Marketing Ch. 16

Activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost

The practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements.

Flow of the product

Cost-effective manner

Customer service

Customer requirements

Sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users.

Membership

The integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to ultimate consumers.

Uses faster (and therefore more expensive) modes of tranportation, emphasizes economies of scale, and typically limits its assembly and storage facilities to a single location.

Meeting customers' expectations quickly

Focuses on keeping costs low, typically using slower modes of transportation, warehousing very little inventory, and uses cross-docking.

Keeping costs down

A practice that involves unloading products from suppliers, sorting products for individual stores, and quickly reloading products onto its trucks for a particular store.

Combines proprietary computer and telecommunication technologies to exchange electronic invoices, payments, and information among suppliers, manufacturers, and retailers.