Marketing Test 3: Chapter 16

Integrated Logistics MGMT Requires:

-Cross functional teamwork inside the company -Building logistics partnerships -Third party logistics (3pls)

Emphasis Placed on Logistics

-firms can gain a competitive advantage when lgoistics result in better service or lower prices -improved logisitcs can lower costs -Increased product variety has created a need for imporved logistics management -Improvements in information technology have created the means for major gains in distribution efficiency

Motor Carriers

Advantages: complete pickup and delivery, extensive routes, fairly fast Disadvantages: size and weight restrictions, higher cost, more weather sensitive

Air Carriers

Advantages: fast, low damage, frequent departures Disadvantages: High cost, limited capabilities

Railroads

Advantages: fullcapability, extensive routes, low cost Disadvantages: sine rekuability damage problems, not always complete pickup and delivery, sometimes slow

Water Carriers

Advantages: low cost, huge capacities Disadvantages: slow, limited routes and schedules, more weather sensitive

Pipelines

Advantages: low cost, very reliable, frequent departures Disadvantages: limited routes, slow

Customer Service Factors

Dependability, tgime, communication, convenience

Customer Service defined

The ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience

Reverse Logistics

a process of reclaiming RECYCLABLES and reusable materials, returns and reworks fromt he point of consumption or use for repair, remanufacturing, reditribution, or disposal

VMI

an inventory mgmt system whereby the supplier determines the product amount and assortment a customer needs and automatically delivers the appropriate items

Goals of a logistics system:

deliver a targeted level of customer service at the least cost

EDI

electronic data interchange - combines proprietary computer and telecommunication technologies to exchange electornic invoices payments and information among suppliers manufacturers and retailers

Total Logisitcs costs defined

expenses associated with transportation materials handling and warehousing inventory stockouts order processing and return goods handling

Warehoiousing

how many, what types and where storage warehouses distribution centers automated warehouses

JIT Concept

inventory supply system that operates with vey low inventories and requires fast on time delivery

Total Logistics Costs Factors

materials handling and warehousing costs, order processing costs, inventory costs, transportation costs

inventory mgmt

must balance between too much and too little inventory, just in time logistics systems, rfid or smart tag technology

Marketing Logistics

planning implementing and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.

Integrated Logistics MGMT

the logisitcs concept that emphasiezes teamwork, both inside the company and among all the marketing channel organizaitons, to maximize the performance of the entire distribution system

Logistics information management

the management of the flow of information including customer orders, billing, inventory levels and customer data

Supply Chain management

the process of managing upstream and downstream value added flows of materials, final goods, and related information among suppliers, the company , resellers and final consumers.

Transportation alternatives

trucks, railroads,water carriers, pipelines, air, internet, intermodal transportation *