12 linking order management outputs order management

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Unformatted text preview: ༊ Financial impact • Order cycle time impacts safety stock and order stock Figure 8.15 – Customer Wait Time Order Management Influences on Customer Service, cont. M༄ Logistics Operations Responsiveness (LOR) §༊ Examines how well a seller can respond to a buyer’s needs §༊ This “response” can take two forms • LOR can be how well a seller can customize its service offerings to the unique requirements of a buyer • LOR can be how quickly a seller can respond to a sudden change in a buyer’s demand pattern M༄ Logistics System Information §༊ Is critical to the logistics and order management processes §༊ Underlies ability to provide quality product availability, order cycle time, logistics operations responsiveness, and post- sale logistics support §༊ Timely and accurate information can reduce inventories in the supply chain and improve cash flow to all supply chain partners Chapter 8 – Order Management and Customer Service Summary: §༊ S༅ S༅ S༅ Cast Flow Increase = Invoice Value x (Cost of Capital/365) x Difference in Days in the Order- to- Cash Cycle Table 8.9 – Information Needed to Manage the Transportation Process Order Management Influences on Customer Service, cont. M༄ Postsale Logistics Support (PLS) §༊ PLS can be the management of product returns from the customer to the supplier §༊ The second form of PLS is product support through the delivery and installation of s...
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