Term
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Definition
| Design and management of a system that directs and controls the flow of materials and the associated info flow- into, through and out of the organization across national boundaries |
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Term
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Definition
| Inflow of raw materials, parts, supplies in and through org. (internal sourcing strategy) |
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Term
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Definition
| Movement of the organization's finished products to the customer. |
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Term
| Global logistical integration |
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Definition
| Coordination of production and distribution across geographic boundaries. (helps reduce resources and allows for more efficient, cost effective processes) |
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Term
| Third party logistics (3PL) |
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Definition
| Contracting of all or part of an Organization’s logistics operations to an independent, specialized logistics service provider. |
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Term
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Definition
| Most fundamental, perform basic logistics activities such as pick & pack, warehousing and distribution. |
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Term
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Definition
| offer it’s customers advanced value-added services like tracking, tracing, cross docking, unique security systems, etc. Have solid IT foundation and focus on economies of scale and scope. |
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Term
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Definition
| comes in at customers request and often takes substantial control of org’s logistic activities. Does not develop new service, but generally improves logistics function dramatically |
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Term
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Definition
| highest level of integration. Provider integrates itself with org and takes over its entire logistics function. |
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Term
| Fourth party logistics (4PL) |
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Definition
| Integrating of a client’s supply AND demand chains by a non-asset based provider. Offer broader range of services such as demand forecasting, sourcing materials, packaging, warehousing, etc… |
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Term
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Definition
| Mix of skills and resources an org possesses that enable it to produce one set of goods/services in a much more effective manner than another. |
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Term
| Strategic global sourcing |
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Definition
| Coordination of sourcing requirements across an org's worldwide business units |
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Term
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Definition
| Buying outside an orgs country of manufacture in a way that does not coordinate requirements across its worldwide business units. |
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Term
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Definition
| Set of value adding activities that link an orgs supply side with its demand side – to gain competitive advantage an org must perform these activities at a lower cost, or in such a way as to offer differentiated goods/services. |
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Term
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Definition
| (inbound logistics, operations, outbound logistics, marketing and sales, service) |
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Term
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Definition
| (HR, org infrastructure, technology development, procurement) |
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Term
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Definition
| Bad for domestic jobs, may not be as good for service industries (if the customer service care is outsourced, no one likes talking to someone in Asia when they are in the US trying to get help regarding their service) |
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Term
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Definition
| Retailing activity that transcends national boarders – the ‘face of distribution’ for your company. Int’l retailers that are willing to adapt their strategy to local customs and ways of doing things while taking advantage of their global supply chains. |
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