness) consists of two components:
- Logistics performances,
- Logistics costs.

The set of logistics indicators includes the following groups of indicators:
- Level of logistics (quality) services,
- Logistics productivity,
- Logistics costs,
- Structure of the logistics system,
- Potential of logistics.

 

Logistics productivity is actually the permeability of the logistics system per unit of time and per unit of spent (consumed) resources.

 

Matrix model for the logistics services effectiveness evaluation:

A comprehensive approach (procedure) to evaluate the effectiveness of a logistics system (services) using logistics indicators is expressed by the Matrix model.

 

 Study materials:

Basic literature:

MACUROVÁ, P. Výkonové ukazovatele. Comprehensive portal for integral logistics. 2006. Available at: www.ilogistics.cz

HORVÁTH, G. Logistický pohled na diskretní výrobní proces. In: Finanční a logistické řízení. Malenovice, 2007. pp. 375-379. ISBN 978-80-248-1406-3

Recommended study materials:

LAMBERT, Douglas M, James R STOCK a Lisa M ELLRAM. Logistika. In: Praxe manažera. ed. 2. Brno: CP Books, Czech Republic. 2005. 589 p. ISBN 80-251-0504-0.

  

Questions and tasks

  1. Basic characteristics of logistics indicators do not include:
    Simplicity and clarity 
    Connection to reverse logistics 
    Ensuring connections in the logistics chain 
  2. Logistics efficiency (effectiveness) consists of two components. These include:
    Logistics centers and warehouses
    Logistics performance and costs
    Logistics services and finance
  3. The set of logistics indicators includes several groups of indicators. They do not include:
    Structure of production and assembly services 
    Structure of the logistics system 
    Level of logistics (quality) services
  4. Logistics productivity is actually:
    mathematical approach to evaluate the effectiveness of activities changes in the logistics process 
    the use of profit-making potential, in particular, in reducing the total time of supply processes 
    the permeability of the logistics system per unit of time and per unit of spent (consumed) resources
  5. A comprehensive approach (procedure) to evaluate the effectiveness of a logistics system (services) using logistics indicators is expressed by the:
    Synthetic model 
    Mathematical algorithm 
    Matrix model 


Key to solve the questions:

  1. B
  2. B
  3. A
  4. C
  5. C
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