Episode07PPTSlidesVideo - Episode 7 Order Fulfillment...

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Episode 7 Order Fulfillment Processes
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How do products get to the store shelf? What is logistics? What role does logistics play in SCM? What are the primary logistics activities? 2
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Part 1 Foundation Concepts
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What is order fulfillment? The general concept of order fulfillment is the complete process from point of order inquiry to delivery of a product to the customer. It refers to the way firms respond to customer orders. this fulfillment process makes it possible to have the products you want in stock, at a price you’re willing to pay. That is, it creates value and utility for you. 4 Order Inquiry
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How is fulfillment related to logistics? Fulfillment is an important customer-focused logistics process that responds to demand within a reasonable lead time. It is directly linked to the other critical logistics functions
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What does logistics involve? …the coordination and management of interdependent functions CSCMP Definition Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption in order to meet customers’ requirements.
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Evolution of Logistics – where did it come from? Integrated logistics
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What drives the evolution of logistics & fulfillment? Past Large manufacturers conceived and implemented innovations Government regulation Today Retailers and consumers have the power Increased demands which translate into logistics requirements for manufacturers Innovation brought about by retailers but implemented by manufacturers Key Players = New Focus
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Why has logistics gained importance? Cost Impact -Logistics costs have risen to the point where companies can no longer afford to ignore
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Why has logistics gained importance? Serves as the link between departments Facilitates cross-company cooperation Boosts demand Superior fulfillment service can result in increased sales Promotes efficiency and profitability Reducing cost while increasing service Supports the creation of utility Service Impacts –companies recognize the value creation power of logistics
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Four primary objectives: 1. Effectiveness - meet customer requirements for on-time and complete orders 2. Efficiency - meeting customer requirements at lowest possible total fulfillment cost 3. Productivity Accomplishing customer service and cost goals, while earning the highest possible return on assets invested in fulfillment operations 4. Quality – do everything right the first time, no second chances or ―do-overs‖ Marketing Possession Utility Production Form Utility Logistics Time Utility Place Utility Quantity Utility
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This note was uploaded on 05/19/2011 for the course BUSINESS MKT taught by Professor Johnston during the Spring '11 term at Missouri State University-Springfield.

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Episode07PPTSlidesVideo - Episode 7 Order Fulfillment...

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