BUSML 3380 Chapter Notes - Chapter 2: Order Fulfillment, Integrated Business Planning, Stockout
30 Jun 2018
School
Department
Course
Professor
Transferring product from one warehouse to another
a)
Transferring product from one mode of transport to another
b)
Transship
1)
Shipping an order directly from the manufacturer to the
customer, bypassing the retailer
a)
Drop-Ship
2)
Definitions
A)
Product that is out of stock on the shelves
1)
Considered "unfair or deceptive" practice by FTC when advertised
2)
Customer defect: move on to another substitute brand or
shop at another store
a)
Costly: Reduces sales vastly
b)
Importance of reducing stockouts
3)
Stockout
B)
Introduction
I)
Begin with the end product in mind, customers
1)
Use supplier scorecards that provide key measures of
performance
2)
Intro
A)
Basic and essential
a)
Some factors out of your control, like competitive moves,
weather, customer preferences
b)
Data Management: Use of POS information, integrated
business planning (IBP) and use predictive analysis
c)
Inventory Management: Tradeoff between inventory cost and
stockout cost, every product shouldn’t be treated the same.
d)
Product Availability
1)
Helps customers minimize cost, create efficient operations,
and support sales
a)
Cross-function, inter-organizational capability
b)
Customers care about speed, consistency, and agility of
delivery
c)
Speed: length of order cycle. Faster delivery can cost more, so
tradeoff
d)
Consistency = Dependability. Need to remove process
variability, it increases confidence. Can be something they
value more than speed
e)
Agility: Ability to adapt to the unexpected.
f)
Timely Delivery
2)
Customers want perfection, "perfect order" concept -
received, processed, picked, packed, shipped, documented,
and delivered on time w/o damages
a)
Transparency
3)
Needs of Logistic System
B)
The Deliverables of a Modern Logistics System
II)
Chapter 2.3-2.4 Notes
Monday, March 5, 2018
12:42 PM
Book Notes Page 1
Document Summary
Transferring product from one mode of transport to another. Shipping an order directly from the manufacturer to the customer, bypassing the retailer. Product that is out of stock on the shelves. Considered "unfair or deceptive" practice by ftc when advertised. Customer defect: move on to another substitute brand or shop at another store. Begin with the end product in mind, customers. Use supplier scorecards that provide key measures of performance. Some factors out of your control, like competitive moves, weather, customer preferences. Data management: use of pos information, integrated business planning (ibp) and use predictive analysis. Inventory management: tradeoff between inventory cost and sto(cid:272)kout (cid:272)ost, every produ(cid:272)t should(cid:374) t (cid:271)e treated the sa(cid:373)e. Helps customers minimize cost, create efficient operations, and support sales. Customers care about speed, consistency, and agility of delivery. Need to remove process variability, it increases confidence. Can be something they value more than speed. Agility: ability to adapt to the unexpected. f)
