MKT Unit 11 (Distribution, Cust. Service & Logistics)
Total cost approach
evaluating each possible PD system and identifying all of the costs of each alternative
Containerization
grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination
customer service level
how rapidly and dependably a firm can deliver what they, the customers, want
Physical Distribution (PD)
is another common name for logistics
Inventory
is the amount of goods being stored
Transporting
is the marketing function of moving goods. makes products available when and where they need to be - at a cost.
Logistics
is the transporting, storing, and handling of goods in ways that match target customers' needs with a firm's marketing mix- both within individual firms and along a channel of distribution
Physical distribution (PD) concept
all transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system that seeks to minimize the cost of distribution for a given customer service level
Electronic Data Interchange (EDI)
an approach that puts information in a standardized format easily shared between different computer systems
Public warehouses
are independent storing facilities. They can provide all the services that a company's own warehouse can provide
Private warehouses
are storing facilities owned or leased by companies for their own use
Distribution center
special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs
supply chain
the complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers
Storing
the marketing function of holding goods so they're available when they're needed