 | Term | Definition |
| |
3PL |
A third party logistics [3PL] firm provides total management of a firm's activities in an area in which the provider has expertise and efficiency. |
| |
business process outsourcing [BPO] |
Describes the hiring of suppliers to manage and perform various business processes. |
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closed loop systems |
A packaging system where the package is continually returned and refilled. |
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contract manufacturing |
A relationship where company contracts with a manufacturer in a foreign market to produce the product or provide its service. |
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differential advantage |
also sustainable competitive advantage |
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direct shipments |
Shipments from a vendor to a plant. |
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game theory |
A general theory of strategic behavior that allows one to understand the options of all parties and make better decisions. |
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inventory management |
The process of keeping track of and accounting for all components and finished products regardless of state of production or physical location. |
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ISO 9000 Series |
An accepted set of quality systems that allow each plant to be certified to a specific level of customer services, design, and manufacturing consistency. It is not a guarantee of quality. |
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lateral relationships |
The business dealing that exist between channel members at the same level in the distribution system. |
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level loaded |
This describes a manufacturing facility that has its production schedule set so that it does not need any additional equipment personnel or have any idle time. |
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milk run shipments |
A series of shipments where a transport vehicle goes to a series of vendors making deliveries and pickups as needed to fulfill product requirements. |
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open loop systems |
A packaging system where the package is used [generally once] and then thrown away. |
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outsourcing |
Contracting a service entity to provide total management of a firm's activities in an area in which the provider has expertise and efficiency. |
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purchase order [PO] |
A document that is issued by a purchasing organization to a supplier requesting items in the quantities, prices, time, and other terms agreed upon. It is not a guarantee of sale. |
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risk taking |
Bearing the uncertainties that are part of the marketing process. |
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sustainable competitive advantage |
also differential advantage |
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switching costs |
The one-time expenses [set-up, take-down, termination fees, etc.] associated with dismantling the current operation and putting a new one in its place. |
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symbiotic negotiating strategy |
This types of negotiation seeks to find win-win solutions. |
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third-party logistics provider [3PL] |
A third party logistics [3PL] firm provides total management of a firm's activities in an area in which the provider has expertise and efficiency. |
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