Supply Chain Management Exam 3(9-12, 14,15)

Mangaging Customer Service Capabilities

"Seven R's Rule" the right product the right quantity the right quality the right place the right time the right customer the right costs

Hybrid Approach

- Companies may choose to do some type of a hybrid approach to balance costs and inventory against customer service. -One hybrid network is a "hub-and-spoke" where there is a centralized warehouse (i.e., the "hub") which holds most of the inventory linked to a series of smaller geographically dispersed warehouses (i.e., the "spokes") which hold only a small amount of inventory to support their local area in the immediate time frame -The hub warehouse feeds the spoke warehouses with inventory as necessary on a regular basis. -Operating costs are lower because the spoke warehouses are smaller than in a decentralized model.

Customer Service as a Performance Measure

- Customer service is a category of performance measures, such as the percentage of orders delivered on time and complete, the number of orders processed within acceptable time limits, etc.

Customer Service as a Philosophy

- Customer service is a company-wide commitment to providing customer satisfaction by placing emphasis on quality and quality management.

Customer Service as an Activity

- Customer service is a particular task that a firm must accomplish to satisfy the customer's needs. Order processing, billing and invoicing, product returns, and claims handling are all typical examples of the customer service activity.

Transaction elements

- occur during the sale Includes the order lead time, the order processing capabilities, the distribution system accuracy, etc.

Pre-transaction elements

- precede the sale Includes customer service policies, the mission statement, the organizational structure, system flexibility, etc.

Terms of Sale

- the delivery and payment terms agreed between a buyer and a seller. -Free on Board (F.O.B.) Origin Seller states price at point of origin and agrees to load a carrier Buyer selects the carrier and pays for the transportation Title passes to the buyer when the shipment originates. Buyer assumes the risk for in-transit loss or damage -Free on Board (F.O.B.) Destination Seller arranges for transportation and adds charges to the sales invoice. Seller assumes the risk for in-transit loss or damage. Title does not pass to the buyer until delivery is completed.

Disadvantages of 3PL

-Control: A company will not have direct control over the logistics operation. -Dependency: Outsourcing logistics creates a dependency on the 3PL. -Pricing: The company is locked into the pricing model specified in the contract

Advantages of 3PL

-Cost: Eliminates the need for a company to invest in warehouse space, technology, and staff to execute the logistics process. -Logistics Expertise: Knowledgeable of industry best practices and the latest developments in technology. -Efficiency: 3PL's can leverage relationships and volume discounts, which result in lower overhead and the fastest possible service.

Lean Warehousing

-Cross Docking - A LEAN concept because it eliminates the need to store inventory, and reduces some transportation, which are both wastes. -Reduced Lot Sizes and Shipping Quantities - By reducing lot sizes and shipping quantities, a company can increase velocity in the warehouse, and get shipments out faster. Faster throughput is a LEAN concept. -Increased Automation - Companies are using automated systems like pick to light, voice picking, conveyor systems, automatized guided vehicles (AGV's), and robotics to improve efficiencies and throughput times in the warehouse. -Green Warehousing - One of the more sustainable goals for a green warehouse is to make it a net zero energy user.

Global Logistics Intermediaries

-Customs Brokers Move global shipments through customs and handle documentation. -International Freight Forwarders Move goods to and from foreign destination -Trading Companies Put buyers and sellers from different countries together and handle export/import arrangements, documentation and transportation. -Non-Vessel-Operating Common Carriers (NVOCC) Operate like freight forwarders but use only scheduled ocean liners.

Transportation Intermediaries

-Freight Forwarder - Consolidates LTL shipments into FTL shipments -Load or Transportation Broker - Bring shippers and carriers together -Shippers' Association - Nonprofit cooperatives which arrange for members' shipping -Intermodal Marketing Company - Purchase blocks of rail capacity and sell it to shippers

Transportation Regulation

-Granger laws (1870s) - regulated the Railroads -Interstate Commerce Act of 1887 - created the Interstate Commerce Commission (ICC). -Transportation Act of 1920 - changes to Interstate Commerce Act -Motor Carrier Act of 1935 - brought motor carriers under Interstate Commerce Commission control. -Transportation Act of 1940 - established Interstate Commerce Commission control over domestic water transportation. -Federal Aviation Act of 1958 - created air traffic and safety regulations and the national airport system. -Department of Transportation Act of 1966 - coordination of all transportation-related matters.

Poor Reverse Logistics

-Inability of information systems to handle returns -Lack of worker training in reverse logistics procedures -Little or no identification on returned packages -Need for adequate inspection and testing of returns -Danger of placing returned products back into sales stocks

Opportunities of Global Supply Chains

-Increased revenue through global business (i.e., more customers) and economic opportunities -Increased sourcing options with more potential sources of supply to choose from including potential economic opportunities

Hybrid Approach (cont)

-Inventory is also lower as all of the safety stock is held centrally, which generally means that less total safety stock is required because all of the risk and uncertainty is managed centrally. -Customer service is generally better than in a purely centralized model since some of the inventory is maintained closer to the customer.

Trade Compliance

-Is a major concern and dozens of laws, regulations and rules have to be checked and complied with for every import and/or export transaction. -Businesses violating trade regulations face fines of up to 40% of the value of the merchandise for "negligence," which can mean simply failing to keep certain necessary records.

Advantages of Cross-Docking

-Operational Efficiency: Warehouse operations are more efficient as the material does not have to be stored at the warehouse, moving directly from receiving to shipping. -Inventory Efficiency: As there is no storage at the warehouses, total inventory in the supply chain can be reduced.

Foreign Trade Zones (FTZ's)

-Physical areas supervised by U.S. Customs and Border Protection that are considered to be outside U.S. territory. -While in the FTZ, merchandise is not subject to U.S. duty or excise tax.. U.S. duty and excise tax, if applicable, are only payable when the material is moved outside the FTZ for consumption. -Foreign-trade zone sites are subject to the laws and regulations of the United States as well as those of the states and communities in which they are located. -There is no limit on the time material may remain in the zone.

Water Carriers

-carries heavy, bulky, low value materials like coal, grain, and sand. Nonetheless, because transport by water is so cheap almost any item may be shipped by water including: automobiles, petroleum, containerized cargo, produce, etc -Inexpensive -Very slow and inflexible -Competes with rail and pipeline

Air Carriers

-carries items with a high cost to weight ratio. Very light, high-value goods that need to travel long distances quickly including jewelry, fine wines, pharmaceuticals, racehorses, etc

Pipeline Carriers

-carries materials in a liquid or gaseous state including: petroleum, natural gas, drinking water -Lowest per unit cost for transportation -Limited in the variety of commodities they can carry. -Most reliable form of transportation

Rail Carriers

-carries very heavy shipments including heavy building materials, construction equipment, coal, etc -Compete for transportation when the distance is long and the shipments are heavy or bulky. Rail is slow and inflexible but it has the most capability Rail carriers have begun purchasing motor carriers and can now offer point-to-point pickup and delivery service.

U.S. Customs and Border Protection (CBP)

-to safeguard America's borders thereby protecting the public from dangerous people and materials while enhancing the Nation's global economic competitiveness by enabling legitimate trade and travel. -secure and facilitate imports arriving in the U.S. -strong industry partnerships and technology to safeguard the American public and promote legitimate international commerce.

Primary Function of a Warehouse

1) Receiving: Physical receipt of material, identification, inspection for conformance with the purchase order (quantity and damage), put-away, and preparation of receiving reports 2)Storage: The safe and secure retention of parts or products for future use or shipment. 3)Picking: Withdrawing components from stock to make assemblies or finished goods, or to ship to a customer. 4)Packing: Placing one or more items of an order into an appropriate container for safe shipping , and marking and labeling the container with customer shipping destination data, and other information that may be required. 5)Shipping: Outgoing shipment of parts, components, and products. Includes packaging, marking, weighing, and loading for shipment.

Warehouse Network Strategy

1)Market Positioned Strategy: Close to customers to maximize distribution services and improve delivery. 2)Product Positioned Strategy: Close to supply source to collect goods and consolidate before shipping products out to customers. 3)Intermediately Positioned Strategy: Midway between supply source and customers, when distribution requirements are high and product comes from various locations

12 Pillars of Competitiveness

1.Institutions 2.Infrastructure 3.Macroeconomic stability 4.Health and primary education 5.Higher education & training 6.Goods market efficiency 7.Labor market efficiency 8.Financial market sophistication 9.Technological readiness 10.Market size 11.Business sophistication 12.Innovation

U.S. Department of Homeland Security ( DHS)

1.Prevent terrorist attacks within the United States 2.Reduce America's vulnerability to terrorism 3.Minimize the damage from potential attacks and natural disasters -On March 1st 2003, DHS assumed responsibility for securing our nation's borders and transportation systems which straddle 350+ official ports of entry and connects our homeland to the rest of the world. -The Department's first priority is to prevent the entry of terrorists and the instruments of terrorism, while simultaneously ensuring the efficient flow of lawful traffic and commerce.

Right-to-work Laws

25 states have laws protecting the right of employees to decide whether or not to join or support a union.

Warehouse Ownership: Public

A business that provides storage and related warehouse functions to companies on a short or long-term basis, generally from month-to-month. -Own their own equipment and hire their own staff to manage the facility. -Fees are typically a combination of a monthly storage fee plus a pallet-in fee and a pallet-out fee.

Warehouse

A facility used to store purchases, work-in-process (WIP), and finished goods inventory.

Offshore Factory

A factory set up for manufacturing or assembly in a country where labor and/or raw materials are less expensive, for eventual import back into the manufacturer's home country. -Manufactures products at low cost with minimal technical and managerial resources -Take advantage of low labor costs -Import or acquire parts locally, then export to the manufacturer or directly to customers -Local management serves in a supervisory roll not in making management decisions.

Server Factory

A factory set up to take advantage of government incentives, reduce taxes/tariff barriers to meet regional needs -Firm uses government incentives Low exchange risk and tariff barriers to reduce taxes and logistics costs. Makes minor improvements to product and processes Set up to serve the local market

Customer Lifetime Value (CLV)

A prediction of the net profit attributed to the entire future relationship with a particular customer.

Target Marketing

A segment of customers a company has decided to aim its marketing efforts and ultimately its products and/or services towards. A well-defined target market is the first element of any marketing strategy -Usually much more effective

Warehouse Ownership: Private

A storage facility that is owned by the company that owns the goods being stored in the facility. -Generally established by companies that have a large volume or highly valuable goods, or the need for some type of specialized storage or handling. -Can be operated as a separate division within a company -Can be co-located on-site with manufacturing, or off-site.

Goals and Benefits of CRM

A successful well-designed CRM program can provide companies with many improvements and benefits. 1.Increased customer satisfaction. 2.Increased customer loyalty and retention 3.Faster responses to customer inquiries. 4.Increased revenue. 5.Growth of the customer base through referrals. 6.A simplified and more cost effective marketing & sales process. 7.Increase sales effectiveness. Closing sales faster. 8.Increased sales through cross-selling and/or up-selling. 9.Access to updated customer information and personalized interactions. 10.Automation of repetitive tasks.

International Trade Management (ITM)

A typical cross-border shipment involves: Accurately completing and filing about 35 documents. Compliance with over 600 laws and 500 trade agreements which are constantly changing. Interfacing with about 25 parties, including Customs, carriers, freight forwarders, other government agencies, etc.

Warehouse Ownership: Contract

A variation of public warehousing that handles the shipping, receiving, and storage of goods on a contract basis -usually requires client to commit to services for years -the free structure may be fixed cost, cost-plus, or a combination of both -the company providing the space handles the employees, equipment, and maintenance

Warehouse Network

A warehouse network is simply the number of, and the relationship between, the warehouses that a company has in their organizational structure. Fundamental Questions: 1. How many warehouses does the company need? 2. Where should they be located Trade-offs that will determine how many warehouses the company needs and where they should be located are; (1) the level of customer service the company wants to provide and (2) the amount of inventory the company is willing to invest in

Advantages/Disadvantages of Public Ownership

Advantages -No capital investment or property taxes -Flexibility: --Can be short or long term contract --For seasonal products Add storage capacity even on short notice -Lower costs and reduced risk -Access to special features and services: --Temperature-controlled storage --Customer Service, Inventory Ordering, etc. --Office space for customer's -sales, accounting, etc Disadvantages: -Potential for incompatible computer systems -Specialized services may not be what is required/needed -Space may not be available when/where needed

Advantages/Disadvantages: Private

Advantages: -Control: Offers greater flexibility in designing the warehouse and gives users significant control over operations. -Visibility: inventory, material flow, handling, supervision, and associated costs. -Cost: Operating cost can be 15% - 25% lower if the company achieves at least 75% utilization Disadvantages: -High Start-up Cost: Capital to build or buy a warehouse. Long, risky investment. Cost of hiring and training employees. Purchase of material handling equipment. -Fixed Location: Not easy to move to another location if the market changes. -Fixed Size and Costs: When volume is low, the company still assumes the fixed costs.

Advantages/Disadvantages: Contract

Advantages: -Services: client can obtain specialized services tailor-made to suit their needs. -Cost: can be bundled in the contract and negotiated at a lower cost. -Control: contract warehousing offers a degree of control at a reasonable price Disadvantages: -Duration: The client company is expected to enter into a contract for a specific period of time; generally three years.

Relationship Marketing/Permission Marketing

An approach to selling products and services in which a customer explicitly agrees in advance to receive marketing information. Customers self-select the type and time of communication they want. "Opt in email" Permission marketing is about building an ongoing relationship of increasing depth with customers Permission marketing does not typically create immediate sales, but rather grabs a customer's attention and preserves a business relationship.

Green Reverse Logistics Programs

Can have a positive impact on the environment though activities such as recycling, reusing materials and products, or refurbishing unused products. `

Churn Reduction

Churn is the process of customers changing their buying preferences because they find better or cheaper products and services elsewhere. Churn Reduction is all of the efforts companies develop to stop losing customers to the competition - Goes hand in hand with Customer defection analysis (5% improvement in retention can increase profits 75%)

The Weighted-Factor Rating Model

Compares the attractiveness of several locations along a number of quantitative and qualitative dimensions.

Location Factors

Competitiveness ,Taxes and Incentives,Currency Stability,Access & Proximity to Markets,Labor Issues, Right to Work Laws, Access to Suppliers and Cost, Utility Availability and Cost, Environmental Issues, Land Availability and Cost, Quality of Life Issues, Business Clusters, Trade Agreements

Transportation Pricing

Cost of Service Pricing - is the setting of a price for a service based on the costs incurred in providing it. Value of Service Pricing - is a pricing strategy which sets prices based on the value perceived by the customer, i.e., "priced at what the market will bear". Combination Pricing - price is set at a value between cost-of-service minimum and value-of-service maximum. Most carriers use some form of combination pricing. Common in highly volatile markets and changing competitive situations Net-Rate Pricing - Established discounts and accessorial charges are rolled into one all-inclusive price. Pricing is tailored to the individual customer's needs

Penalties for Violations

Criminal Penalties Substantial Fines (and/or) 10+ years imprisonment Civil Penalties Substantial fines per occurrence Individual and/or company sanctions Statutory Sanctions Seizure and forfeiture of items in violation, including the vessels and aircraft carrying the items. Loss of import and/or export privileges for a business unit, division, or for the entire company. Detailed inspections of every single shipment, and delayed release by US Customs & Border Protection.

Quality of Life Issues

Education Economy Natural Environment Social Environment Culture/recreation Healthcare Government/politics Mobility Public Safety

Event Based Marketing

Event based marketing is a form of marketing that identifies key events in the customer and business lifecycle. Event-based marketing is a more personalized form of marketing which can help to form personal connections with the customers

Outpost Factory

Factory set up in an area with an abundance of advance supplier, competitors, research facilities, etc. -Setup in a location within proximity to: Advance suppliers. Competitors. Research facilities & Universities for materials, components and products.

Contributor Factory

Focused on product development and engineering for products that they manufacturer -Basically, a Server Factory which also includes: Product development. Production planning. Procurement decisions. Supplier development.

Warehousing

Function that allows a company to receive, store, breakdown, repackage, and distribute items to a manufacturing location, or finished products to a customer

Business Clusters

Geographic concentrations of interconnected companies and institutions. Research parks and special economic / industrial zones serve as magnets for business Reasons for success: Innovation and competition can be geographically concentrated. Close cooperation, coordination, and trust among clustered companies Fierce competition among rival companies Companies recruit from local skilled workers

Return of Unsold Goods

In some industries, goods are distributed to downstream members in the supply chain with the understanding that the goods may be returned for credit if they are not sold e.g., newspapers, magazines, even pharmaceuticals. This acts as an incentive for downstream members to carry more stock, because the risk of obsolescence is borne by the upstream supply chain partner. The risk is that the downstream member in the supply chain might exploit the situation by ordering more stock than is required and returning large volumes.

Call Centers

It is a facility housing personnel who respond to customer queries. These personnel may provide customer service or technical support -Can categorize calls -Determine average resolution time -Increasing customer satisfaction levels -Provide input to forecast future demand -Improve the productivity of the overall staff -may be in-house or outsourced

Labor Issues

Labor availability, productivity, and skill. Unemployment / underemployment rates Wage rates; turnover rates; labor force competitors.

Why CRM?

Loyal customers are the source of most profits, and a relatively small percentage of those customers may generate most of the profits for the company.

Source Factory

Manufactures products at low cost but with skilled workers and significant managerial resources -Basically, an offshore factory that includes: Plant management involvement in supplier selection Plant management involvement in production planning More developed local infrastructure Access to skilled workforce Low production costs

Exempt Carriers

Person or company specializing in services or transporting commodities exempt from regulation by the Interstate Commerce Act.

Common Carriers

Person or company who transports freight for a fee that can be hired by anyone to transport goods.

Contract Carriers

Person or company who transports freight under contract to one or a limited number of shippers.

Single Warehouse

Positives: -Less complicated -Operating costs and inventory will be lower -No duplication of equipment, warehouse staff, and managers -Network will be centralized and the company will have its best people, equipment and inventory systems concentrated in one place. -Warehouse can more actively focus on the needs of its customers. Negatives: -However, the centralized network may take longer to deliver product to some customers who are remote from the central location.

Multiple Warehouses

Positives: -Potentially faster delivery to customers from a decentralized network that is geographically dispersed throughout the market, assuming adequate inventory in each warehouse Negative: -More complicated -Operating costs and inventory will be higher as each warehouse costs money to staff and operate. Duplication of equipment, warehouse staff, and managers -Network will be decentralized and the company will have to spread its best people, equipment and inventory systems across a larger network.

Key Tools and Components of CRM

Predicting Customer Behaviors- collect data to determine effective marketing practices, create more accurate forecast. Personalizing Customer Communications- understand the customer to better communicate i.e. language. Segmenting Customers- The practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing. allows a company to zero in on a particular population of customers to sell a specific product, or to define a specific product(s) for a particular segment of customers

Global Trade Management Systems (GTM)

Provides global visibility, standardization, and documentation to comply with international trade regulations.

Transport Deregulation

Railroad Revitalization and Regulatory Reform Act (1976) Railroads could change rates without ICC approval -Air freight deregulated in 1977 -Motor carriers deregulated in 1980 Promote competitive, safe and efficient motor transportation Shipping Act of 1984 Allowed ocean carriers to pool shipments, assign ports, publish rates, and enter into contracts with shippers -ICC Termination Act of 1995 ICC was eliminated -Ocean Shipping Reform Act of 1998 Requirement for ocean carriers to file rates ended

Strategically Significant Customers

Relationships should be built with strategically significant customers that are likely to provide the most value for the effort. Strategically significant customers are: -Customers with high life-time value, i.e., customers that will constantly buy the product(s) or use the service(s) in the long-term. -Customers who serve as role models or benchmarks for other customers. -Customers who inspire change in the supplier and/or the supply chain. CRM is not for every customer.

Taxes and Incentives

Several levels of government must be considered when evaluating potential locations. Tariffs are federal taxes that are designed to protect local businesses. Countries with high tariffs discourage importing goods into the country and encourage multinational corporations to produce locally.

Lead Factory

Source of product and process innovation and competitive advantage across the entire organization (world-class) -Source of innovation. Competitive advantage of the organization

Challenges of Global Supply Chains

Tariffs or duties (i.e., import taxes) Transporting goods across borders Customs, business practices, and regulations vary by country Foreign markets are not homogeneous even within the country

Transportation

The function of planning, scheduling, and controlling activities related to the mode, carrier, and movement of inventories into and out of an organization. Objectives of Transportation: 1.To maximize the value to the company through price negotiations 2.To make sure service is provided effectively 3.To satisfy customers' needs

Cross-Docking

The logistics practice of unloading materials from an incoming truck or railcar and loading these materials directly onto outbound trucks or railcars, with little or no storage in between to reduce inventory investment and storage space requirements. 1)Provide a central site for products to be sorted and combined for delivery to multiple destinations in the most productive and fastest method possible. 2)Consolidate: Combine smaller product loads into one method of transport to save on transportation costs. 3)Break-Bulk: Break down large product loads into smaller loads for transportation for an easier delivery process to the customer.

Customer Defection Analysis

The process of analyzing the customers who have stopped buying to determine why.

Deemed Exports

The release of technology or source code that is subject to the Export Administration Regulations, to a foreign national located in the United States

Warehouse Management Systems (WMS)

Track and control the flow of goods from receiving dock to outbound shipment. New technologies, such as RFID tags, facilitate tracking.

Trade Compliance Systems

Trade Compliance Systems can automate the process of checking every transaction Benefits: -Increased level of compliance compared to a manual process. -Decreased number of physical inspections by US Customs & Border Protection -Faster release of shipments by US Customs & Border Protection. -Avoidance of fines and penalties. -Opportunity to interface with other systems.

International Freight Security

Transportation across national boundaries introduces added complexity, particularly security. Since 9/11 there is more conflict between the U.S. government and industry regarding more security and restrictions for international shipments.

Regulation Vs. Deregulation

US Transportation industry remains mostly deregulated Pro - Regulation tends to assure adequate transportation service throughout the country. Protects consumers from monopoly pricing, safety, and liability. Con - Regulation discourages competition and does not allow prices to adjust based on demand or by negotiation.

Transportation Management Systems (TMS)

Used to select the best mix of transportation services and pricing.

Break Even Model

Useful location analysis technique when fixed and variable costs can be determined

Break Bulk

Warehouse operation that divides full truckloads of items from a single source or manufacturer into smaller, more appropriate quantities for use or further distribution. -Located closer to the customer base so that the smaller LTL shipments travel the shorter distance, while the larger FTL shipments from the single source travel the longer distance before arriving at the break-bulk.

Consolidation

Warehouse operation that receives products from different plants or suppliers, sorts them, and then combines them with similar shipments from other plants or suppliers for further distribution. -Located closer to the supply base so that smaller LTL shipments travel shorter distance and can be consolidated into larger FTL shipments traveling longer distance to the customer.

Fourth Party Logistics (4PL)

an interface between the client company and multiple logistics service providers. -A company will select a lead logistics partner (referred to as a 4PL) that is then charged with managing the activities of all the other 3PL's being used by the company. -Ideally, all aspects of the client company's supply chain handled by 3PL's would be managed by the 4PL organization.

Motor Carriers (Trucks)

carries nearly anything from packaged household goods, to building materials, to liquid petroleum, etc -Most flexible mode of transportation. Carries > 80% of U.S. Freight. Competes with Rail and Air for short-to-medium hauls -Less-Than-Truckload (LTL) carriers move small shipments, when you don't have enough to fill a truck. Stop at depots and transfer locations to match load to the final location. -Full-Truckload (FTL) carriers are used when you have enough to fill the truck, or you don't want other suppliers cargo on your truck (security, faster delivery

Third Party Logistics (3PL)

company is an outsourced provider that manages all, or a significant part, of an organization's logistics requirements for a fee. -Favored by small business - typically generate a 10-20% savings in logistics cost

World Trade Organization (WTO)

deals with the global rules of trade between nations. Its main goal is to ensure that trade flows as smoothly, predictably and as freely as possible. -Administering agreements -Forum for trade negotiations -Trade disputes -Monitor trade policies -Aid for Developing countries -International organizations

Customer Relationship Management (cont.)

is about building and maintaining profitable long-term customer relationships beyond the one-off buy and sell transaction -By: Focusing on customer requirements Delivering products and services in a manner resulting in high levels of customer satisfaction -How: Communicating with customers Understanding their behavior and their requirements Building a system to satisfy those requirements

Post-transaction elements

occur after the sale Includes warranty repair capabilities, complaint resolution, product returns, operating information, etc.

Private Carriers

person or company that transports its own cargo as a part of a business that produces, uses, sells or buys the cargo that is being hauled.

Up-selling

selling involves persuading a customer to buy a more expensive item or upgrade a product or service to make the sale more profitable. It also involves selling the customer extra features or add-ons to the product they are already buying or considering. Example: "Would you like to super-size your order?"

Cross-selling

selling occurs when a company sells an additional related or complementary product or service to an existing customer after the initial purchase. Example: "Would you like fries with that?"

Intermodal Transportation

sometimes referred to as the sixth mode of transportation, but it is really the use of multiple modes of transportation to execute a single transport shipment.

Customer Service

the act of taking care of the customer's needs by providing and delivering professional, high quality service before, during, and after the customer's requirements are met

Reverse Logistics

the process of moving a product from the point of customer receipt back to the point of origin to recapture value or ensure proper disposal. Backwards flow of goods from customers in the supply chain -"Reverse logistics is all about damage control and making the process as customer-friendly as possible" -Reverse logistics cost 4 - 5 times as much as forward logistics and requires on average 12 times as many processing steps.

Customer Relationship Management (CRM)

the transformation of the people, process, and technology required to become a customer-centric organization;. It involves acquiring, retaining and partnering with selective customers to create superior value for both the company and the customer. It provides a means and a method to enhance the experience of individual customers so that they will remain customers for life.

Clickstream

tracking how a customer navigates a website can help tailor a website's images, ads or discounts based on past usage of the site.