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