Ch 14 Flashcards
supply chain management
set of approaches and techniques firms employ to integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless operation in which merchandise is 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 that their customers require.
vendor managed inventory
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.
strategic relationship or partnering relationship
involves the supply chain members being committed to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial.
Radio frequency identification (RFID) tags
tiny computer chips that automatically transmit to a special scanner all the information about a container’s contents or individual products.
just in time inventory systems
inventory management systems designed to deliver less merchandise on a more frequent basis than traditional inventory systems.
Electronic data interchange (EDI)
the computer-to-computer exchange of business documents from a retailer to a vendor and back.
marketing channel
set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption
administered vertical marketing system
A supply chain system in which there is no common ownership and no contractual relationships, but the dominant channel member controls the channel relationship.
advanced shipping notice (ASN)
An electronic document that the supplier sends the retailer in advance of a shipment to tell the retailer exactly what to expect in the shipment.
coercive power
A type of marketing channel power that occurs when the channel member exerting the power threatens to punish or punishes another channel member for not undertaking certain tasks it wants it to do.
collaborative planning, forecasting, and replenishment (CPFR)
An inventory management system that uses an electronic data interchange (EDI) through which a retailer sends sales information to a manufacturer
contractual vertical marketing system
A system in which independent firms at different levels of the supply chain join together through contracts to obtain economies of scale and coordination and to reduce conflict.
corporate vertical marketing system
system in which the parent company has complete control and can dictate the priorities and objectives of the supply chain; it may own facilities such as manufacturing plants, warehouse facilities, retail outlets, and design studios.
cycle time
time between the decision to place an order and the receipt of merchandise.
cross-dock
distribution center to which vendors ship merchandise prepackaged and ready for sale. So the merchandise goes to a staging area rather than into storage. When all the merchandise going to a particular store has arrived in the staging area, it is loaded onto a truck, and away it goes. Thus, merchandise goes from the receiving dock to the shipping dock—cross dock.
