Term
|
Definition
| A set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless value chain. |
|
|
Term
| Why is Supply Chain Management so important to retailers? |
|
Definition
-Improved product availability equals less out of stocks
-Lower costs equals higher return on investment (ROI)
-Long term strategic competitive advantage |
|
|
Term
| Improved product availability |
|
Definition
-Reduced stockouts – merchandise will be available when the customer wants them
-Tailoring assortments – the right merchandise is available at the right store (sizes, colors, etc.)
These benefits translate into greater sales, lower costs, higher inventory turnover, and lower markdowns for retailers |
|
|
Term
| Strategic Importance of Supply Chain Management |
|
Definition
-Right Merchandise, Right Place, Right Time
Fewer Stock-outs
Greater Assortment with Less Inventory
-Opportunity to Reduce Costs
Transportation Costs
Inventory Holding Costs (Amount and Place) |
|
|
Term
| Why are Walmarts competitors lagging behind? |
|
Definition
-Made a substantial investment in developing its systems and has the scale economies
-Can’t buy this software off the shelf
-Through experience and learning, changes are always made to improve the system
-Coordinated effort of employees and functional areas throughout the company |
|
|
Term
|
Definition
| is the coordinated and periodic copying of data from various sources, both inside and outside the enterprise, into an environment ready for analytical and informational processing |
|
|
Term
| EDI (Electronic Data Interchange) |
|
Definition
-is the computer-to-computer exchange of business documents between retailers and vendors
-Merchandise sales, Inventory On Hand, Orders
-Advanced Shipping Notices
-Receipt of merchandise, Invoices for payment
-WalMart (and others) require of major vendors…no manual paper transactions |
|
|
Term
|
Definition
-Reduces cycle time – inventory turnover is higher
-Improves overall quality of communications through better record-keeping
-Information can be easily analyzed |
|
|
Term
| RFID (Radio Frequency Identification) |
|
Definition
| allows an object or a person to be identified at a distance using radio waves. |
|
|
Term
|
Definition
Reduces warehouse and distribution labor costs
Reduces point of sale labor costs
Inventory savings by reducing inventory errors
Reduces theft – products can be tracked
Reduces out of stock conditions
Expensive though
Capable of holding more data than UPC |
|
|
Term
|
Definition
| Merchandise is allocated to stores on the basis of forecasted demand |
|
|
Term
|
Definition
| Orders for merchandise are generated at the store level on the basis of sales data |
|
|
Term
| Benefits to pull supply chain |
|
Definition
-Less likely to be overstocked or out of stock
- Increases inventory turnover
-Responsive to changes in customer demand
-Efficient when demand is uncertain, and hard to forecast
-Requires a more costly and sophisticated information system to support it |
|
|
Term
| Activities performed by distribution centers |
|
Definition
Managing inbound transportation
Receiving and checking merchandise
Storing or cross docking merchandise
Getting merchandise floor ready
-Ticketing and marking
-Putting on hangers
Preparing to ship merchandise to a store
Managing outbound transportation |
|
|
Term
| Advantages of distribution centers |
|
Definition
-More accurate sales forecasts are possible when retailers combine forecasts for many stores serviced by one distributor
-Enables retailers to carry less merchandise in the store
-Easier to avoid running out of stock
-Retail store space is more expensive than space at the distribution center |
|
|
Term
| Who can use distribution centers |
|
Definition
-Retailers with numerous outlets
-Retailers selling non-perishable merchandise (generally)
-Retailers offering merchandise that has highly uncertain demand like apparel
-Retailers selling merchandise that needs to be replenished frequently
-Retailers that carry a large number of items shipped in broken case quantities - like drug stores (plastic bins) |
|
|
Term
| Advantages of direct store delivery |
|
Definition
-Gets merchandise faster, and is thus used for perishable goods (meat and produce)
-Helps the retailer’s image of being the first to sell the latest product (video games) or fads
-Some vendors provide direct store delivery for retailers to ensure that their products are on the store’s shelves, properly displayed, and fresh
-Vendor bears the labor cost
-Acronym is “DSD” |
|
|
Term
|
Definition
| The aspect of supply chain that refers to the planning, implementation, and control of the efficient flow and storage of goods, services, and related information from the point of origin to the point of consumption to meet customers’ requirements |
|
|
Term
|
Definition
-Retailers consider outsourcing logistical functions if those functions can be performed better or less expensively by third-party logistics companies
-Transportation
-Warehousing
-Freight Forwarders
-Integrated Third-Party Logistics Services |
|
|
