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. Ingredients and manufacturing inputs must travel to the manufacturing site, often as part of import programs, and often from locales around the world. Once inputs are within the facility, they must be managed with logistics and warehousing plans. Once the product is manufactured, transportation and logistics must be managed again to get the product to customers in a safe and high-quality condition. Managers must evaluate the cost-benefit of using company owned transportation versus use of transportation contractors and negotiate contracts and apply enterprise resource planning solutions.
Learning Objectives
Products in today’s world could be coming from anywhere. Often lower cost products from distant countries end up being more expensive than local products when the risks of supply chain disruption and regulatory compliance are evaluated as part of the decision matrix. Managers must investigate the risks and benefits of different supply chains and provide decision-making and accountability for choices.
Detailed Competencies = Performance indicators include but are not limited to:
- P1. Describe the transport channel requirements for inbound and outbound products.
- P2. Describe the advantages and disadvantages of transportations modes (railroads, motor carriers, air carriers, water carriers). Explore opportunities for intermodal transportation and inland ports.
- P3. Define the criteria for transportation modal selection, including reliability, transit time, accessibility, freight rate, communication system, risks, safety, and security.
- P4. Perform an environment scan for potential disruptions to the supply chain, including political, regulatory, financial, geopolitical, environmental, and trade related disruptions.
- P5. Develop mitigation plans to handle identified potential disruptions.
- P6. Evaluate procedures for import and export of product.
- P7. Identify and list key partners in supply chain management within the organization, including brokers, insurance agents, transportation providers, and import and export agencies.
- P8. Review regulatory requirements for import and export with various partner countries.
- P9. Evaluate regulatory and food safety requirements for inbound ingredients and finished goods customers.
- P10. Identify the scope of in-house transportation and third party (logistics providers, 3rd Party Logistics [3PL]) such as brokers, freight forwarders, etc.
- P11. Select the best incoterms (International Commerce Terms), including Freight on Board (FOB), Ex Works (ExW), etc.
- P12. Establish supplier substitution policies, action, and response plans for disrupted supply chain situations.
- P13. Periodically review and improve the effectiveness of the supply chain and transportation approaches.
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 product.
- 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.
Managers must choose the appropriate TMS based on the organization’s needs.
Detailed Competencies = Performance indicators include but are not limited to:
- P1. Schedule inbound, and outbound and internal shipments.
- P2. Select carriers.
- P3. Analyze freight rates.
- P4. Generate bills of lading.
- P5. Plan and optimize loads.
- P6. Poste requirements and tendering.
- P7. Freight bill payment.
- P8. Process claims.
- P9. Others.
Modern transport and logistics use Enterprise Resource Planning (ERP) software for co-ordination of tasks. Managers must evaluate ERP needs and ERP capabilities across the supply chain, ensuring functionality with suppliers and customers and third-party service providers. Managers must also identify the cost effectiveness of ERP providers and ensure that personnel are trained to use the ERP system effectively within the workplace.
Detailed Competencies = Performance indicators include but are not limited to:
- P1. Perform needs assessment against current and prospective supply chain partners for preferred ERP system characteristics and compatibility.
- P2. Determine computing needs for implementation and maintenance of ERP systems.
- P3. Determine human resources and training needs for implementation and maintenance of ERP systems.
- P4. Choose the appropriate ERP service provider.
- P5. Evaluate effective use of the ERP.
- P6. Identify opportunities for improvement for ERP development and training.
Working with production scheduling, purchasing, and warehousing, the inbound transportation and logistics needs are managed by evaluating space and specialized handling needs, and by managing stock keeping information through application of record keeping and ERP.
Detailed Competencies = Performance indicators include but are not limited to:
- P1. Evaluate existing inventory of raw materials against manufacturing forecast and purchase orders.
- P2. Determine requirements for transportation based on quantity, shipping code, truckload (TL) or less than truckload (LTL) configuration, and specialized handling of goods.
- P3. Determine shipper’s ability to meet food safety and cross contamination requirements (e.g., Kosher shipping, hygiene, and temperature monitoring).
- P4. Develop and negotiate transportation contracts, schedules, and handling specifications for food transporters providing inbound services.
- P5. Determine requirements and regulations for cross-border transportation of imports.
- P6. Develop customs and border clearance documentation.
- P7. Ensure spatial and offloading requirements are available at the receiving location.
- P8. Ensure traceability seals and truck seals are maintained for record keeping and traceability.
- P9. Develop and implement receiving protocols for incoming product, including truck record inspection, time, and temperature log verification, truck wash tags, truck seal removal, visual and organoleptic inspection of goods, and shipment count reconciliation.
- P10. Develop and implement reject load protocols for incoming product, including evaluation of specification and purchase order, visual and organoleptic inspection records, time and temperature record evaluation, contract evaluation, and insurance claim requirements.
- P11. Develop and implement record keeping protocols for incoming product, including inventory adjustment, Global Trade Item Number (GTIN) or blockchain tracking, warehouse location tagging, allergen segregation, FIFO (First In, First Out), and stock rotation.
- P12. Train and verify employee compliance with transportation requirements.
Once finished goods are completed, outbound warehousing and distribution must be managed for effective and timely throughput and sale. Different organizations apply different distribution models, whether direct to consumer, direct to retailer, or through distribution and fulfillment centers. Managers evaluate the distribution models and provide cost and data accountability.
Detailed Competencies = Performance indicators include but are not limited to:
- P1. Evaluate the distribution and fulfillment model required by customers.
- P2. Align distribution models to the shelf life and handling requirements of the finished goods.
- P3. Determine requirements for transportation based on quantity, shipping code, TL or LTL configuration, and specialized handling of goods.
- P4. Develop order picking methodology for shipments.
- P5. Verify palletizing and case configuration requirements against customer and transporter specifications.
- P6. Determine shipper’s ability to meet food safety and cross contamination requirements (e.g., Kosher shipping, hygiene, and temperature monitoring).
- P7. Determine shipper’s ability to meet Just-In-Time (JIT) fulfillment for customers.
- P8. Develop and negotiate transportation contracts and handling specifications for food transporters providing outbound services.
- P9. Determine requirements and regulations for cross-border transportation of exports.
- P10. Develop customs and border clearance documentation.
- P11. Ensure spatial and loading requirements are available at the shipping location.
- P12. Ensure trained employees are available at the shipping location.
- P13. Ensure traceability seals and truck seals are maintained for record keeping and traceability.
- P14. Develop and implement shipping protocols for outgoing finished goods, including truck record inspection, time and temperature log verification, seal application, documentation transfer, and shipment count reconciliation.
- P15. Develop and implement returned or rejected load protocols for outbound finished goods, including evaluation of specification and purchase order, visual and organoleptic inspection records, time and temperature record evaluation, wash tags and truck seals, hold and test protocols, contract evaluation and insurance claim requirements.
- P16. Develop and implement record keeping protocols for outbound finished goods, including inventory adjustment, GTIN or blockchain tracking, warehouse location tagging, allergen segregation, FIFO, and stock rotation.
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 products viably and in a cost-effective way. Managers need to build mechanisms to renegotiate price structures based on changing transportation costs.
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 pricing strategy that provides robust ability to withstand transportation price fluctuations.
- P5. Analyze organizational sales and production growth strategy over time.
- P6. Estimate warehousing and transportation requirements for anticipated production increases.
- P7. Periodically review and improve the transportation model.
- P8. Identify warehousing and transportation future needs to meet growth targets.
Availability, safety, and integrity of the food supply chain is dependent on transportation of goods even in the advent of emergency situations. Managers must plan for and respond appropriately to emergencies by establishing protocols to help identify potential hazards, manage risks, and develop contingency plans to minimize impact. Timely and well-managed response to emergencies aids in ensuring the safety and quality of food during transportation, maintaining consumer confidence, as well as national and international market access.
Detailed Competencies = Performance indicators include but are not limited to:
- P1. Identify and evaluate potential internal and external risks and hazards, e.g., natural disasters, accidents, critical infrastructure disruptions, and deliberate acts of contamination or tampering.
- P2. Identify critical control points in the transportation process where hazards can be controlled or eliminated.
- P3. Develop prevention and mitigation activities, e.g., inspection, surveillance.
- P4. Develop emergency response plan to address situations that could impact the transportation goods, including, but not limited to, developing decision making trees or other flow charts, planning for alternative transportation routes, establishing emergency response procedures, and communication plans.
- P5. Train personnel involved in the transportation of goods in emergency preparedness and response procedures, e.g., handling emergencies such as spills, leaks, or accidents during transportation.
- P6. Identify key personnel and stakeholders (internal and external to the facility) involved in the transport of goods and establish contact and rapport.
- P7. Create communication templates covering a variety of potential crisis scenarios prepared for quick editing in the case of an emergency.
- P8. Develop communication system to ensure all stakeholders are informed of any potential risks or emergencies during transportation, including communication between drivers, shippers, suppliers, and customers.
- P9. Monitor and verify emergency preparedness procedures to ensure effectiveness and personnel involved are following procedures.
- P10. Develop and implement record keeping protocols for action reports and after incident reports.
- P11. Establish actions taken after an emergency to re-establish or restore conditions and services to an acceptable level.
- P12. Periodically review and update emergency response plans and implement efforts to identify best practices and areas for improvement, e.g., conducting debriefing and lessons learned sessions with staff who participated in the emergency response.
Managers should establish, implement, and maintain procedures to create and support continuous improvement and sustainable food transportation. This aids in creating a more efficient supply chain and may offer immediate and long-term benefits in terms of environmental, social, and economic sustainability.
Detailed Competencies = Performance indicators include but are not limited to:
- P1. Define Key Performance Indicators for transportation to adopt a continuous improvement culture within the organization.
- P2. Conduct a sustainability assessment of transportation processes to identify areas for improvement.
- P3. Facilitate the modification and update of procedures based on assessment findings.
- P4. Communicate changes internally and externally as needed.
- P5. Maintain records of changes.
- P6. Monitor effectiveness of modifications and actions and adjust as needed.
- P7. Continually improve and update policies, processes, and procedures
- P8. Consider green transportation as part of the organization’s sustainability policies.
Links to existing courses
Approved Accredited Training Programs (Academic, Industries, Private Trainer)
Recognition of worker skills = Certification
Evaluation technics / assessment
- Quizzes
- Written tests
- Multiple choice questions
- Self-assessment and reflection
