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Summary Service Provider Logistics
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An effective summary that will prepare you for the service provider logistics exam, part of the Aviation studies bachelor.
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Aviation studiesSummary Service
Provider Logistics
Aviation operations, second year, third semester.
Jason Krijgsman
16-5-2017
,Introduction:
This summary is meant for second year student attempting to finish the course Service Provider
Logistics from the Aviation studies at the Hogeschool van Amsterdam. The summary will give you all
you need to know from the lectures in a clear and thorough manner, keeping it short but not
sacrificing on possible quality. Slides from the Service Provider Logistics lectures will be explained so
that you truly understand what questions can be expected on the exam.
Example questions you should be able to deal with at the end of the course:
- How many screeners for baggage and check-in personnel do you need at what time?
- And how many opened baggage drop off points and security counters?
- How do you design and size a baggage handling facility?
- How should cargo warehouses be designed?
- Who are the important stakeholders in the cargo supply chain?
- How to ensure safe and secure operations in the airport?
By the end of the course you should be able to:
- Create a sales and operations plan (S&OP) including resource planning (MPS and MRP).
- Explain the use, influence and application of a capacity planning system and strategy.
- Explain the functions of warehouses, particularly in relation to cargo warehouses.
- Explain the importance of and how to ensure the safety and security in the cargo warehouse.
- Design a cargo warehouse using the systematic lay-out planning (SLP) and/or the systematic
handling analysis (SHA)
- Explain the use, influence and application of a quality management system.
Good luck!
Jason
,Week 1: - Operations management, stakeholders in the aviation industry
- Capacity planning and forecasting for peak hours in airport travel; S&OP (Global level)
For operations management, it’s important to know how a business gets its competitive advantage.
According to the book Operations Management, this can be assigned to three different categories.
- Creating: The technological specification of its product. (Apple vs. Windows)
- The way it positions itself in its markets. (Cola vs. Pepsi)
- The way it produces and delivers goods and services. (Supermarkets, AH vs. Lidl)
Keep in mind that most business use multiple aspects from the three different categories, not just
one. Some are just more prominent.
Operations can be seen as a transformation process, visible below:
Figuur 1 Operations as a transformation process
Figure one shows resources, like materials or information, coming into your business. It’s up to the
business to create value from combining those resource, after which it’s outputted as products or
services. A fairly simple structure:
Input resources Transf. process Outputs
Airline - Aircraft Move passengers and Transported the
- Pilots and air freight around the passengers and
crew world. freight.
- Ground crew
- Passengers
and Freight
Third party logistics (3PL):
A third party logistics company or 3PL in short, provides logistical services that a customer has
outsourced to them. This can be for all of their supply chain functions of just parts of it.
Some benefits include:
- 3PL’s can specialize in the integrated operation
- Warehousing and transportation services can be scaled and customized to customers’ need.
Outsourcing:
Some goods or services can be outsourced, meaning that the company buys goods or services rather
than producing the goods or performing the services themselves within the organization. This can:
- Reduce overhead
- Gain flexibility
- Take advantage of supplier’s expertise
More reasons to outsource are:
- Transfer of risk
- Can be cost saving
- Can save valuable time
, - Access to expertise
- Allows you to focus on core processes
- Better capacity management
- Better technology know-how
What can be outsourced?
You can outsource entire functions including HR, IT or accounting. It’s also an option to just
outsource parts of the function, like customer service or marketing. You can also choose to
“offshore” the operation, which means moving the activities to another country.
Risk/disadvantages of outsourcing:
1) Financial costs
a) May have higher costs
b) Transaction costs: Conducting negotiations, managing process, oversight of suppliers
performance
2) Loss of control
a) Possible loss in continuity of supply or quality control should the supplier not perform as
expected.
3) Loss of competitive knowledge
a) Companies lose ability to introduce new designs based on own agenda
b) Using several suppliers may prevent the development of insights, innovations etc. since
solutions usually require cross functional team-work.
4) Conflicting objectives
a) Your own business wants flexibility, whereas the supplier wants long term and stable
commitment.
5) Increase in risk
a) Loss of in-house expertise that might never be regained
b) Losing experts makes it more difficult to manage contract effectively
c) May need commercial secrecy and confidentiality, as supplier becomes more aware of your
operations and performance.
, Benefits/advantages of outsourcing:
1) Reduced operating costs:
a) Economies of scale: supplier may produces at a lower cost (bulk)
2) Restructuring costs
a) Reduced fixed assets (building), inventory, number of employees
3) Focus on core business
a) The belief that companies that focus on core businesses outperform those that don’t.
4) Access to world class capability
a) Suppliers should be good at what they do. They invest in high quality technology and people
to produce high quality services at low cost.
Stakeholders:
These are people and groups with legitimate interest in the operation’s activities:
- Internal stakeholders (employees)
- External stakeholders (customers, communities, shareholders, suppliers, regulators).
Stakeholder What do they want from What does the operation
operation? want from them?
Shareholders - Return on investment - Investment capital
- Stability - Long term
commitment
Directors - Low operating costs - Consistent strategies
- Secure revenue - Appropriate
- Low risk of failure investments
Staff - Fair wages - Attendance
- Good working - Engagement
conditions
- Safe environment
Unions - Conformance with - Fairness
national agreements - Understanding
Suppliers - Early notice of - Integrity of delivery
requirements - Responsiveness
- Long term orders - Progressive price
- On time payment reductions
Regulators - Conformance to - Consistency
regulations - Responsiveness to
- Feedback industry concerns
Lobby groups - Honesty in marketing - No unfair targeting
- Practical help in
achieving aims
Society - Minimize effects from - Support for future
noise, traffic etc. plans
- Jobs
Government - Conformance with - Low or simple taxes
legalilty
- Contribution to
economy
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