Logistics & Supply Chain Management short only questions

Try to increase response time by linking logistics and marketing through intensive information exchange between different levels to reduce delivery and storage times.

Efficient methods for Data exchange

• Networked information systems
• Data exchange via e.g EDI across all stages of supply chain

Efficient methods of logistics

• Vendor managed inventory
• Cross docking
• Synchronized production

Efficient methods for marketing

• Assortment management
• Sales promotion
• Product launch

An electronic marketplace is a platform where goods and services can be exchanged.

Characteristics are

• Market participants ( 1:1, 1:n, n:m)
• Delimitation of goods (horizontal-/ vertical marketplace)
• Functionality ( supplier, product catalogues, complete transaction processing)
• Interest orientation (demand-side, supply-side, neutral marketplace)
• Barriers to entry (open, closed)
• Pricing (static / dynamic)
• Revenues (direct, indirect)
• Offerings (trade, communication and cooperation, information, entertainment)

There are four assessment criteria's:

1. Information asymmetries
   1. Which party has the more relevant information
2. transaction cost
3. transparency
   1. All information about the transaction are accessible and manageable for market participants.
4. trust. E.g. reviews of products/ money back guarantee

CRM is an approach to manage and analyse a company's interaction with its past, current and potential customers. The goal is to control and increase customer - satisfaction, loyalty and acquisition.

Mass customization means a customer-specific mass production of goods for a large sales market. Prerequisites necessary to provide mass customization.

1. large quantities, standardized service modules (or component) = modular principle
2. customization, fulfil individual requests to provide high benefit
3. price needs to be comparable with standard product and target market must not be too small -> there must be more potential
4. number of variant. Do not create many similar products but let the customer configure, and tailer the offer to their wishing.

There are two characteristics. Soft-customization and hard-customization.

• Soft-customization: customer can configure or finish product by themselves, add secondary services to standard offering. E.g. gift wrapping
• Hard-customization. Customize at some point in the production stage. Modular construction principle or mass production of unique products. E.g. modular furniture or unique specimens jewellery.

For not seen product demand the supply chain need to react quickly to customer demand. A fast supply chain is key but important. They fasten by using local distributer, or faster supply ways and restock every two weeks to better forecast demand.

Electronic data interchange keeps track of products and works best if all steps in the supply chain uses the same system. The EDI gives an overview over the supply chain. So when a customer checks out an item with the barcode, not only the price is shown but the product is automatically booked from stock and if stock is low it is automatically reordered.

GS1 is a standard which defines how each product id is build. The barcode defines a product and information about this specific product is accessible over the barcode number. It is important that different ids are created so the seller can order the right item from the supplier.

Barcodes and RFID are used to keep digital track over each ingoing and outgoing item. With the help all steps in the supply chain can see what demand is there or which actions are needed . E.g. with washing of towels for hotel.

Global trade item number. E.g. barcode number, each product has a unique id.

A tool overlook the whole company and the contact with all the customers.

To give a fast, understanding and simple overview over a customer. With the help of a CRM transactions, requests and prior discussions can be looked at and all the employees can respond to a customer with the same detailed background. Everyone has all the information needed to support a customer.

The advantage of a CRM is that all employees have the information, and history of a customer and can support them over different steps.

All transactions, mails, meetings, phone calls, requests, order, problems are listed and all employees have access to it and update this when this specific customer needs something new or requests it. Everything gets traceable and transparent

Which statements regarding Electronic Markets are true, and which are false?

1. An electronic marketplace can be understood as an exchange platform for goods and services.: True
2. An electronic marketplace is only to be understood as an exchange platform for goods.: False
3. The entire Internet is one single electronic marketplace.: False
4. Electronic markets are platforms in the internet upon which electronic trade between different actors is operated.: True

Which statements regarding "Customer Relationship Management" (CRM) are true, and which are false?

1. The primary strategic target of CRM is to increase the company's market share and win as many new customers as possible.: False
2. A strategic target of CRM is profitability. The goal is to increase the intensity of buying.: True
3. A strategic target of CRM is differentiation. The goal is to understand customers as a differentiated group.: True
4. A strategic target of CRM is durability. The goal is to maintain the customer relationship in the long term.: True

Which statements regarding "Mass Customization" are true, and which are false?

1. A prerequisite for mass customization is to provide customers with a particularly high level of benefits.: True
2. A prerequisite for Mass Customization is to obtain high quantities.: True
3. Mass customization does not require sales potential, because customers do not know what they want.: False
4. Mass customization does not require a pricing policy; the higher customer benefit also justifies higher prices.: False

Which statements regarding the Differences between B2B and B2C are true, and which are false?

1. In B2B, delivery logistics is usually plannable and efficient.: True
2. In B2B, prices are often dependent upon the quantity.: True
3. In B2B, the switching costs (regarding suppliers) are high.: True
4. In B2B, delivery logistics is always dependent upon availability, because this is critical for success.: False

Which statements regarding "Customer Relationship Management" (CRM) are true, and which are false?

1. The CRM component "Individualization" aims to establish personalized exchange processes.: False
2. The CRM component "Integration" places the customer in the center (focus).: False
3. The CRM component "Information" is used to build the Customer relationship.: True
4. The CRM component "Interaction" serves to measure the customer relationship.: False

Which statements regarding "Efficient Consumer Response" (ECR) are true, and which are false?

1. ECR also means a combination of logistics and marketing.: True
2. ECR relies upon "Quick Response:" Increasing call center efficiency through more employees.: False
3. ECR follows the approach of the "demand chain" (pull orientation).: True
4. ECR relies upon "Quick Response:" Increasing efficiency through continuous automated information exchange between stages of the supply chain.: True

Which statements regarding Differences between "Business to Business" (B2B) and "Business to Consumer" B2C are true, and which are false?

1. Between B2B and B2C, there are some differences in business processes and Supply Chain.: True
2. Between B2C and B2B, a company only has to address the different business processes.: False
3. Between B2C and B2B, a company only has to address the different supply chains.: False
4. Between B2B and B2C, there are no differences in business processes and Supply Chain.: False

Which statements regarding Classical Supply Chain Management are true, and which are false?

1. In classical Supply Chain Management an upstream stage in the supply chain supplies the following stage downstream.: True
2. Classical supply chain management flows "upstream" towards suppliers.: False
3. Classical supply chain management flows "downstream" towards customers.: True
4. In classical Supply Chain Management, a downstream stage in the supply chain supplies the stage immeadiately upstream.: False

Which statements regarding "Efficient Consumer Response" (ECR) are true, and which are false?

1. "Synchonized Production" stands for the management of inventory at the customers by suppliers.: False
2. ECR often uses EDI over several stages of the supply chain.: True
3. ECR relies upon networked information systems. From the scanner checkout at the point of sale to the production control system at the manufacturer.: True
4. "Synchonized Production" is a possible efficient method of logistics in ECR.: True

Which statements regarding Electronic Markets are true, and which are false?

1. Electronic markets usually lower transaction costs.: True
2. Electronic markets fundamentally prevent information asymmetries.: True
3. Electronic markets can create new information asymmetries, e.g. through analysis of data from the side of the market operator.: True
4. Electronic markets also always have the goal to increase the market power of providers.: False

Which statements regarding Electronic Markets are true, and which are false?

1. Electronic market systems are categorized according to the software used.: False
2. Electronic market systems can be categorized according to their market mechanics.: True
3. Electronic market systems can be categorized according to the revenue models of the operators.: True
4. Electronic market systems can be categorized according to their industry orientation.: True

Which of the following statements regarding Strategic Orientation of the Sales Side are true, and which are false?

1. The strategy should define the expected benefits for each customer segment.: True
2. The strategy should define in which way the benefit for a specific customer segment will be provided.: True
3. In the strategy, the benefit expectations should only be defined for the B2C customer segments.: False
4. The expected benefits include cost and quality of the products.: True

Which statements regarding Electronic Markets are true, and which are false?

1. Vertical electronic marketplaces are mostly specialized and industry-specific.: True
2. Horizontal electronic marketplaces usually have a closed circle of users.: False
3. Vertical electronic marketplaces usually have an open circle of users.: False
4. Horizontal electronic marketplaces often have a cross-industry offering.: True

Which of the following statements regarding the Customer Segments are true, and which are false?

1. There are two basic customer segments: business customers and private households: False
2. A Supply and Demand relationship is the focus of all companies: Business to Business (B2B): False
3. There are three basic customer segments: business customers, private households and public administrations.: True
4. A Supply and Demand relationship is the focus of all companies: Business to Consumer (B2C): False

Which statements regarding Electronic Markets are true, and which are false?

1. Electronic markets promote trust through transparency.: True
2. Trust is not an important factor on electronic markets, because there is complete anonymity.: False
3. On electronic markets, access to information is made more difficult (lack of a search function).: False
4. Electronic markets, like ebay for example, act as "trustees" between suppliers and buyers.: True

Which statements regarding "Mass Customization" are true, and which are false?

1. "Modular Construction Principle" means standardized components are assembled into customer-customized modules.: True
2. "Service individualization" means a standard product which supplements individual secondary services.: True
3. "Customer-Customized Finishing" means individualization during the early stages of production (which is very complex).: False
4. "Individual finishing at the PoS" means a standard product which supplements individual secondary services.: False

• Challenges are to change the mindset from being a "selling" company to be a "technical" company. Just the switch from traditional to electronic background
• Positioning and execution. How do you want to be known and what do you want to do by yourself and what do you want to have done by suppliers in a good quality, and timely
• Customer loyalty is a challenge. Over the internet it becomes inpersonal. And it is hard to get loyalty over the internet.
• How can you satisfy your customer. Predict what the customer wants bevor they know it without talking to them.
• Connect customers to the product, make sure you speak the language of your customer to keep them on the page and keep them engage, learn from them
• Returns and logistics are challenging, consumer behavior changed. Customer want free returns. Box sizes are shrinking but delivery costs are rising.
• Complexity from all levels. All levels need to be efficient and it still needs to be an experience for the customer.
• Build up smart processes

• A challenge is to keep up with the market. The speed of market changes and possibilities to make as a company has increased. It is challenging to make the right decisions.
• Choose the right business model and have the platform in place

With AI in e-commerce a company can better predict what the future customers are looking for and plan accordingly

A online payment solution offers your customers every payment option they desire

Risks are

• Fraud attack, stop unwanted orders and organized scammers, recognize good customers
• Payment default from customer.

A payment gateway is a software application that payment service providers (PSP) use to provide process payments for online purchases. It akts as an interface between the merchants web site and the PSP bank called acquirer (acquiring bank of psp).

A payment gateway can be used for multiple payment methods. The gateway encripts sensitive payment information and ensures security for the transaction between the customer, the merchant and the bank.

Once a customer inserts their card information, the gateway sends the infors to a bank to confirm it. Once payment confirmed the gateway sends back the approval of the transaction back to the merchant website.

Fulfillment includes all the steps to satisfy your customer.

There are three different approaches

• Dropship fulfillment model you market goods which are stored at another facility. This is a good option for resellers who do not have their own unique product. So all you need to do is the marketing, storage and facilitation of product is done by others.
• Self fulfillment model you run the entire shipping process in-house. You manufacture the product, store it in your warehouse and package and ship every order. Typically used by large scale companies. It cuts out the middle man and gives you power over all the processes
• The third party logistics model (3pl) you either manufacture your goods in bulk before an order is made, rather than shipping them yourself you store them at a third-party fulfillment center. Every time a customer buys an item your 3pl partner ships it out.

Retuns are items customer ordered but did not want to keep.

It requires lots of logistics to order items, check them, repac them, send them to retail again or dispose/let repair them. If items are just dirty and not damaged they get cleaned and repacked.

if an item is send back too often it cannot be sold as new again. For each item category experts are needed to check if the product was not tampered with.