Exam II

The measure can be expressed as an objective value.

The measure conveys at a glance what it is measuring and how it is derived.

The measure is balanced to reward productive behavior and discourage "game playing."

The effects of the measure are readily apparent to all involved in the process being measured.

The measure has been defined by and/or agreed to by all key process participants (internally and externally).

The measure integrates factors from all aspects of the process measured.

The measure focuses on a key performance indicator that is of real value to managing the process.

The measure is properly balanced between utilization, productivity, and performance and shows the tradeoffs.

The benefits of the measure outweigh the costs of collection and analysis.

The measure validates the participation among the various parties.

Raising the Performance Bar

Process Measure Categories

Four Major Performance Categories

Five Major Categories of Metrics

Once an expected ______ ______ ______ is established for customers, service failures can be measured.
_ _ _ influences product availability, customer inventories, and seller's cash flow and profit.

Logistics Outputs that Influence Customer Service

Financial Impact Analysis for On Time Fulfillment

Financial Impact Analysis for Order Fill Rate

The Need for Information:
information is the ________ of business, driving effective decisions and actions.

The Need for Information is especially critical to _______ _______ managers because their direct line of sight to _______ _______ processes is very limited.

True or False
The Need for Information:
A wide variety of information is needed for a supply chain to perform as anticipated.
True False

The Need for Information:
information must be _______, relevant, _______, timely, and transferable

Supply Chain Information Flows

Information Must Be:
A
R
A
T
T

Six Drivers of Supply Chain Excellence

Technology Use Barriers

Ten Golden Rules for Success:
1. Secure the Commitment of _______ management.

Ten Golden Rules for Success:
2. Remember that it is not just an information Technology ______.

Ten Golden Rules for Success:
3. Align the project with ________ _____.

Ten Golden Rules for Success:
4. Understand the software _________.

Ten Golden Rules for Success:
5. Select ________ carefully.

Ten Golden Rules for Success:
6. Follow a proven implementation ___________.

Ten Golden Rules for Success:
7. Take a Step-By-Step approach for incremental value ______.

Ten Golden Rules for Success:
8. Be prepared to change ________ ________.

Ten Golden Rules for Success:
9. Keep end users _________ and __________.

Ten Golden Rules for Success:
10. Measure success with key performance ________ (KPIs).

Supply Chain Software Categories

Planning:
Supply Chain _____________ tools and suites carry out key tasks from the time an order is placed until it is fulfilled. This order-driven category of software focuses on the day-to-day activities required to buy, make, and deliver the materials that flow through the supply chain.

Supply Chain _________ _____________ tools collect data in real time from multiple sources across the supply chain and convert them into information that gives business managers a clear picture of how their supply chain is performing.

___________ ____________ ___________ are multi-module application software platforms that help organizations manage the important parts of their businesses.
_ _ _ systems branch out to include supplier relationship management, customer relationship management, and other supply chain components, the connections between SCIS and _ _ _ grow stronger. 
_ _ _ system provides a mechanism for supply chain members to efficiently share information.

Supply Chain Event Management Opportunities

Supply Chain Software Suite

Asking the Right Questions:

Who will lead our ____________ effort?

Asking the Right Questions:

How will ____________ support our business needs and processes?

Asking the Right Questions:

What is the status of our _________ _______?

Asking the Right Questions:

How well does our existing system __________ with suppliers and customers?

Asking the Right Questions:

What _________ ________ must our systems address?

_______-___________ ______________ is an automatic identification method. _ _ _ _ tags consist of a microchip and a printed antenna that can be packaged into many forms, such as a label, or imbedded in between the cardboard layers in a carton or product packaging.

Unique product identification information, in the form of a universal __________ ________ ____ (_ _ _) identifying the manufacturer, product category, and individual item, is stored on these 96-bit tags.

_ _ _ _ technology costs must continue to decline to make product tagging economically feasible; equipment issues such as reader range, sensitivity, and durability must improve; the case for supplier return on investment of _ _ _ _ mandates must be made; and consumer privacy issues must be resolved.

__________ _____________ is the ability of firms throughout the supply chain to collaborate on activities related to the flow of product, services, information, and capital.

Problems in achieving _______ ____________ goals:
Lack of coordination between departments
Too much emphasis on forecasts of demand, with less attention on the collaborative efforts and the strategic and operational plans
Demand information is used more for tactical and operational than for strategic purposes

Supply/Demand Misalignment

_______-__-_________ _____________
Advantages:
low start-up costs
workforce efficiency because of consolidated operations
Disadvantages:
the order profile will change
products might not be available in consumer units
"fast pick" or broken case, operation to be added to the distribution center
conflict between a store order and an Internet order

__________ ____________:
Retailer maintains both a bricks-and-mortar and clicks-and-mortar presence
Operates one distribution network to service both channels
Advantages:
low start-up costs
existing network can service both
Disadvantages:
order profile change with addition of Internet orders
Case lots versus eaches
would require a fast pick, or broken case operation
conflict might arise between a store order and an Internet order

__________ ____________:
Both a store and an Internet presence with two separate distribution networks
Advantage:
separate distribution network for store delivery and consumer delivery eliminates most of the disadvantages of integrated fulfillment
Disadvantage:
Duplicate facilities and duplicate inventories

___________ ____________:
assumes that another firm will perform the fulfillment.
Advantages:
low start-up costs for the retailer to service the Internet channel
possible transportation economies
Disadvantage:
Loss of control over service levels

_____-_________ _____________:
also called direct store delivery, vendor delivers directly to retailer, bypassing retailer's distribution network.
works best for products that have a short shelf life
Advantages:
reduction of inventory in the distribution network
vendor has direct control of its inventories
Disadvantage:
possible reduction of inventory visibility

________ ______________:
The order is placed through the Internet site and sent to the nearest store for customer pick up.
Advantages:
short lead time to the customer
low start-up costs for the retailer
returns can be handled through the store
product availability in consumer units
Disadvantages:
reduced control and consistency over order fill
Conflict may arise between inventories
Must have real-time visibility to in-store inventories
Stores lack sufficient space to store product

____-________ _____________:
Product is picked and packed at distribution center, then sent to the store for pickup
Advantages:
eliminates the inventory conflict
avoids the cost of the "last mile"
returns can be handled through the existing store network 
Disadvantage:
Storage space at the store for pickup items a problem

_________ ____ _____
This is the phase where an organization attempts to change the manner by which its customers place orders.

______ ___________
This occurs when the order is received.

_________ _______: is anything that touches the customer. This includes all activities that impact information flow, product flow, and cash flow between the organization and its customers.

____________ elevates customer service to an organization-wide commitment to providing customer satisfaction through superior customer service.

___________ emphasizes customer service as specific performance measures that pervade all three definitions of customer service and address strategic, tactical, and operational aspects of order management.

_________ treats customer service as a particular task that an organization must perform to satisfy a customer's order requirements.

Relationship Between Order Management and Customer Service

__________ _____________ ______________ is the art and science of strategically positioning customers to improve the profitability of the organization and enhance its relationships with its customer base.

_____________ _____________ _______________
is not a new concept used by service industries.
has not been widely used in the business-to-business environment until lately.

__________ _______ affects firm's cost.
how customers order
how much customers order
what customers order
when customers order an order

Four Basic Steps in the implementation of the CRM:
Step 1: Segment the __________ _____ by profitability.
Step 2: Identify the ______/_______ __________ for Each Customer Segment
Step 3: Develop and ________ the Best Processes
Step 4: Measure ___________ and Continuously Improve

Hypothetical Product/Service Offerings: Option A

Distribution Center Space Allocation

Distribution Center Labor Allocation

Flow-Through Costing for a Distribution Center

Once Method to Classify Customers by Profitability:
_______ Zone
_______ Zone
_______ Build

__________ ______: those customers who fall into this segment are the most profitable.

_______ ____: Customers in this segment are the least profitable and incur a loss.
The firm has three alternatives for this zone customers:
(1) change customer interaction with firm so the customer can move to another segment
(2) charge the customer the actual cost of doing business
(3) switch the customer to an alternative distribution channel

_____ ____: these customers have a low cost to serve and a low net sales value, so the firm should maintain the cost to serve and build net sales value to help drive the customer into the "Protect" segment.

______ __________
This system represents the principle means by which buyers and sellers communicate information regarding orders.
Effectively this is key to operational efficiency and customer satisfaction.
Logistics needs timely and accurate information relating to orders so many firms place order management in the logistics area.

______ __ _____
Thirteen principle activities constitute the _ _ _ cycle

______ ______
all activities that occur from when an order is received until the product is received.

__________ ______
refers to acquisition of additional inventory
one firm's order cycle is another's replenishment cycle.

______ __ _____ cycle:
recent attention has centered on the variability or consistency of this process
absolute length of time is important, variability is more important
a driving force is safety stock, as absolute length of the order cycle will influence demand inventory

The _________/__________ _________
Customer Service is the key link between logistics and marketing within an organization.
Manufacturing can produce a quality product at the right cost and marketing can sell it, but if logistics does not deliver it when and where promised, the customer will not be satisfied.

Four Distinct Dimensions of customer service:
T
D
C
C

______
Cycle time
safe delivery
correct orders

____________
more important than the absolute length of lead time

___________
pretransaction
transaction
posttransaction

_____________
service level must be flexible

Customer Service Performance Measures from buyer's view:
Orders received on _____
Orders received ________
Orders received ________
Orders filled ___________
Orders billed ____________

Elements and Measurement of Customer Service

Expected Cost of __________:
_______ occurs when desired quantities are not available

Four possible events of Stockouts

_______ _______:
occurs when a seller has only a portion of the products ordered by the buyer
are created to secure the portion of the inventory that is currently not available

______ _______: some customers will turn to alternative supply sources.

_____ ________: customer permanently switches to another supplier.

Product availability from customer perspective:
Q1:
Q2:
Q3:
Product availability is the ultimate measure of logistics and supply chain performance.

_______
Four are widely used across multiple industries:
Internal:
Item fill rate
Line fill rate
External:
Order fill rate
Perfect order