INTL 3003 International Logistic Key Terms

Module 6 & 7: Demand Management, Order Management, & Customer Service

Term Definition

A technique that seeks to better understand the cost of a product by identifying

1) Activity based costing (ABC)
what activities drive a particular cost.

2) Benchmarking Using measures of another organization's performance to judge one's performance.

Assumes that one or more factors are related to the demand, and the relationship
3) Cause-and-effect forecasting
between cause and effect can be used to estimate future demand.

4) Collaborative planning,
Retail industry initiative where trading partners share planning and forecasting data
forecasting and replenishment
(CPFR)
to better match supply and demand

5) Customer profitability analysis Refers to the allocation of revenues and costs to customer segments or individual
(CPA) customers to calculate the profitability of the segment or customers.

The ability of logistics management to satisfy users in terms of time, dependability,

6) Customer service
communication and convenience.

The creation across the supply chain and its markets of a coordinated flow of
7) Demand management
demand.

Refers to forecasting that involves judgment or intuition and is preferred in a

8) Judgemental forecasting
situation where there is limited or no historical data.

9) Make-to-order Products are produced after receiving a customer order.

10) Make-to-stock Products are produced prior to receiving a customer order.

11) Multichannel marketing

Refers to separate marketing channels to serve customers.
systems

Elapsed time between when a customer places an order and when the goods are
12) Order Cycle
received.

Contemporary Logistics 12th Edition – Paul R. Murphy Jr., A. Michael Knemeyer

INTL 3003 International Logistic Key Terms

The time from when a transportation carrier picks up the shipment until it is received
13) Order delivery
by the customers.

14) Order fill rate The % of orders that can be completely and immediately filled from existing stock

15) Order management The management of the various activities associated with the order cycle.

Includes all activities from when an appropriate location is authorized to fill and
16) Order picking and assembly
order until goods are loaded aboard an outbound carrier.

The time from when the seller receives an order until an appropriate location is
17) Order processing
authorized to fill the order.

18) Order to cash cycle The length of time it takes an organization to receive payment for an order.

The time from when the customer places or sends the order to when the seller
19) Order transmittal
receives it.

Classifying orders according to pre-established guidelines so that a company can

20) Order triage
prioritize how orders should be filled.

21) Pick-to-light technology The orders to be picked are identified by lights placed on shelves or racks.

A process for returning a customer to a state of satisfaction after a service or

22) Service recovery
product has failed to live up to expectations.

Refers to a situation where a customer holds the responsible company in higher

23) Service recovery paradox regard after the service recovery than if a service failure had not occurred in the first
place.

A group of forecasting techniques that is based on the idea that future demand is
24) Time series forecasting
solely dependent on past demand.

Contemporary Logistics 12th Edition – Paul R. Murphy Jr., A. Michael Knemeyer