Module 5: Order Management Flashcards
Syn: delivery lead time.
Delivery cycle
Syn: available inventory.
Net Inventory
The progression used by a company starting with receipt of a customer’s order and ending with delivery to that customer.
Order Cycle
The practice of dividing a customer base into groups of individuals who are similar in specific ways relevant to marketing. Traditional segmentation focuses on identifying customer groups based on demographics and attributes such as attitude and psychological profiles.
Customer Segmentation
1) In industrial engineering, the time between the completion of two discrete units of production. For example, [if] motors [are] assembled at a rate of 120 per hour, [this] is 30 seconds. 2) In materials management, the length of time from when material enters a production facility until it exits.
cycle time
1) The ability of a company to address the needs, inquiries, and requests of customers. 2) A measure of the delivery of a product to the customer at the time the customer specified.
customer service
The on-hand inventory balance minus allocations, reservations, backorders, and (usually) quantities held for quality problems. Often called beginning available balance.
available inventory
A term referring to the Pareto principle. The principle suggests that most effects come from relatively few causes; that is, [a larger] percent of the effects (or sales or costs) come from [a smaller] percent of the possible causes (or items). See: ABC classification.
80-20 rule
A performance criterion that measures how consistently goods and services are delivered on, or before, the promised time.
Delivery reliability
The time from the receipt of a customer order to the delivery of the product.
delivery lead time
A marketing philosophy based on putting the customer first. Involves the collection and analysis of information designed for sales and marketing decision support (in contrast to enterprise resources planning information) to understand and support existing and potential customer needs. Includes account management, catalog and order entry, payment processing, credits and adjustments, and other functions.
customer relationship management
1) A measure of delivery performance of finished goods or other cargo, usually expressed as a percentage. In a make-to-stock company, this percentage usually represents the number of items or dollars (on one or more customer orders) that were shipped on schedule for a specific time period, compared to the total that were supposed to be shipped in that time period.
2) In a make-to-order company, usually some comparison of the number of jobs or dollars shipped in a given time period (e.g., a week) compared with the number of jobs or dollars that were supposed to be shipped in that time period.
customer service ratio
Actual customer descriptions in words for the functions and features customers desire for goods and services. In the strict definition, as related to quality function deployment (QFD), the term customer indicates the external customer of the supplying entity.
voice of the customer (VOC)
The group in charge of moving materials from suppliers or vendors into production processes or storage facilities; the actual movement of such material.
inbound logistics
Every process that is involved in the shipping and holding of products after they are completed until they are received by the customer.
outbound logistics
1) An order to the machine shop for tool manufacture or equipment maintenance; not to be confused with a manufacturing order. 2) An authorization to start work on an activity (e.g., maintenance) or product.
work order
The time interval between a customer placing an order and when the seller receives it.
order transmittal
Selecting or “picking” the required quantity of specific products for movement to a packaging area (usually in response to one or more shipping orders) and documenting that the material was moved from one location to shipping.
order picking
1) A span of time required to perform a process (or series of operations). 2) In a logistics context, the time between recognition of the need for an order and the receipt of goods. Individual components […] can include order preparation time, queue time, processing time, move or transportation time, and receiving and inspection time. Syn: total lead time. See: manufacturing lead time, purchasing lead time.
lead time
The ““middle man”” between the carrier and the organization shipping the product. Often combines smaller shipments to take advantage of lower bulk costs.
freight forwarder
A formal legal claim filed by the transportation buyer that the carrier failed to protect the freight properly, seeking monetary compensation for damaged freight, delayed or incorrect deliveries, overcharges, or other service failures. The amount of damages can be up to the value of the goods had they been safely delivered on time.
freight claim
The activity required to administratively process a customer’s order and make it ready for shipment or production.
order processing
An entity that picks up goods at the production site and coordinates transport to the foreign customer’s location.
foreign freight provider
A graph or map of allotted shelf space based on an analysis of sales data indicating the best arrangement of products on a store shelf.
planogram
