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70 Cards in this Set
- Front
- Back
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Ch. 9: Customer Service Management
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Basic customer service
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A supplier's ability to provide product availability, lead-time performance, and service reliability
(right amount, product, time, place, condition, information) |
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Fill Rate
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Measures product availability.
-unit fill rate= total delivered/total ordered -line fill rate= total lines delivered complete/to tal order lines -order fill rate= totalcomplete orders delivered/total orders **Order fill rate most stringent (only 1 missing order makes whole order incomplete) |
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Lead Time
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The amount of time that passes between the beginning and ending of a set of activities
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Order-to-Delivery Lead Time
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The time between the instant a customer orders product and when they receive it
-Includes lead times for design, order, procurement, production, and delivery **Reliability more important than shortening length |
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Service Reliability
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The firm's ability to perform all order-related activities without error and provide customers with critical inventory/delivery info.
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The perfect order
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on time, complete, invoiced correctly, undamaged
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Basic customer service limitations
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trade offs between better service and higher prices, outperforming customers does not mean customers are satisfied
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Customer Satisfaction
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Meeting or exceeding customer expectations of:
-reliability -responsiveness -access (suppliers easy to contact) -communication -credibility -security (limit risk/doubt) -courtesy -competence -tangibles (facility, worker appearance) -knowing the customer |
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Customer satisfaction gap: Knowledge
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the gap between customers' real expectations and managers' perceptions of those expectations
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Customer satisfaction gap: standards
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the gap that exists when internal performance standards do not adequately or accurately reflect customer expectations
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Customer satisfaction gap: performance
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the difference between standard and actual performance
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Customer satisfaction gap: communication
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gap between company's actual performance and what they communicate about their performance
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Customer satisfaction gap: perception
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gap that exists when customers perceive performance to be different than actually provided
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Customer satisfaction gap: satisfaction
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difference between perceived performance and customer's expectation of performance
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Customer satisfaction limitations
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satisfied customers aren't necessarily happy with firm's performance (not always loyal even if satisfied). Satisfaction is individual thing and firm's often assume all customers have same expectations
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Customer Success
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Helping customers to meet their real business needs. Long term relationship, invest more resources, consider customer's customers
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Customer relationship management
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software used to gather and organize information about customers to develop strategic relationships
-ensures quicker response to customer requirements |
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Ch. 10: Sourcing and Supply Management
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supply management
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the identification, acquisition, and management of inputs and supplier relations
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Sourcing
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the identification, evaluation, and selection of suppliers
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Ensuring timely availability of resources
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challenged by supply risk: the probability of an unplanned event that negatively affects a firm's ability to supply its customers (delays, theft, price increases, safety/quality problems)
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Reducing Total Cost of Ownership (TCO)
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TCO: sum of all costs (before, during, after) involved in a purchase
Before: time and costs of searching for, visiting, and evaluating suppliers During: purchase price, ordering, handling, shipping, inspecting After: holding costs, supply risk, repairs, warranty, safety recalls |
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Enhancing quality
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quality of whole part depends largely on quality of components
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Access technology and innovation
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early supplier involvement in innovation and creation provides knowledge and expertise
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Fostering sustainability
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Adds value to communities, increases social diversity, encourage environmental responsibility, act ethically, promote financial responsibility, respect human rights, ensure safe working environment
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Insourcing
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acquiring inputs from operational processes done within the firm
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Outsourcing
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acquiring inputs from operation processes done by suppliers
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Offshoring
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Insourcing or outsourcing to foreign country
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Make or buy decision
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the choice between making product internally or purchasing it from a supplier
-Choosing to outsource reduces TCO of inputs, increases access to new technology, frees up internal resources, and can improve company focus but risks include increased delivery times, sharing of intellectual property, less control of quality and flexibility |
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Strategic sourcing decision process
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1. spend analysis: identify purchases being made in an organization
market analysis: gather data on market struct. 2. develop sourcing strategy: create purchase requisition to communicate needs btwn user and supply mgmt. -weigh supply risk with value -determine how many suppliers to use -determine best locations -determine nature of supplier relationship 3. identify potential suppliers: begin by consider current or past suppliers 4. Assess and select supplier: assess based on level of spending, nature of purchase, and relationship desire. Use weighted point model, online reverse auctions, or negotiation 5. Manage supplier relationship: supplier scorecard, use Electronic Data Interchange |
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Ch. 11- Logistics Management
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Logistics Management
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management of the movement and storage of materials at lowest cost while still meeting customers' requirements
Objective: *providing better service to customers *efficiently managing costs |
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cost-to-service trade off
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as service level increases, costs typically do to
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cost-to-cost tradeoff
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increasing the cost of one logistics activity reduces the cost of another
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Total landed cost
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the sum of all product and logistics related costs
Includes: -costs within country of manufacture (labor, materials, admin, machine maint. etc) -costs to transport goods to country of sale (shipping, fuel, tariffs. etc) -costs within country of sale (marketing, storage, retail storefront, surplus/shortage, etc.) |
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Transportation Management
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increasing importance as firms globalize
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Economic regulation
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government controls of the entry, rates, and services provided by transportation carriers (decreasing)
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Safety regulation
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regulation designed to ensure transportation carriers conduct operations in safe and responsible manner (increasing)
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Economy of Distance
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the longer the trip, the lower the cost per mile
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Consolidation
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Combing small orders or shipments into one larger shipment to take advantage of transportation economies
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Market area consolidation
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combining several small shipments from one shipper that are going to the same market area into one shipment
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Pooled delivery consolidation
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Combines small shipments from different shippers that are going to the same market area
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Scheduled delivery consolidation
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Establishing specific times when deliveries to customers will be made (small orders can accumulate to be delivered less frequently)
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Transportation modes
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Consider:
-transport cost -service characteristics of speed, availability, dependability, capability, and frequency Truck: medium and light goods, wholesale and distribution Rail: heavy bulk commodities Water: bulk commodities; cement; agricultural products Pipe: petroleum; natural gas; slurry Air: small shipments; emergency shipments |
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Common carriers
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transportation companies that provide service to the public
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contract carriers
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carriers that have specific contracts with a limited number of shippers
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private carriers
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companies that own and operate transportation equipment to transport their own products
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Transport service selection
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Total cost= (days in transit/365)*(value)*(holding cost percentage)+(freight cost)
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Cross-docking
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combines break-bulk and consolidation warehouse activities
-more efficient, allows for full truckloads |
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Reverse logistics
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when materials move upstream from returns/exchanges. Growth of leasing and online purchasing increasing need.
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Network design
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Determining number and location of facilities
-location influenced by labor, proximity of suppliers/customers, construction costs, land costs, taxes, etc. |
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Center-of-gravity method
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Attempts to find the lowest-cost location for a facility based on demand and distance
To find coordinates: X= (sum of demand*market X coord. for each point)/(sum of total demand) Y= (sum of demand*market Y coord. for each point)/(sum of total demand) |
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Number of locations and costs
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As number of locations increases:
-Inbound and Inventory costs increae -Outbound costs decrease |
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Ch. 12- Demand Planning and Forecasting
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Demand planning
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Combined process of demand forecasting and management of customer demand to create a planned pattern of demand that meets firm's operational and financial goals
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Demand forecasting
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a decision process in which managers predict demand patterns
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Demand management
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What firms can do to proactively influence demand
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Autocorrelation
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the correlation of current demand values with past demand values
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Judgement-based forecasting
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based on opinions, often from experts
-Grassroots: input from people close with consumers and products -Executive judgements: input from those with experience, useful for new products -Historical analogy: assume past demand indicates future demand -Marketing research: survey target market -Delphi method: survey panel of experts who individually and repeatedly answer questions |
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Statistical model-based forecasting
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-Time series: uses historical data to predict future demand
-Causal studies: identify causal relationships between external factors and demand -Simulations: mathematical programs to understand impact of multiple variables |
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Time series: moving average technique
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forecasting model that computes a forecast as the average of demands over a number of immediate past periods
**sum past demands, divide by n |
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Time series: weighted moving average technique
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A forecasting model that assigns a different weight to each period's demand according to its importance
**weights must add up to 1, multiple each weight by its demand and sum |
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Time series: exponential smoothing
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A moving average approach that applies exponentially decreasing weights to each demand that occurred farther back in time
F(t+1)= F(t)+a(d(t)-F(t)) **the higher the a, the more responsive forecast is to sudden changes, factors in difference between predicted and actual demand more |
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Collaborative, planning, forecasting, and replenishment (CPFR)
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supply chain partners share forecasts, and demand and resource plans to reduce risk
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Ch.15- Project Management
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Project
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one-time or infrequent set of activities with cost and schedule constraints
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Functional structures
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led by certain department at a time
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Pure Project structures
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remove staff from department, focus purely on project
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Matrix structures
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combines functional and pure, pure management team, pull from departments
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