part 2 Flashcards
What is ‘Deliver’ in Supply Chain?
Responsible for getting products to customers.
Involves order management, transportation, and warehousing. Balances cost-efficiency with service level.
What are the influencing factors of ‘Deliver’?
Global economy, political decisions, tech advancements, environmental requirements (sustainability).
What are the main components of the Deliver Process?
- Order Management 2. Transportation Management 3. Warehouse Management
Order Management: Handling of customer orders from receipt to delivery. Transportation Management: Modes include road, rail, air, sea, intermodal. Warehouse Management: Goals include maximizing space usage and minimizing handling.
What are the goals of Warehouse Management?
Maximize space usage and minimize handling.
Types include Contract (outsourced), Refrigerated, Bonded (tax not yet paid), Cross-docking (minimal storage).
What are the facility location factors in Distribution Network Design?
Property cost, labor availability, subsidies, infrastructure proximity.
What are the trade-offs in network modeling?
More facilities = faster delivery but ↑ costs. Total transport costs can decrease, then rise again with scale.
What is ‘Return’ in Supply Chain?
Also known as reverse logistics, it is the flow of products, packaging, and transport equipment from customers back to suppliers.
What are common reasons for product returns?
Customer dissatisfaction, defective items, wrong orders, overstock, warranty claims, manufacturer recalls.
What are the drivers of Reverse Logistics?
Legislation, economic factors, CSR (Corporate Social Responsibility).
Examples include environmental and recycling mandates, cheaper recovery vs. replacement, positive brand image.
What are the 5 stages of the Return Process?
Receive, Sort & Stage, Process, Analyze, Support.
What are the Golden Rules for strategic outlook in returns?
Treat returns like perishables, partner across value chain, use returns for customer feedback, design for disassembly and recycling, increase product life cycles.
What is the definition of Customer Service?
Ability of a company to consistently exceed customer needs and expectations.
Why is Customer Service important?
Enhances performance and brand image, can be a competitive advantage.
What is the Customer Service Profit Chain?
Employee satisfaction → Customer satisfaction → Profitability.
What is the service vs. cost trade-off?
High service = ↑ cost. Must balance both to remain competitive.
What are the types of variability in B2B service?
Arrival, Request, Capability, Effort.
Examples include peaks in order arrivals, customers asking for different things, some clients forecasting better, handling complex/different products.
What is Customer Lifetime Value (CLV)?
Focus on retention over acquisition, not all customers are equal.
What are SLAs in delivering the core promise?
Use SLAs (Service Level Agreements) with KPIs: On Time (OT), In Full (IF).
Must have service recovery plans for failures.
What are key Customer Service KPIs?
% Calls Blocked, Average Queue Time, Case Fill / Order Fill Rates, OTIF (On Time In Full).
What is the role of Call Centers?
Crucial in B2C and B2B interactions, new communication methods changing expectations.
What are the must-know concepts in Supply Chain Management?
Deliver = bridging production to the customer, Return = essential, strategic, and a feedback source, Customer Service = retention, lifetime value, satisfaction.
What are some bonus study tips?
Visualize using supply chain flow diagrams, memorize transport variables, return drivers & 5-step process, SLA KPIs, understand strategic value of returns and trade-offs.
