Supply Chain Metrics & Customer Relationship Management: Performance Categories & Metrics, Quizzes of Geopolitics

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TERM 1 measure DEFINITION 1 no calculations (inventory) TERM 2 metric DEFINITION 2 needs definition, has a calculation, usually a ratio (order fulfillment cycle time)-should change over time TERM 3 developing supply chain performance metrics DEFINITION 3 the development of a metrics program should be the result of a team effort (involve multiple departments)second, involve customers and suppliers, where appropriate, in the metrics development process-develop a tiered structure for the metrics(unity, department, facility, company as a whole)-identify metric "owners" and tie metric goal achievement to an individual's or division's performance evaluation TERM 4 developing supply chain performance metrics DEFINITION 4 est a procedure to mitigate conflicts arising from metric development and implementation-one department may need to have a less than stellar metric to benefit the company as a wholethe metric must be consistent with corporate strategyset top management support for the development of a supply chain metrics program TERM 5 performance categories DEFINITION 5 timequalitycost/efficiencysupporting metrics TERM 6 supply chain operations and reference model DEFINITION 6 five major categories of metricsreliabilityresponsivenessflexibitycostassets TERM 7 reliability DEFINITION 7 right product to right place at the right time TERM 8 responsiveness DEFINITION 8 speed TERM 9 flexibility DEFINITION 9 agility TERM 10 assets DEFINITION 10 effectiveness in using assets to support demand TERM 21 information technology and supply chains DEFINITION 21 we need info, materials and money to flow across supply chains to functionall partners need relevant info to make decisionsexisting supply chain info technologies support timely, cost efficient sharing of info within the supply chain- remember our empowered customer? plays a part TERM 22 need for info DEFINITION 22 info is the lifeline of business, driving effective decisions and actionsseven R's (R means Right)-right product-place-price- customer-condition-time-quantity TERM 23 information must be (ARATT) DEFINITION 23 accessiblerelevantaccuratetimelytransferrable TERM 24 accessible DEFINITION 24 to those who legit need itneed trustwalmart has its own cola brand, right? but they share sales info with coke TERM 25 relevant DEFINITION 25 need to be able to get what they need quickly and not sift through irrelevant stuff TERM 26 accurate DEFINITION 26 has to be correct. end up with incorrect inventory, penalties, discounts, and unhappy customers TERM 27 timely DEFINITION 27 current and available within reason-if there is a problem, get it out quickly so the rest of the supply chain isn't as impacted. they can adjust (be agile!) accordingly TERM 28 transferrable DEFINITION 28 change data from one format to anotherfrom one location to another TERM 29 six drivers or supply chain excellence DEFINITION 29 connectivityvisibilitycollaborationoptimizationexecutionspeed TERM 30 connectivity DEFINITION 30 linked electronically for seamless info sharing TERM 31 visibility DEFINITION 31 ability to monitor; "see" a product as it moves TERM 32 collaboration DEFINITION 32 makes decisions together TERM 33 optimization DEFINITION 33 maximize performance; tools look at all options and pick best TERM 34 execution DEFINITION 34 easier than manually. can also measure how well you are executing (remember metrics?) TERM 35 speed DEFINITION 35 you can adapt, respond, and avoid disruptions easier TERM 46 in house solutions DEFINITION 46 choose between vendor suites, applications from multiple vendors, consider licensing versus on demand purchases- who will develop the solution? TERM 47 solution packages DEFINITION 47 determine what types of applications are needed and how they should be purchased-go with one vendor and it will implement easily-or get solutions from lots of specialized vendors which will take longer and be more complicated but has more power TERM 48 software vendors DEFINITION 48 installed on the buyer's powerful client-server systems- downside is high capital investment and complex deployment associated with conventional licensed applications TERM 49 application service providers DEFINITION 49 owns and operates the software application and its servers that run the application with access via the internetdidn't work so well because it wasn't efficient and difficult updates TERM 50 data standardization and application integration DEFINITION 50 so many dif formats and systems-two key elements to data standardization-EDI provides inter organizational, computer to computer exchange of structured info in a standard, machine- processable format-XML is a robust, logically verifiable text format based on international standards. it provides flexible way to create structured, common information formats and share both the format and the data via the internet, intranets, and other networks TERM 51 radio frequency identification (RFID) DEFINITION 51 automatic id method. tags consists of a microchip and a printed antenna that can be packaged into many forms, such as a label, or imbedded in bw the cardboard layers in a carton or product packagingunique product id info, in the form of a universal electronic product code (EPC) identifying the manufacturer, product category, and individual item, is stored on these 96 bit tags TERM 52 RFID DEFINITION 52 costs must continue to decline to make product tagging economically feasible; equipment issues such as reader ranger, sensitivity, and durability must improve; the case for supplier return on investment of RFID mandates must be made; and consumer privacy issues must be resolved TERM 53 adaptive supply chain networks DEFINITION 53 well working supply chains-these integrated, flexible networks of companies, technology tools, and processes focus on customers and their changing requirements. if effective, it can respond to changes in real time, allowing the network to prevent or minimize supply chain problemshelp meet the growing need for supply chain connectivity and collaboration, tow key info issues. connectivity provides visibility TERM 54 overview of chapter 6 DEFINITION 54 information is importantmust flow between supply chain partnerscan't make good decisions without accurate and timely infoso lots of places use software and it needs to talk to each other TERM 55 CRM DEFINITION 55 segment customers by profitability-look at BCG matrixlook at what each segment valuesdelivermeasure performance and keep getting better TERM 56 one reason why CRM initiatives fail DEFINITION 56 1-companies cannot afford CRM technology2-companies are halfheartedly implementing CRM to satisfy stockholders rather than using it as a tactical tool3-there is too much competition4-there isn't a great system out there to really capture consumers accurately TERM 57 not a benefit of CRM DEFINITION 57 1-companies can gather customer data swiftly2-companies can identify the most valuable customers over time3- customer loyalty through increased customization4- decreased workload for the company through installation of CRM technology TERM 58 what should be the focus of CRM efforts DEFINITION 58 1-the deep seated problem area(S) in the company2-the entire customer relationship cycle all at once3-the most profitable areas4-marketing communications only TERM 59 customer relationship management DEFINITION 59 comprehensive approach for creating, maintaining and expanding customer relationships TERM 60 customer relationship management DEFINITION 60 -the development of appropriate relationships with key customers and customer segments-provides enhanced opportunities to use data and information to both understand customers and co-create value with them-requires a cross-functional integration of processes, people, operation, and marketing capabilities that is enabled through info, technology, and application TERM 71 whats changed with CRM since 2003 DEFINITION 71 companies are applying CRM in disciplined, focused ways and getting more from ituse CRM to solve highly specific customer-relationship challenges- such as accurately diagnosing call center customers' problemsinvest in real-time info (the holy grail of CRM) only where its truly needed TERM 72 outbound to customer DEFINITION 72 order to cashorder cycle TERM 73 order to cash DEFINITION 73 order received to until payment13 principles-D1.1 through D1.7 represent information flows-D1.8 through D1.12 represent product flows-D1.13 represents cash flow TERM 74 order cycle DEFINITION 74 order placed until order received TERM 75 replenishment cycle DEFINITION 75 acquisition of more inventory TERM 76 replenishment DEFINITION 76 one man's order cycle is another man's ________ TERM 77 e commerce order fulfillment strategies DEFINITION 77 many firms use internet technology to capture order info for fulfillment systems for picking, packing, and shippinginternet allows faster collection of cash by the seller TERM 78 logistics/marketing interface DEFINITION 78 customer service is the key link between logistics and marketing within an organizationmanufacturing 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 TERM 79 3 dif perspectives on customer service DEFINITION 79 philosophyas a set of performance measuresas an activity TERM 80 customer service DEFINITION 80 anything that touches the customer TERM 81 levels of product and services DEFINITION 81 essential benefitcore productenhanced product TERM 82 essential benefit DEFINITION 82 core benefit. what the consumer is really buying,fundamental needclean clothes TERM 83 core product DEFINITION 83 includes the brand name, features, design, packaging, and quality levelthe tangible producttide laundry product TERM 84 enhanced product DEFINITION 84 the augmented product. additional services and benefits such as delivery and credit, instructions, installation, warranty, and servicenow with hibiscus scents TERM 85 essential benefit DEFINITION 85 moving from point a to point b TERM 96 distribution DEFINITION 96 planning and tracking and delivery TERM 97 customer service performance measures from buyer's view DEFINITION 97 order received on timeorders received completeorders received damageorders filled accuratelyorders billed accurately TERM 98 stockout DEFINITION 98 occurs when desired quantities are not available TERM 99 four possible events of stockouts DEFINITION 99 the buyer waits until the product is availablethe buyer back- orders the productthe seller loses current revenuethe seller loses a buyer and future revenue TERM 100 back orders DEFINITION 100 occurs when a seller has only a portion of the products ordered by the buyerare created to secure the portion of the inventory that is currently not available TERM 101 lost sales DEFINITION 101 some customers will turn to alternative supply sources TERM 102 lost customers DEFINITION 102 customer permanently switches to another supplier TERM 103 metrics DEFINITION 103 four are widely used across multiple industries-internal- external TERM 104 internal metrics DEFINITION 104 item fill rateline fill rate TERM 105 item fill rate DEFINITION 105 rate at which order is met compared to total order/demandpercent of items in stock available to fill an order TERM 106 line fill rate DEFINITION 106 percent of total lines filled complete on a multiple line order TERM 107 external metrics DEFINITION 107 order fill lineperfect order TERM 108 order fill rate DEFINITION 108 percent of orders filled completer TERM 109 perfect order DEFINITION 109 percent of orders filled complete, on time, and billed accurately, etc TERM 110 order management DEFINITION 110 item fill> line fill> order fill> perfect order TERM 121 seasonal stocks DEFINITION 121 some raw materials are only available at certain times of the yearsome transportation methods are only available at certain times of the year TERM 122 anticipatory stocks DEFINITION 122 you foresee a negative event (strike, price increase, political unrest, bad weather, etc) TERM 123 capital cost DEFINITION 123 cost of capital tied up in inventory that cannot be invested elsewhere TERM 124 storage space cost DEFINITION 124 handling costs moving in and out of inventory, rent, heating, and lighting TERM 125 inventory service cost DEFINITION 125 insurance and taxesmore risk= higher cost TERM 126 inventory risk cost DEFINITION 126 long term inventory could become outdated (technology or fashion)dollar value might changehow much it can be sold for could drop TERM 127 balance sheet DEFINITION 127 snapshot of everything the company owes and owns at the end of the financial year in question TERM 128 cash cycle DEFINITION 128 time between payment of inventory and collection of cash from receivables TERM 129 cash flow statement DEFINITION 129 shows cash receipts and payments from all company financial activities; earning before interest, taxes, depreciation, and amortization TERM 130 gross margin DEFINITION 130 sales minus cost of goods sold TERM 131 debt to equity ratio DEFINITION 131 long term debt divided by shareholder's equity TERM 132 liquidity ratio DEFINITION 132 cash flow from operations divided by current liabilities; measures short term cash available to pay current liabilities TERM 133 operating ratio DEFINITION 133 percentage of revenues used for operations; operating expenses divided by operating income TERM 134 return on assets DEFINITION 134 net income divided by total assets TERM 135 return on equity DEFINITION 135 net income divided by average stockholders' equity TERM 146 bill of materials DEFINITION 146 how much of what parts do you need to make your product TERM 147 inventory status DEFINITION 147 keeps record so you know what you have left at any point in time TERM 148 outputs and reports DEFINITION 148 what you need to order and when, expedite or reschedule, cancel products, and system status TERM 149 materials requirement planning DEFINITION 149 reasonable safety stock to minimize inventories TERM 150 distribution requirements planning DEFINITION 150 -continuation of MRP logic but for moving material outbound- minimize finished goods inventory-you look at the forecast demand for each item, what you current inventory is, what your safety stock point is, how much you need to make, and the lead time-that way you finish on time for delivery and don't hold onto stock so long TERM 151 vendor managed inventory DEFINITION 151 -basically customer holds their own stuff in stock-when their inventory reaches an agreed upon point, you re-stock it-the seller monitors inventory so the customer never has to place an order- it just happily appears TERM 152 A items DEFINITION 152 should have tighter inventory control, more secured storage areas and better sales forecasts-reorder frequently-avoiding stock outs should be a priority TERM 153 C items DEFINITION 153 typically only reordered when a purchase is made-its not so much "how much do we store?" as it is "do we even keep it in store" TERM 154 square root rule DEFINITION 154 X2= (x1) square root (n2/n1) TERM 155 n1 DEFINITION 155 number of existing facilities TERM 156 n2 DEFINITION 156 number of future facilities TERM 157 x1 DEFINITION 157 total inventory in existing facilities TERM 158 x2 DEFINITION 158 total inventory in future facilities