Chapter 9 – Domestic U.S. & Global Logistics plus CRM

61 Q&A flashcards covering logistics fundamentals, warehousing, transportation, sustainability, software, global security, reverse logistics, and CRM concepts to aid exam preparation.

What is the primary purpose of logistics within a supply chain?

To move goods from suppliers through the supply chain to buyers and ultimately to customers.

Which two customer value utilities are created by logistics?

Time utility (goods arrive when needed) and place utility (goods arrive where needed).

Give the CSCMP definition of logistics.

Planning, implementing, and controlling the transportation and storage of goods from their point of origin to the point of consumption.

What are the three main goals of transportation management?

Communicate service needs to carriers, balance service performance with cost efficiency, and satisfy customer requirements profitably.

Name the four legal types of transportation carriers.

Common, contract, exempt, and private carriers.

Which transportation mode is most flexible and handles roughly 70 % of U.S. freight?

Motor carriers (trucks).

For what types of freight is rail transport most cost-effective?

Heavy or bulky items over long distances.

Which mode is the fastest but typically the most expensive?

Air transport.

Which mode is low cost, slow, and ideal for bulk commodities such as coal or grain?

Water (maritime) transport.

Which transportation mode is specialized for liquids and gases?

Pipelines.

What is intermodal transportation?

Combining two or more modes (e.g., rail and truck) to move freight cost-effectively and flexibly.

Describe a cost-of-service pricing model.

The freight rate is based on the carrier’s operating costs.

Describe a value-of-service pricing model.

The freight rate is based on market demand or the value of the goods moved.

What is negotiated pricing in transportation?

A hybrid rate that blends cost-of-service and value-of-service considerations.

Under FOB destination terms, who owns the goods during transit?

The seller, until the shipment is delivered to the buyer’s location.

Under FOB origin terms, who owns the goods once they are picked up?

The buyer, from the moment the carrier takes possession.

What are line-haul rates?

Freight rates applied to long-distance, point-to-point moves.

Name two programs or agencies that help ensure transportation security.

TSA (Transportation Security Administration), DHS (Department of Homeland Security), TWIC programs, or PrePass.

How does regulation differ from deregulation in transportation?

Regulation focuses on safety and fair pricing; deregulation promotes competition and market-driven pricing.

List three key functions typically performed by warehouses.

Storage, break-bulk, assembly, quality inspection, or maintaining short/long-term inventory.

What warehouse practice moves goods through a facility without long-term storage?

Cross-docking.

Define a private warehouse.

A facility owned or leased by a firm for its own use.

Define a public warehouse.

A rented facility that provides storage and related services to multiple firms.

What is a consolidation warehouse?

A location that combines shipments from multiple sources into more economical loads.

What are cold chains?

Temperature-controlled warehouse and transport networks for perishable goods.

Give two advantages of owning a private warehouse.

Cost savings over time, increased control, workforce efficiency, or potential revenue from leasing excess space.

Give two disadvantages of owning a private warehouse.

High financial risk, lower flexibility, or added insurance challenges.

What is a market-positioned warehouse strategy?

Locating warehouses close to major customer markets.

What is a product-positioned warehouse strategy?

Locating warehouses close to suppliers or sources of raw materials.

What is an intermediate (mixed) warehouse strategy?

Placing facilities midway between supply points and markets to balance cost and service.

Name two historical theories that influence warehouse location decisions.

Von Thünen’s transportation cost minimization and Greenhut’s profit-maximization (accounting for demand variation).

Define lean warehousing.

Operating warehouses with faster goods movement, smaller lot sizes, more automation, and greener practices.

What is a 3PL? State one benefit.

A third-party logistics provider; benefits include letting firms focus on core competencies, improved service, and strategic partnerships.

What does a freight forwarder do?

Consolidates small (LTL) shipments into full truckload or container loads and arranges transport on behalf of shippers.

What is the role of a transportation broker?

Matches shippers’ freight with available carriers for a fee.

What is horizontal collaboration in sustainable logistics?

Firms at the same supply-chain level cooperating to share capacity and reduce empty miles and emissions.

Name one EPA program that promotes cleaner freight movement.

The SmartWay program (or Clean Rail/Truck (CRT) initiatives).

What does Transportation Management System (TMS) software manage?

Carrier selection, freight tracking, routing, and contract management.

What is Warehouse Management System (WMS) software used for?

Controlling goods flows, managing labor and capacity, and reducing paperwork inside warehouses.

What does Global Trade Management (GTM) software handle?

International compliance, customs documentation, and trade opportunity management.

Name one U.S. security program guarding against terrorism in global logistics.

C-TPAT (Customs-Trade Partnership Against Terrorism) or FAST (Free and Secure Trade).

What is a Foreign Trade Zone (FTZ)?

A secure U.S. site where import/export activities can occur with delayed or reduced customs duties.

Which agreement modernized NAFTA?

The USMCA (United States–Mexico–Canada Agreement).

Define reverse logistics.

The management of returned goods, including customer returns and product recalls.

List two common challenges of reverse logistics.

System overload, untrained workers, poor tracking, inspection errors, or damaged goods.

List two benefits of effective reverse logistics.

Customer goodwill, insights for product improvement, or revenue from resale/refurbishing.

According to CRM experts, how much more does it cost to gain a new customer versus keeping an existing one?

Roughly five times more.

Give one key element of successful CRM.

Combining technology with human interaction, listening to customers, designing systems around customer needs, or treating customers with respect.

Name three common "deadly sins" that derail CRM projects.

Seeing CRM as just a tech project, lacking a customer-centric vision, ignoring customer lifetime value, weak executive support, no business process reengineering, data integration issues, underestimating resistance to change.

What is customer segmentation?

Grouping customers based on shared characteristics to tailor marketing communication.

Define permission marketing.

Marketing approach where customers proactively opt in to receive specific messages.

What is cross-selling?

Recommending related or complementary products to an existing customer.

What is predictive analytics in CRM?

Using data to anticipate future customer purchases or behaviors.

Define event-based marketing.

Sending marketing offers triggered by specific customer actions or life events at the precise moment of relevance.

List the Seven R’s of customer service.

Right product, right quantity, right condition, right place, right time, right customer, right cost.

Name the three phases of customer service.

Pre-transaction, transaction, and post-transaction phases.

How do call centers enhance customer satisfaction?

They categorize and resolve inquiries, forecast call demand, enable upselling, and may use virtual queuing for callbacks.

Why is measuring customer satisfaction vital?

Feedback builds trust and guides improvements; poor survey design yields limited insight.

What is the first step in implementing a CRM program?

Create a comprehensive CRM plan detailing goals, required systems, costs, and timelines.

Why is continuous user training essential for CRM success?

It drives adoption, ensures correct use, and helps employees see personal benefits from the system.

Name one current trend shaping CRM today.

Emphasis on customer experience, use of artificial intelligence, mobile CRM accessibility, or real-time social-media engagement.