Collaborative Product Development & Logistics: New Product, Data, and Resource Management, Exams of Community Corrections

Download Collaborative Product Development & Logistics: New Product, Data, and Resource Management and more Exams Community Corrections in PDF only on Docsity! SCMT 465 Final Exam Review Question with 100% Correct Answer. Design Chain Operations Reference Model (DCOR) - Correct answer a model: -APICS in 2014 released this model for the management of design process activities -The "" document takes 261 pages to describe all tasks involved in NPD -DESIGN CHAIN = plan (design chain) >> research >> design >> integrate >> amend Product Life Cycle Mgmt. (PLM) - Correct answer a mid-1990s notion of how to manage new product development (NPD) -involves concurrent, coordinated, interactive development of products and associated processes via the collaboration of manufacturer design teams, suppliers, and customers: 1) Digital representation of product design (CAD) 2) Digital representation of process (CAM) 3) Product Data Management (PDM) Product Data Management (PDM) - Correct answer under product life cycle mgmt. (PLM): -Repository for storage and sharing of product information content. Product life cycle mgmt. (PLM) - Correct answer -portfolio planning >> concept development >> design >> prod & testing >> maintenance & after sales >> retirement -"" approach and systems collect all CAD documents, CAM files, PDFs, forms, and other documentation about the product design process, product assembly, quality levels, and product life cycle. -Future project teams can access and share this material To speed up and improve subsequent products. -COMPONENTS = Structured Processes, Process Development Tools, Supply Chain Partners, Technology Backbone, Eco-Design/Green Products, Regulatory Compliance Structured processes - Correct answer a PLM component: -Uses modeling and simulation tools along with communication to speed up new product design Process development tools - Correct answer a PLM component: -Computerized tools (PDM, CAD) automate and standardize design; files can be shared; rapid prototyping speeds up design Supply chain partners - Correct answer a PLM component: -Easier to share CAD files and knowledge Technology backbone - Correct answer a PLM component: -Cross-enterprise Internet-based systems enable file sharing and real-time collaboration on designs -Broad access to latest designs decreases mistakes Eco-Design/Green Products, Regulatory Compliance - Correct answer a PLM component: -Many firms today must store data for regulatory reasons -PLM provides a repository for such information PLM - Correct answer Examples of 1990s/2000s Collaborative INSERT Solutions: -room for Service NPD (Internet Based) -Agile PLM for Product NPD (Client-Server Desktop Based) NPD Information - Correct answer Shortcomings of Traditional INSERT Systems: *Linear in nature ... lots of handoffs -Takes a significant amount of time (SLOW) -Increases time to market (RISKY + NOT COMPETITIVE) *DSN processes today are more networked, but... -Old NPD systems mainly served as a central storage system for design files -Old client-server NPD systems are not very well integrated to all design partners *Processes today need to be dynamically collaborative, but... -Old systems basically involved "check-out/check-in" processes Design Collaboration, B2B Supplier - Correct answer Basic Internet-Enabled IT Support for New Product Development: •Internet Driven INSERT: -Product content synchronization -Sharing of BOMs, drawings, process information, quality certifications •INSERT Management: -Product search -Order status tracking -Vendor search capability -Supplier/buyer back-end integration -Supplier collaboration Deloitte - Correct answer INSERT's Vision: Digital New Product/Service Development *CONCEPT: -market analysis -idea generation/screening - (virtual) team building -driven by market and usage data •INSERT: -"The Cloud" platforms -CAD/CAM -3D scanning systems -Additive manufacturing (3D Printing) -Advanced simulation programs (e.g., materials, usage) •INSERT: -Integrated sensor systems (Internet of Things sensors) -Big data analytics, AI/ML •Connecting product to INSERT: -Internet -Very fast mobile/satellite networks (e.g., 5G) -Mobile phones with apps for product Industrial Product Service - Correct answer INSERT Systems: •An app can be loaded onto many industrial machines (not just onto a cell phone) -Selling an industrial "solution" rather than a product -Today, often involves a value-added service for maintenance of a machine -Sensors detect issues and message the manufacturer, which then sends service personnel to fix the issue, leading to near 100% uptime •Product Service Systems (PSS) and Servitization Product Service Systems (PSS) - Correct answer under Industrial Product Service Systems: -Servitization -Selling a mix of tangible products and intangible services designed and combined to fulfill final customer needs Product Service Systems - Correct answer Industrial INSERT: Benefits vs. Challenges *BENEFITS: -continuous rev stream throughout life cycle -better insight in how products/services are used in reality -closer relationships with users/customers -deep product/service knowledge utilized beyond design/manful -decoupling of material consumption from econ success (sustainability) -personalization & customization -opportunity to lock in customer and lock out competition by providing superior value *CHALLENGES: -difficult to manage complexity -ecosystem required for comprehensive PSS (such as DSN) -risk remains with provider -tech not available at a competitive price -users mindset still focused on ownership -design and development complexity increases -rev sharing models among stakeholders providing PSS Manufacturing Applications - Correct answer •MRP - Materials Requirements Planning •JIT - Just In Time •OPT - Operations Planning Tool •CIM - Computer Integrated Manufacturing •EDI - Electronic Data Interchange •FMS - Flexible Manufacturing System •MES - Manufacturing Execution Systems •TQM - Total Quality Management •BPR - Business Process Reengineering •APS - Advanced Planning and Scheduling •SCP - Supply Chain Planning •SCM - Supply Chain Management •PDM - Product Data Management •ERP - Enterprise Resource Planning •EAI - Enterprise Application Integration •B2B/B2C - Business-to-Business/Business-to-Consumer •CMM - Computerized Maintenance Management •CRM - Customer Relationship Management •Saabs - Software-as-a-Service Manufacturing IT - Correct answer INSERT Systems: *DESIGN/DEVELOP: -CAD -PDM, PIM, PLM -Outsourcing -B2B Exchanges -Crowd source -Supply Chain Planning -TQM, QMS *MANUFACTURE: -CAM -CNC -MRP/ERP -MES -APS -AMHS/Robotics -CMMS *BUY/SELL INTERFACE: -CPFR -B2B Exchanges -CRM -B2C E-Commerce Material Requirements Planning (MRP) - Correct answer under Manufacturing Planning Systems: -Calculate and provide suggested inventory replenishment actions to meet current demand -the most mature component of today's suite of manufacturing applications Capacity Requirements Planning (CRP) - Correct answer under Manufacturing Planning Systems: -Matches MRP workload to available work center capacity Shop floor control - Correct answer under Manufacturing Planning Systems: -Releases orders to manufacturing, order dispatching and scheduling, input-output control, job completion monitoring Production Management Systems - Correct answer •Continuous quest to automate shop floor control and optimize job scheduling -Process Simulation Software -Automated Material Handling Systems (AMHS) -Manufacturing Execution Systems (MES) Process simulation software - Correct answer under Production Management Systems: -Need to model performance of a material handling or assembly system before installing it Automated Material Handling Systems (AMHS) - Correct answer under Production Management Systems: •Conveyors •Robotic material movement •Automated Storage and Retrieval Systems (ASRS) Manufacturing Execution Systems (MES) - Correct answer under Production Management Systems: •Applications for order dispatching, operations, detailed scheduling, quality management, document control, item tracking Plant Maintenance - Correct answer INSERT and Quality Control: •Maintenance departments often need IT support to make sure machines are working well -Computerized Maintenance Management System (CMMS) •Range of modern manufacturing approaches: -Vertical integration -Partial outsourcing of productive stages -Complete outsourcing, "Virtual Enterprise," manufacturing becomes a contracted commodity service Flexible Manufacturing Infrastructure - Correct answer a Driver of Industry 4.0: INSERT •Production machine tool infrastructure must be capable of rapid change and adaptation -Flexible production system in response to changing product designs -Handle a wide mix of product variants -Short setup times -Adjustable product routings -Adjust for variation in material inputs Need IT for Fast, Even Flow - Correct answer a Driver of Industry 4.0: INSERT •Supply chains must deploy and integrate technologies to facilitate fast new product development, production planning and scheduling, and timely product delivery -Product development - PLM -Process - barcodes, RFID, CNC/FMS, robotics, MES, MRP, scheduling -Channel - collaborative NPD, B2B exchanges -Customer - e-commerce, e-RFQ, CPFR, order visibility, product configuration, e- Fulfillment Modern technology - Correct answer INSERT (Industry 3.0) enables integration of an enterprise's internal value chain from start to finish. •However, software developers have all but completed the integration and optimization process -There is still much more to do! (i.e., Industry 4.0) •Advances will continue with the growing momentum of Cloud and Eliot services Smart manufacturing - Correct answer Core Principles of INSERT: -connectivity -virtualization -data utilization Connectivity - Correct answer a core principle of smart manufacturing: -Connecting design (e.g., CAD/CAM) and production planning (e.g., ERP, MES) tools with machine tools, operators, customers, suppliers - essentially everything with everything Virtualization - Correct answer a core principle of smart manufacturing: -Replicating physical things (e.g., a warehouse) into the digital, virtual/cyber environment (e.g., simulations, digital twin) -Simulations to test performance (digital twins) Data utilization - Correct answer a core principle of smart manufacturing: -Translating factory data into actionable insights via advanced analytics ... making manufacturing "smart" Smart manufacturing - Correct answer capabilities of INSERT: -Dynamic Visibility -"Optimum" Operations -Factory Automation Dynamic visibility - Correct answer a capability of smart manufacturing: -Real-time condition monitoring of a whole factory, via a network of machines and Eliot sensors "Optimum" Operations - Correct answer a capability of smart manufacturing: -Identification of an optimal factory schedule, contingent on today's demands, machine availability, needed setups, labor, and other factors Factory automation - Correct answer a capability of smart manufacturing: -Integrated systems and processes automate the factory's material movement, storage, and transport Industrial Internet of Things (Eliot) - Correct answer represents a subset of the Iota that focuses on connecting industrial assets within an industrial environment... -Manufacturing equipment -Machine tools -Operators -Enterprise IT systems -Smart products Cyber-Physical Systems - Correct answer a type of system: -Embedded computers and networks monitor and control the factory's physical processes -Feedback loops and data analytics can be built into physical processes (e.g., machine tools, production robots, material handling robots, drones) Operator 4.0 vision - Correct answer Smart and skilled human operators will perform "cooperative work" with robot systems as well as "aided work" via new IT •Tech-augmented human workers will appear on manufacturing plant floors -Today: •Voice control •Mobile devices -Future: •Exoskeletons (e.g., for lifting heavy items; several vendors at Mode 2020) •Smart glasses (e.g., Google Glass) •Smart wearable’s (e.g., helmet sensors; holographic vision systems; backhand ergonomic scanner devices) Intelligent Asset Management - Correct answer •every machine will break down, given enough time •Factory downtime causes lower efficiency, product defects, higher costs/unit produced, order shortages -Changing the asset maintenance strategy from reactive, to preventive, to predictive, to prescriptive -Want to monitor machine performance in real time, predict upcoming failures, and prescribe preventive actions Digital twin - Correct answer -A digital representation of a physical asset (i.e., CAD on steroids!) -Asset has connected sensors that provide real-time operating information -Data analytics enables changes in physical assets via digital actuators Intelligent Spare Parts Management - Correct answer •When an out-of-stock happens, it can be a very expensive event for a manufacturer -Plant shutdown -Missed delivery deadlines -Uses machine learning algorithms to predict out of stocks for each part -Uses additive manufacturing (3D Printing), when feasible, to print parts as needed •Examples: US Navy and US Air Force use 3D printing to print spare parts for ships and planes Manufacturing automation - Correct answer INSERT has a rich history of IT tools and systems used to automate processes, plants, and supply networks •Over the past decade, many of these tools have in some way been integrated together into comprehensive suites of operations planning modules •Advanced systems for plant and supply chain collaboration are still being perfected •Industry 4.0 is underway Purchasing - Correct answer Business transactions that procure materials and pay for them -high risk and high value -example: process for a laptop manufacturer -strategy: collaborate with supplier for buns partnership and product development support Leverage - Correct answer a category of Supplier Relationship Management (SRM): -low risk and high value -example: milk carton for a dairy company -strategy: reduce the purchase, freight, and inventory cost. Get the volume discount by few selected suppliers Supplier relationship mgmt. - Correct answer INSERT enables enterprises to effectively... -Stratify the supplier base. -Construct a governance structure and process for the supplier relationship. -Determine the process of supplier development, leading to closer networking and process visibility. -Establish appropriate performance measurements. Supplier relationship mgmt. - Correct answer Market Pressures Driving INSERT: Human-to-human, adversarial nature of purchasing in the past has given way to SRM today due to: -Increasing requirements for supply chain collaboration partnerships -Increased demand for risk-sharing -Enabling power of Internet technologies -Changing business infrastructures -Focus on continuous improvement, cost control, quality improvement, and innovation Purchasing - Correct answer SRM Enables Useful Information: •SRM provides information to enable INSERT department to understand... -Transparency of spend -Comprehensive, accurate profile of suppliers -Areas for cost consolidation -Areas for improved sourcing of materials, equipment, and services Reporting, analysis - Correct answer SRM Provides Useful INSERT and INSERT Tools: -SRM provides "" tools to help procurement analysts to discover how to ... •Consolidate and prioritize suppliers based on performance metrics •Ensure contract compliance •Reduce crazy unnecessary spending •Ensure quality of purchased items •Ensure appropriate supply levels Internet, collaborative commerce, B2B exchanges - Correct answer Development Periods of Technology Supporting e-SRM: 1) INSERT Foundations (pre-2000): -Simple catalog sites and RFQ/purchasing transactions 2) Rise of INSERT (2000-2005): -Thousands of B2B exchanges started up -50%+ of B2B exchanges were dead by a few years later 3) Growth of Networked INSERT (2006+): -Service-oriented technologies (i.e., XML web services) made it easier for companies to connect to B2B exchanges -Successful B2B exchanges were parts of industry consortia and enabled supply chain collaboration 2003 - Correct answer SRM and e-Marketplaces in INSERT: -Early Startups to Mid-Life 2013 - Correct answer SRM and e-Marketplaces in INSERT: -MATURE, but many new IT tools -Removed From Hype Cycle Due to Full Maturity- Online Supplier Directory E- Procurement Saabs Procurement Apps -Interesting New Items Services- e-Procurement Service Outsourcing Vendor Management Procurement/SRM - Correct answer INSERT Top Software Vendors (by Installations) 1. SAP Arriba 2. Varian 3. IBM Emptor is 4. SAP Sourcing CLM 5. Prolactin 6. Trade shift Top Procurement Software -Datanyze.com -Based on a count of companies' websites that appear to integrate to an instance of this software Procurement/SRM - Correct answer INSERT Top Software Vendors (by Ranking) •Capterra.com Rankings -Procure -EPMX -Workplace -Fra ion -Papery -Approve.com Procurement/SRM - Correct answer INSERT Top Software Vendors (by Ranking) •TrustRadius.com Rankings -SAP Arriba -Coupe -Esker -Procurement Express -Jaeger -GEP Smart Intelligent Procurement - Correct answer INSERT in the Era of DSNs: •In the DSN era, intelligent supply refers to much more than the digitization of existing procurement functions * "" approaches will use advanced IT to enable: -Value maximization -Cost optimization -Risk minimization -Business process automation * "" systems should enable firms to: -Secure capacity with world-class suppliers -Collaborate with strategic suppliers to speed up innovation -Automate requisitions, contract management, and touch less invoicing -Monitor supply risks in real-time to proactively optimize end-to-end operations Intelligent Supply - Correct answer INSERT Capabilities: -supplier analytics -smart sourcing execution -intelligent contract -category mgmt. -supplier network collaboration Smart Sourcing Execution - Correct answer an intelligent supply capability: -Most sourcing transactions can be automated (e.g., via RPA) -Enables time savings, efficiency, and accuracy -Happier workers re-focused on value-added tasks and enhancing supplier relationships Intelligent contract mgmt. - Correct answer an intelligent supply capability: -Proactive contract management by using IT to prepare a contract and manage its execution Logistics Performance Management - Correct answer A Critical LRM Capability: -Accurate measurements allow managers to identify operating inefficiencies, improve performance, and validate logistics partner results Strategic - Correct answer •Exceptional LRM today is not just operational, it is also very INSERT: -Competitive weapon -Creator of value for the firm -Resource for connecting and aligning a firm's interests across the globe -Determiner of strategic capabilities on a global basis Logistics resource mgmt. (LRM) - Correct answer INSERT Components -logistics per measurement -transportation mgmt. -warehouse mgmt. Planning, transactions, real-time execution - Correct answer LRM Process Capability Framework Involves What Three Critical Processes? Logistics - Correct answer Modern Challenges in INSERT: •Managing "" has become more difficult over time, due to ... -Dynamic, global business environment -Typical firm has many more supply chain partners -Internet technologies have enabled expectations for customer-driven service and real- time responsiveness -Acceleration of marketplace demands •Tighter delivery timelines •More complex product picking/packing -Decreasing product cycle times -Need for supply visibility and quick response -huge shortages of tractor-trailer drivers and warehouse workers Constraints - Correct answer Modern Challenges in Logistics: Despite attempts to integrate logistics IT, modern systems still have INSERT... -Imprecise feedback about logistics events -Tend to be reactive (vs. proactive) -Use old-style approach to buying and selling -Organizations remain in silos -Internal and cross-channel processes are still not fully connected Digital supply network - Correct answer Modern Challenges in Logistics: •INSERT digital interconnections of the future should give an organization more agility and comprehensive understanding •To do so... -Need to understand and modernize mature WMS/TMS/YMS -Need to fully understand the network of logistics resources and partnerships -Need to prepare for emerging logistics IT that may have a disruptive impact 1970s-1980s - Correct answer History of Internet-Enabled LRM: INSERT TIME FRAME -Mainframe based solutions; optimization/simulation models of facility location problems, DC material handling problems, routing/scheduling problems, and logistics system design problems Mid-1990s - Correct answer History of Internet-Enabled LRM: INSERT TIME FRAME -Websites targeting cost reduction, often based on simple WWW bulletin boards: 1) Logistics auctions 2) Spot markets •Example: "load (bulletin) boards" (e.g., Truckstop.com) 2005 - Correct answer History of Internet-Enabled LRM: INSERT TIME FRAME -we have quite a few types of exchanges, platforms, and vendors: 1. Warehouse exchanges. 2. Transportation exchanges. 3. Transportation Network Infrastructure. 4. Third Party Logistics Providers (3PL). 5. Collaborative Logistics Networks. 6. Network Services 2016-2018 - Correct answer History of Internet-Enabled LRM: INSERT TIME FRAME -startups appear for spot market availability of short-term warehouse capacity (e.g., Warehouse Exchange, FLEXE) and last-mile delivery (e.g., Bulrush, Deliv.co) Analytical IT and modeling tools - Correct answer An IT Toolset for Enabling Logistics Performance Analysis (wide variety): •Math (OR) algorithms for carrier selection, load matching and optimization, routing Visibility tools - Correct answer An IT Toolset for Enabling Logistics Performance Analysis (wide variety): •Data on in-transit inventory (inbound and outbound) Track and trace tools - Correct answer An IT Toolset for Enabling Logistics Performance Analysis (wide variety): •Timely global information about shipment location, anytime, anywhere Administration management tools - Correct answer An IT Toolset for Enabling Logistics Performance Analysis (wide variety): -Reporting and managerial tasks related to logistics Warehouse mgmt. sys (WMS) - Correct answer IT used to enhance warehouse automation, improve planning and control of warehouse functions, and integrate with order management and transportation management software -enterprise software applications that support inventory management and movement tasks in warehouses and distribution centers. -The systems may exist as standalone point solutions, part of a supply chain execution suite of software, or as components associated with an ERP system. -KEY FEATURE = to facilitate the unloading at incoming dock doors of trailers and containers holding pallets and cases of items to move those items into warehouse shelves, the building of cases into mixed pallets, the moving of the pallets and cases through a warehouse to an outgoing truck lane allocated to a specific store, and their movement through an outgoing dock door onto a trailer and out of a warehouse. Functionalities: -warehouse design -inventory tracking -receiving -put away -pick and pack -shipping -labor mgmt. -yard and dock mgmt. (YMS) -reporting Top Vendors: Manhattan Associates, Blue Yonder (JDA), Kroeber (High Jump), Oracle, SAP, Inform, Soften, Tests Transportation mgmt. system (TMS) - Correct answer IT used to procure transportation services, plan and optimize transportation activities, assets, and resources, and execute transportation plans -top vendors = Oracle, Blue Yonder (JDA), SAP, Manhattan Associates -Functionalities = Carrier Selection, Shipment Consolidation, Route Optimization, Freight Estimate Optimization, Payments Advanced Material Handling Technology for Put-Away and Retrieval (AS/RS) - Correct answer store, fetch, and put away books -only a 1-2 people are needed to run this system -ex: Minuet Library (U. of Chicago) Carrier selection - Correct answer a functionality of a TMS: -Determine ideal carrier and mode options for each delivery Shipment consolidation - Correct answer a functionality of a TMS: -Consider all shipments and arrange them into efficiently grouped bundles Route optimization - Correct answer a functionality of a TMS: Technology misunderstandings Supply chain design - Correct answer the practice of using living, digital models of the end-to-end supply chain to identify significant improvements in cost, service, and risk •IT vendors claim customers using supply chain design on average gain the following savings: -20% reduction in fixed costs -7% reduction in sourcing costs -9% reduction in inventory costs -11% reduction in transportation costs -6% reduction in handling costs •Supply chain planning software involve slots of operations research tools to optimize the design of the supply chain network Design, execution, planning - Correct answer VENDORS: *supply chain INSERT: 1. JDA Network Design 2. SAP APO Supply Chain Engineer 3. Infor Network Design 4. Oracle E-Business Suite Supply Chain Network Design 5. OMP plus Supply Chain Network Design 6. Kinaxis Rapid Response 7. Quintiq Supply Chain Designer 8. Demand Solutions DSX Platform 9. Llamasoft Supply Network Design 10. IBM ILOG Logic Net Plus XE *supply chain INSERT: •SAP •Oracle •JDA •Manhattan Associates •EPCOR *supply chain INSERT: -Blue Yonder (JDA) -Kinesis -E2open -Legality -OMP Dynamic fulfillment capability (DSNs) - Correct answer Advanced worker solutions in the DC and logistics operations •Item tracking and visibility internally and with logistics partners •Autonomous, augmented, and connected resources, processes, and planning •Sense demand based on historical data, real-time data, and social data •Ability to collaborate in real time; make real-time adjustments based on needs •Ability to dynamically serve multiple channels: online/offline, B2B, B2C -Attributes = Supply Network Traceability, Omni-Channel Competency, Smart Distribution Operations, Smart Delivery Operations, Smart Network Design, Interconnected Ecosystem Signaling Supply Network Traceability - Correct answer a dynamic fulfillment attribute: -Visibility into shipment provenance, transfer of custody, and movement of items as they flow through the supply network; verification of sustainability Omni-Channel Competency - Correct answer a dynamic fulfillment attribute: -Integration of fulfillment processes, at multiple service points, across different channels, into an overarching system Smart Distribution Operations - Correct answer a dynamic fulfillment attribute: -Highly flexible, data-driven, and balanced human-technology interconnections, inside and across supply network nodes (i.e., DCs) for efficient, adaptable services -Order pick/pack + inventory store/count/retrieve Smart Delivery Operations - Correct answer a dynamic fulfillment attribute: -Dynamic, data-driven, automatic selection of optimal modes and routes for efficient and fast delivery -Map and optimize delivery routes dynamically Smart Network Design - Correct answer a dynamic fulfillment attribute: -Agile, data-driven assignment and coordination of roles and capacities at flexible fulfillment points -Rapid expansion or contraction of distribution capacity Interconnected Ecosystem Signaling - Correct answer a dynamic fulfillment attribute: -Concurrent, automated sending of data across multiple entities of the supply network AI/ML and Analytics - Correct answer "Smart" Technology Enabling Dynamic Fulfillment: -Enables use of real-time data to dynamically manage resource allocation, task assignment, and physical movements -Old, pre-set algorithms will be replaced by new self-learning AI/ML that continuously senses and responds to DC and TMS event data Sensors, Telematics, and Iota - Correct answer "Smart" Technology Enabling Dynamic Fulfillment: -Many DC systems already incorporate many sensors (e.g., laser-based barcode readers) -Existing sensors and new sensor systems will be used to better control DCs/WMS and global TMS -Telematics applications will help managers better understand the conditions of trucks and shipments Vision Picking and Wearable Technology - Correct answer "Smart" Technology Enabling Dynamic Fulfillment: -Existing voice-directed systems will be supplemented with vision-enabled systems -Vision-enhanced pick-and-pack guidance will improve picking routes and efficiencies Collaborative Autonomous Mobile Robots - Correct answer "Smart" Technology Enabling Dynamic Fulfillment: -Automated material handling and movement capabilities, with less need for complex supporting infrastructure (i.e., no markers embedded in DC floor) -Humans often must interact with robots, to load with items, and unload items at end of travel -Fleet Management Systems will coordinate robot movements in a facility Ground Autonomous Last-Mile Delivery - Correct answer "Smart" Technology Enabling Dynamic Fulfillment: -Robots used for local delivery to homes and offices -On-demand package delivery (e.g., Amazon hub to home) -Retailer-to-customer delivery (e.g., Kroger store to home) -Many technology challenges, regulatory rules, societal hurdles Unmanned Aerial Vehicles (Drones) - Correct answer "Smart" Technology Enabling Dynamic Fulfillment: -Facilitate last-mile delivery, SCM visibility, infrastructure inspection, inventory picking and movement -Inventory counting within DCs -Tracking and coordination of YMS/TMS tractor-trailer yards -Limited features today, but very fast development of new solutions Logistics resource mgmt. (LRM) - Correct answer INSERT has become an area of critical importance, and strong technology enables good logistics performance •Logistics is responsible for building channels for carrying out innovation, design, production, distribution, obsolescence/return of materials, recycling •Logistics IT enables many key capabilities -Fulfillment and execution -Shipment visibility -Event fulfillment management -Logistics performance management Bid Ops - Correct answer a case study: · client could simply let "" processes tabulate the necessary data and generate the set of bids, leaving the procurement manager simply to accept, reject, or modify bidding outcomes as they happened. -solutions tried to make use of any structured organizational data on historical contract bids in order to improve the overall procurement process · might save 23% on average, simply by using some analytic capabilities to better participate in global contract negotiations. · employed artificial intelligence tools to process historical data, predict what the ultimate winning bid outcome would be, and report that to the buyer firm's procurement team so they could act faster on a reasonable contract. · Weak AI is a subcategory of AI "where programs are developed to perform specific tasks, [such as] medical diagnosis, electronic trading, robot control, and remote sensing -Areas of research that fall under the broad umbrella of AI include knowledge reasoning, planning, machine learning, natural language processing, computer vision, and robotics · To predict a continuous event, such as what the lowest bid might be, might build a forecast via Linear Regression models, Lasso Regressions, Classification and Regression Trees (CART), Multivariate Adaptive Regression Splines, or Recommender Systems · The "" system used AI tools to adjust such forecasts based on buyer and vendor responses · used AI to predict a vendor quote based on a historical database of multi-phase bid tabulations · developed an AI-enabled bid optimization platform called Procurement Automation Cloud. Bid Ops - Correct answer a case study: -The solution worked via Cloud/Saabs delivery, installation on Mac and Windows devices, and as mobile apps on is and Android devices · Vision in this sector was to improve vendor access to public contracts as well as to improve competition between vendors for the public organizations. · In the process of helping clients use the Cloud solutions, staff helped clients to create key performance indicators (KPIs) for measuring vendors, and benchmarking of vendors to better understand each vendor relationship's ROI · Very quickly, a large and competitive market was evolved via "" for the chemical firm to choose from. · When the extant suppliers found out, those suppliers very quickly came back to the table, entered into the "" system, and began negotiating in good faith. · Eventually, the category manager was able to negotiate substantially lower prices via "" for the materials being purchased. · By late 2018 had data showing how the solution increased vendor bid velocity (i.e., the number of bids for a vendor during events), automated vendor engagement (i.e., quantitative vendor signals that correlated with future vendor negotiation behaviors), and quantitative award improvements (i.e., a metric of bidding outcomes tracking financial improvements over a prior contract's terms) -2 groups = consultants & cloud service · Doing design thinking made it possible to automate procurement events to run them monthly or quarterly. · Doing so allowed procurement teams to focus on vendor relationships, rather than on setting up yet another paper-RFQ-based procurement event. · To sell to the Early Majority, a startup must be able to demonstrate the practical use of the solution, perhaps by referring to prior users who have successfully deployed that solution. · The Late Majority, while also desiring practicality o Big Dept. Store - Correct answer a case study: -a national department store that sold a broad assortment of clothing, jewelry, cosmetics, personal items, and household items, among other goods and services -extremely generous return policy = · no questions asked, hassle free, full refund, return any item at any time after a purchase · One of the most-liked customer experiences, in part due to this lenient returns policy · OPTIONS: 1) Keep its present returns policy in place 2) Managers might integrate its own IT systems to the leased customer profiling technology of a third party service provider 3) The retailer could charge its internal customer loyalty research department with the task to develop its own systems for profiling customer returns 4) The retailer might follow a low-tech customer tracking approach. -time leniency, effort leniency, scope leniency, exchange leniency · Customers were known to buy items in once channel (i.e., online), and then return the items to another channel (i.e., a physical store). · stories suggested a sizable number of customers were returning items to buy and return high-value items in order to generate financial benefits in the form of credit card rewards points. · Customers extract some sort of utility - physical utility, experiential utility, or financial utility - from these purchases and subsequent returns. · In doing so, customers incur little or no cost, yet the practices can cost a whole lot for retailers, who may lose a portion or all of the value of the returned product. · While abusive customers earned the short-term use of a product or some reward points, the retailer may lose a portion of the product value (i.e., if the product has depreciated, or is now out of season) or the total amount of the product value (i.e., if due to government regulations, the product cannot be restocked). · Criminally Non-returners, legit returners, excessive returners, abusive returners, fraudulent returners - Correct answer Big Dept. Store Case Study: · Segments of Customer Return Behavior: 1) INSERT = no returns 2) INSERT = make returns as a normal and reasonable part of shopping 3) INSERT= excessive amounts of returns, either as part of regular shopping activities 4) INSERT = as part of pre-planned opportunistic return activities - "" returns go by many names - retailer borrowing, renting, ward robing, and de- shopping -In many of these abusive return mechanisms, customers buy a product, use it for a while, and then return the product for a full return. -Salient examples include buying a TV for viewing the Super Bowl and then returning it, buying a fashionable dress to wear to a dance and then returning it, and buying and using a GPS unit and then returning it 5) INSERT = part of criminally fraudulent activities Big Dept. Store - Correct answer a case study: Customer Relationship Management (CRM) systems: -CRM systems had a general underlying objective to track all of a firm's transactions with its customers, across all of the firm's channels (i.e., customer touch points). -The data about all such interactions (including purchase transactions and return transactions) were stored in a CRM data warehouse. -used CRM analytics tools to evaluate how to identify good customers and how to improve the firm's relationships with certain customers. · Customer profiling technology- analyzed customer retail transaction histories to identify customers that exhibit worrisome return events. -the recommendations removed the employee's subjective judgment from the process, taking the burden of identifying and addressing return abusers off of their backs. · The customer profiling service providers charged retailers an annual fee to participate in a Returns Information Exchange (RIE), which constructs information about returns taking place across a network of retailers. · could calculate a customer profitability amount for each customer based on each customer's historical sales, the cost of the goods sold to the customer, the refunded amount for a return, the salvage value for a returned item, and the handling cost incurred for a returned item · After performing this calculation, the professors' analysis showed that excessive returners were ones that had returned more than 11 items in their customer lifetime. · could evaluate which of these excessive returners had forced "" to eat a loss of over $500. These customers were defined as Abusive Returners. · The professors suggested that such a policy would not have a negative impact on other customers - it had a low risk of wrongly identifying some good customers to be abusive returners. · Simple approach might help them to re Cargo Systems - Correct answer a case study: · DECISION = regarding warehousing space and fulfillment processes to enable his firm's inventory replenishment to Cargo retail sales locations · The startup firm's service offering called Cargo (www.drivecargo.com) was essentially a mobile-app-based vending machine placed in ride-hailing service (e.g., Lift, Umber) drivers' cars -modern brewers use many more specialized ingredients to help the yeast grow, to clarify the beer, or to impart certain flavors · Brewing also requires lots of capital equipment as well as bottles and other vessels for shipping the finished product. · Home brewers typically buy simple equipment and homebrew recipe kits · Exceptional quality management is the key through all stages of brewing. · Having access to reliable suppliers and high quality supplies was an important aspect of craft brewing. · Kinney provided a B2B e-marketplace through which suppliers connected with potential client businesses. · Potential buyers submitted a procurement request, and the Kinney system in real-time identified and notified appropriate suppliers of such materials and equipment. · Kinney purchasing services focused on clients in the bakery, beverage, brewery, cider, dairy, distillery, farming, food processing, lodging/hospitality, restaurant, self-storage, vitamin and supplement, and winery sectors. · Kinney’s target customer consisted of small to medium-sized businesses. · The Kinney IT systems enabled clients to identify and buy from suppliers, manage purchases, and maintain key supplier relationships · enabled a payment feature called Kinney Pay, which allowed buyers to easily pay suppliers within Kinney -Kinney’s revenue model was built on subscription fees and commissions · Kinney had limited direct competitors in the segments it was positioned in. Insight Brewing - Correct answer CHALLENGES OF INSERT COMPANY: 1) Changing palates will likely impact older flagship brands. 2) Beer will see greater sophistication and complexity. 3) Capacity decisions gone wrong could be crippling for individual companies and add pricing and profitability pressures for many other craft brewers. 4) Greater integration of technology in retail could make it tougher on startups and the smallest brewers, as costs to comply become a larger barrier to entry. 5) Quality will be a given, and those brewers who don't have it will not be given the benefit of the doubt or a second try from savvy beer drinkers. 6) There will be a place for small, local brewers with a business model that may not show or rely on huge growth. 7) Competition will continue to grow fiercer in all planes of craft brewing and in the beer industry. 8) Money will matter. 9) Some will want out. Texas Grocery Company - Correct answer a case study: · prided itself in its ability to deliver excellent customer service · GOAL = to keep delivering excellent service to customers in 2016 and beyond, managers knew they needed to ensure warehouse operations could keep out-of-stock levels down, enable "" to increase its inventory accuracy, and increase store inventory availability · Initially had implemented a WMS software package in 1986, and then had conducted a major system upgrade in 2000. · the company's current WMS setup was at least 15 years old and lacked several of the functionalities offered by newer warehouse management systems · TWO BASIC OPTIONS: 1) A similar process to what was done in 2000, by upgrading the current INFOR system to a newer system from the same software vendor 2) To conduct a complete overhaul of "" current legacy infrastructure, and migrate to a different WMS vendor having improved features and capabilities · owned and operated a fleet of nearly 100 trucks that hauled over 400 trailers between DCs and stores. · had 100% control over outbound and inbound delivery drivers, who drove 40% of the freight that arrived at a typical store facility. · Truck drivers enjoyed a fairly desirable and stable lifestyle, compared to other truck drivers in the industry. · Company employed in-house mechanics that worked in in-house trailer shops. · WMS software may enable warehouse and DC daily planning, organizing order picking workflows, labor staffing, directing and documenting of DC processes and procedures, and resource utilization measurement and control · To manage the DC well, the WMS database must have detailed information on items flowing through the DC, such as product weight, size, case pack, pallet size, and SKU numbers · The installation of WMS software is not entirely immune to potential operational pitfalls, and potent Texas Grocery Company - Correct answer a case study: · This legacy system was updated in 2000 via a major upgrade to INFOR 2000 to create the basic system that was still in place in early 2015 The existing WMS system suffered from many of the drawbacks inherent in older, monolithic WMS platforms · With their existing ERP system, managers had gone with SAP ERP, but this didn't necessarily mean all of the managers advocated for adopting a SAP WMS · The Collect technology allowed pickers to be "100% hands free" by having pickers vocally update the system on what had been picked -CHALLENGE = the retail industry has major ups and downs in demand, largely based around holiday periods · wanted to find a WMS that included warehouse-slotting software that would minimize touches and breakdowns of pallets once they were received at stores. · Managers hoped to find a new WMS that enabled real-time control of timeframes for store deliveries. · Managers also wanted a yard management system (YMS) built into the new WMS. -KEY ISSUE FOR IT PEOPLE = the integration piece. Although SAP is a beast, the easy integration to our existing SAP ERP system is a great selling point, even if the SAP WMS doesn't have the broad functionality that some of the other systems have Risk - Correct answer exposure to negative consequences due to uncertain events -Example: Our plant could be shuttered for 5 months! -Example: We could lose $1 Billion ... Ouch! Uncertainty - Correct answer situations involving imperfect or unknown information *Routine sources of variability •Demand fluctuations •Supply fluctuations *Non-routine sources of variability •Weather (hurricanes, tornadoes, earthquakes, tsunamis) •Transportation disruptions •Political disruptions •Terrorism events •Currency crises, financial meltdowns •Technology breakthroughs Operating sys, information & IT, incentives - Correct answer to help trading partners collaborate when uncertainty occurs, we need what 3 things? Operating system - Correct answer a factor that helps trading partners collaborate when uncertainty occurs: •Multi-echelon inventory location •Postponement of final customization Information & IT - Correct answer a factor that helps trading partners collaborate when uncertainty occurs: •Real-time inventory counts •Barcodes, RFID, GPS •Related IT infrastructure (CRM, TPM, PRM, TMS, GTM) Incentives - Correct answer a factor that helps trading partners collaborate when uncertainty occurs: •Reduce batching incentives (e.g., ordering costs) •Improved forecasting abilities •Increased price stability Remove inventory gaming incentives Contracts - Correct answer that share risk can incentivize individual decision-makers to make globally optimal choices. -3 types = buyback, quantity flexibility, rev sharing Buyback contract - Correct answer a type of contract: -agree to buy back unsold goods Quantity flexibility contract - Correct answer a type of contract: Loyalty Mgmt. System (LMS) - Correct answer INSERT IT Vendors Include Many Smaller Firms: •Retailing Services -Loyal zoo -Five Stars Loyalty -Parkville •Enterprise -Belly -Badge Ville -Big Door •Social Marketing/Content Engagement -Social Rewards -Captain Up •Advocate Marketing (B2B) Loyalty Systems -Inflictive Customer Advocacy Seller Business', Customer's - Correct answer Basic Decisions of Revenue Management (RM): •INSERT RM Decision: -Sell (e.g., hotel rooms) at a relatively low price well in advance of customer use date? OR -Wait and sell much closer to customer use date at a higher price? •INSERT RM Decision: -Book now? OR -Wait until later and hope price goes down? Revenue mgmt. - Correct answer the art and science of enhancing firm revenue by selling the same quantity of product at different (hopefully higher) revenues per unit sold -5 basic tools = Overbooking, Differential Pricing, Product Protection, Planned Upgrades, Short-selling Overbooking - Correct answer a basic tool of revenue mgmt.: -taking more reservations for product than there is available Differential Pricing - Correct answer a basic tool of revenue mgmt.: -charging different prices to different customer market segments Product Protection - Correct answer a basic tool of revenue mgmt.: -refusing to supply product to certain customers, even though the customer may be willing to buy Planned Upgrades - Correct answer a basic tool of revenue mgmt.: -providing high priority customers with a more expensive product at no additional price Short-selling - Correct answer a basic tool of revenue mgmt.: -sell product that you do not presently own, but plan to acquire later Revenue (Yield) Management (RM/YM) - Correct answer Techniques for allocating limited (perishable) capacity resources among a variety of customers -B2C: airplane seats, hotel rooms, rental cars, golf course reservations, concert tickets -B2B: advertising space, container ship spaces, container rental services •Predict how to best price Event Ticketing, Service Contracting in a real-time manner •Objectives of "": -Understand, anticipate, and influence customer behavior -Price discriminate between customer groups -Optimize the total revenue ("yield") or profit on the investment in capacity -Match supply to demand; Control capacity or inventory optimally to maximize revenue Revenue (Yield) Management (RM/YM) - Correct answer When/Why Do Firms Use INSERT: •When it is impossible to store a capacity resource (e.g., hotel room, airline seat, car, container space) •When future demand is uncertain, but resource commitments must be made to customers today - firms are able to pre-sell capacity •When a firm can differentiate between customer groups (e.g., business traveler vs. leisure traveler) •When the same capacity unit (e.g., a seat) can be used for any customer group •When firms have freedom to price as they want (e.g., unregulated airline industry) Fixed pricing, predictable - Correct answer Revenue Management Systems Respond to Demand Chain Risks: - (FIXED/VARIABLE PRICING) - (PREDICTABLE/UNPREDICTABLE DURATION) Movie theater seats Stadiums/Arenas Convention centers Fixed pricing, unpredictable - Correct answer Revenue Management Systems Respond to Demand Chain Risks: - (FIXED/VARIABLE PRICING) - (PREDICTABLE/UNPREDICTABLE DURATION) Restaurants Golf course Internet service -limited supply Variable pricing, predictable - Correct answer Revenue Management Systems Respond to Demand Chain Risks: - (FIXED/VARIABLE PRICING) - (PREDICTABLE/UNPREDICTABLE DURATION) Hotels/Cruises Airlines + Airline Cargo Rental cars Container Shipping -uncertain demand -rev mgmt. sys (RMS) works best for this Variable pricing, unpredictable - Correct answer Revenue Management Systems Respond to Demand Chain Risks: - (FIXED/VARIABLE PRICING) - (PREDICTABLE/UNPREDICTABLE DURATION) Hospitals Continuing care Revenue mgmt. (RM) - Correct answer Many Variables in INSERT Decisions: •Customer groups/segments + willingness to pay -Business customer group = $full price -Leisure group = $low price •Capacity buckets -Cheap room buckets vs. Full price room buckets -Airfare seat buckets •Random process of when demand for each customer group will occur •Overbooking when possibility of customer no-show -Without overbooking, no-show revenue = re-book fee -With overbooking, no-show revenue = re-book fee + overbooked ticket price Revenue mgmt. (RM) - Correct answer Demand Complications Affect INSERT Decisions: •Demand forecasts may differ by day, week, month, or holidays •Ability to segment customer base ($$$$$ - pricing!) •Up-sell and cross-sell capabilities •Competitive analysis •Product customization •Increased and personalized customer service Customer Relationship Management (CRM) - Correct answer Tactical Objectives of INSERT: •Retain existing customers and woo new customers •Optimization of profitability -Up to 80% of a firm's customer can be unprofitable -"Cost-to-serve" can be calculated for each customer -Lifetime Customer Value (LCV) Lifetime Customer Value (LCV) - Correct answer under CRM: -customer's total sales revenue over lifetime of relationship, minus costs of serving, discounted by interest/inflation rates •High "" customers get better service •Mid "" customers get basic service •Low "" customers may get charged heavily for service, or get the boot (i.e., No more service for you!!!) Customer Information Repository - Correct answer CRM Architecture: INSERT -The goal of CRM is to provide a 360-degree view of the customer. -The key to customer insight is a centralized (or centrally organized) store of customer data. -This data store will allow all business entities to share a common view of what a customer is: "" = met/analytics + customer service + sales CRM - Correct answer INSERT TIMELINE: 1) 1980 = database met 2) 1995 = call centers 3) Late 1990s = CRM without strategy 4) Early 2000s = CRM strategy begins Operational CRM - Correct answer an aim of CRM: -Service operations, ordering, invoicing/billing, sales, Internet-driven applications -customer chooses the channel Functionality • Account/Contact Mgmt. • Service Mgmt. • Workflow Mgmt. • Campaign Mgmt. Business Objects • Account • Contact • Policy • Asset • Opportunity • Service Request Collaborative CRM - Correct answer an aim of CRM: -Focused on channel-spanning functions and decision making Analytical CRM - Correct answer an aim of CRM: -Capture of historical customer data, storage, extraction, statistical analysis, predictive modeling, reporting -will extract key interactions from the sales/customer interaction database for analysts to use: *Legacy Systems: •Billing •Inventory •Fulfillment •Order Management *Statisticians, Operations Researchers: •Regressions •Experiments •Summaries •Reports •Actionable Tactics *Junior Analysts, Managers: •Trend Analysis •Analytics (Sales, Product, Service) Collaborative/Functional - Correct answer INSERT CRM AIMS Architecture: Marketing Solutions -The marketing solution will extract key interactions from the sales/customer interaction database *Legacy Systems: •Billing •Inventory •Fulfillment •Order Management *Customer Service: •Telemarketing •Telesales •Customer Care •Order Mgmt. •Help Desk *Sales: •Accounts •Contacts •Activities •Opportunities •Product Comfit. •Reports *MKTG: •Customer Segmentation •Campaigns •Analytics (Sales, Product, Service) Online Sales - Correct answer Many Basic Application Functions are Available for INSERT: • Online catalogs • Online order processing • Online order configuration • Lead capture and profiling • Online surveys • Literature fulfillment • e-Mail marketing Sales Force Automation (SFA) - Correct answer tools for automating personal sales tasks provided foundations for many modern CRM applications • Contact Management • Account Management • Sales Process/Activity Management • Opportunity Management • Quotation Management Knowledge Management Enterprise Marketing Automation (EMA) (e-CRM Marketing) - Correct answer Principles of direct marketing, target marketing, and relationship marketing led to subsequent attempts to initiate personal, customized, demand-driven marketing, which involves: • Promotions • Cross-Selling and Up-Selling •Number of participants in conversation? How many communities are discussing an issue? • Authoritativeness •Reputation of the sources of messages? Good? Bad? Data Analytics: - Correct answer Role of INSERT: -provide statistical, modeling, and optimization toolsets to analyze customer data and better understand business and supply chain operations Important Analytical Tools •OLAP/ROLAP •Data warehousing systems •Business intelligence tools •Statistical algorithms •Data mining algorithms •Optimization tools •Scoring methods for risk, channel analysis, etc. •Website technology to make analytical process dynamic Partner Relationship Management (PRM) - Correct answer Analytics Enables Richer INSERT: Firms have become acutely aware of the need to architect closely structured partnerships with channel partners, dealers, and resellers. 1. Partner Recruitment, Development, and Profiling. 2. Marketing Development. 3. Sales Management. 4. Services Management. 5. PRM Collaboration. Electronic Bill Presentment, & Payment (EBPP) - Correct answer Analytics Enables Faster Contracting, INSERT: Companies can use electronic payment systems with trading partners to receive bills, authorize payments, match payments to purchase orders, and download billing data into ERP and accounting systems for processing. Several types of "" suppliers are available: • Software Suppliers. • Financial Service Providers. • Consolidators. • Portals and Exchanges. Modern IT - Correct answer INSERT Must Enable a Holistic Customer Journey: •Customers are ready to share data with vendors if it adds value to their life •Customers often already supply personal data, health data, and lifestyle information to get personalized products •Example: Dr. Heim -Obviously, all the e-commerce tracking -TAMUS + BCBS + Hinge Health + Omaha •Sensors + Iota devices •Fit bit tracker integration with other service -Financial data sharing with retirement plan vendors •Voluntary participation to get better access (maybe) Customer journey - Correct answer 1) AWARENESS = Pre-Purchase Customer Analytics Systems 2) ACQUISITION = Recommender Systems 3) TRANSACTION = E-Commerce Systems 4) SERVICE & RESOLUTION = Product Returns Systems 5) ENGAGEMENT & ENRICHMENT = Post-Purchase Customer Tracking Systems Connected Customer - Correct answer Capabilities that enable the "INSERT" Strategy: *Delightful Customer Experience -Custom customer experience - communicate, engage, and retain customers across multiple channels in a consistent manner •CRM + Data Analytics + AI/ML -Customer issue management - methods and tools to resolve problems and issues (feedback, dissatisfaction, product returns) •CRM + E-mail/Twitter + RPA + Virtual Assistants *Product as a Solution/Service -Innovative bundling of products + services into recurring subscriptions and flexible consumption offerings •CRM + Tech Platform + Value-Added Services *Tracking and Monitoring -Monitoring and insights - track and understand customer behavior across entire customer journey •CRM + Real-time product use data + Iota + Data Analytics + AI/ML -Intelligent product tracking - track, trace, and monitor physical products •RFID + Barcodes + Sensors + Bluetooth + GPS *Connected Service Network -Self-service - enables customer to interact with their own account data and product data •CRM + Online Catalogs + AI/ML + Recommenders + Virtual Assistants -Connected field service - manage end-to-end customer servicing activities on location •Equipment Tracking Iota Sensors + Cloud + Parts Catalogs + Field Service Optimization Tools Customer-oriented IT - Correct answer Firms today use a wide variety of INSERT to track customer actions and enhance product/service solutions •Huge customer data (B2C and B2B) is stored in CRM system databases •CRM data can be used (via data analytics tools) to evaluate existing customer behaviors and to predict future customer behaviors •Emerging IT use cases will enable managers to track and identify "good" vs. "bad" customers, predict client sales likelihoods, and enhance lifetime contracting processes Transformer Warehouse - Correct answer a case study: · A line of toys that could be transformed from a robot-like form into some other form · grown in size to become a successful mid-sized business · ISSUES =The loss of these trained personnel created quite an operational interruption, given the small size of the firm, the packaging and shipping knowledge of each employee, and the training it took to ensure the employees would pack toys in the perfectionist manner required for the collectible toy market · Another issue coming down the pipe concerned changes in the cost of shipping charged by UPS and FedEx, and maybe eventually affecting the pricing models used by the United Stated Postal Service (USPS) and other shippers · forced to change its packaging process from a custom box approach to a standardized box approach, leading to excess space in boxes. · The start of dimensional pricing would mean they soon would be charged more to ship boxes containing empty space and packed out with packing peanuts or air pillows. · employed fewer than 10 employees in 2014. As a private firm, sales revenues were kept private. · The second- or third-largest collectible Transformer toy retailer in the USA and the world. · Not among the largest 1000 e-retailers, suggesting their revenues might be below $1 million. · In using a high-touch, face-to-face method of negotiating with toy suppliers, he maintained close sourcing relationships with toy factories in China, Japan, and other Asian countries. - "bulletproof packaging" · To deliver mint condition packages, the firm originally developed a proprietary manual box-cutting and folding machine that ensured that packages would be packed in an exact manner, enabling items to arrive at customer doorsteps without any damage to the toys held inside.