Economic Services: Unlocking the World of Economic Services, From Logistics to Innovation

By Fouad Sabry

What is Economic Services

A consumer, business, or government that is willing to pay for an activity or use is said to have procured a service. Some professions that fall into this category are barbers, doctors, lawyers, mechanics, bankers, and insurance company employees, among others. The provision of certain services is under the purview of the public sector. Service providers help service customers by making use of their resources, skills, creative thinking, and years of expertise. Intangible acts or performances by which a service provider satisfies a customer's needs and so earns the customer's loyalty are examples of services.

How you will benefit

(I) Insights, and validations about the following topics:

Chapter 1: Service (economics)

Chapter 2: Logistics

Chapter 3: Subscription business model

Chapter 4: Services marketing

Chapter 5: Windows Management Instrumentation

Chapter 6: Goods

Chapter 7: Customer service

Chapter 8: Switching barriers

Chapter 9: Goods and services

Chapter 10: Value network

Chapter 11: SERVQUAL

Chapter 12: Service delivery platform

Chapter 13: Electronic billing

Chapter 14: Service innovation

Chapter 15: Value proposition

Chapter 16: CDS Global

Chapter 17: Service quality

Chapter 18: Service blueprint

Chapter 19: Third-party logistics

Chapter 20: Service (business)

Chapter 21: Operations management for services

(II) Answering the public top questions about economic services.

(III) Real world examples for the usage of economic services in many fields.

(IV) Rich glossary featuring over 1200 terms to unlock a comprehensive understanding of economic services

Who this book is for

Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of economic services.

• Language: English
• Publisher: One Billion Knowledgeable
• Release date: Nov 7, 2023

Book preview

Chapter 1: Service (economics)

A service is an action or use that a consumer, business, or government is willing to pay for. Examples include barbers, physicians, attorneys, mechanics, banks, and insurance companies, among others. Public services are those for which the entire society (nation, state, fiscal union, or region) pays. Using their resources, expertise, creativity, and experience, service providers benefit their clients. Services are intangible acts or performances whereby the service provider adds value for the client.

A restaurant waiter is an example of a service-related occupation.

There are three key characteristics of services::

Services are intangible by definition. They are not produced, shipped, or stocked.

Services cannot be saved for future use. They are produced and consumed at the same time.

Services are ephemeral in two ways:

During a specific period of time, service-relevant resources, processes, and systems are assigned for service delivery. If the service is not requested and utilized during this time frame, the associated resources may go unused. If there is no other use for those resources, this represents a lost business opportunity for the service provider. Examples: A hairdresser attends to a second client. After takeoff, an empty seat on an airplane cannot be filled.

When the consumer has received the service in its entirety, this service disappears irreversibly. Example: a passenger has arrived at his or her destination.

The service provider must provide the service at the precise moment of consumption. The service does not take the form of an independent physical object. Additionally, the service consumer is integral to service delivery. Examples: The recipient of the service must sit in the barber's chair or the airplane seat. To deliver the service, the hairdresser or pilot must be present in the salon or aircraft, respectively.

Each service is distinctive. Even if the consumer requests the same service, the time, location, circumstances, conditions, current configurations, and/or assigned resources will be different for the subsequent delivery. Numerous services are considered heterogeneous and are typically customized for each service-consumer or service-context. Example: The taxi service that transports the service consumer from home to work differs from the taxi service that transports the same service consumer from work to home – another time, the opposite direction, possibly a different route, and most likely a different taxi-driver and taxi. This is also commonly referred to as heterogeneity.

To expand, a service provider must master the production and distribution of services en masse. This could be considered a problem with service quality. Inputs and outputs of the processes involved in providing services, as well as the relationships between these processes, are highly variable, making it challenging to maintain consistent service quality. With the exception of utilities, most services involve variable human activity rather than a precisely determined process. Human element is frequently the most important success factor in service provision. Demand can vary based on the season, time of day, business cycle, and so on. Consistency is required to establish long-lasting business relationships.

Any service can be precisely, comprehensively, consistently, and succinctly described using standard attributes that adhere to the MECE principle (Mutually Exclusive, Collectively Exhaustive).

Service consumer benefits - (set of) benefits that are enactable, consumable, and effectively usable for any authorized service consumer and are provided upon request. These benefits must be described in consumer-relevant language.

Service-specific functional parameters – parameters that are essential to the respective service and that describe the significant dimension(s) of the servicescape, the service output, or the service outcome, such as whether the passenger is seated in an aisle or window seat.

Service delivery point – the physical location and/or logical interface at which the consumer receives the service's benefits. At this point, the preparation for service delivery can be evaluated, and delivery can be monitored and managed.

Service consumer count – the number of consumers who can consume a service.

Service delivery readiness time – the moments when the service is available and all specified service components are present at the delivery point.

Service consumer support times - when the support team (service desk) is available. Service inquiries are directed to the service desk, which serves as the single point of contact (SPOC). During these times, the service desk is reachable via widely available communication channels (phone, web, etc.)

The language(s) spoken at the service desk.

Service fulfillment target – the provider's promise to deliver the service, expressed as the ratio of the number of successful service deliveries to the number of service requests from a single consumer or consumer group over a specified period of time.

Service impairment duration – the maximum permissible time between the first occurrence of a service impairment and the full resumption and completion of service delivery.

Service delivery duration is the maximum permissible time for effectively delivering all service benefits to the customer.

Service delivery unit – the scope/number of actions that comprise a service that has been delivered. Serves as the object of reference for the Service Delivering Price, for all service costs and for billing and charging.

The amount of money the customer pays to receive a service. Typically, the price comprises a service access fee that allows the consumer to request the service and a service consumption fee for each delivered service.

Coffee house - a type of service delivery

Typically, the delivery of a service involves six factors:

The supplier of a service (workers and managers)

The apparatus utilized to provide the service (e.g. vehicles, cash registers, technical systems, computer systems)

Physical infrastructure (e.g. buildings, parking, waiting rooms)

Service consumer

Other customers at the location of service delivery

Customer contact

All activities involved in the service delivery process constitute the service encounter. Some service managers use the phrase moment of truth to refer to the point in a service encounter where interactions are at their peak.

Many business theorists view service delivery as an act or performance (sometimes humorously referred to as dramalurgy, perhaps in reference to dramaturgy). The location where a service is provided is referred to as the stage, and the objects that facilitate the service process are known as props. A script is a series of actions carried out by all parties, including the client (s). Some service dramas are strictly scripted while others are more improvised. When each actor follows a script that complements the roles of the other actors, there is role congruence.

In certain service industries, particularly health care, dispute resolution, and social services, the caseload refers to the total number of patients, clients, litigants, or claimants for which an employee is responsible. Employees must weigh the needs of each individual case against those of all other active cases and their own.

Under English law, it is a violation of the Theft Act of 1978 if a service provider is tricked into delivering services to a dishonest customer.

In a 2 x 3 matrix, Lovelock classified services based on the number of delivery sites (single or multiple) and the delivery method. When the customer must come to the service location and utilize a single or specific outlet, the convenience of receiving the service is at its lowest. As the number of service points increases, convenience increases (to a point).

Service-Commodity Goods continuum

The distinction between a product and a service is still up for debate. In the late eighteenth and early nineteenth centuries, the emphasis was on the production and acquisition of wealth. Classical economists argued that goods were valuable objects over which property rights could be established and traded. Legal possession of an object that had been acquired through purchase, barter, or gift from the producer or previous owner and was legally identifiable as the current owner's property implied ownership.

The Wealth of Nations, written by Adam Smith and published in 1776, distinguished between the outputs of productive and unproductive labor. According to him, the former produced goods that could be stored and later exchanged for money or other valuable items. The latter, regardless of how useful or necessary, produced services that were non-permanent and therefore did not contribute to wealth. French economist Jean-Baptiste Say, expanding on this theme, argued that production and consumption were inseparable in services and coined the term immaterial products to describe them.

Gustofsson and Johnson describe a continuum with pure service on one end and pure commodity good on the other in the present day. The vast majority of products fall between these two extremes. A restaurant, for instance, provides both a physical good (the food) and services in the form of ambiance, table setting and clearing, etc. And although some utilities, such as water utilities, actually deliver physical goods, utilities are typically regarded as services.

Following is a sector-organized list of service industries. Specific occupations and organizations can be considered service industries to the extent that they provide an intangible service, as opposed to a tangible good, as indicated by the parenthetical notations.

Business capabilities (that apply to all organizations in general)

Consulting

Customer service

Human resources professionals (providing services like ensuring that employees are paid accurately)

Services of cleaning, patronage, repair, and maintenance

Gardeners

Janitorial Staff (who provide cleaning services)

Mechanics

Construction

Carpentry

Electrical Engineers (offering the service of making wiring work properly)

Plumbing

Death care

The coroners (who provide the service of identifying cadavers and determining time and cause of death)

Funeral parlors (who prepare corpses for public display, cremation or burial)

Services for conflict resolution and prevention

Arbitration

Instances of law (who perform the service of dispute resolution backed by the power of the state)

Diplomacy

The practice of incarceration (provides the service of keeping criminals out of society)

Enforcement of law (provides the service of identifying and apprehending criminals)

Counsel are (who perform the services of advocacy and decisionmaking in many dispute resolution and prevention processes)

Mediation

The military (performs the service of protecting states in disputes with other states)

Attempts at (not really a service unless someone is negotiating on behalf of another)

The educational system (institutions offering the services of teaching and access to information)

Library

Museum

School

A divertissement (when provided live or within a highly specialized facility)

Gambling

movie houses (providing the service of showing a movie on a big screen)

Performing arts productions

Sport

Television

Fabric care

Dry cleaning

Laundry

Financial services

Accountancy

Financial institutions and building societies (offering lending services and safekeeping of money and valuables)

Real estate

Stock brokerages

Tax services

Valuation

Foodservice industry

Medical care (all health care professions provide services)

Hospitality industry

Information services

Database services

Data processing

Interpreting

Translation

Logistics

Transport

Warehousing

Stock management

Packaging

Personal grooming

Body hair removal

Dental hygienist

Hairdressing

Manicurist / pedicurist

Public utility

Electric power

Natural gas

Telecommunications

Waste management

Water industry

Risk management

Insurance

Security

Social services

Social work

Childcare

Elderly care

Below is a list of nations by nominal service output at market exchange rates in 2018.

{End Chapter 1}

Chapter 2: Logistics

The efficient forward and reverse flow of goods, services, and related information from the place of origin to the site of consumption in accordance with customer needs is the focus of logistics, a subset of supply chain management. The resources controlled in logistics may include consumables like food and other consumables as well as real products like materials, equipment, and supplies.

In addition to the movement of the troops themselves, sustaining army supply lines with food, weapons, ammunition, and spare components is a problem of military logistics. Civil logistics, on the other hand, deals with the purchase, transportation, and storage of raw materials, semi-finished commodities, and finished goods. Logistics issues must be resolved for businesses that offer services including waste collection, postal delivery, public utilities, and after-sales support.

Dedicated simulation software can model, evaluate, visualize, and optimize the complexity of logistics. A common motivation in all logistics disciplines is to minimize the utilization of resources. A logistician is a specialist in the subject of logistics management.

The word logistics first appears in English in 1846, This is a translation of logistique, where Swiss military officer and author Antoine-Henri Jomini either invented or made it popular, who defined it in his Summary of the Art of War (Précis de l'Art de la Guerre).

The phrase can be found in the 1830 edition, the Analytic Table thereupon (Tableau Analytique), and Jomini adds that it is a French-derived word. logis, lit. 'lodgings' (cognate to English lodge), in the terms French: maréchal des logis, lit. 'marshall of lodgings' and French: major-général des logis, lit. 'major-general of lodging':

Autrefois les officiers de l’état-major se nommaient: maréchal des logis, major-général des logis; de là est venu le terme de logistique, qu’on emploie pour désigner ce qui se rapporte aux marches d’une armée.

Prior to the term logistics, which we use to describe people in charge of an army's operation, the general staff officers were known as marshall of lodgings and major-general of lodgings..

The phrase is attributed to Jomini, and Georges de Chambray wrote about it in 1832, criticizing both the phrase and its derivation:

Logistique: Ce mot me paraît être tout-à-fait nouveau, car je ne l'avais encore vu nulle part dans la littérature militaire.

… il paraît le faire dériver du mot logis, étymologie singulière …

Logistic: This word seems to be brand-new to me, since I have yet to come across it in any military book.

… he appears to derive it from the word lodgings [logis], a peculiar etymology …

Chambray also notes that the term logistique was present in the Dictionnaire de l'Académie française as a synonym for algebra.

The present mathematical phrase is homonymous with the French word logistique., from Ancient Greek: λογῐστῐκός, romanized: logistikós, a conventional Greek mathematics division; The logistic phrase in logistic growth and related terminology is probably derived from the mathematics term.

As an alternative, some publications cite this as the logistics' source, either unaware that Jomini said it was derived from logis, or doubtful, opting to believe that it actually had Greek roots, or inspired by the currently used Greek phrase.

Jomini's initial definition of logistics was:

..

l'art de bien ordonner les marches d'une armée, properly combining the troop orders in the columns, les tems [temps] de leur départ, leur itinéraire, les moyens de communications nécessaires pour assurer leur arrivée à point nommé ..

The art of carefully planning an army's operations, including how the troops are arranged in columns, when they leave, where they go, and the channels of communication they need to use to get there.

Logistics is described as the branch of military science concerned to obtaining, maintaining and conveying material, troops and facilities in the Oxford English Dictionary. However, the Oxford Dictionary online and the New Oxford American Dictionary both define logistics as the thorough organization and implementation of a large operation and the coordination of a complex activity involving numerous personnel, facilities, or supplies, respectively. As a result, logistics is sometimes viewed as an engineering discipline that develops human systems as opposed to machine systems..

Logistics, which includes inbound, outbound, internal, and external movement, is the process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods, including services, and related information from the point of origin to the point of consumption with the goal of conforming to customer requirements, according to the Council of Supply Chain Management Professionals (previously the Council of Logistics Management). These concepts could all experience semantic shift as a result of advertising.

The three basic categories of logistics activities are order processing, inventory management, and freight transportation. Order processing used to be a laborious procedure that took up to 70% of the time needed to complete an order. The availability of supplies can now be monitored in real-time, and orders from customers can be swiftly delivered to the seller thanks to new technology including bar code scanning, computers, and network connections. Keeping an inventory serves to improve customer service while lowering overall logistical costs. Having a supply of finished goods on hand can handle the erratic nature of customer needs while reducing the frequency of transportation to and from the customers. However, keeping an inventory necessitates warehouse upkeep and capital investments in finished goods. Most of the costs associated with maintaining a warehouse go toward storage and order picking. The main component of logistics is freight transportation, which opens up a variety of markets by enabling the delivery of goods hundreds or even thousands of kilometers away. Two-thirds of logistical expenses go toward freight transportation, which has a significant influence on customer service. Warehouse management and transportation regulations are interwoven.

One of the main logistics processes, inbound logistics, focuses on procuring and planning the inbound transportation of raw materials, parts, or unfinished stock from suppliers to manufacturing or assembly facilities, warehouses, or retail establishments.

The process of storing, transporting, and transferring information from the end of the manufacturing line to the final consumer is known as outbound logistics.

Given the services that logisticians provide, the primary areas of logistics can be divided into the following groups::

Procurement logistics

Distribution logistics

post-purchase logistics

Disposal logistics

Reverse logistics

Green logistics

Global logistics

Domestics logistics

Concierge service

dependability, accessibility, and maintenanceability

Asset control logistics

Logistics of materials used at checkout

Emergency logistics

Production logistics

Construction logistics

Capital project logistics

Digital logistics

Humanitarian logistics

Market analysis, requirements planning, make-or-buy decisions, supplier management, ordering, and order managing are a few of the tasks that make up procurement logistics. The goals of procurement logistics may be in conflict, such as optimizing efficiency while focusing on core competencies, outsourcing while preserving corporate autonomy, or lowering prices while enhancing supply chain security.

The steps necessary to set up or create a plan for logistics operations are known as advance logistics.

Technically speaking, global logistics is the process of controlling the flow of goods via a supply chain from the point of production to other locations on the planet. This frequently calls for a multimodal transportation system, including transportation by truck, rail, and water. The Logistics Performance Index measures the efficiency of global logistics.

Delivering finished goods to customers is one of the key duties of distribution logistics. It comprises of shipping, warehousing, and order processing. Logistics for distribution are required since the timing, location, and volume of production and consumption are not the same.

Reducing logistics costs and improving services relating to the disposal of garbage generated during business operations are the primary goals of disposal logistics.

All the procedures involving the recycling of goods and resources are referred to as reverse logistics. The management and sale of excess inventory as well as the return of goods from customers to vendors are all included in the reverse logistics process. It is the method of organizing, carrying out, and managing the cost-effective flow of raw materials, inventories used during production, finished items, and associated data from the point of consumption to the point of origin in order to recover value or dispose of the resources properly. In order to capture value or dispose of products properly, goods are moved from their usual final destination through the process of reverse logistics. Forward logistics is the antithesis of reverse logistics.

Green logistics refers to all initiatives made to gauge and lessen the environmental impact of logistics operations. All actions of the forward and reverse flows are included in this. Intermodal freight transportation, route optimization, vehicle saturation, and city logistics can all help with this.

Due to its focus on highly complex technological systems for which dependability, availability, and maintainability are crucial, such as weapon systems and military supercomputers, RAM logistics (see also Logistic engineering) mixes business logistics and military logistics.

Asset control logistics: Businesses in the retail channels frequently deploy the assets necessary for the display, preservation, and promotion of their products. Organized retailers and suppliers are no exception. Refrigerators, stands, display monitors, seasonal equipment, poster stands, and frames are a few examples.

The logistics, supply chain, and manufacturing sectors use the phrase emergency logistics (or humanitarian logistics) to refer to particular time-sensitive means of transportation that are utilized to deliver items quickly in an emergency. The means to achieve customer response and capital efficiency are provided by production logistics. The importance of production logistics increases as batch sizes get smaller. The short-term objective in many businesses (such as mobile phones) is a batch size of one, allowing even a single customer's demand to be efficiently met. Due to concerns about product safety and dependability, track and trace is increasingly becoming more and more important, particularly in the automotive and medical sectors.

Civilizations have used construction logistics for thousands of years. As diverse human civilizations strived to create the best structures for safety and habitation. Construction logistics are now recognized as being essential. Within the discipline of supply chain management and logistics, construction logistics has recently become a distinct area of knowledge and study.

The following are the seven R's of the Seven R's, a concept often used to enforce best practices in logistics management:

proper product (including the right information about it)

(At) the proper dosage

Right time

Right condition

Right place

(to the appropriate client)

Having the appropriate financial resources

Since an armed force without supplies and transportation is vulnerable, maintaining one's supply lines while damaging those of the adversary is a crucial—some would argue the most crucial—element of military strategy. The historical commanders Alexander the Great, the Duke of Wellington, and Hannibal are regarded as logistical masterminds: Alexander gave careful consideration to the supply of his army, which greatly benefitted his campaign, Because of their extensive demand for logistical solutions, militaries have created sophisticated implementations. The discipline of integrated logistics support (ILS) is employed in the military industry to guarantee a readily maintainable system with a strong customer service (logistic) concept at the lowest cost and in compliance with the project's (often strict) reliability, availability, maintainability, and other requirements.

Logistics officers oversee when and how to move resources to where they are needed in the military.

Military logistics frequently uses supply chain management to forecast costs, wear and tear, consumption, and future demand. The categorical supply classification used by the United States Armed Forces was created in a method that groups supply categories with comparable consumption factors together for planning. While other kinds of supplies, including nutrition and clothing, maintain a reasonably steady consumption rate regardless of war or peace, ammunition and fuel usage, for example, will be significantly lower in peacetime than it will be in wartime.

Some supply categories exhibit a linear relationship between supply and demand, meaning that as troops are added, more supply items are required. Similarly, when equipment is used, more fuel and ammunition are consumed. Other types of supply must take into account time as a third factor in addition to usage and quantity. Even when usage and quantity remain constant, repair parts requirements increase as equipment gets older. The US Armed Forces can accurately provide troops with the supplies they need at the exact time they are needed by observing and evaluating these trends throughout time and applying them to hypothetical future situations. History has demonstrated that a lean and effective fighting force is produced by careful logistical planning. A lack of it might result in a force that is slow, unprepared, and has too much or too little supply.

The phrase having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right client appears in one definition of business logistics. All industrial sectors are included in business logistics, which strives to manage the completion of project life cycles, supply chains, and resulting efficiency.

Due to the complexity of supplying firms with resources and shipping out products in an increasingly worldwide supply chain, the phrase business logistics has changed since the 1960s, and supply chain logisticians are now in demand.

In business, logistics can focus on either the internal flow of materials from the point of origin to the point of consumption (inbound logistics) or the external movement of materials from the point of origin to the point of consumption (outbound logistics) (see supply-chain management). Inventory management, purchasing, shipping, warehousing, consultation, and the arranging and planning of these activities are among the primary responsibilities of a trained logistician. To coordinate resources inside a company, logisticians integrate their expert understanding of each of these roles.

There are two types of logistics, each of which serves a fundamentally different purpose: one coordinates a series of resources to complete a project, while the other optimizes a steady flow of materials across a network of transit links and storage nodes (e.g., restructuring a warehouse).

To transport consumer or industrial items from manufacturers to a customer, a distribution network would need a number of middlemen. Although intermediaries would mark up product prices throughout distribution, users would gain since they would pay less for transportation than the makers. Depending on the kinds of items being supplied, a distribution network may need one or many middlemen. For instance, consumer items like cosmetics and handicrafts might not need any middlemen since they can be bought or sold door to door or at nearby flea markets. Because producers can sell a large number of products to a consumer, middlemen are not required for industrial items like raw materials and equipment. There are typically three different categories of intermediaries: agent/broker, wholesaler, and retailer.

A distribution network's nodes consist of:

factories that produce goods or assemble them

A depot or deposit is a common style of warehouse used to store goods (high level of inventory)

Distribution facilities for processing orders, completing orders (lower level of inventory), and receiving client returns. Distribution centers typically serve as transition points for goods before being sent farther along the supply chain. They typically don't deliver inventory to clients directly, as fulfillment centers do.

Transit locations for cross-docking operations, which involve reassembling cargo units depending on planned deliveries (only moving merchandise)

Traditional mom-and-pop retail establishments, contemporary supermarkets, hypermarkets, cheap retailers, as well as cooperative chains and groupings of consumers with a lot of buying power. Keep in mind that franchisers truly own the point of sale even when they use other companies' brands and subsidiaries that are primarily owned by another company.

A logistic family is a group of products with a common feature, such as weight and volumetric characteristics, handling requirements, order frequency, package size, physical storing requirements (temperature, radiation, etc.). The corporation may classify its items into various families using the following metrics:

Stocking capacity, selectivity, superficial usage, volumetric use, transport capacity, and transport capacity use are physical measures used to evaluate inventory systems.

Financial measures used include handling expenses and space holding costs (building, shelves, and services) (people, handling machinery, energy, and maintenance).

Other measures, like the typical inventory turnover, may appear in both physical and monetary form.

Unit loads are collections of separate products that are transported using handling equipment, typically on a pallet with standard dimensions.

Trans-pallet handlers, counterweight handlers, retractable mast handlers, bilateral handlers, trilateral handlers, AGVs, and other handlers are examples of handling systems.

Pile stocking, mobile or stationary cell racks, cantilever racks, and gravity racks are examples of storage solutions.

It is possible to pick manually or automatically. Man-to-goods manual picking, when an employee uses a cart or conveyor belt, and goods-to-man manual picking, where an employee takes advantage of the existence of a mini-load ASRS, a vertical or horizontal carousel, or an automatic vertical storage system (AVSS). Robotic depalletizing devices or dispensers are used for automatic picking.

Sorting can be done automatically using sorters or manually with carts and conveyor belts.

Transportation costs may be reduced by combining minor shipments into larger shipments. Facility consolidation, multi-stop consolidation, and temporal consolidation are the three approaches that can be used to accomplish this. Transporting little shipments over short distances and large shipments over long distances makes use of the economy of scale in facility consolidation. When delivering less-than-truckload, multi-stop consolidation makes several stops to combine tiny goods. By moving the shipping dates forward or backward, temporary consolidation creates a single, large cargo rather than a series of smaller ones throughout time.

The organization of cargo is possible into various shipment types. The majority of the time, unit loads are put together into more standardized units like ISO containers, swap bodies, or semi-trailers. Product transportation will probably benefit from using many modes of transportation, especially for very long distances: The usual restrictions on shipping freight are maximum weight and volume.

All companies that operate trains, roads, boats, airplanes, courier services, freight forwarders, and multi-modal transport are considered operators in the transportation industry.

In most cases, the International Chamber of Commerce's Incoterms regulations apply to goods being transported abroad.

A logistical system is created in the logistics industry at the lowest possible cost depending on the required quality of customer service. Sales increased along with the quality of the service. More sales are taken from rival providers as the service is progressively improved. After these, further improvements in customer service standards only slightly boost sales. Similar to MRP, distribution resource planning (DRP) focuses on planning distribution rather than network node operations when transferring commodities over the network's links.

In the past, logistics configuration could have occurred at the level of the distribution system or the level of the warehouse (node) (network).

In terms of a single warehouse, configuration entails resolving a number of interconnected technical-economic issues, in addition to the issue of designing and constructing the warehouse: dimensioning rack cells, selecting a palletizing method (manual or using robots), rack dimensioning and design, number of racks, and number and typology of retrieval systems (e.g. stacker cranes). Fork and load beam resistance to bending and adequate sprinkler placement are two significant restrictions that must be met. Picking, though more of a tactical planning decision than a configuration problem, should be considered when choosing the layout of the racks inside the warehouse and purchasing tools like handlers and motorized carts because once those decisions are made, they will act as constraints when managing the warehouse. Sorting should also be considered when designing the conveyor system or installing automatic dispensers.

Configuration at the distribution system level largely addresses the issues of node placement in relation to geography and capacity distribution among nodes. The former is sometimes referred to as capacity allocation, while the former is sometimes referred to as facility location (with the exception of site selection). Since a supply chain's nodes are almost never held by a single company, outsourcing problems frequently start here. Numbers of levels, specifically the number of intermediary nodes between the provider and consumer, can be used to describe distribution networks:

Zero levels, or direct store delivery

network at one level: a central warehouse

Warehouses on two levels: the centre and periphery

Considering a two-level network, if safety inventory is kept only in peripheral warehouses, it is referred to as a dependent system (from suppliers), whereas if safety inventory is distributed among central and peripheral warehouses, it is referred to as an independent system. This distinction is more useful for modeling purposes, but it also relates to a tactical choice regarding safety stocks (from suppliers). Primary transportation refers to moving goods from a producer to the second level, and secondary transportation refers to moving goods from the second level to a customer.

Despite the possibility of setting up a distribution network from scratch, logisticians typically have to deal with restructuring existing networks due to a variety of factors: shifting demand, product or process innovation, outsourcing opportunities, shifting government policy regarding trade barriers, innovation in transportation means (both vehicles and thoroughfares), the introduction of regulations (particularly those regarding pollution), and the availability of ICT support (e.g. ERP or e-commerce).

Once a logistic system has been set up, tactical decisions are once again made at the level of the distribution network and the warehouse. A set of limitations must be considered when making decisions: internal, such making use of the infrastructure already in place, or external, like adhering to the specified product shelf lives and expiration dates.

The logistician must choose how to distribute the goods over the racks at the warehouse level. Traditional considerations include shared storage, dedicated storage (rack space set aside for particular goods), and class-based storage (class meaning merchandise organized in different areas according to their access index).

The effectiveness of picking varies tremendously depending on the circumstance. High-level picking (vertical component significant) and low-level picking are distinguished for a man-to-goods scenario (vertical component insignificant). Regarding picking, several tactical choices must be made:

Routing path: common possibilities include biggest gap return routing, transversal routing, return routing, and midpoint routing.

Standard alternatives for replenishment include equal space supply and equal time supply for each product class.

Order picking vs. batch picking in picking logic

Tactical choices primarily concern supply path optimization and inventory control at the distribution network level. Keep in mind that the logistician could have to manage both the forward and reverse flows.

Warehouse management systems (WMS) and warehouse control systems (WCS) can differ dramatically, despite considerable functional overlap (WCS). Simply put, a WMS forecasts weekly activity based on statistics and patterns, but a WCS works like a floor supervisor in real-time to complete tasks as efficiently as possible. For instance, a WMS may inform the system hours in advance that it will require five stock-keeping units (SKU) A and five SKU B, but by the time it takes action, other factors may have been taken into account or there may be a conveyor backlog. Working in real-time and reacting to the circumstance by making a last-minute decision based on current activity and operational condition, a WCS can avoid such issue. WMS and WCS can alleviate these problems and increase efficiency for businesses that depend on the smooth running of their warehouse or distribution center by collaborating.

Relationships between businesses and LSPs (logistic service providers) are involved in logistics outsourcing. Compared to basic logistics services, LSPs' offerings are more customized, they cover a wide range of service activities, they are known for their long-term orientation, and they have a strategic focus.

Externalization to an LSP does not have to be full-scale; it can also be partial:

a single agreement for the occasional provision of a certain service

establishing a spin-off

establishing a cooperative venture

Third-party logistics (3PL) is working with external companies to carry out logistics tasks that have typically been done within an organization.

A fourth-party logistics (4PL) provider is an integrator who brings together the resources, planning abilities, and technology of its own organization and other organizations to design, build, and manage comprehensive supply chain solutions, according to the definition given by Andersen Consulting (now Accenture). A 4PL service provider aims to handle the whole process, as opposed to a third-party logistics (3PL) service provider, who focuses on managing a specific function. A general contractor who oversees other 3PLs, truckers, forwarders, custom house agents, and others has been labeled as a 4PL by some. In essence, a 4PL assumes responsibility for the entire process for the client.

Horizontal business partnerships, or the collaboration between two or more logistics firms that may compete, are common among logistics service providers.

Automation of logistics refers to the use of computer software or automated equipment to boost the effectiveness of logistical operations. Typically, this pertains to operations within of a warehouse or distribution center, while supply chain engineering systems and enterprise resource planning systems handle more extensive responsibilities.

Typically, industrial machinery can identify products using RFID or barcode technologies. Traditional bar codes carry information as a series of varying-width black and white bars, which, when scanned by a laser, are translated into a digital sequence that, in accordance with predetermined principles, can be turned into a decimal number or other data. Radio frequency transfer of data in a bar code is occasionally possible; RFID tags commonly use radio transmission. An RFID tag is a card with an antenna and memory chip that sends signals to a reader. RFID can be found on goods, animals, cars, and even people.

A professional who practices logistics is called a logistician. Professional organisations frequently certify logisticians in the industry. Either the logistics division of a business or a company's shipping line, airport, or freight forwarder are viable options for employment. However, as was already said, the topic of logistics is extensive and includes operations related to production, distribution, and disposal. Consequently, there are several job options available. 4PL firms, consulting organizations that provide logistics services, are a recent development in the market.

Some academic institutes train students to become logisticians, providing programs at the undergraduate and graduate levels.

A university with a primary focus on logistics is Kühne Logistics University in Hamburg, Germany.

It is non-profit and supported by Kühne-Foundation of the logistics entrepreneur Klaus Michael Kühne.

A Royal Charter was granted to the Chartered Institute of Logistics and Transport (CILT), which was founded in the UK in 1919. One of the organizations or professional bodies for the logistics and transportation industries that grants professional certifications or degrees in logistics management is the Chartered Institute. CILT courses are available to take at several locations across the UK, some of which also provide remote learning options. around Hong Kong. Numerous institutions and professional organizations like CILT provide Logistics Management degrees in the UK. Typically, postgraduate level courses are offered in these programs.

A research tank for the industry, the Global Institute of Logistics was founded in New York in 2003 and focuses mostly on intercontinental marine logistics. Container logistics and the function of the seaport authority in the maritime logistics chain are of particular relevance.

Supply chain managers and other professionals working in the fields of public health logistics and commodity security are encouraged to join the International Association of Public Health Logisticians (IAPHL), a professional network with a focus on developing nations, to advance their professional development. The association helps logisticians all across the world by offering a community of practice where members may connect, share ideas, and advance their careers.

Another important concern for the logistics sector is environmental sustainability. The demand on logistics companies to lessen their environmental impact is growing as transportation contributes significantly to global greenhouse gas emissions. Due to this, alternative fuels like electric and hydrogen-powered vehicles have been developed, and renewable energy sources are now used in logistics facilities.

The world is home to a wide variety of practical logistics-related museums. These comprise transportation, customs, packing, and logistics-based industry museums. But only these museums are solely devoted to logistics::

General logistics

Industrial Museum (Saint Petersburg, Russia)

Collection of Logistics (Tokyo, Japan)

Chinese University of Logistics, Beijing (Beijing, China)

Military logistics

Museum of the Royal Logistic Corps (Surrey, England, United Kingdom)

The Museum of Canadian Forces Logistics (Montreal, Quebec, Canada)

Industrial Museum (Hanoi, Vietnam)

{End Chapter 2}

Chapter 3: Subscription business model

For access to a product or service, the subscription business model requires customers to pay a recurring fee at regular intervals. In the 17th century, publishers of books and periodicals and pharmaceutical companies in partnership with the government pioneered the model.

A subscription offers periodic (daily, weekly, bi-weekly, monthly, semi-annual, yearly/annual, or seasonal) use or access to a product or service, or, in the case of performance-oriented organizations such as opera companies, tickets to the entire run of some set number (e.g., five to fifteen) of scheduled performances for an entire season. Thus, a one-time sale of a product can lead to repeat sales and brand loyalty.

Mail order book sales clubs and music sales clubs, private web mail providers, cable television, satellite television providers with pay television channels, providers of digital catalogs with downloadable music or eBooks, satellite radio, telephone companies, mobile network operators, internet providers, software publishers, websites (e.g., blogging websites), business solutions providers, financial services firms, and health clubs use this model.

A subscription can be renewed on a periodic basis and activated automatically so that the cost of a new period is automatically charged to a credit card or checking account. The freemium model is a common variation of the model in online games and on websites, in which the first tier of content is free but access to premium features (such as game power-ups or article archives) is restricted to paying subscribers.

There are various types of subscriptions: to

A subscription for a set of fixed goods or services.

There are numerous types of subscriptions to periodicals, such as a newspaper or magazine:

Paid circulation

Unremunerated circulation

Controlled circulation

Subscription boxes include an assortment of consumable items.

Community-supported farming

Meal delivery service

Meal delivery service for meal kits

An unlimited subscription to a service or collection of services. Usage may be personal and nontransferable, for a family, or, under certain conditions, for a group utilizing a service simultaneously. In the publishing industry, a discounted subscription to multiple journals is referred to as a big deal..

Software delivered as a service

A pay-as-you-go subscription in which periodic purchases of a product are made. This model is also known as the convenience model because it is convenient for the customer to not have to remember to go find and purchase the product on a regular basis. Companies like Dollar Shave Club, Birchbox, and OrderGroove popularized this model. In response to their success, numerous other retailers have begun to offer subscription-based services.

A company's subscription to a rail pass, for instance, may not be personalized but may allow all of its employees to use the service. This type of subscription is uncommon for products with an unlimited supply and many luxury services.

A subscription for basic access or minimal service in addition to a usage-based additional fee. The monthly fee for a basic telephone service is predetermined, but additional fees may apply for long-distance calls, directory services, and pay-per-call services. This business model is commonly referred to as Freemium when the basic service is provided at no cost.

A subscription service for crowdfunding content creators online. Fans can interact with the content creator and send them tips, but they also have access to premium content. Examples include Patreon and OnlyFans.

The subscription model in publishing typically involves a Paywall, Paysite, or other pay-to-access system (named in opposition to open access). As revenues from digital advertising decline, more publishers favor the paid subscription model as a relatively stable source of revenue.

In the field