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Unformatted text preview: chapter 7 ANSWERS TO STUDY QUESTIONS 1. Explain why outbound logistics systems in some organizations are viewed as more important than inbound logistics systems? Answer: In an effort to serve their customers, many firms have placed significant emphasis on what may be termed their outbound to customer logistics systems. Also referred to as physical distribution, this essentially refers to the set of processes, systems, and capabilities that enhance a firm's ability to serve its customers. Correspondingly, the topic of inbound to operations logistics systems refers to the activities and processes that precede and facilitate value adding activities such as manufacturing, assembly, and so on. Other terms that focus on these elements of the supply chain include materials management and physical supply. Although many of the principles of inbound logistics are conceptually similar to those of outbound logistics, there are important differences that must be recognized. As a practical matter, in many firms the outbound to customer logistics system receives far more attention than the inbound to operations system. While this is changing quickly, it is largely due to the historical priority firms have had on improving service to their customers. (Page 231) 2. How do outbound logistics systems relate directly to needs of the customer? Answer: The focus on outbound logistics has led to an emphasis on attributes such as product availability, on time and order delivery, timely and accurate logistics information, overall responsiveness, and post sale customer support. Very simply, providing the customer with an acceptable level of service has been of greater concern, historically, than assuring the efficient and effective flow of materials to value adding operations. In today's business environment, successful firms find it necessary to place an equal emphasis on being proficient in both of these areas. (Page 231) 3. How can demand management help to unify channel members, help to satisfy customers, and solve customer problems? Answer: The essence of demand management is to further the ability of firms throughout the supply chain particularly manufacturing through the customer to collaborate on activities related to the flows of product, services, information, and capital. The desired end result should be to create greater value for the end user or consumer, for whom all supply chain activity should be undertaken. The following list suggests a number of ways in which effective demand management will help to unify channel members with the common goal of satisfying customers and solving customer problems. Gathering and analyzing knowledge about consumers, their problems, and their unmet needs Identifying partners to perform the functions needed in the demand chain Moving the functions that need to be done to the channel member that can perform them most effectively and efficiently Sharing with other supply chain members knowledge about consumers and customers,...
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This note was uploaded on 07/28/2011 for the course MKTG 4354 taught by Professor Nancyevans during the Summer '11 term at Virginia Tech.
- Summer '11