Chapter 1 - Overview Flashcards
form utility
a product’s being in a form that can be used by the customer and is of value to the customer
place utility
having products available where they are needed by customers
time utility
having products available when they are needed by customers
logistics
logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information
mass logistics
one size fits all logistics in which every customer gets the same type and levels of logistics service
tailored logistics
groups of customers with similar logistical needs and wants are provided with logistics services appropriate to those needs and wants
humanitarian logistics
an emerging application of logistics to not for profit situations
disintermediation
removal of intermediaries between producer and consumer
big box retailers
stores with large amounts of both floor space and products for sale
container
uniform sealed reusable metal box in which goods are shipped
systems approach
a company’s objectives can be realized by recognizing the mutual interdependence of the major functional areas of the firm, such as marketing, production, finance and logistics
stock keeping units
line items of inventory offered for sale by many companies
materials management
movement and storage of materials into a firm
physical distribution
storage of finished product and movement to the customer
total cost approach
coordinate materials management and physical distribution in a cost efficient manner
cost trade offs
changes to one logistics activity cause some costs to increase and others to decrease
postponement concept
the delay of value added activities such as assembly, production, and packaging until the latest possible time
co-branding
an alliance that allows customers to purchase products from two or more brand retailers at one store location
landed costs
the price of the product at the source plus transportation costs to its destination
stockouts
being out of an item at the same time there is demand for it
sustainable products
products that met present needs without compromising the ability of future generations to meet their needs
marketing channels
a set of institutions necessary to transfer the title to goods and to move goods from the point of production to the point of consumption, and as such consists of all the institutions and all the marketing activities in the marketing process
sorting function
bridges the discrepancy between the assortment of goods and services generated by the producer and the assortment demanded by the consumer
economic utility
value of usefulness that comes from a customer being able to take possession of a product
