Ch 12 (Distribution Customer Service and Logistics) Flashcards
the transporting, storing, and handling of goods in ways that match target customers’ needs with a firm’s marketing mix0 both within individuals firms and along a channel of distribution
Logistics
another common name for logistics
Physical Distribution (PD)
how rapidly and dependably a firm can deliver what they, the customers, want.
Customer service level
says that all transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system that seeks to minimize the cost of distribution for a given customers service level.
Physical distribution (PD) concept
involves evaluating each possible PD system and identifying all of the costs of each alternative
Total cost approach
the complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers
Supply chain
an approach that puts information in a standardized format easily shared between different computer systems
Electronic data interchange (EDI)
the marketing function of moving goods
Transporting
grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination
Containerization
loading truck trailers- or flatbed trailers carrying containers- on railcars to provide both speed and flexibility
Piggyback service
the marketing function of holding goods so they’re available when they’re needed
Storing
amount of goods being stored
Inventory
storing facilities owned or leased by companies for their own use
Private warehouses
independent storing facilities
Public warehouses
a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs.
Distribution center
The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function
Supply Chain
A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value
Supply Chain
Management
process that engineers the
movement of goods
Physical Flow
a distribution technique that includes any kind of product or service that can be distributed electronically, whether over traditional forms such as fiber-optic cable or through satellite transmission of electronic signals
Electronic Distribution
Trends in Supply Chain Management
- Advanced computer technology
- Outsourcing of logistics functions
- Electronic distribution
- Green Supply Chain management
the process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption
Logistics
Logistical Components of the Supply Chain
- Sourcing & Procurement
- Production Scheduling
- Order Processing
- Inventory Control
- Warehouse & Materials Handling
- Transportation
Plan purchasing strategies Develop specifications Select suppliers Negotiate price and service levels Reduce cost
Sourcing and Procurement
A process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials at the precise time they are needed on the product line
JIT
