Business Logistics Syllabus

Business Logistics & Transportation

Class Notes: 09 February 2015

Chapter 3:

* A consumer is always a customer. A customer may or may not be a consumer.

* Transactional Marketing: know the term

Transactional marketing is a traditional strategy with a focus on creating successful individual transactions between the company and its customers

* Relationship Marketing: know the term. Also know that it can include consumers, intermediate customers, and suppliers.

Relationship marketing is a new strategy with a focus on the development of long-term relations with key supply chain participants in an effort to develop and retain long-term preference and loyalty

* Supply Chain “Discrepancies”: (1) Space (2) Time (3) Quantity/Assortment. The latter term really means customization in today’s marketplace. Read the definition, and know an example of each category.

* Customer Service: Fundamental starting point: “does the cost associated with achieving a specified service performance represent a sound investment? 4-box quadrant analysis can help here, using revenue and margin as the X and Y axis variables. To answer this question, 2 core questions must be answered: what is the competition providing? What is the customer sensitivity to a given level of service?

* Perfect order = on-time, complete, defect-free and accurate invoice/information. To calculate your score, multiply each individual category performance. Example: if every category achieved a 97% rating, the result would be .97 x .97 x .97 x .97 = 88.5% perfect order score. Note: the perfect order is “pass/fail”; ie. If one metric fails, the entire order fails. See Table 3.1 for typical causes of failure. Interesting note: early delivery is considered a failure as well as late delivery, ie, it does not conform to customers’ requirements.

* Lean Management takes the waste out; 6-Sixma puts the quality in to a logistics...