Term
|
Definition
| facility used to store purchases, work in process, and finished goods inventory |
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Term
| warehouse management decisions |
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Definition
| site selection, # of warehouse facilities in network, layout of the warehouse, methods and practices |
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Term
| primary functions of a warehouse |
|
Definition
| receiving, storage, picking, packing, shipping |
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Term
| secondary functions of a warehouse |
|
Definition
| quality inspections, repackaging, assembly operation |
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Term
| types of warehouse ownership |
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Definition
| public, contract, private |
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Term
|
Definition
| consolidation, break bulk, cross docking |
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Term
|
Definition
| business that provides storage and related warehouse functions to companies on a short or long term basis, generally from month-to-month |
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Term
| public warehouse advantages |
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Definition
| no capital investment or property taxes, flexibility, lower costs and reduced risk, access to special features and services |
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Term
| public warehouse disadvantages |
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Definition
| potential for incompatible computer systems, specialized services may not be what is required/needed, space may not be available when/where needed |
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Term
|
Definition
| variation of public warehousing that handles the shipping, receiving, and storage of goods on a contract basis |
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Term
| contract warehouse advantages |
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Definition
| client can obtain specialized services tailor-made to suit their needs, lower cost for long term/bundle, degree of control at a good price |
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Term
| contract warehouse disadvantage |
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Definition
| client company is expected to enter into a contract for a specific period of time; generally 3 years |
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Term
|
Definition
| owned by the company that owns the goods being stored in the facility |
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Term
| advantages of private warehouse |
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Definition
| greater flexibility in designing the warehouse and gives users significant control over operations; greater visibility and supervision; operating cost can be 15-25% lower if company achieves 75% utilization |
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Term
| disadvantages of private warehouse |
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Definition
| high start-up cost- capital to build or buy warehouse; not easy to move to another location if market changes; when volume is low, company still pays fixed cost |
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Term
|
Definition
| receives product from plants then combines them with shipments from other pants for further distribution |
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Term
|
Definition
| divides full truck loads for seperate shipments |
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Term
|
Definition
| transfers from inbound to outbound carrier without storing the goods inbetween, central location |
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Term
|
Definition
| relationship between and # of warehouses a company has in their organizational structure |
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Term
| single warehouse in a network |
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Definition
| less complicated, operating and inventory consts are lower, no duplication of equipment or staff, centralized network |
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Term
| multiple warehouses in a network |
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Definition
| faster delivery to customers that are dispersed, more complicated, higher operating and inventory cost |
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Term
| hybrid warehouses in a network |
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Definition
| "hub-and-spoke" - on main (hub) and multiple smaller locations (spokes). majority of inventory is in hub, and dispersed to spokes when necessary, low operating costs, lower inventory, better customer service |
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Term
| warehouse network strategies |
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Definition
| market positioned strategy, product positioned strategy, intermediately positioned strategy |
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Term
| market positioned warehouse network strategy |
|
Definition
| close to customers to maximize distribution services and delivery |
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Term
| product positioned warehouse network strategy |
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Definition
| close to supply source to collect goods and consolidate before shipping products out to customers |
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Term
| intermediately positioned warehouse network strategy |
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Definition
| midway between supply source and customers, when distribution requirements are high and product comes from various locations |
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Term
|
Definition
| eliminates waste to create value- cross docking, reducing lot sizes and shipping quantities, increased automation, green warehousing |
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Term
|
Definition
| outsourced logistics provider that manages an organizations logistics requirements, is favored by small businesses |
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Term
|
Definition
| cost efficiency, logistics expertise, fast service and lower overhead |
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Term
|
Definition
| control, dependency, pricing |
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Term
|
Definition
| an interface between the client company and multiple logistics service providers- 4PLs manage 3PLs |
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Term
|
Definition
| function of planning, scheduling, and controlling activities related to the mode, carrier, and movement of inventories |
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Term
| objectives of transportation |
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Definition
| maximize value to the company through price negotiations, make sure service is provided effectiely, satisfy customers' needs |
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Term
| transportation company classifications |
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Definition
| contract carriers, private carriers, common carriers, exempt carriers |
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Term
|
Definition
| transports freight under contract to shippers |
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Term
|
Definition
| company transports their own cargo |
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Term
|
Definition
| can be hired by anyone to transport goods |
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Term
|
Definition
| specialized company transporting services, exempt from regulation by Interstate Commerce Act |
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Term
|
Definition
| truck, rail, air, pipeline, water |
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Term
|
Definition
| combinations of multiple modes of transportation |
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Term
|
Definition
| most flexible, carries > 80% of freight, carries most things |
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Term
|
Definition
| most capability, slow, inflexible, carries very heavy/bulky shipments |
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Term
|
Definition
| fastest, used for light weight and high value goods over long distances |
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Term
|
Definition
| least expensive, very slow and inflexible, carries bulky heavy low value materials |
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Term
|
Definition
| lowest per unit cost of transportation, can only carry limited goods (liquids, gases), most reliable |
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Term
|
Definition
| deregulation -> prices are negotiated; regulation protects consumers from monopoly pricing |
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Term
|
Definition
| delivery and payment terms agrees between a buyer and a seller |
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Term
|
Definition
| title passes to buyer upon shipment |
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Term
|
Definition
| title passes to buyer upon delivery |
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Term
| interstate commerce act of 1887 |
|
Definition
| created the interstate commerce commission |
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Term
| ICC Termination Act of 1995 |
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Definition
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Term
| regulation of transportation pros |
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Definition
| assures adequate transportation service throughout the country and protects consumers from monopoly pricing, safety, and liability |
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Term
| regulation of transportation cons |
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Definition
| discourages competition and does not allow prices to adjust based on demand or negotiation |
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Term
|
Definition
| encourages competition and allows price to adjust to demand and negotiations |
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Term
| transportation intermediaries |
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Definition
| freight forward, transportation broker, shippers association, intermodal marketing company |
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Term
|
Definition
| consolidates LTL shipments into FTL shipments |
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Term
|
Definition
| bring shippers and carriers together |
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Term
|
Definition
| nonprofit cooperatives which arrange for members' shipping |
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Term
| intermodal marketing company |
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Definition
| purchase blocks of rail capacity and sell it to shippers |
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Term
| tech and trends in transportation |
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Definition
| driver monitoring, traffic coordination, safety tech, platooning, new concept trucking, vertically folding shipping containers, driverless trucks, drones |
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Term
| logistics management software applications |
|
Definition
| warehouse, transportation and global trade management systems |
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Term
| warehouse management system |
|
Definition
| track and control the flow of goods from receiving dock to outbound shipment |
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Term
| transportation management system |
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Definition
| used to select the best mix of transportation services and pricing |
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Term
| global trade management systems |
|
Definition
| provides global visibility, standardization, and documentation to comply with international trade regulations |
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Term
|
Definition
| process of moving a product from the customer receipt back to the point of origin to recapture value or ensure proper disposal |
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Term
| how much more does reverse logistics cost than forward logistics? |
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Definition
| 4-5x more with 12x as many steps |
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Term
| five R's of reverse logistics |
|
Definition
| returns, recalls, repairs, repackaging, recycling |
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|
Term
| reverse logistics problems |
|
Definition
| inability of information systems to handle returns, lack of worker training in reverse logistics procedures, little or no identification on returned packages, need for adequate inspection and testing of returns, danger of placing returned products back into sales stocks |
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Term
|
Definition
| goods distributed to downstream members in the supply chain with the understanding that the goods ma be sold returned for credit if not sold |
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Term
| green reverse logistics program |
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Definition
| impact environment through recycling, reusing, or refurbishing products |
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Term
| global location decisiond |
|
Definition
| what type of facility, where in the world, and what markets that facility serves |
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Term
|
Definition
| offshore, source, server, contributor, outpost, lead |
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Term
|
Definition
| manufactures products at low cost with minimal technical and managerial resources; factory in foreign country where labor/materials are cheaper |
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Term
|
Definition
| manufactures products and low cost but with skilled workers and significant managerial resources; basically offshore factory but more resources and mgmt. involvement |
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Term
|
Definition
| takes advantage of govt incentive, reduce taxes/tariff barriers to meet regional needs; serves local market |
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Term
|
Definition
| focused on product development and engineering for products that they manufacture; basically a server factory that includes product development, production planning and procurement decisions |
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Term
|
Definition
| set up in an area with an abundance of advance supplier, competitors, research facilities |
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Term
|
Definition
| source of product and process innovation and competitive advantage across the entire organization |
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Term
|
Definition
| competitiveness, taxes/incentives, currency stability, access and proximity to markets, labor issues, right to work laws, access to suppliers and cost, utility availability and cost, environmental issues, land availability and costs, quality of life issues, business clusters, trade agreements |
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Term
|
Definition
| countries with high tariffs discourage importing goods |
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|
Term
| access & proximity to markets |
|
Definition
| must be close to customers |
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Term
|
Definition
| labor availability, productivity, and skill. wage rates, turnover rates |
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Term
|
Definition
| right of employees to decide whether or not to join a union |
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Term
| access to suppliers and cost |
|
Definition
| supplier proximity influences delivery of materials |
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|
Term
| land availability and costs |
|
Definition
| trend is to locate in the suburbs and rural areas |
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Term
|
Definition
| economy, education, healthcare, public safety of the location |
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Term
|
Definition
| close cooperation, fierce rival competition, easy recruiting |
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Term
|
Definition
| WTO world trade organization goal is to ensure trade flows smoothly |
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Term
| location evaluation techniques |
|
Definition
| weighted factor rating model and the break even model |
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|
Term
| weighted factor rating model |
|
Definition
| compares attractiveness of several locations along a number of quantitative and qualitative dimensions |
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Term
|
Definition
| location analysis technique when fixed and variable costs can be determined |
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Term
| international trade management |
|
Definition
| much more complex than domestic shipping process, involves compliance with laws and trade agreements, rules checked for each import/export |
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|
Term
| global supply chain opportunities |
|
Definition
| increased revenue, increased sourcing options, nations forming trading groups |
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Term
| global supply chain challenges |
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Definition
| tariffs or duties, transporting goods, customs and native practices, foreign markets are not homogeneous |
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Term
| international freight security |
|
Definition
| transportation across nat. borders introduces added complexity |
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|
Term
| dept. of homeland security |
|
Definition
| prevents terrorist attacks; Ensure efficient flow of lawful traffic, commerce and transportation system |
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|
Term
| customs and border protection |
|
Definition
| controls import process through active inspections; enables legitimate trade and travel; revenue collection (tariffs/duties); gateway agency for 20 other gov. agencies that involve international trade |
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Term
| international trade compliance |
|
Definition
| cross border shipment involves compliance with 35 documents, 600 laws, 500 trade agreements, interface with 25 parties (customs, carriers, gov agencies) |
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|
Term
| challenges of staying up to date on international trade management |
|
Definition
| info changes frequently, often made available only in a foreign language, not always produced in an electronic form |
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|
Term
| concerns of international trade management |
|
Definition
| each import/export needs to be checked; millions of shipments annually, fines of 40% of value of merchandise if not 100% up to trade requirements |
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Term
|
Definition
| only way to keep current with all of the continuously changing laws, regulations, and procedures; automates the process of checking every transaction |
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|
Term
| benefits of trade compliance systems |
|
Definition
| increased level of compliance, decreased number of physical inspections, faster release of shipments, avoidance of fees and penalties, opportunity to interface with other systems |
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Term
|
Definition
| importer of record (owner/purchaser) file entry documents at port; shipment arrives within port, delivery to the shipping destination authourized by CBP, estimation duties are paid, now officially entered into US commerce |
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Term
|
Definition
| physical areas inside the US supervised by CBP that are considered outside of US territory (ports); where merchandise is not subject to us duty or excise tax; subject to laws and regulations of the location that the merchandise is in and U.S laws |
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Term
|
Definition
| shipper files documents for port departure, shipment must conform to Export Administration Regulations, complete shippers export declaration, submit a commercial invoice for the product |
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Term
|
Definition
| the release of technology or source code that is subject to the Export Administration Regulations to a foreign national located in the US; through oral, visual, on the job training, systems access |
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|
Term
| penalties for violating trade compliance |
|
Definition
| fines and/or 10+ years of prison; seizure of items in violation and loss of import and export privileges; detailed inspections of every shipment |
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|
Term
| global logistics intermediaries |
|
Definition
| customs brokers, international freight forwarders, trading companies, non-vessel-operating common carriers |
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Term
|
Definition
| move global shipments through customs and handle documentation |
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|
Term
| international freight forwarders |
|
Definition
| move goods to and from foreign destination |
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Term
|
Definition
| put buyers and sellers from different countries together and handle export/import arrangements, documentation, and transportation |
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|
Term
| non vessel operating common carriers |
|
Definition
| operate like freight forwarders but use only scheduled ocean liners |
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|
Term
| customer relationship management |
|
Definition
| the transformation of the people, process, and technology required to become a customer-centric organization; philosophy of putting the customer first ; acquiring, retaining and partnering with selective customers; building & maintaining profitable long term customer relationships |
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|
Term
| companies need CRM in order to |
|
Definition
| acquire new customers, retain their existing customers, help meet the changing expectations of customers |
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Term
|
Definition
| source of most profits, relatively small percentage of those customers may generate most of the profits for the company |
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|
Term
|
Definition
Increased customer satisfaction,
Increased sales,
Growth of customer base,
More cost effective marketing and sales process |
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|
Term
| strategically significant customers |
|
Definition
| will provide most value to business; these are the customers to focus the most on |
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Term
|
Definition
| needed to help keep the customer buying for the long term, create methods for becoming and staying good suppliers, train intermediate customers to adequately represent the product to the final consumer |
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|
Term
| key tools and components of CRM |
|
Definition
| Predicting customer behaviors, personalizing customer communications, segmenting customers, target marketing, event based marketing, cross selling and up selling, relationship marketing or permission marketing, customer defection analysis, churn reduction, customer lifetime value |
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|
Term
| personalizing customer communications |
|
Definition
| clickstream- tracking how a customer navigates a website |
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Term
|
Definition
| more effective than mass marketing; efficient use of company's resources |
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Term
|
Definition
| very personalized; identifies key events in the customer and business cycle (birthdays, holidays) |
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Term
|
Definition
| when a company sells an additional/complementary product (fries with that?) |
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Term
|
Definition
| persuading the customer to buy a more expensive item or upgrade the product (super size the order?) |
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Term
|
Definition
| customer explicitly agrees in advance to recieve marketing info (opt in email) |
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Term
| customer defection analysis |
|
Definition
| process of analyzing customers who have stopped buying; finding a new customer costs 5-10x as much as keeping one |
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Term
|
Definition
| all of company's efforts to stop losing customers to competition; churn= process of customers changing their buying preferences; 5% improvement in customer retention yields 75% increase in profits |
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Term
|
Definition
| prediction of net profit attributed to entire future relationship with customer; important metric for determining which customers to go after |
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|
Term
| customer service is a philosphy, activity, and performance measure (t or f) |
|
Definition
|
|
Term
| customer service philosphy |
|
Definition
| company wide commitment to providing customer satisfaction |
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|
Term
| customer service activity |
|
Definition
| particular task that firm must accomplish to satisfy customer needs |
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Term
|
Definition
| customer service is category of measures such as percentage of orders delivered on time and complete |
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Term
| customer service elements |
|
Definition
| pre-transaction, transaction, post transaction |
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|
Term
| pre transaction customer service elements |
|
Definition
| mission statement, service policies |
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|
Term
| transaction customer service elements |
|
Definition
| order lead time, distribution accuracy |
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|
Term
| post- transaction customer service elements |
|
Definition
| warranty repair, complaint resolution |
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|
Term
| seven r's rule (perfect order) |
|
Definition
| the right product, quantity, quality, place, time, customer, costs |
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Term
|
Definition
| links organization to customers (quick access for customer service) |
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Term
|
Definition
| categorize calls, determine average resolution time, increase customer satisfaction levels, provide input to forecast future demand, improve productivity of the overall staff |
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Term
|
Definition
| portals to provide quick access for customers to access account info; put their own info into; edit and modify info; opt in or out of future sales or subscriptions |
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|
Term
| measuring customer satisfaction |
|
Definition
| surveys, questionnaires, direct phone calls=>into database to manage data |
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|
Term
| 6 steps to successful CRM program |
|
Definition
create crm plan
involve crm users from outset
select the right application and provider
integrate existing crm applications
establish performance measures
providing crm training for all users |
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Term
|
Definition
| fit objectives/ strategy; create time frame/costs for implementation |
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|
Term
| involve CRM users from outset |
|
Definition
| employees should understand how it affects their jobs; create project team with members from affected organizational areas |
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|
Term
| select the right application and provider |
|
Definition
| find appropriate application and determine the extent of customization |
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|
Term
| integrate existing CRM applications |
|
Definition
| centralized database or data warehouse containing all customer info |
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|
Term
| establish performance measures |
|
Definition
| compare actual to planned variance; determine if objectives have been met |
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|
Term
| providing CRM training for all users |
|
Definition
| training can help convince key users like sales, call center and marketing personnel of the benefits and uses of CRM applications |
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|
Term
| SCM in the Service industry |
|
Definition
| intangible; customers more involved; different assessments of quality; higher ratio of labor to materials |
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|
Term
| service productivity is difficult because |
|
Definition
| service is individually customized; hard to automate services; problem of assessing service quality |
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Term
|
Definition
| pure, end products, state utility |
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Term
|
Definition
| offer ery few or no tangible products to customers (education) |
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Term
|
Definition
| offer tangible components along with service (restaurant) |
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Term
|
Definition
| services directly involve things owned by customer (haircut, car repair) |
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Term
| differences between goods/services |
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Definition
| services cannot be inventoried; unique to customer; high customer interaction; services= decentralized and must be located near customer base |
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Term
|
Definition
| identifying global customers; labor, facilities, and infrastructure support vary by country; legal and political issues; domestic competitors and the economic climate |
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Term
|
Definition
| cost leadership, differentiation, focus |
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Term
|
Definition
| requires large capital investment in equipment and significant effort to control costs |
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Term
|
Definition
| unique service created based on customer input and feedback |
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Term
|
Definition
| serve a narrow niche better than other firms |
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Term
|
Definition
| mass produced (atm); highly customized (hair stylist); blended (restaurant- host high contact, kitchen staff low contact) |
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|
Term
| bundle of service attributes |
|
Definition
| can deliver more than expected and enhance customer satisfaction |
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Term
|
Definition
| eg. drive up tellers, atm |
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Term
|
Definition
| tangible elements used or consumed by the customer or the service provider along with the service provided |
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Term
|
Definition
| availability and access to the service, consistency of service performance, comprehensiveness of the service, and training of service personnel |
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Term
|
Definition
| attitude of the servers, atmosphere, waiting time, status, privacy and security, and convenience |
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|
Term
| service location strategy and layout strategy |
|
Definition
location strategy- make it easy for customers to find facility/store, easy to find what they want at the store
layout strategy- designed to reduce distance traveled within the store, departmental layouts to maximize closeness desirability |
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Term
|
Definition
| tangible elements used by the customer or service provider along with the service provided (tools to repair a car) |
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Term
| service response logistics |
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Definition
| management and coordination of the organization's service activities; 4 primary service response logistics activities: service capacity, waiting times, distribution channels, service quality |
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Term
| importance of demand management tactics |
|
Definition
| services cannot be inventoried but customer demand must be met |
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Term
|
Definition
| the number of customers that the service provider can service at any one time (per day, shift, hour, month, year) (airplane seats) |
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Term
| when demand exceeds capacity |
|
Definition
| too much demand; 3 alternatives: turn customers away and not service them, make them wait, increase service capacity |
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|
Term
| ways to deal with periods of high demand |
|
Definition
| cross train employees, part time employees, using customers as hidden employees, using technology, using employee scheduling policies |
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Term
|
Definition
| too much capacity; rather than disposing of excess capacity, find other uses; do other jobs when not busy, training/ cross training, demand management techniques- shift demand from peaks by offering incentives and deals at non peak times |
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Term
| service capacity planning challenges |
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Definition
| customer arrivals fluctuate and service demands vary, customers are participants in the service and the level of congestion impacts on perceived quality, idle capacity, inability to control demand results in capacity measured in terms of inputs |
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Term
|
Definition
| used as a preemptive strike where market is too small for two competitors to co-exist |
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Term
|
Definition
| not being prepared for volume can drive customers away |
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|
Term
| balcance decisions involving capacity |
|
Definition
| costs and lost sales if capacity is inadequate; against operating losses if demand does not reach expectations |
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|
Term
| service capcity utilization |
|
Definition
| actual customers served per period/capacity |
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|
Term
| level demand strategy for capacity |
|
Definition
| capacity remains constant regardless of demand; when demand exceeds capacity, queue management tactics deal with excess customers |
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Term
| chase demand strategy for capacity |
|
Definition
| capacity varies with demand; able to handle fluctuations but must take appropriate actions prior. need options |
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Term
|
Definition
| managing both the actual waiting time and the perceived waiting time |
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Term
|
Definition
| used to help control the flow and prioritization of people expecting to receive a service; used mainly when people are waiting on line to pay or to get tickets etc. |
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Term
|
Definition
| set in a fixed position such as a market check out line or bank. |
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Term
|
Definition
| people form queues somewhat informally in various directions and locations (airport waiting for taxi) |
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Term
|
Definition
| formed virtually with technology (restaurant vibrate alerter) |
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Term
|
Definition
| customer refuses to join the queue |
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|
Term
|
Definition
| customer decides to leave the queue |
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|
Term
|
Definition
| satisfaction= customer perception > customer expectation |
|
|
Term
|
Definition
| its hard to play catch up. you may only get one chance to get it right |
|
|
Term
| waiting time management techniques |
|
Definition
| keep customers occupied, start the service quickly, relieve customer anxiety, keep customers informed, group customers together, design a fair waiting system |
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Term
|
Definition
| combines restaurant and entertainment elements (medieval times) |
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|
Term
|
Definition
| combines retail with entertainment elements (mall of america ferris wheel) |
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Term
|
Definition
| combines learning with entertainment (liberty science center) |
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|
Term
|
Definition
| allows business to expand quickly in dispersed geographic markets; protects existing markets; builds market share |
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|
Term
|
Definition
| operate/ partner with firms familiar with the region's markets, suppliers, infrastructure, government regulations, and customers; must address language and cultural barriers |
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Term
|
Definition
| many retailers sell products exclusively over the internet (amazon) |
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Term
|
Definition
| while others use it as a supplemental distribution channel (walmart) |
|
|
Term
|
Definition
| customer satisfaction depends on the firms ability to satisfy needs and the customers perceptions of the quality of the service; depends on the firm's employees; key is to exceed customer expectations so help form them (3 hour wait tell them 4) |
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|
Term
| 5 dimensions of service quality |
|
Definition
| reliability, responsiveness, assurance, empathy, tangibles |
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|
