Term
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Definition
| refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless operation in which merchandise in produced and distributed in the right quantities, to the right locations, and at the right time as well as to minimize system wide costs while satisfying the service levels their customers require |
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Term
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Definition
| the set of institutions that transfer ownership of and move goods from the point of production the the point of consumption; consists of all the institutions and marketing activities in the marketing process |
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Term
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Definition
| describes the integration of two or more activities for the purpose of planning, implementing, and controlling the efficient flow of raw materials, in-process inventory, and finished goods from the point of origin to the point of consumption |
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Term
| How does the supply chain add value? |
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Definition
| each step the product must go through is being further specialized and more readily available for customers, making it more valuable |
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Term
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Definition
| customers to stores, store to buyers, buyer to manufacturer, store to manufacturer, store to distribution center, manufacturer to distribution center and buyer |
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Term
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Definition
| purchasing data goes into a huge database, is stored in the warehouse and is accessible on various dimensions and levels (think rubix cube) |
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Term
| electronic data interchange (EDI) |
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Definition
| the computer-to-computer exchange of business documents from a retailer to a vendor and back (EDIs). Allows vendors to transmit information about on-hand inventory status, promos, and cost changes to the retailer |
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Term
| vendor-managed inventory (VMI) |
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Definition
| an approach for improving supply chain efficiency in which the manufacturer is responsible for maintaining the retailer's inventory levels in each of its stores |
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Term
| EDI provides 3 main benefits to supply chain members: |
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Definition
| reduces the cycle time; improves the overall quality of communication through better record keeping; the data transmitted are in computer-readable format that can be easily analyzed |
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Term
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Definition
| the manufacturer owns the merchandise until it is sold by the retailer, at which time the retailer pays for the merchandise |
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Term
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Definition
| orders for merchandise are generated at the store on the basis of sales data captured by POS terminals. Less likelihood of being overstocked or out of stock because the orders are on the basis of consumer demand |
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Term
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Definition
| merchandise is allocated to stores on the basis of forecasted demand. Efficient for merchandise that is more steady, predictable demand |
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Term
| Advantages to a distribution center? |
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Definition
| more accurate sales forecasts; enable the retailer to carry less merchandise in the individual stores; easier to avoid running out of stock; retail store space is typically more expensive |
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Term
| distribution center does what? |
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Definition
| coordinates inbound transportation; receiving, checking, storing, and cross-docking; getting merchandise "floor-ready"; and coordinating outbound transportation |
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Term
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Definition
| the process of recording the receipt of merchandise as it arrives at the distribution center |
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Term
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Definition
| the process of going through the goods upon receipt to make sure they arrived undamaged and that the merchandise ordered was the merchandise arrived |
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Term
| radio frequency identification (RFID) tags |
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Definition
| tiny computer chips that automatically transmit to a special scanner all the information about a container's contents or individual products |
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Term
| cross-docking (shipments) |
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Definition
| cartons that are prepackaged by the vendor for a specific store |
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Term
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Definition
| cartons are transported by a conveyor system and forklift trucks to racks that go from the distribution center's floor to its ceiling |
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Term
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Definition
| ticketing, marketing, hangers, sensors |
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Term
| Just-in-Time inventory systems |
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Definition
| inventory management systems designed to deliver less merchandise on a more frequent basis that traditional inventory systems |
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Term
| Strategic/Partnering relationships |
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Definition
| the supply chain members are committed to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial. |
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Term
| What does strategic relationships consist of? |
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Definition
| mutual trust; open communication; common goals; interdependence; credible commitments |
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