Review of first class (26.02.2010)

1. Clarification of organizational questions & introduction of course members

2. World Trade and GDP

Between 1950 and 2010 the GDP has multiplied by 10, the World Trade even by 80.

What is the reason for this? (Brainstorming in class)

• Open markets

-> globalization, no borders

• Unit Loads have been created

-> Standardization of units that are being used to cut costs (f. ex. faster up- & unloading)
-> ex. europallets, containers, boxes

• Infrastructure

-> roads, ports, airports, railways
-> internet
-> Suez Canal, Panama Canal

• Trade agreements

-> between poor & rich countries

• Outsourcing
  

-> to give away parts of a company's tasks to other companies that may be specialized to do these certain tasks (f. ex. supply certain tasks, facility management, security service, etc.)
-> the opposite of vertical integration (Henry Ford)
he bought the steel manufacturing company

• Transportation time went down

-> better organization
-> technology
-> better means
-> it's possible to carry more (bigger ships, etc.) => got cheaper

• Cocacolaization (Zdravko Mlinar) / McDonaldization (George Ritzer, Book: The McDonaldization of Society)
  

-> describes the phenomenon that the US culture or more in general the western culture spreads more and more and replaces the cultures of other countries, regions and continents and this way produces one big uniform culture.
(http://www1.bpb.de/publikationen/VWSULT,1,0,Kulturelle_Globalisierung.html)
-> we think we have more products, but in reality diversity all over the world went down
-> change of market size

Video: McDonaldization

• Economies of scale

-> automatization (IKEA)

• Realtime communication

-> makes the flow of information and money a lot easier and faster

• Better knowledge of markets & Products
• Multinationals move production to low cost countries
• Economic stability
• E-commerce
• Operational management tecniques

3. Definition of Logistics and of Supply Chain Management (SCM)


Definition Logistics:

"Logistics management is that part of the Suppyl Chain Management process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements." (CLM, 2005)

Definition SCM:

"Two or more legally different organizations that are linked through material, financial or infromation flows." (Stadler, 2005)