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SUMMARY
• Outbound-to-customer logistics systems have received the most attention in many companies; but, even in today’s customer service environment, outbound and in¬bound logistics systems must be coordinated.
• Demand management may be thought of as "focused efforts to estimate and manage customers’ demand, with the intention of using this information (o shape operating decisions "
• Supply-demand misalignment may cause severe problems in the outbound-to- customer logistics channel. Causes of these problems should be identified and removed.
• There is growing and persuasive evidence that understanding and managing market demand is a central determinant of business success.
• Although many forecasts arc made throughout the supply chain, the forecast of primary demand from the end user or consumer will be the most important. It is essen¬tial that this demand information be shared with trading partners throughout the supply chain and be the basis for collaborative decision making.
• There are various approaches to forecasting, each serving different purposes.
• The recent popularity of CPFR has led companies to more meaningful and produc¬tive sharing of forecast information on an inter-firm basis.
• The three critical elements of collaborative planning are collaborative demand plan¬ning, joint capacity planning, and synchronized order fulfillment.
• Significant attention needs to be directed to individual elements of the order cycle, the length and variability of each, and the overall performance of the order cycle.
• E-commerce fulfillment creates a number of unique challenges for logistics management.
• Customer service is an area of key interest to both marketing and logistics. Effective customer service represents a key way to create value for the customer.
• Customer service may be viewed in three ways—as an activity, as a performance measure, and as a philosophy.
• To be efficient and effective in providing and managing customer service, we have to provide performance standards and measure performance against these standards. Many standards have been used historically, and current priorities are on making sure they focus on the needs of the buyer as well as the seller.
• Having inventor)' available reduces the likelihood of stockouts. In the event of an out-of*stock situation, there are a number of costs that may be incurred by the manufacturer. These cost types should be identified, and the expected cost of stockouts should be estimated in advance.
• There are a number of distribution channel alternatives that may be considered by companies today. Effective management of the various choices requires coordination and integration of marketing and logistics activities within the firm, as well as coordination of overall channel-wide activities across the firms in the channel.
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