Notes

Hoofdstuk 4-5-6-7-9

Hoofdstuk 4
Supply chain:
- System of organisations, people, technology and activities
- Raw materials -> finished products -> customer
- Goal: reduce total cost // provide customers


Large companies invest in offices in China and India

Carriers: water, rail, intermodal, truck, air, pipeline and package
Water: least expensive but slow
Air and package: expensive but fast
Rail and water: low-value / large shipments / not in a hurry
Air and package: high-value / small shipments / emergency shipments
Intermodal: faster than rail and water but more expensive

To take into consideration:
- Transportation costs
- Inventory costs
- Level of responsiveness to the customer
- Company-owned and outsourced transportation

Hoofdstuk 5
Term SCM: 1980s

Basics of SCM
- Plan
- Source
- Make
- Deliver
- Return

Levels of decision
- Strategic (long term: size/location, partnerships, …)
- Tactical (being effective, costing as little as possible, …)
- Operational (everyday: taking orders, moving to warehouse, changes to production)

Global SCM
- More complicated
- Costs of space, tariffs, other international costs
- Exchange rates
- Customs
- Shipping times

SCM Managers
- Direct inbound and outbound logistics operations
- Resolving problems concerning transportation

Retail SCM Manager
- Planning delivery timetables
- Monitoring stock levels

Skills
- Problem solving
- Good planning

Hoofdstuk 7

Types of cargo/freight
- General cargo (goods packed in boxes)
- Bulk cargo (sand, …)
- Bulky cargo (large individual items: cars, …)

Consigner -> consignment -> consignee

Road
- Flexible route
- Takes long
- Limited capacity
- Non-perishable
- Shorter distances
- Inexpensive items

Rail
- Lack of flexibility
- Need for another type of transport (lack of tracks)

Water (maritime transport)
- Large quantities
- Non-perishable
- Water access only

Air transportation
- Time-efficient
- Fruits and vegetables
- Perishable

Pipelines
- Unlimited
- Under land
- Under water
- Refineries
- Harbours

Intermodal/multimodal
- A combination

Hoofdstuk 9
Terms of payment
Domestic trade = in a country

Wholesale
- From manufacturers/dealers/producers
- Buying in large quantities
- Selling in smallers quantities
- To retailers or consumers

Retail
- Small quantities
- To consumers

Terms of payment in domestic trade
- Cash On Delivery (COD): buyer pays the company, company delivers
- Payment on invoice: invoice must be paid in time
- Hire Purchase (HP): voorschot (down payment) betalen, dan de rest betalen
- Open-account terms: paying every month/period for the services
- Leasing: using an object for a fixed time

Terms of payment in international trade
Cash in advance
- Paying before delivery
- Eliminates risk since you have the money before the ownership is transferred

Open account
- Least secure for exporter
- Most secure for buyer
- Goods, documents and payment date get send to the customer

Letter of credit (LC)
- Document issued by a bank (finacial institution)
- Promises that the buyers bank will send the money to the sellers bank
- Opening bank -> advising bank
- Buyer pays the bank for this service
- No payment until goods are delivered
- Revocable LC: can be cancelled without the sellers agreement
- Irrevocable LC: can be cancelled with both parties agreeing

Documentary collection
- idk