Term
| Principle of Comparative Advantage |
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Definition
| The ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another. Even if one country is more efficient in the production of all goods (absolute advantage) than the other, both countries will still gain by trading with each other, as long as they have different relative efficiencies. |
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Term
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| The process of planning, implementing, and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from the point of origin to pint of consumption for the purpose of conforming to customer requirements. |
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Definition
| The integration of all activities associated with the flow and transformation of goods from raw materials through to end user, as well as information flows, through improved relationships, to achieve a sustainable competitive advantage. |
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| Getting the right goods or services to the right place, at the right time, and in the desired condition at the lowest cost and highest return on investment. |
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| Encompasses all activities associated with the flow and transformation of goods from the raw materials stage to the end user, as well as the associated information flows. Materials and information flow both up and down this. |
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| Refers to the time and space gap between a firm's immediate materials sources and its processing points. |
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Term
| Physical Distribution Channel |
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Definition
| Refers to the time and space gap between a firm's processing points and its customers. |
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Term
| Reverse Logistics Channel |
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Definition
| Products become obsolete, damaged, or non-functioning and are returned to their source points for repair or disposition. Packaging materials may be returned to the shipper. |
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Definition
| Refers to those members of the supply channel beyond the firm's immediate suppliers or customers. |
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Definition
| The process whereby plans are formulated for positioning the firm to meet its objectives. |
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Definition
| Assessing needs, strengths, and weaknesses of the 4 major components: customers, suppliers, competitors, and the company itself. |
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| Inventory only comes in to be moved for final destination. |
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Definition
| Strategy directed towards minimizing the variable costs associated with movement and storage. |
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Definition
| Strategy directed towards minimizing the level of investment in the logistics system. |
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Term
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Definition
| Strategies usually recognize that revenues depends on the level of logistics services provided. |
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Term
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Definition
| Long-range; where time horizon > 1 year. |
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Term
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Definition
| Intermediate time horizon; usually < 1 year. |
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Definition
| Short-range; decisions frequently made on an hourly or daily basis. |
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Term
| Return on Logistics Assets (ROLA) |
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Definition
(Logistics Contributions to Sales) - (Costs of Logistics Operations) / (Investment in Logistics Assets)
or
Revenue-Costs/Assets |
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Term
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Definition
| Goods and services that consumers purchase frequently, immediately, and with little comparative shopping. (ex: banking services, tobacco items, food) |
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Definition
| Those for which consumers are willing to seek and compare products. (ex: high fashion clothes, cars, home furnishings, and medical care) |
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Definition
| Those for which buyers are willing to expend a substantial effort and often to wait a significant amount of time in order to acquire them. (ex: fine foods, custom automobiles) |
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Term
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Definition
| Single price established at the factory location. Customers take ownership of the goods at this point and are responsible for transportation beyond this point. |
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Term
| F.O.B. Destination (Delivered Price) |
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Definition
| The price to the cusotmer's location or in the general vacinity. Transportation costs are already included in the price. The supplier will make all of the transport arrangements. |
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Term
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Definition
| If two firms have equal efficiency in producing and selling, which results in the same product cost at the factory locations, then competitive pricing is a matter of transportation costs. If the markets are not equidistant from each factory location, the firm farthest from the marketplace may wish to absorb enough of the freight charges to meet the price competition. |
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Term
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Definition
| A geographical site used to establish minimum product prices. |
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Term
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Definition
| The time elapsed between when a customer order, purchase order, or service request is placed by a customer and when it is received by that customer. |
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Term
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Definition
| Establish a climate for good customer service. Providing a written statement of customer service policy, such as when goods will be delivered after an order is placed, the procedure for handling returns and back orders, and methods of shipment, let customers know what kind of service to expect. |
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Definition
| Those that directly result in the delivery of the product to the customer. Examples: Setting stock levels, selecting transportation modes, and establishing order-processing procedures. |
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Term
| Post-transaction Elements |
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Definition
| Represent the array of services needed to support the product in the field; to protect consumers from defective products; to provide for the return of packages (returnable bottles, reusable cameras, pallets, etc.); and to handle claims, complaints, and returns. |
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Term
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Definition
| Represented by a number of the activities included in the customer order cycle. Specifically, they include order preparation, order transmittal, order entry, order filling, and order status reporting. |
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Definition
| Refers to the activities of gathering the information needed about the products and services desired and formally requesting the products to be purchased. |
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Definition
| It involves transferring the order request from its point of origin to the place where the order entry can be handled. |
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Term
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Definition
| Refers to the many tasks that take place prior to the actual filling of an order. These include (1) checking the accuracy of the order information, (2) checking the availability of the requested items, (3) preparing back-order or cancellation documentation (if necessary), (4) checking the customer's credit status, (5) transcribing the order information as necessary, and (6) billing. |
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Definition
| Represented by the physical activities requred to (1) acquire the items through stock retrieval, production, or purchasing; (2) pack the items for shipment; (3) schedule the shipment for delivery; and (4) prepare the shipping documentation. |
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Definition
| Keeping the customer informed of any delays in order processing or delivery. This includes (1) tracing and tracking the order throughout the entire order cycle; and (2) communicating with the customer about where the order may be in the order cycle and when it may be delivered. |
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Term
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Definition
| Manages the initial contact with the customer at the time of product inquiries and order placement. |
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Term
| Logistics Information System |
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Definition
| Comprehensive system that includes: order management systems, warehouse management systems, and transportation management systems. |
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Term
| Warehouse Management System |
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Definition
| An information subsystem assisting in the management of product flowing through and stored in the facilities of the logistics network. Key elements: receiving, putaway, inventory management, order processing and retrieving, and shipment preparation. |
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Term
| Transportation Management System |
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Definition
| Focuses on the inbound and outbound transpotation of a firm and is an integral part of the Logistics Information System. It shares information with other LIS components, and its purpose is to assist in the planning and controlling of the firm's transportation activity. This involves (1) mode selection, (2) freight consolidation, (3) routing and scheduling shipments, (4) claims processing, (5) tracking shipments, and (6) freight bill payment and auditing. |
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Definition
| In these systems, retailers make their own forecasts and inventory-control rules. |
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Definition
| The absolute right and power of the sovereign to rule over and govern its population and various activities that occur within its territory. |
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| The geographic/physical boundaries of a nation. Includes: Land & internal waters, Law of the sea (UNCLOS 1983), and air space |
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| The right granted to a carrier by a nation to cross the territory of that nation in the pursuit of its business activity, but not necessarily to stop in that country. |
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| The right granted to a carrier by a nation to enter the territory of that nation in order to provide transport service to, from, or within the country. |
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Term
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| Ports of each nation are open to the vessels of the other nation, but may limit specific ports for national defense reasons. |
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Definition
| Shipping markets of each country are open to the vessels of the other country regardless of the origin or destination of the cargo. |
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Definition
| Access of third party nations to the trade route. |
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Definition
| Sum of total beliefs, values, institutions, rules, techniques, and artifacts that characterize the human population. It is learned and shared, and elements of it are inter-related. |
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Term
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Definition
| One's perception of time is distorted by his/her own existence and experiences. Tendency to consider events predating his/her own existence as "less than real". Inability to see a future independent of his/her present and past experiences. |
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Definition
| Belief that the values and characteristics of one's own group constitute the desirable norm. When other groups deviate from this norm they are considered to be misguided, incorrect, or simply inferior. |
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Definition
| One's center of perspective is based on his/her geographic location. To the extent that he/she moves about, so does his/her center of perspective and hence his/her perceptions. |
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