Bloom’s Taxonomy: LV & LIV
Definition
- LI. Remembering: Exhibit memory of previously learned material by recalling facts, terms, basic concepts and answers.
- LII. Understanding: Demonstrate understanding of facts and ideas by organizing, comparing, translating, interpreting, giving descriptions and stating main ideas.
- LIII. Applying: Solve problems in new situations by applying acquired knowledge, facts, techniques and rules in a different way.
- LIV. Analyzing: Examine and break information into parts by identifying motives or causes. Make inferences and find evidence to support generalizations.
- LV. Evaluating: Present and defend opinions by making judgments about information, validity of ideas, or quality of work based on a set of criteria.
- LVI. Creating: Compile information together in a different way by combining elements in a new pattern or proposing alternative solutions.
Topic Description
Food and beverage products are reliant on well managed transportation and logistics plans. To avoid food spoilage, food waste and to ensure food safety, food and beverage products must be managed with logistics and warehousing plans. Managers are required to plan warehouse activities, develop, and evaluate forecast models, develop both space allocation and inventory management systems, and develop efficient expediting systems.
Learning Objectives
LO1. Design strategic logistics management.
The development of an effective strategy is essential to logistics management success.
Detailed Competencies = Performance indicators include but are not limited to:
- P1. Develop an integrate elements of strategic logistics decisions.
- a. Make-to-order (MTO, e.g., speciality products) vs Make-to-stock (MTS, e.g., consumer packaged goods [CPG] like most foods and beverages).
- b. Push vs pull inventory.
- c. Product Postponement or late differentiation.
- d. Inventory centralisation vs decentration.
- e. Delivery time.
- f. Demand variability.
- g. Inventory turnover.
- h. Communication and information sharing.
- i. Warehouse location.
- j. Outsourcing vs in-house logistics.
- k. Customer service objectives.
- l. Technologies such as Warehouse Management Systems (WMS), Transportation Management Systems (TMS), Enterprise Resource Planning (ERP), etc.
- m. Logistics cost.
- n. Raw materials logistics vs finished goods logistics.
- o. Integrated logistics management.
- P2. Align inbound logistics to purchasing for inventory replenishment.
- a. Order placement.
- b. Order processing.
- c. Order receiving.
- P3. Align logistics to operations.
- a. Production cycle time.
- b. Assembly and packaging.
- c. Product packaging including Size, shape, weight, and density of the products.
- d. Products nature: perishable, temperature sensitive, dry, wet, powdery, grainy, solid, liquid, oily, greasy, etc.
- e. Standardization.
- f. MTO and MTS.
- g. Batch production and mass production.
- P4. Align outbound logistics to marketing to achieve customer service objectives.
- a. Seasonality of demand.
- b. Channel intermediary requirements (direct marketing, e-commerce, retailers, wholesalers)
- c. Price and quantity discounts.
- d. Move goods as close as possible to the customers.
- e. Perfect order fulfillment (right product, right quantity, right condition, right place, right time, right customer, right costs, right source, right documentation).
- P5. Design warehousing processes.
- a. Receiving: incoming Quality Control (QC) inspections, unloading, comparing batches or items received to purchasing order.
- b. Put-away and storage: identify product, identify storage location, move products, update records.
- c. Order picking and shipping preparation: selection of right products, packaging, labeling, and staging.
- d. Shipping: outbound QC inspections, schedule carrier, load vehicle, bill of lading, record update.
- e. Consolidation to leverage transportation economies of scale.
- f. Warehouse automation.
- P6. Design inventory strategy.
- a. Define Inventory levels: safety stock, pipeline stock, minimum stock, maximum stock, cycle stock, psychic stock (i.e., inventory carried to stimulate demand), speculative stock (i.e., a high-risk stock that is used to speculate/make conjectures about the market), etc.
- b. Design inventory replenishment techniques and demand forecasting (e.g., Material Requirements Planning [MRP], Master Production Schedule [MPS], Reorder Point [ROP], Economic Order Quantity [EOQ], Fixed Order Quantity [FOQ], Period Order Quantity [POQ], Just-In-Time [JIT], Vendor Managed Inventory [VMI], Collaborative Planning, Forecasting and Replenishment [CPFR].
- c. Stock-Keeping Unit (SKU) and First In, First Out (FIFO).
- d. Pull or push inventory deployment.
- e. Use of Postponement.
- f. Inventory control methods.
- P7. Design distribution channel network.
- a. Producer storage with direct delivery.
- b. Producer storage with drop ship.
- c. Producer with extended channel network (distributors, wholesalers, retailers).
- d. Aggregator with extended channel network.
- e. Aggregator with e-business network.
- f. Flexibility.
- P8. Develop logistics alliance and partnership with third party Logistic service providers.
- a. Customer service.
- b. Order processing.
- c. Inventory management warehousing.
- d. Facility location advantages.
- e. Materials handling.
- f. Packaging.
- g. Transportation.
- h. Cross-docking.
- i. Bulk breaking.
- j. Product postponement.
- k. Product assortment.
- P9. Develop reverse logistics systems.
- a. Recycling.
- b. Product return and recall.
- c. Product redistribution.
- d. Product rework or repackaging.
- e. After market savings.
- f. Environmental awareness.
LO2. Develop a Warehouse Management System (WMS) to provide real-time visibility of products within the warehouse.
Warehouses have a variety of methods for storing food products, from dry storage to freezer and refrigerator storage. Choosing the proper food warehousing methods and managing warehousing operations help food industries minimize the risk of spoilage and contamination. Manager will design and plan warehouse operations.
Detailed Competencies = Performance indicators include but are not limited to:
- P1. Identify and select warehouse locations (in-house vs. public warehouses).
- P2. Validate the distribution system (centralized vs decentralized warehouses).
- P3. Create a warehouse management strategy (cross-docking, late differentiation, ship to stock).
- P4. Develop strategies and procedures for order fulfillment (receiving, picking and delivery).
- P5. Create mapping systems for warehousing and storage of goods.
- P6. Review the companies need for warehousing.
- P7. Verify allergen and other product segregation as well as FIFO (First In, First Out) and 5S (Sort, Set, Shine, Standardize, and Sustain) systems effectiveness.
- P8. Document location of product within warehousing.
- P9. Document lot coding, blockchain, Global Trade Item Number (GTIN), or shelf life of goods in warehousing.
- P10. Quantify inputs and finished goods in warehousing and reconcile against inventory.
- P11. Apply Enterprise Resource Planning (ERP) for management of record keeping.
- P12. Evaluate typical product specifications, storage configuration, freight classification, and handling requirements for inbound and outbound products.
- P13. Develop standard operating procedures to cover all activities in the warehouse.
- P14. Facilitate auditing the warehouse activities.
LO3. Establish an inventory management system.
Inventory, once in the possession of the establishment, should be tracked and moved through the facility efficiently. Use of ERP and documentation systems allow for proper inventory tracking, food safety segregation, and minimization of excess inventory. Managers must apply and implement effective documentation systems.
Detailed Competencies = Performance indicators include but are not limited to:
- P1. Develop an inventory management system, including purchasing, inventory management, warehousing, sales orders, order fulfillment, distribution, and customer service management.
- P2. Track what stock comes into the warehouse.
- P3. Track what goods leave the warehouse and what remains in storage.
- P4. Analyze the data collected.
- P5. Optimize operations to minimize risk of food spoilage and food waste.
- P6. Train employees in how to operate the system and reduce or eliminate damaged products.
LO4. Forecast customer demand, production volumes and commodity availability, to align with transportation, warehousing and logistics needs.
Food production forecasting predicts the volume of incoming products, and volume of sales. Forecasting typical operations will allow for financial projections, space allocation, and business model development. Managers will forecast, review, and evaluate the need for transportation and logistics in relationship with production and demand.
Detailed Competencies = Performance indicators include but are not limited to:
- P1. Review projected product volume to be produced or based on sales projections over a set time.
- P2. Evaluate seasonality of commodities, product cycles, and the need for warehousing or storage of incoming commodities or outgoing finished goods.
- P3. Review volumes of incoming commodities in harvest dependent production.
- P4. Evaluate typical product specifications, shipping and storage configuration, freight classification, and handling requirements for inbound and outbound products.
- P5. Estimate volume of product and contrast to applicable type storage space availability and product throughput.
- P6. Identify and evaluate current organizational resources in transportation, storage, and warehousing.
- P7. Perform cost-benefit analysis of using company owned transportation, storage, and warehousing versus using contracted third-party transportation, storage, and warehousing.
LO5. Implement product logistics and traceability and participate in product recall procedures as needed.
Methods of transporting inputs from storage to production must also work within the communications and record keeping systems of the facility. Managers must define and appropriately implement the protocols for production, including corrective action.
Detailed Competencies = Performance indicators include but are not limited to:
- P1. Create requisition systems for production to obtain raw materials from inventory.
- P2. Create traceability systems to carry forward information from incoming materials to production, such as lot number, GTIN, or blockchain identifiers, method of production claims, and other relevant information.
- P3. Create a system to manage Corrective Action Requests (CARs) for internal requisitions.
- P4. Document data into production records.
- P5. Verify that traceability and food safety information is carried forward to finished goods.
- P6. Develop mechanisms to reconcile inventory after production.
- P7. Verify that records are being maintained and data managed within the ERP system.
- P8. Participate in recall procedure when needed.
LO6. Perform financial modelling and projections for logistics needs.
Costs of transportation of goods are highly dependent on energy prices, which can be volatile. Managers must build into their product and operations costing models the ability to ship product viably, and in a cost-effective way. Managers need to build mechanisms to renegotiate price structures based on changing transportation costs. Managers should note that warehousing and logistics forecasting is also critical for organizational growth.
Detailed Competencies = Performance indicators include but are not limited to:
- P1. Define the shipping consignment costs and responsibilities within purchasing and sales contracts.
- P2. Identify methods within purchasing and sales contracts to negotiate costs depending on commodity and energy costs.
- P3. Perform modeling forecasts of different transportation cost scenarios.
- P4. Create a pricing strategy that provides robust ability to withstand transportation price fluctuations.
- P5. Analyze organizational sales and production growth strategies over time.
- P6. Estimate warehousing and transportation requirements for anticipated production changes.
- P7. Identify warehousing and transportation future needs to meet growth targets.
LO7. Continuously improve and update logistics plans.
Managers should have the competencies to develop and support continual improvement of facility logistics. This involves decision making and planning to establish, implement, and maintain procedures to create and support continuous improvement.
Detailed Competencies = Performance indicators include but are not limited to:
- P1. Develop Key Performance Indicators KPIs to adopt a continuous improvement culture within the organization.
- P2. Investigate the use of advanced, automated, and/or AI technologies in managing logistics.
- P3. Employ blockchain technology (or other progressive process) to allow for transparent information sharing within the facility network to facilitate the process of recording transactions and tracking assets.
- P4. Assess current processes and procedures to identify areas for improvement and increased sustainability.
- P5. Conduct surveillance and foresight exercises to anticipate areas for proactive modification for improvement and sustainability.
- P6. Assess and allocate capital and resources efficiently.
- P7. Facilitate implementation of modifications and updates based on assessment, surveillance, and foresight exercise findings.
- P8. Communicate modifications made to protocols and procedures to all applicable personnel and stakeholders.
- P9. Periodically review and update logistics based on identified areas for improvement.
Links to existing courses
NA
Approved Accredited Training Programs (Academic, Industries, Private Trainer)
NA
Recognition of worker skills = Certification
NA
Evaluation technics / assessment
- Quizzes
- Written tests
- Multiple choice questions
- Self-assessment and reflection
