Untitled Flashcards Set

13-1 Define the terms supply chain and supply chain management and discuss the benefits of supply chain management. Management coordinates and integrates all of the activities performed by supply chain members into a seamless process from the source to the point of consumption. The benefits of supply chain management include reduced inventory, transportation, warehousing, and packaging costs; greater supply chain flexibility; improved customer service; and higher revenues. 

13-2 Discuss the concepts of internal and external supply chain integration and explain why each of these types of integration is important. In the modern supply chain, integration can be either internal or external. Internally, the very best companies develop a managerial orientation toward demand/supply integration. Externally, five types of integration are sought by firms interested in providing top-level service to customers: relationship integration, measurement integration, technology and planning integration, material and service supplier integration, and customer integration 

13-3 Identify the eight key processes of excellent supply chain management and discuss how each of these processes affects the end customer. The key processes that leading supply chain companies focus on are (1) customer relationship management, (2) customer service management, (3) demand management, (4) order fulfillment, (5) manufacturing flow management, (6) supplier relationship management, (7) product development and commercialization, and (8) returns management. When firms practice excellent supply chain management, each of these processes is integrated from end to end in the supply chain. 

13-4 Understand the importance of sustainable supply chain management to modern business operations. Sustainable supply chain management involves the integration and balancing of environmental, social, and economic thinking into all phases of the supply chain management process 

13-5 Discuss how new technology and emerging trends are impacting the practice of supply chain management. Several emerging trends are changing the job of today’s supply chain manager. Some of the business trends affecting supply chain management include outsourcing logistics, public-private partnerships, electronic distribution, maintaining a secure supply chain, and new analytics tools. While these changes exert pressure on managers to change the way their supply chains function, they also help make supply chain management more integrated and easier to track. 

13-6 Explain what marketing channels and channel intermediaries are and describe their functions and activities. A marketing channel is a business structure of interdependent organizations that reach from the point of production to the consumer. Intermediaries negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller. Retailers are those firms in the channel that sell directly to consumers. 

13-7 Describe common channel structures and strategies and the factors that influence their choice. When possible, producers use the direct channel to sell directly to consumers. When one or more channel members are small companies, an agent/broker channel may be the best solution. Most consumer products are sold through distribution channels similar to the retailer channel and the wholesaler channel. Dual distribution may be used to distribute the same product to target markets, and companies often form strategic channel alliances to use already-established channels Managers must decide what role distribution will play in the overall marketing strategy. In addition, they must be sure that the channel strategy chosen is consistent with market factors, product factors, and producer factors. Organizations have three options for intensity of distribution: intensive distribution, selective distribution, or exclusive distribution. 

13-8 Discuss multichannel and omnichannel marketing in both B-to-B and B-to-C structures and explain why these concepts are important. Many companies have begun employing multichannel marketing strategies, whereby customers are offered information, goods, services, and/or support through one or more synchronized channels. While it can promote better consumer behavior, the multichannel design also creates redundancy and complexity in the firm’s distribution system. Selling through multiple channels is typified by multiple parallel supply chains, each with its own inventory, processes, and performance metrics. Many companies are transitioning to omnichannel distribution operations that support their multichannel retail operations and unify their retail interfaces. With omnichannel operations, every customer receives equally efficient service. 

13-1 

supply chain 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 management 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 agility an operational strategy focused on creating inventory velocity and operational flexibility simultaneously in the supply chain 

13-2 

supply chain orientation a system of management practices that are consistent with a “systems thinking” approach 

supply chain integration when multiple firms or business functions in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer  

demand-supply integration (DSI) a supply chain operational philosophy focused on integrating the supply-management and demand-generating functions of an organization 

13-3 

business processes bundles of interconnected activities that stretch across firms in the supply chain 

customer relationship management (CRM) process allows companies to prioritize their marketing focus on different customer groups according to each group’s long-term value to the company or supply chain 

customer service management process presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments Are voiced 

demand management process seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand-related plans of action prior to actual customer purchasing behavior 

order fulfillments process a highly integrated process, often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time 

order cycle time the time delay between the placement of a customer’s order and the customer’s receipt of that order 

manufacturing flow management process concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process 

supplier relationship management process supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers 

product development and  

commercialization process includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms 

returns management process enables firms to manage volumes of returned product efficiently while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain 

13-4 

sustainable supply chain management a supply chain management philosophy that embraces the need for optimizing social and environmental costs in addition to financial costs 

13-5 

outsourcing (contract logistics) a manufacturer’s or supplier’s use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing 

third-party logistics company (3PL) a firm that provides functional logistics services to others 

fourth-party logistics company (4PL or logistics integrator) a consulting-based organization that assesses another’s entire logistical service needs and provides integrated solutions, often drawing on multiple 3PLs for actual service 

offshoring the outsourcing of a business process from one country to another for the purpose of gaining economic advantage 

nearshoring the transfer of an offshored activity from a distant to a nearby country 

public-private partnerships (PPPs)Critical to the satisfaction of both company and  

societal interests and provide a mechanism by which very-large scale problems or opportunities can be addressed 

electronic distribution 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 

three-dimensional printing (3DP) the creation of three-dimensional objects via an additive manufacturing (printing) technology that layers raw material into desired shapes 

big data the rapidly collected and difficult to process large-scale datasets that have recently emerged, and which push the limits of current analytical capability 

cloud computing the practice of using remote network servers to store, manage, and process data 

supply chain analytics data analyses that support the improved design and management of the supply chain 

13-6 

marketing channel (channel of distribution) a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer 

channel members all parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer 

form utility the elements of the composition and appearance of a product that make it desirable 

time utility the increase in customer satisfaction gained by making a good or service available at the appropriate time 

place utility the usefulness of a good or service as a function of the location at which it is made available 

exchange utility the increased value of a product that is created as its ownership is transferred 

merchant wholesaler an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them 

agents and brokers wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers 

retailer a channel intermediary that sells mainly to consumers 

13-7 

direct channel a distribution channel in which producers sell directly to consumers 

dual distribution (multiple distribution)the use of two or more channels to distribute the same product to target markets 

nontraditional channels non-physical channels that facilitate the unique market access of products and services 

strategic channel alliance a cooperative agreement between business firms to use the other’s already established distribution channel 

gray marketing channels secondary channels that are unintended to be used by the producer, and which often flow illegally obtained or counterfeit product toward customers 

reverse channels: channels that enable customers to return products or components for reuse or remanufacturing 

drop and shop a system used by several retailers that allow customers to bring used products for return or donation at the entrance of the store 

digital channels electronic pathways that allow products and related information to flow from producer to consumer 

M-commerce the ability to conduct commerce using a mobile device for the purpose of buying or selling goods or services 

intensive distribution a form of distribution aimed at having a product available in every outlet where target customers might want to buy it 

selective distribution a form of distribution achieved by screening dealers to eliminate all but a few in any single area 

exclusive distribution a form of distribution that establishes one or a few dealers within a given area