The Bullwhip effect

The bullwhip effect describes coordination and communication problems in multi-stage supply chains - mostly in so-called fragmented supply chains. It can be localised thanks to fluctuations in production planning and logistics planning (price…

Enterprise Resource Planning – the five most important questions when choosing an ERP system

An Enterprise Resource Planning System (ERP for short) is used in many different sized companies. It helps both start-ups and medium-sized companies as well as large corporations to make business processes more efficient. This is achieved through…

Advantages and disadvantages: centralized and decentralized warehouse

In distribution logistics, the determination of warehouse locations represents a strategic decision. A basic distinction is made between centralized and decentralized locations, which can have different effects on logistics costs (see also…

Out-of-Stock – the gap in the shelf

Out-of-stock typically refers to a shelf space in the stationary retail trade which no longer contains the intended article. The delimitation to the concept of shortage is that out-of-stocks (OOS) is exclusively the direct relationship between the…

The production cycle

In a broader sense, a production cycle is the production process that begins with the raw materials and ends with the finished product. In a narrower and above all in a business context, the cycle describes the length of time a product remains or is…

Point of sale systems, warehouse management and branch logistics

A cash register system, also known as a POS system, is software that documents a specific financial transaction of an inventory or a good. In general, the POS system describes the entirety of all clients (hardware) and associated software used that…

Set-up time in production and intralogistics

If a machine or a production site, i.e. individual facilities or entire production lines, is set up for a special processing operation and equipped with the necessary tools, the duration of this changeover is referred to as set-up time. Usually, the…

Cyber-physical systems and logistics

Cyber-physical systems, or CPS for short, are system units or components that are linked together by means of software, electronics and mechanics, the so-called cyber-physical infrastructure. The technologies from the 'Internet of Things' (IoT) and…

Logistics management and the supply chain

The integrated planning, organization, management, processing and control of the entire flow of materials and goods and the corresponding information flow is called logistics management. This is not a tangible work step, but rather countless process…

Opportunity costs in logistics

Opportunity costs, also known as alternative costs or foregone costs, express a foregone benefit in costs on the basis of decisions that have a negative impact and enable an approximately accurate cost calculation. The degree of utilization always…

CPFR – Collaborative Planning, Forecasting and Replenishment

CPFR stands for Collaborative Planning, Forecasting and Replenishment and is a further development of Efficient Consumer Response (ECR), known from supply chain management. CPFR requires that all information along the value chain is brought together…

Networked Production: Computer-integrated Manufacturing

Computer-integrated manufacturing, or CIM for short, stands for computer-controlled machine and automation systems, which are generally used in the manufacture of products. CIM uses different technologies and their technical functions such as…

Multicopter: Drones as parcel carriers of the future

Goods delivery by automated or even autonomous drones? What we know at best as a vision from science fiction films could soon become everyday life. At least when it comes to Amazon, UPS, Mercedes Benz and DHL. What are the challenges, what is…

Product Lifecycle Management (PLM)

The term Product Lifecycle Management, PLM for short, describes a holistic approach to pooling product information. It is a kind of cross-company management and control of the information flow of a product along the entire value chain. The industry…

Smart Data

Smart Data stands for the detailed and structured result of an analysis of unstructured data masses (Big Data). Every smart data information is an explicit fact. These are also known as digital findings, which also allow links to other fine-grained…

The Supply Chain Management (SCM)

Supply chain management (SCM) stands for the monitoring process as well as the coordination and control of the supply chain (value chain). This involves the allocation of all materials, information and the finances distributed along the supply chain…

Logistics – Definition

The term logistics stands for the planning, control and monitoring of the material and immaterial flow of goods within a company, between partner companies and between suppliers and end customers.

Materials management in production and logistics

Materials management controls the material flow within a company as well as order-related material flows to customers and suppliers. As a rule, the focus is on the business management and thus commercial aspects. Seen from above, it links all the…

The end of the 6 Rs of logistics? – Part 2

The classic logistics view is limited to the now famous 6 R's with regard to its tasks - as already mentioned in " The End of the 6 R's of Logistics? - Part 1 ". This approach to logisticsand supply chain management is comprehensible and…

The end of the 6 Rs of logistics? – Part 1

The tasks of logistics and the logistician are memorably explained with the famous 6 Rs. The 6 Rs of logistics are the so-called “six right ones”: the right products in the right quality in the right amount in the right place at the right time at…

Swarm intelligence – What we logisticians can learn from ants – Part I

Surely you use a navigation system. So then you are already relying on the performance of ants and swarm intelligence. Why? Because the current navigation systems are programmed with the so-called ant algorithm and this shows you the "best" way from…

Distributed Order Management

Distributed Order Management basically the consideration of all companies involved in an order as well as the responsible personnel. Producers, logisticians, suppliers and dealers try to solve questions about tasks or orders that are to be processed…

What is the logic behind supply chain management?

At the center of managementis the individual as an acting being, as homo agens. In supply chain management, moreover, the individual as a cooperating being, as homo co-agens, is at the center of consideration. Conscious, targeted and organized…

The Newsvendor Model in SCM

Many supply chain management (SCM) approaches can be explained using the Newsvendor Model (NVM). This model, which originally comes from inventory management, evaluates both the costs of excessively high inventories and the costs of excessively low…

The cost of unused opportunities in supply chain management

No company can afford not to have the cost side under control. The figures from financial accounting serve as the basis for this. In many cases, the figures for the companies' cost accounting are derived from this. A look into the cost accounting of…

Information in intralogistics

Information describes the meaningful content of a message, which is of value for the recipient. The receiver can be either a human or a machine. The sent or received information does not contain irrelevant or redundant transmissions. In the…

Lean Production

Lean Production describes a method with the goal to react quickly to outside influences on production systems. This is a concept that affects the efficiency increase of all company activities within a value chain. This includes, for example, the…

The distribution center

A distribution center is an interface in the form of a building complex that functions exclusively within a logistics network. This can be a warehouse, a transshipment point or both in combination. Usually it is the combination in which goods are…

Production management

According to business economist Werner Kern, production management is an operational service provision. "Production is any kind of internal transformation of goods into higher-value goods". In his opinion, terms such as production, costs, planning,…

Definition – Value chain

A value chain describes how value is created through a chain of activities and combined in processes. The value chain is also referred to as process chain or performance chain. Establishment of a value chain To analyze a value chain, a company's…

Lean Management

Lean management also has several sub-categories, such as lean thinking, lean production and lean supply chain. It describes various methods and procedures to optimally plan the processes of the value chain for industrial goods. The goal of this…

Replenishment – Basics

Before, during or even after the picking business process, goods are often replenished. Managing and allocating replenishment is one of the tasks of supply chain management. By using a warehouse management system, it can be ensured before starting a…

Overview of common manufacturing principles

Different principles can be applied in manufacturing. Some products are manufactured according to forecasts, without specific sales order With other products production only starts after the reception of a sales order. Push and pull systems…

Push system and pull system in supply chains

Supply chain management refers to the value chain from the supplier to the end consumer. Depending on the direction of the supply chain, there are two systems. The push system and the pull system. A company can trigger the production or delivery of…

Material throughput time

The material throughput time is the time required to run through all business processes, for example, in a warehouse or distribution centre. The calculation of the lead time begins with Goods receipt and ends when the material is made available for…

Just-in-time – Definition

"Just-in-time" refers to a type of delivery in which the required goods are delivered on time and in exact quantities in order to keep warehousing at the processing location as low as possible. The decisive difference to just-in-sequence is that the…

The Bullwhip effect

The bullwhip effect describes coordination and communication problems in multi-stage supply chains…

Enterprise Resource Planning – the five most important questions when choosing an ERP system

An Enterprise Resource Planning System (ERP for short) is used in many different sized companies.…

Advantages and disadvantages: centralized and decentralized warehouse

In distribution logistics, the determination of warehouse locations represents a strategic…

Out-of-Stock – the gap in the shelf

Out-of-stock typically refers to a shelf space in the stationary retail trade which no longer…

The production cycle

In a broader sense, a production cycle is the production process that begins with the raw materials…

Point of sale systems, warehouse management and branch logistics

A cash register system, also known as a POS system, is software that documents a specific financial…

Set-up time in production and intralogistics

If a machine or a production site, i.e. individual facilities or entire production lines, is set up…

Cyber-physical systems and logistics

Cyber-physical systems, or CPS for short, are system units or components that are linked together…

Logistics management and the supply chain

The integrated planning, organization, management, processing and control of the entire flow of…

Opportunity costs, especially in intralogistics, are a popular means of identifying capacities in advance.

Opportunity costs in logistics

Opportunity costs, also known as alternative costs or foregone costs, express a foregone benefit in…

CPFR – Collaborative Planning, Forecasting and Replenishment

CPFR stands for Collaborative Planning, Forecasting and Replenishment and is a further development…

Networked Production: Computer-integrated Manufacturing

Computer-integrated manufacturing, or CIM for short, stands for computer-controlled machine and…

Multicopter: Drones as parcel carriers of the future

Goods delivery by automated or even autonomous drones? What we know at best as a vision from…

Product Lifecycle Management (PLM)

The term Product Lifecycle Management, PLM for short, describes a holistic approach to pooling…

Smart Data

Smart Data stands for the detailed and structured result of an analysis of unstructured data masses…

The Supply Chain Management (SCM)

Supply chain management (SCM) stands for the monitoring process as well as the coordination and…

Logistics – Definition

The term logistics stands for the planning, control and monitoring of the material and immaterial…

Materials management in production and logistics

Materials management controls the material flow within a company as well as order-related material…

The end of the 6 Rs of logistics? – Part 2

The classic logistics view is limited to the now famous 6 R's with regard to its tasks - as already…

The end of the 6 Rs of logistics? – Part 1

The tasks of logistics and the logistician are memorably explained with the famous 6 Rs. The 6 Rs…

Swarm intelligence – What we logisticians can learn from ants – Part I

Surely you use a navigation system. So then you are already relying on the performance of ants and…

Distributed Order Management

Distributed Order Management basically the consideration of all companies involved in an order as…

What is the logic behind supply chain management?

At the center of managementis the individual as an acting being, as homo agens. In supply chain…

The Newsvendor Model in SCM

Many supply chain management (SCM) approaches can be explained using the Newsvendor Model (NVM).…

The cost of unused opportunities in supply chain management

No company can afford not to have the cost side under control. The figures from financial…

Information in intralogistics

Information describes the meaningful content of a message, which is of value for the recipient. The…

Lean Production

Lean Production describes a method with the goal to react quickly to outside influences on…

The distribution center

A distribution center is an interface in the form of a building complex that functions exclusively…

Production management

According to business economist Werner Kern, production management is an operational service…

Definition – Value chain

A value chain describes how value is created through a chain of activities and combined in…

Lean Management

Lean management also has several sub-categories, such as lean thinking, lean production and lean…

Replenishment – Basics

Before, during or even after the picking business process, goods are often replenished. Managing…

Overview of common manufacturing principles

Different principles can be applied in manufacturing. Some products are manufactured according to…

Push system and pull system in supply chains

Supply chain management refers to the value chain from the supplier to the end consumer. Depending…

Material throughput time

The material throughput time is the time required to run through all business processes, for…

Just-in-time – Definition

"Just-in-time" refers to a type of delivery in which the required goods are delivered on time and…