Logistics services

Ing. Ondrej Stopka, PhD.

Study guide for the course

The aim of the course is to acquaint students with the issue of logistics of services in individual fields of the business. The graduate can describe and explain various forms of offered services as significant elements in the competitiveness of the enterprise and the national economy. The graduated also knows the meaning of the terms logistics object, freight villages and intermodal terminal. At last but not least, the graduate is capable to evaluate the quality of provided services and effectiveness of logistics services as well.

Basic study topics

1. The conception of services, specifics, classification of services and logistics processes

2. Services in the internal market

3. Postal and telecommunication services

4. Educational, cultural and health services

5. Logistics services and logistics services providers

6. Transport and freight forwarding services

7. Storage and material handling

8. Packing, assembly services, completion and special logistics services

9. Financial services in the context of logistics

10. Logistics objects

11. Quality of provided services

12. Effectiveness of logistics services

References

Methods of study and communication

Organizational forms of teaching:

•  Lecture

•  Seminar

•  Tutorial

•  Consultation

Complex teaching methods:

•  Frontal Teaching

•  Group Teaching – Cooperation

•  Brainstorming

•  Critical Thinking

•  Individual Work– Individual or Individualized Activity

•  E-learning

1. Issue

© Institute of Technology and Business in České Budějovice, 2017

Published by: Institute of Technology and Business in České Budějovice, Okružní 10, 370 01 České Budějovice, Czech Republic

Author is responsible for content and language accuracy 

 Key words:

Services in the European Union, services specifics, services classification, market and non-market services, logistics processes 

 Chapter objectives:

• to acquire knowledge about services in the European Union,
• to acquire knowledge about services specifics and market and non-market services,
• understanding the importance of services and getting familiar with the services classification,
• getting acquainted with logistics processes.

 Time required to study the chapter: 8 hours

 Interpretation:

Services in the European Union:

Services in general

At present, the principle of services is explained, for example by American authors Kotler and Armstrong (Vaštíková, 2008), like this: The service is any activity or benefit which can be offered by one party to another party; it is basically immaterial (intangible) and the result cannot results in ownership. Service production may or may not be associated with a tangible product.
 

Services specifics:

The most important services features include:

• immateriality,
• inseparability,
• heterogeneity,
• degradability,
• impossibility of its ownership.

Services classification:

The simplest way of defining the term services is represented by the exclusion method - "services are that part of the economy that remains after deduction of agriculture, production and mining".

Economic activity:

• Primary sector - primary production
• Secondary sector - manufacturing industry​
• Tertiary sector - services

                    1. Branches division
                    2. Division according to expediency criterion - market, non-market
                    3. Division according to recipient - services for consumers, services for organizations

Market and non-market services:

• Management consulting services,
• Advertisement,
• Sales representative services,
• Legal or tax advice,
• Real estate services, such as real estate agencies,
• Construction, including architects services,
• Organization of trade fairs,
• Car rental,
• Travel agencies,
• Amusement parks,
• and other.

As for other services, the EU has not liberalized the services market yet. These include mainly national provided (non-liberalized) services, as follows:

• Childcare, social housing or services for families,
• Financial services,
• Electronic communications services and networks,
• Services in the field of transport,
• Health services,
• Audiovisual services,
• Gambling,
• Social Services,
  and other.

Logistics processes:

The flow of material, information, finance, planning, and management is never considered independently; these are logistics processes. These concurrent logistics processes have to meet and promote each other at exactly given specific points in order to act synergistically and lead to the most effective achievement of the enterprises's business goals.
 

Relevant logistics processes include:

1. Purchase

2. Stocks (inventory)

We recognize the functions of each type of stocks (inventory) that affect inventory management:

     A. Disconnecting inventory,

     B. Inventory on the logistics route,
   
     C. Technological inventory,

     D. Strategic inventory,

     E. Speculation inventory,

Inventory are further divided into usable and unusable. 

3. Storage

4. Transport

 Study materials:

Basic literature:

DOLEŽELOVÁ, H., HALÁSEK, D. Služby v obecném hospodářském zájmu v EU - Komparace České republiky a Německa. Department of Public Economics Faculty of Economics, VSB-Technical University Ostrava, Czech Republic, 2011. ISBN 978-80-248-2371-3

VAŠTÍKOVÁ, M. Marketing služeb. Grada Publishing, Prague, Czech Republic, 2008, 232p. ISBN 978-80-247-2721-9

Recommended study materials:

HALÁSEK, Dušan. Ekonomika veřejného sektoru. 1. ed. VSB-Technical University Ostrava, Czech Republic, 2008. IV, 230 p. ISBN 9788024818542

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

Questions and tasks

1. At present, the principle of services is explained, for example by American authors Kotler and Armstrong (Vaštíková, 2008), like this:
   Transmission of information by telecommunications networks for a fee to third parties. 
   It is any activity or benefit which can be offered by one party to another party; it is basically immaterial (intangible) and the result cannot results in ownership.
   State administration, types and forms of health care, rights and obligations of patients and persons close to patients, health service providers. 

2. The most important services features do not include:
    inseparability 
   heterogeneity 
   possibility of its ownership

3. Within services classification​, services are part of the:
   Tertiary sector 
   Primary sector 
   Secondary sector
4. Relevant logistics processes do not include:
   Transport
   Storage
   Social services
5. We recognize the functions of each type of stocks (inventory) that affect inventory management. These do not include:
   Inventory of customer service 
   Disconnecting inventory 
   Technological inventory

Key to solve the questions:

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

 Key words:

Services in the Internal Market, Services of General Interest, Services Provider, services subject to the Directive on Services in the Internal Market (2006/123/EC), services not subject to the Directive on Services in the Internal Market (2006/123/EC)
 

 Chapter objectives:

• acquiring knowledge about services in the internal market,
• acquiring knowledge about terms service provider, services subject to and not subject to the Directive on Services in the Internal Market (2006/123 / EC),
• understanding the importance of services of general interest.

 Time required to study the chapter: 8 hours

 Interpretation:

Services in the Internal Market:

Building the European Union's internal market is a long-time process that began in 1951 with signing the Treaties of Rome and is also reflected in documents, namely the White Paper on Completing the Internal Market (COM, 1985), the Cecchini report (Cecchini, 1988), a Single European Act (1986), and others.
 

Directive on Services in the Internal Market (2006/123/EC).

The aim of the Directive is to achieve the easy providing services between Member States by establishing a general legal framework for the given services, while the way to achieve this is left to each member state. The presumption of a successful liberalization of services in the EU is seen in the freedom of settling and the free movement of services, which are related to the activities open to free competition.
 

Basic terms according to the Directive:

Service – performances provided for remuneration (for a fee), unless they are governed by the provisions on the free movement of goods, capital and persons.

Services of General Interest:

The term "service of general interest" covers both market and non-market services classified by public authorities as services of general interest subject to specific public service obligations. Thus, the term concerns a wide range of activities of general interest, both economic and non-economic.

Services of general interest of economic nature - services with a certain public interest and are provided for remuneration (e.g. postal services, electricity supply, telecommunications, etc.).

Services of general interest of non-economic nature - services which, like services of general economic interest, fulfill a particular public activity and are generally provided free of charge (e.g. education, social services, etc.).

Services subject to the Directive

• Management consulting services,
• Certification and testing,
• Advertisement,
• Sales representative services,
• Legal or tax advice,
• Real estate services, such as real estate agencies,
• Construction, including architects services,
• Organization of trade fairs,
• Car rental,
• Travel agencies,
• Amusement parks,
• and other.

Services not subject to the Directive

• Services of general interest of non-economic nature,
• Childcare, social housing or services for families,
• Financial services,
• Electronic communications services and networks,
• Services in the field of transport,
• Health services,
• Audiovisual services,
• Gambling,
• Social Services,
• Private security services,
• Services provided by notaries and bailiffs appointed by an official act of the Government,
• Tax services,
  and other.

Free movement of services

EU Member States are obliged to respect the right of providers to provide services in a Member State other than the one in which they are established. In addition, Member States must ensure free access to the service activities and the free operation of such activity in their territory.

Service Provider - This is a natural person who is a national of a Member State or a legal person established in a Member State or offering or providing a service.

Single points of contact

Establishing single points of contact is one of the requirements determined by the Directive on Services in the Internal Market 2006/123/EC, which aims to contribute to the simplification of business conditions in the countries of the European Union.

A single point of contact (SPC) represents a place where an entrepreneur entering the market with services of a given state can handle all the procedures and formalities required by this state. SPC helps service providers to get easy access to the markets of other Member States by the possibility to be able to complete all the procedures and formalities needed to access their activities in .the field of services providing.
 

 Study materials:

Basic literature:

DOLEŽELOVÁ, H., HALÁSEK, D. Služby v obecném hospodářském zájmu v EU - Komparace České republiky a Německa. Department of Public Economics Faculty of Economics, VSB-Technical University Ostrava, Czech Republic. 2011. ISBN 978-80-248-2371-3

VAŠTÍKOVÁ, M. Marketing služeb. Grada Publishing, Prague, Czech Republic. 2008. 232 p. ISBN 978-80-247-2721-9

Recommended study materials:

HALÁSEK, Dušan. Ekonomika veřejného sektoru. 1. ed. VSB-Technical University Ostrava, Czech Republic. 2008. IV, 230 p. ISBN 9788024818542

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. Services of general interest of economic nature can be defined as::
   performances provided for remuneration (for a fee), unless they are governed by the provisions on the free movement of goods, capital and persons 
   services with a certain public interest and are provided for remuneration (e.g. postal services, electricity supply, telecommunications, etc.) 
   management consulting services
2. Services subject to the Directive on Services in the Internal Market (2006/123/EC) do not include:
   market and non-market services
   management consulting services 
   certification and testing 
3. Services not subject to the Directive on Services in the Internal Market (2006/123/EC) do not include:
   services of general interest of non-economic nature 
   financial services 
   advertisement services 
4. In the context of services in the internal market, the service provider is:
   a natural person who is a national of a Member State or a legal person established in a Member State or offering or providing a service. 
   a natural person who is a national of a Member State or has the rights conferred on him by the Community legislation. 
   a business entity competent to meet the transport needs incurred on the side of the shipper, offering and performing its own transportation (transfer) activity in space and time 
5. A single point of contact is:
   A central node through which logistics chains pass between suppliers and customers. It performs sorting, completion and consolidation of goods, usually in flow (transit) mode. 
   Place where an entrepreneur entering the market with services of a given state can handle all the procedures and formalities required by this state. 
   Objects in which operate the transport, logistics, forwarding, distribution and other companies acting in the logistics chain. 

Key to solve the questions:

1.      B

2.      A

3.      C

4.      A

5.      B

 Key words:

Postal services, telecommunication services, postal item, Czech Telecommunication Office, distribution of telephone services

 Chapter objectives:

• acquiring knowledge about postal services,
• understanding the meaning of the term postal item and the Czech Telecommunication Office,
• getting acquainted with the term telecommunication services,
• acquiring knowledge about the distribution of telephone services.

 Time required to study the chapter: 8 hours

 Interpretation:

Act No. 29/2000 Coll., On postal services

In the Czech Republic, this Act regulates, in accordance with European Community laws, the conditions for the provision and operation of postal services, the rights and obligations arising from the provision and operation of postal services as well as the special rights and special obligations of those postal operators who are required to provide basic services.

The postal service is an activity performed on the basis of a postal contract and under the conditions stipulated by this Act, the purpose of which is to deliver a postal item or the specific amount of money.

Basic terms

a.) postal item is a thing that has been taken by the operator as a single entity to provide postal services,

b.) postal voucher is a postal service, the purpose of which is to deliver a specific amount of money,

c) operator is the person providing the postal services,

d) consignor is the person who is identified as a consignor on a postal item or in a postal voucher; if the consignor is not identified, he is represented by the person who concluded the postal contract,  

e) addressee is the person who is identified by the sender on the postal item or the postal voucher as being the addressee,     

f) recipient (consignee) is the addressee or another person whom, according to the postal contract, should or may be issued a postal item or paid a specific amount of money.
 

Terms and conditions for the postal services operation :

(1) The condition for the operation of postal services is to get a trade license under Act No. 455/1991 Coll., On Trades Licensing, as amended.              
(2) The condition for the postal service operation, the purpose of which is to deliver a document, is furthermore a postal license or a special postal license under this Act.    
 

State administration in the field of postal services:

The Czech Telecommunications Office performs a state administration in the field of electronic communications and postal services, including market regulation and setting conditions for doing business. The Office also ensures the protection of certain services in the field of television broadcasting and information society services.
 

Telecommunication services:

Telecommunication service can be understood as a service for the transmission of information by telecommunication networks for payment to third parties.
 

1. Telephone services:

   Division 1:

      A. Standard telephone services (caller-paid)
      B. Telephone services paid by the called

   Division 2:

      A. Shared-cost telephone services

      B. Telephone services with a special tariff

 Study materials:

Basic literature:

DOLEŽELOVÁ, H., HALÁSEK, D. Služby v obecném hospodářském zájmu v EU - Komparace České republiky a Německa. Department of Public Economics Faculty of Economics VSB-Technical University Ostrava, Czech Republic. 2011. ISBN 978-80-248-2371-3.

HALÁSEK, Dušan. Ekonomika veřejného sektoru. 1. ed. VSB-Technical University Ostrava, Czech Republic. 2008. IV, 230 p. ISBN 9788024818542.

Recommended study materials:

BRABEC, Z. Telekomunikační služby - study materials. Czech Technical University in Prague. Faculty of Electrical Engineering, Czech Republic. 2011.

Questions and tasks

 1.   In the Czech Republic, the conditions for the provision and operation of postal services, the rights and obligations arising from the provision and operation of postal services as well as the special rights and special obligations of those postal operators who are required to provide basic services are regulated by:
Act No. 39/2000 Coll., On postal services
Act No. 29/2000 Coll., On providing the postal services
Act No. 29/2000 Coll., On postal services

2.   For the purposes of postal services, postal item shall be understood as:
a postal service the purpose of which is to provide the specific amount of money 
written communication on a letter intended to a particular person
a thing that has been taken by the operator as a single entity to provide postal services

3.    The condition of the postal services operation in the Czech Republic is:
license under Act No. 29/2000 Coll., On postal services
trade license under Act No. 455/1991 Coll., On trade licensing
authorization under the Directive on Services in the Internal Market (2006/123/EC)

4.  The state administration in the field of electronic communications and postal services in the Czech Republic is performed by:
Czech Telecommunication Office 
Ministry of Informatics of the Czech Republic
Czech Post Office

Key to solve the questions:

1.      C

2.      C

3.      B

4.      A

       5.    B

 Key words:

Educational Services, Lifelong Learning Program, cultural services, cultural policy instruments, Ministry of Culture of the Czech Republic, health services

 Chapter objectives:

• acquiring knowledge about educational services,
• understanding the importance of cultural services,
• getting acquainted with the concepts of health service.

 Time required to study the chapter: 8 hours

 Interpretation:

Educational services:

1. Every citizen has the right to education. School attendance is mandatory for the time period stipulated by the act.
2. Citizens have the right to free education at elementary and secondary schools, according to the capabilities of the citizen and the possibilities of the society at universities as well.

Lifelong Learning Program 2007 - 2013

The program has four main fields:

• Comenius,
• Erasmus,
• Leonardo da Vinci,
• Grundtvig.

Legislation:

In the Czech Republic, the field of education is treated in the following legislations:

A. Act No. 561/2004 Coll., On pre-school, elementary, secondary, higher and other education (Education Act),

B. Act No. 562/2004 Coll., Amending certain acts related to the adoption of the Education Act,

C. Act No. 563/2004 Coll., On Teaching Staff,

D. Act No. 306/1999 Coll., On granting subsidies to private schools, pre-schools and school facilities,

E. Act No. 109/2002 Coll., On the performance of institutional education or protective education in school facilities and on preventive educational care.

F. Act No. 111/1998 Coll., On universities.

Cultural services:

Public cultural services are services consisting in making the artistic creation and cultural heritage available to the public and in the acquisition, processing, protection, preservation and disclosure of information that serves the cultural, cultural-upbringing or cultural-educational needs to the public.

Three experimental programs were created by the European Commission for cultural cooperation between Member States:

• Kaleidoscope,
• Raphael,
• Ariane.

Cultural policy instruments:

• Legislative,
• Economic,
• Institutional,
• Managing,
• Methodical.

State administration

State administration at the central level is carried out by the Ministry of Culture of the Czech Republic, which includes following fields:

• art,
• cultural and educational activities and monuments,
• churches and religious societies,
• printing,
• implementing the Copyright Act,
• and other.

Health services:

In the Czech Republic, health services are regulated by Act No. 372/2011 Coll. On health services and the conditions for their providing.

Health services are understood as:

a) providing the health care by healthcare professionals, 

b) consultation services to assess the individual treatment process, 

c) handling the deceased's body, including transferring the deceased's body to a pathological-anatomical autopsy,

d) medical rescue service,

e) medical transport service,

f) transportation of emergency care patients.

 Study materials:

Basic literature:

HALÁSEK, Dušan. Ekonomika veřejného sektoru. 1. ed. VSB-Technical University Ostrava, Czech Republic. 2008. IV, 230 p. ISBN 9788024818542.

Recommended study materials:

DOLEŽELOVÁ, H., HALÁSEK, D. Služby v obecném hospodářském zájmu v EU - Komparace České republiky a Německa. Department of Public Economics Faculty of Economics, VSB-Technical University Ostrava, Czech Republic. 2011. ISBN 978-80-248-2371-3.

VAŠTÍKOVÁ, M. Marketing služeb. Grada Publishing, Prague, Czech Republic 2008., 232 p. ISBN 978-80-247-2721-9.
 

Questions and tasks

1.    The Lifelong Learning Program 2007 - 2013 has four main fields. It does not include:
Erasmus 
Leonardo da Vinci 
White book

2.    In the Czech Republic, the field of education is treated in several legislations. It does not include:
Act No. 109/2002 Coll., On the performance of institutional education or protective education in school facilities and on preventive educational care.
Act No. 100/1999 Coll., On secondary schools
Act No. 561/2004 Coll., On pre-school, elementary, secondary, higher and other education (Education Act)

3.    Public cultural services are:
services based on the objectives of the National Education Development Program in the Czech Republic
services consisting in making the artistic creation and cultural heritage available to the public and in the acquisition, processing, protection, preservation and disclosure of information that serves the cultural, cultural-upbringing or cultural-educational needs to the public. 
consulting services to assess the individual cultural process

4.    State administration at the central level in the Czech Republic in the field of cultural services is carried out by the:
Office for Cultural Services
Ministry of Culture of the Czech Republic 
Office for Culture

5.    In the Czech Republic, health services are regulated by the:
Act No. 54/1956 Coll., On Health Insurance of Employees
Act No. 100/1988 Coll., On Social Security
Act No. 372/2011 Coll. On health services and the conditions for their providing

Key to solve the questions:

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

 Key words:

Logistics services, logistics activities, outsourcing, logistics services provider, 3PL provider

 Chapter objectives:

• explaining the concepts of logistics services and outsourcing,
• understanding the importance of logistics activities,
• getting acquainted with the term logistics services provider,
• acquiring knowledge about the term 3PL provider.

 Time required to study the chapter: 8 hours

 Interpretation:

Logistics services:

Logistics Services - are defined as personalized services provided by logistics providers intended to client companies (customers) in relation with outsourcing in logistics.

The main activities that are necessary for the smooth flow of products from the place of origin to the place of their consumption:

• Customer service
• Demand forecasting/planning
• Inventory management
• Logistics communications
• Material handling
• Order processing
• Packaging
• Parts and service support
• Plant and warehouse site selection
• Procurement
• Return goods handling
• Reverse logistics
• Traffic (transport) and transportation
• Warehousing and storage

Main services of logistics providers

• transportation,
• storage,
• customs services,
• financial services related to cargo,
• IT services,
• support services such as reverse logistics, etc.

Outsourcing:

Outsourcing literally means "taking resources from elsewhere", however, it is utilizing external entities for performing internal processes in the enterprise (hiring external companies for activities commonly used internally).

Logistics services providers:

LSPs Are divided into six groups in total, namely:

• Second Party logistics providers (2 PL),
• Third Party logistics providers (3 PL),
• Fourth Party logistics providers (4 PL),
• Fifth Party logistics providers (5 PL),
• Leading logistics partners (LLP),
• Courier, express and parcel services providers (CEP).

1. Providers 2 PL - a company orders individual logistics services from LSP.

2. Providers 3 PL - take over complex implementation of a part of the logistics chain and ensure its result. Their own logistics infrastructure, i.e. the transport network and logistics centers are typical of providers at this level.

3. Providers 4 PL - offer comprehensive services including analysis, project solution, implementation and management of the whole logistics chain.

4. Providers 5 PL - the principle of their operation consists in the virtual providing comprehensive logistics services.

5. LLP - these providers take over from their client company all production plants management, including the mutual alignment of logistics chains in the automotive industry.

6. CEP - the offer of their services is wide; from the delivery of letters, documents, to packing, insurance, delivery confirmation, etc.

At present, following categories of logistics services providers are of particular importance:

• Transport operators;
• Carriers;
• Forwarders;
• Courier, express and parcel services providers;
• Third Party Logistics – 3PL;
• Fourth Party Logistics – 4PL.

 Study materials:

Basic literature:

NOVÁK, R., ZELENÝ, L., PERNICA, P., KOLÁŘ, P. Přepravní, zasílatelské a logistické služby. Prague: Wolters Kluwer a. s., Czech Republic. 2011. 392 p. ISBN: 978-80-7357-735-3.

PERNICA, P. Logistika (supply chain management) pro 21. století. 2. ed. Prague: Radix s.r.o., Czech Republic. 2005. 536 p. ISBN 80-86031-59-4.

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.    The main activities that are necessary for the smooth flow of products from the place of origin to the place of their consumption do not include:
Order processing 
Market services 
Procurement

2.     Main services of logistics providers do not include:
Implementation logistics
IT services
financial services related to cargo

3. Provider 3PL:
   takes over partial implementation of financial services
   provides only transport and forwarding services
   takes over complex implementation of a part of the logistics chain and ensure its result

4.     Outsourcing means:
providing manufacturing and assembly services 
providing assembly services and customs services 
utilizing external entities for performing internal processes in the enterprise

5.  At present, specific categories of logistics services providers are of particular importance. These do not include:
Courier, express and parcel services providers 
Carriers 
Agents of shipowners

Key to solve the questions:

1.      B

2.      A

3.      C

4.      C

       5.     C

 Key words:

Transport, transport services, specifics of transport services, structure of the transport services process, forwarding services, International Federation of Freight Forwarders Associations 

 Chapter objectives:

• getting acquainted with the terms: transport, transport services and transport activities,
• acquiring knowledge about the terms: specific transport services and structure of the transport services process,
• understanding the importance of forwarding services,
• acquiring knowledge about the International Federation of Freight Forwarders Associations.

 Time required to study the chapter: 8 hours

 Interpretation:

Transport services as a logistics process:

Transport - effective and intended movement of transport means along transport routes; relocation (transportation) activity in space and time - cargo or passengers.

Transport services - represent services directly related to the process of carrying goods (cargo; passengers) in space and time.

Carrier - is define as a natural or legal person operating the transport for foreign or personal use. The carrier concludes a transport contract with the shipper, under which he undertakes to arrange transportation within the agreed time and price to the agreed place under his own name on his account.

Transportation - the resulting effect of the transport process (the relocation process).

Transportation services - include a whole range of relocation activities including relocation itself. 

Shipper - is used to identify the carrier's customer, sometimes even the forwarder. This is a comprehensive name for the sender (exporter; consignor) and recipient (importer; consignee).

Specifics of transport services:

According to the character of the transport route and the means of transport moving on this route, these are divided into following transport sections:

• Railway,
• Road,
• Inland waterway,
• Maritime,
• Air,
• Multimodal; combined,
• Unconventional (oil pipelines, gas pipelines, suspended tracks and cableways, etc.).

Structure of the transport service process:

Transport process (the process of providing transport services) includes several interdependent (follow-up) activities, from a contractual collateral of transport to accounting the haulage (freightage; transportation charge).

Forwarding services:

Freight forwarding services - represent services of all kinds that relate to the providing transportation offered by the forwarder to his principal (his customer).

Freight forwarder - is a person (legal or natural) who undertakes to provide transportation of goods in his own name and on behalf of his principal (consignor or consignee).

Freight forwarding, in the Czech Republic, is regarded as a free trade (Act No. 286/1995 Coll. - Act amending and supplementing Act No. 455/1991 Coll., On Trades Licensing). The provisions of the Commercial Code (Act No. 513/1991 Coll.) is applied to the forwarding agreement.

The principal activities of the freight forwarder according to the FIATA (International Federation of Freight Forwarders Associations) is:

• to provide, organize and optimize goods transportation (carriage),
• to assist the principal (customer) in solving all transportation issues,
• to ensure the choice of the optimal transport route and the most suitable means of transport,
• to assist their principal in the payment process,
• to take care of all transport requirements and formalities related to the transportation services and their execution.

 Study materials:

Basic literature:

NOVÁK, R., ZELENÝ, L., PERNICA, P., KOLÁŘ, P. Přepravní, zasílatelské a logistické služby. Prague: Wolters Kluwer, a. s., Czech Republic. 2011, 392 p. ISBN: 978-80-7357-735-3.

PERNICA, P. Logistika (supply chain management) pro 21. století. 2. ed. Prague: Radix s.r.o., Czech Republic. 2005. 536 p. ISBN 80-86031-59-4.

Recommended study materials:

OUDOVÁ, Alena. Logistika – Základy logistiky. 1. ed. Prostějov: Computer media, Czech Republic. 2013, 104 p. ISBN 978–80–7402–149–7.

ŠKAPA, R, Reverzní logistika. MU Brno, Czech Republic. 2005. ISBN 80-210-3848-9.
 

Questions and tasks

 1.    Carrier is define as:
a comprehensive name for the sender (exporter; consignor) and recipient (importer; consignee)
a person (legal or natural) who undertakes to provide transportation of goods in his own name and on behalf of his principal (consignor or consignee). 
entity that concludes a transport contract with the shipper, under which he undertakes to arrange transportation within the agreed time and price to the agreed place under his  own name on his account 

2.    Transport services are:
services of all kinds relating to the provision of transport, collection, storage and handling of goods 
services directly related to the process of carrying goods (cargo; passengers) in space and time 
services of all kinds that relate to the providing transportation offered by the forwarder to his principal (his customer)

3.    According to the character of the transport route and the means of transport moving on this route, these are divided into transport sections. They do not include:
unconventional transport
maritime transport
dynamic transport

 

4.   Freight forwarding, in the Czech Republic, is regarded as a:
   reporting trade
   free trade
   licensed trade

5.    The principal activities of the freight forwarder according to the FIATA do not include:
collectiing, sorting, dismantling and processing used products, components, by-products, surplus stocks and packaging material where the main purpose is to ensure their re-use or material evaluation in an environmentally sound and economically attractive way 
to assist the principal (customer) in solving all transportation issues 
to provide, organize and optimize goods transportation (carriage)  

 Key to solve the questions:

1. C
2. B
3. C
4. B

       5. A

 Key words:

Storage, warehouses, types of warehouses, material handling, palletization, pallet cargo

Chapter objectives:

• getting acquainted with the terms: storage and warehouses,
• understanding the meaning of material handling,
• acquiring knowledge about palletization and pallet cargo.

 Time required to study the chapter: 8 hours

 Interpretation:

Storage:

Storage can be defined as part of an enterprise logistics system that ensures storage of products at the place of their origin and among the place of their origin and the place of their consumption.

Main use of warehouses in the field of supply and distribution of goods:

1. Production support.
2. Combination (mixing) of products.
3. Consolidation.
4. Dividing goods into smaller consignments.

Basic storage functions:

      1. Products relocation,
      2. Products storage,
      3. Information transfer.

Warehouses:

Warehouse functions

• Equalizing function,
• Ensuring function,
• Finishing function,
• Speculation function.
• Enhancement functions.

Warehouses types

1. According to their position in the value-creation process

• Entrance warehouses,
• Intermediate warehouses,
• Sales warehouses.

2. According to degree of centralization

• Centralized warehouses,
• Decentralized warehouses.

3. According to potential needs carriers

• General warehouses,
• Standby warehouses,
• Carry-on warehouses.

4. According to location

• Internal warehouse,
• External warehouse.

5. According to warehouses management

• Own warehouse,
• Foreign warehouse.

6. According to construction

• Indoor storage,
• Open warehouse,
• Solid warehouse,
• Portable warehouse.

Material (goods) handling:

The term handling covers activities like professional displacement, loading, depositing and directing material in production and circulation including warehouses. Thus, it is a sum of operations consisting of loading, transportation, unloading and transshipment (reloading) of semi-products and products, storage, packing, sorting as well as waste handling.

Material - is a summary designation for raw materials, finished and unfinished products and goods (cargo) of all kinds as well as waste. It can be general, bulk, loose, liquid, gaseous.

Palletization:

Palletization is a handling method where the material is still put on a pallet (underlay) with which it is transported at the same time.

Palletized cargo can be stacked in several layers above each other, i.e. stacking. Internationally agreed dimensions are used, in particular 800 x 1200 mm (euro pallet) and 1 000 x 1 200 mm (industrial pallet).

 Study materials:

Basic literature:

DRAŽAN, F., JEŘÁBEK, K. Manipulace s materiálem. 1. ed., Prague: SNTL - publishing house of technical literature, Czech Republic. 1979. ISBN 04-220-79.

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.

PERNICA, P. Logistika (supply chain management) pro 21. století. 2. ed. Prague: Radix s.r.o., Czech Republic. 2005. 536 p. ISBN 80-86031-59-4.

Recommended study materials:

NOVÁK, R., ZELENÝ, L., PERNICA, P., KOLÁŘ, P. Přepravní, zasílatelské a logistické služby. Prague: Wolters Kluwer, Czech Republic., a. s., 2011, 392 p.

Questions and tasks

 1.    Main use of warehouses in the field of supply and distribution of goods does not include:
Consolidation 
Production support 
Distribution of packages

2.    Basic storage functions do not include:
Collection and processing of used products, components, by-products, surplus stocks and packaging material, where the main purpose is to ensure their re-use
Information transfer 
Products storage

3.    Warehouse functions do not include:
Finishing function 
Reverse function 
Enhancement functions

4.    According to the position in the value-creation process, warehouses can be divided into:
General, Standby and Carry-on warehouses 
Own and Foreign warehouses 
Entrance, Intermediate and Sales warehouses

 Key to solve the questions: 

1.      C

2.      A

3.      B

4.      C

5.      A

 Key words:

Packaging, packages, assembly services, completion, picking technology, special logistics services

 Chapter objectives:

• getting acquainted with the terms: packaging and packages,
• understanding the importance of assembly services and completion,
• getting acquainted with the term of picking technology,
• acquiring knowledge about special logistics services.

 Time required to study the chapter: 8 hours

 Interpretation:

Packaging and packages:

Packaging can be characterized as: functional combination (connection) of the product with the package.

Package is a means (equipment) or set of means to protect the material against deterioration or loss during handling, transport, storage and direct sale. Depending on the phase of the logistics chain where the package is used, we distinguish following packages:

• Consumer,
• Distribution,
• Transportation.

Handling with packaging and packages in the Czech Republic is directly regulated by Act No. 477/2001 Coll., On packages, as amended.

Packages functions:

A. Primary function

• Protective,
• Storage,
• Handling and transportation,
• Information,
• Ecological.

B. Secondary function

• Commercial,
• Advertising,
• Useful,
• Warranty.

C. Tertiary function

• Additional - e.g., recycling packages and reuse.

Packages types:

A. By use:

    1. disposable, 2. reversible

B. By composition (quantity):

    1. Simple, 2. Composite, 3. Multiple

C. By destination:

    1. Consumer, 2. Distribution, 3. Transportation

Completion:

Goods completion (or picking) by orders includes product regrouping in relation to the assortment and quantity required by the customer.

Classical picking technologies are based on barcodes and mobile terminals with scanners.

Modern picking technologies aim to reduce the error rate and make it easier for storekeepers to orientate in the warehouse or picking itself. The most commonly used technologies include:

• Pick-by-light,
• Pick-by-voice,
• Pick-to-belt.

Assembly services:

Assembly (derived from the term for joining together, also assembling) is a human activity that can be generally described as compilation of parts in a single resulting whole.

Basic methods of assembly in industry:

      A. Assembly in piece production,

      B. Assembly in serial production,

      C. Automated assembly.

Assembly procedure:

• Part,
• Subassembly,
• Assembly (set),
• Product.

Special logistics services:

Special services in the field of transport and logistics include:

• Distribution and storage of hazardous substances (Dangerous goods),
• Distribution and storage of perishable food,
• Railway transportation of combined trains,
• Rental of special railway wagons, containers and handling equipment,
• Repair and maintenance of transport and handling equipment.
• Customs clearance and insurance of consignments.
• And others.

 Study materials:

Basic literature:

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.

PERNICA, P. Logistika (supply chain management) pro 21. století. 2. ed. Prague: Radix s.r.o., Czech Republic. 2005. 536 p. ISBN 80-86031-59-4.

PERNICA, P. Logistika - pasivní prvky. Prague: University of Economics, Prague, Czech Republic. 1995. 144 p. ISBN 80-7079-316-3.

Recommended study materials:

CEMPÍREK, V. Systémy vychystávání. Logistika [online]. 2012, No. 2 [cit. 2012-04-18]. Available at: http://logistika.ihned.cz/c1-54790680-systemy-vychystavani.

OUDOVÁ, Alena. Logistika – Základy logistiky. 1. ed. Prostějov: Computer media, Czech Republic. 2013, 104 p. ISBN 978–80–7402–149–7.

Questions and tasks

1.    Depending on the phase of the logistics chain where the package is used, we distinguish following packages:
Distribution, transportation and ancillary
Transportation, protective and auxiliary 
Consumer, distribution and transportation

2.    Handling with packaging and packages in the Czech Republic is directly regulated by:
Act No. 577/2002 Coll., On packaging and packages
Act No. 578/2006 Coll., On packaging
Act No. 477/2001 Coll., On packages

3.   Secondary packages function do not include:
     Useful
     Commercial 
     Recycling 

4.    Classical picking technologies:  
are manual picking technology using automated trolleys 
are based on barcodes and mobile terminals with scanners 
aim to reduce the error rate and make it easier for storekeepers to orientate in the warehouse or picking itself. The most commonly used technologies include: Pick-by-light, Pick-by-voice, Pick-to-belt

       5.  Basic methods of assembly in industry do not include:
             Assembly in sequential production 
             Assembly in piece production 
             Automated assembly

Key to solve the questions:

1.      C

2.      C

3.      C

4.      B

       5.      A

 Key words:

Financial services, insurance services, banking services, carrier's general liability, freight forwarder's liability limitation

 Chapter objectives:

• getting acquainted with the importance of financial services in the context of logistics,
• understanding the importance of insurance and banking services in the context of logistics,
• knowledge of the terms: carrier's general liability and freight forwarder's liability limitation.

 Time required to study the chapter: 8 hours

 Interpretation:

Financial services in the context of logistics:

Financial services (financial industry, financial sector) are one of branches of the services sector. They include all financial services from the field of financial industry which are provided by financial institutions and other entities. Their main or secondary object of activity consists in the management of financial resources.

The financial services of logistics services providers include in particular:

• Banking,
• Insurance,
• Reinsurance,
• Leasing and others.

Financial services in the context of logistics have the following divisions:

 A. Banking services

• Storage of financial funds and valuable items
• Securing (intermediation) non-cash payment transactions
• Providing loans
• Currency exchange services
• Advisory and intermediary financial services
• Processing and clearing payment and debit card transactions

 B. Insurance, reinsurance

 C. Other financial activities and intermediation (Holding activity, Financial leasing, Loan granting ...)

 D. Pension funding

Insurance services in the context of logistics:

Insurance activity means the taking over of insurance risks on the basis of concluded insurance contracts and the performance of them, as well as insurance management and liquidation of insurance claims.

Carrier's general liability:

Whether it is railway, road, air or maritime (or inland waterway) transport, the carrier (forwarder) is usually responsible (liable) for the loss, damage or late delivery of the shipment (consignment) from the moment of takeover to the moment of shipment delivery.
 

Carrier's/freight forwarder's liability limitation

• According to the CMR - 8.33 SDRs (Special Drawing Rights) per 1 kg of gross weight of lost or damaged consignment as for the road carrier,
• According to the Hague-Visby rules - 2 SDRs per 1 kg of gross weight of lost or damaged consignment or 666.67 SDRs per unit / unit as for the shipping (maritime) carrier.
• According to the Montreal Protocols - 19 SDRs (XDR) per 1 kg of gross weight of lost or damaged consignment as for the air carrier,
• According to the Convention on International Carriage by Rail (COTIF) - 17 SDRs (XDR) per 1 kg of gross weight of lost or damaged consignment as for the railway carrier.

 Study materials:

Basic literature:

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.

Pospíšil, R., Hobza, V., Puchinger, Z. FINANCE A BANKOVNICTVÍ. 1. ed., UNIVERSITY OF PALACKY IN OLOMOUC, Czech Republic. 2006. ISBN 80-244-1297-7.

Recommended study materials:

OUDOVÁ, Alena. Logistika – Základy logistiky. 1. ed. Prostějov: Computer media, Czech Republic. 2013, 104 p. ISBN 978–80–7402–149–7.

  

Questions and tasks

 1.    The basic financial services of logistics services providers do not include:
accessory services
reinsurance 
leasing

2.    The banking services of logistics services providers do not include:
Securing (intermediation) non-cash payment transactions 
Processing and clearing payment and debit card transactionst 
Forfaiting and consignments insurance

3.    Carrier's general liability is defined as:
The consignment insurance must be arranged by the sender himself (without the carrier's knowledge) 
Obligation to insure the transported consignment by the carrier
The carrier is usually responsible (liable) for the loss, damage or late delivery of the shipment (consignment) from the moment of takeover to the moment of shipment delivery

4. According to the Hague-Visby rules, the shipping (maritime) carrier's liability is limited to:  
   2 SDRs per 1 kg of gross weight of lost or damaged consignment or 666.67 SDRs per unit / unit 
   8.33 SDRs (Special Drawing Rights) per 1 kg of gross weight of lost or damaged consignment 
   2.5 SDRs per 1 kg of gross weight of lost or damaged consignment

5.    Carrier's/freight forwarder's liability limitation 19 SDR per 1 kg of gross weight of lost or damaged consignment is determined by the:
Budapest Convention 
Montreal Protocols 
Hague-Visby rules

 Key to solve the questions:

1.   A
2.   C
3.   C
4.   A
5.   B

 Key words:

Logistics objects, logistics center, public logistics center (freight village), intermodal transport, multimodal and combined transport, operator, intermodal transport terminals

 Chapter objectives:

• acquiring knowledge about terms: logistics center and public logistics center (freight village),
• understanding the importance of intermodal, multimodal and combined transport,
• getting acquainted with the terms: operator and intermodal transport terminals

 Time required to study the chapter: 8 hours

 Interpretation:

Logistics objects - logistics center and public logistics center (freight village):

Logistics centers

Logistics centers can be characterized as objects in which transport, logistics, forwarding, distribution and other companies operating in the logistics chain operate independently. They associate (consolidate) transport flows and, in some cases, even different modes of freight transport, thus, facilitate cooperation among individual carriers. They are built in places of transport nodes (hubs) and large economic concentrations.
 

In practice, the term "logistics center" is often confused with the public logistics center (PLC; freight village), however these are not interchangeable. The biggest difference consists mainly in the way of funding. PLCs are conceived as public and thus accessible to the broad business community, and the state is involved in their construction and cares to ensure equal access to offered services and activities.

Logistics centers divisions:

a.) Depending on the range of operation (geographical range) of LC: international, regional and currently dominant, local and sectoral LC. 

b.) Depending on the connection to transport infrastructure:

• Monomodal - with connection to one mode of transport, most often road,
• Multimodal - at least two modes of transport infrastructure,
• Intermodal - with connection to at least two modes of transport while allowing for handling with intermodal transport units.

c.) Depending on the function:

• Multimodal (intermodal),
• Transit terminal,
• Distribution center,
• Logistics services center.

d.) Depending on the purpose:

• Corporate,
• Logistics centers of logistics companies,
• Logistics areas,
• Logistics centers of the courier, express and parcel services providers,
• Logistics centers of internet shops.

e.) Depending on their construction funding:

• private,
• public.

LC services:

LCs offer basic, supplementary and other services.

• Basic services include transport services, transport providing (acquisition), loading, unloading, reloading (transshipment) goods (cargo) and handling units, goods transportation, goods and handling (transport) units storage (warehousing), commissioning, central parking (for passenger and freight vehicles), pick-up (collection) and delivery (distribution).

Intermodal transport terminals:

Basic terms:

Multimodal transport is the transportation of cargo by two or more modes of transport.

Intermodal transport is the relocation (transportation) of cargo in one and the same transport unit or on a road vehicle while using sequentially two or more modes of transport without handling with the cargo when changing the mode of transport.

Combined transport (transportation) is a specific type of intermodal transport where the major part of the journey is performed by railway, inland waterway or maritime transport and each initial and final part (section) of the journey, performed by road transport, is as short as possible.

Combined transport operator is a legal or natural person who, in its own name or through another person acting in his interest, concludes a combined transport contract, issues a single transport document and assumes responsibility for himself.

Container is a general term for a freight box - the TEU is the equivalent of a transport unit of the size of a twenty foot container (20').

Intermodal terminal (or intermodal transport terminal) can be characterized as a specially constructed and equipped area where, using transshipping systems (handling equipment), it is possible to transload (reload) the transport unit of the individual transport systems within intermodal transport.

Conception and basic elements of intermodal terminals:

• Road input infrastructure,
• Internal road network,
• Storage and stacking areas,
• Handling equipment,
• Reloading, handling and stacking railway tracks,
• Connecting railway tracks of a terminal with railway network,
• Repair and service facilities (workshop),
• Administrative areas.

• Length of railway tracks for loading and unloading: 750 m,
• Wharf length: min. 110 m,
• Handling equipment capable of handling any standard and established intermodal transport unit,
• 100 percent backup of handling equipment,
• Handling equipment load capacity - 40 to 42 t on hanging equipment,
• The terminal capacity is set so that a combined train (600 to 750 m) can be processed within 1 hour, and road freight delivery trucks do not wait for more than 20 minutes.

 Study materials:

Basic literature:

BUKOVÁ, B. et al. Zasielateľstvo a logistické činnosti. Iura Edition, Bratislava, Slovak Republic. 2008. ISBN 978-80-8078-232-0.

Recommended study materials:

STOPKA, O., ŠULGAN, M. Možnosti zavádzania nových technologických prvkov v logistických centrách a intermodálnych termináloch súvisiacich so zvyšovaním kvality dopravných služieb. In: Perner´s Contacts. 2010. Vol. 5, No. 3, pp. 315-325. ISSN 1801-674X.

STOPKA, O., ŠULGAN, M. Intermodálne verejné logistické centrá. In: Doprava a spoje. 2012. No. 1, pp. 339-345. ISSN 1336-7676.

STOPKA, O., ŠULGAN, M. Komparácia terminálov intermodálnej prepravy na Slovensku a v Českej republike. In: Perner´s Contacts. Vol. 7, No. 1, 2012d. pp. 142 – 147. ISSN 1801-674X.

STOPKA, O., ŠULGAN, M. Železničné napojenia vybraných intermodálnych terminálov v ČR. In: PERNER’S CONTACTS. Elektronický odborný časopis o technológii, technike a logistike v doprave. Vol. VI, No. IV., Publishes by: University of Pardubice, Czech Republic, pp. 355-359. ISSN 1801-674X.

Questions and tasks

1.    Depending on the range of operation (geographical range), logistics centers are divided into:
Transit, multimodal, international and distribution
Monomodal, bimodal, intermodal and multimodal
International, regional, local and sectoral

2.   Public logistics centers can be characterized as:
Logistics objects in which transport, logistics, forwarding, distribution and other companies operating in the logistics chain operate independently. They associate (consolidate) transport flows and, in some cases, even different modes of freight transport, thus, facilitate cooperation among individual carriers. They are built in places of transport nodes (hubs) and large economic concentrations and their construction was supported from public fundings
Logistics objects which were not supported by public fundings but open to the business community 
Logistics objects with specially constructed and equipped area where, using transshipping systems (handling equipment), it is possible to transload (reload) the transport unit

3.   Depending on a construction funding, LCs are divided into:
Corporate and open 
Private and public
Logistics areas and private warehouses
 

4.  Intermodal logistics center is characterized as:
   LC, with connection to at least two modes of transport while allowing for handling with intermodal transport units 
   LC, with connection to at least three modes of transport 
   LC, with connection to at least one mode of transport and is equipped with a warehouse building

 5.  Basic services offered by logistics centers do not include:
Service, repairs, maintenance of transport and mechanization equipment 
Loading, unloading, reloading transport units 
Collection and delivery of consignments

6.    Combined transport is:
Transportation of goods by two or more modes of transport 
A specific type of intermodal transport where the major part of the journey is performed by railway, inland waterway or maritime transport and each initial and final part (section) of the journey, performed by road transport, is as short as possible
The relocation (transportation) of cargo in one and the same transport unit or on a road vehicle while using sequentially two or more modes of transport without handling with the cargo when changing the mode of transport 

7.    The equivalent of a transport unit of the size of a twenty foot container is indicated as:
ITU 
TIR 
TEU

8.    The basic elements of intermodal terminals do not include:
Cross-dock warehouse
Repair and service facilities 
Reloading, handling and stacking railway tracks
 

10. Framework requirements for an intermodal terminal meeting the criteria of the European Agreement on Important International Combined Transport Lines and Related Installations do not include:
Storage capacity of the terminal at least 10 000 m2 
Length of railway tracks for loading and unloading: 750 m 
The terminal capacity is set so that a combined train (600 to 750 m) can be processed within 1 hour, and road freight delivery trucks do not wait for more than 20 minutes 

Key to solve the questions:

1. C
2. A
3. B
4. A
5. A
6. B
7. C
8. A
9. A
10. A

 Key words:

Customer service, quality, provided services quality, transportation quality measurement,  services quality evaluation methods

 Chapter objectives:

• getting acquainted with the terms: customer service and quality,
• understanding the meaning of the term of provided services quality,
• getting acquainted with transportation quality measurement,
• acquiring knowledge about services quality evaluation methods.

 Time required to study the chapter: 8 hours

 Interpretation:

Customer service:

Customer service is defined as a measure of how well the logistics system works in terms of generating the utility values through time and space with a focus on external customers.

Customer Service Components:

Customer service components are divided into 3 basic groups:

• Pre-sale,
• Sale,
• After-sale.

Quality:

Quality is an essential determinant that distinguishes objects or phenomena from other objects or phenomena, expressing the sum of properties (attributes) that cannot be separated from the object or phenomenon.

Provided services quality:

The quality extent of each process, even transportation of goods by road freight transport or transportation of passengers by public passenger transport, is a sum of its features (attributes), which are demonstrated by its functionality in real time. These features include reliability, accuracy, flexibility, safety, minimization of environmental impact and others.

Demand for transportation is a demand derived from demand for products, substrates, products of general and specific consumption.

Factors influencing the quality of transportation process can be divided into two groups:

    1. Subjective factors - they can be influenced (affected),
    2. Objective factors - they cannot be influenced.

Services quality evaluation methods:

The person authorized to evaluate the carrier or forwarder in terms of an extent to which he fulfills or fails to meet his own requirements for the quality of consignment carriage (transportation). Emphasis is placed especially on compliance with the agreed delivery time, not damaging the consignment and its packaging.
 

Evaluation methods can be developed (processed) by the organization itself, it can be completely taken over, or taken methods can be modified to their own conditions.

General procedure to implement the measurement and evaluation of transportation quality:

A) Defining the quality characters

B) Allocation of points, or point span to individual quality characters

C) Determining the weight of importance of quality characters

D) Ideal scoring of quality characters

E) Specifying the ideal score of quality characters

F) Determining the ideal value of transportation quality

G) Scoring the quality characteristics of particular transportation in terms of their fulfillment

H) Determining the actual score of quality characters for particular transportation

I) Determining the transportation quality value

J) Comparing the ideal value of transportation quality and the quality of particular transportation

K) Conclusions

L) Graphical representation of quality values of realized transportations

A. Methods of determining the weighting criteria:

First of all, most methods of the multi-criteria evaluation of variants require to specify the weightings of individual evaluation criteria that express the importance of these criteria.

These methods include:
A) the Pairwise comparison method
B) 100-point allocation method
C) the Method of determining the preferential order of the criteria
D) Saaty's method
E) the Progressive weighting method
F) other methods (especially multi-criteria analysis methods)
 

B. Methods of comprehensive evaluation of services quality (transportation):
Comprehensive quality evaluation, alternatives evaluation, and alternatives ranking represent the final and main phase of the solution (decision-making).

These methods include:

1. Indexing methods,
2. Method of complex utility function,
3. Methods of determining the value (utility) of alternatives,
4. other methods (multi-criteria analysis methods - AHP, WSA, PRIAM, TOPSIS, ELECTRE).

 Study materials:

Basic literature:

DOLEŽELOVÁ, H., HALÁSEK, D. Služby v obecném hospodářském zájmu v EU - Komparace České republiky a Německa. Department of Public Economics Faculty of Economics VSB-Technical University Ostrava. Czech Republic. 2011. ISBN 978-80-248-2371-3.

KONEČNÝ, V. NÁSTROJE A METÓDY MANAŽÉRSTVA KVALITY. Návody na cvičenia z predmetu manažment kvality. 1. ed., Publisher-University of Žilina, Slovak Republic. 2012. 136 p. ISBN 978-80-554-0601-5.

Recommended study materials:

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

VAŠTÍKOVÁ, M. Marketing služeb. Grada Publishing, Prague, Czech Republic. 2008., 232. ISBN 978-80-247-2721-9.

Questions and tasks

 1.    Customer service components are divided into 3 basic groups. These do not include:
Pre-sale 
Purchase 
After-sale

2.    Demand for transportation is a demand:
derived 
primar 
basic

3.    Factors influencing the quality of transportation process can be divided into two groups, these include:
Objective and subjective
Classic and modern
Monomodal and intermodal

4.   Methods of comprehensive evaluation of services quality do not include:
Specific multi-criteria analysis methods
Methods of determining the value (utility) of alternatives 
10-point allocation method

Key to solve the questions:

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

 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