Possession Utility: The amount of usefulness or
perceived value a consumer derives from owning a specific
product and being able to use it as soon as possible.
Place Utility: The value that is added to a product or
service by making it available in the right location.
Form Utility: How much value a consumer receives from a
product or service in a way that they actually need.
Time Utility: Occurs when a company provides goods and
services when consumers demand or need them.
Logistics: The process of planning and executing the
efficient transportation and storage of goods from the point
of origin to the point of consumption.
Logistic Approach: Strategic method or framework
applied to optimize the logistics and supply chain
operations, focusing on efficiency, effectiveness, and
alignment with business goals.
One Size Fits all Logistics: Refers to a standardized
logistics approach where a uniform strategy is applied
across all operations, regardless of the specific needs or
characteristics of individual customers or products.
Tailored Logistics: Groups of customers with similar
logistical needs and wants are provided with logistics
service appropriate to those needs and wants.
Supply Chain Management: Encompasses the planning
and management of all activities involved in sourcing and
procurement, conversion, and all logistics management
activities.
Supply Chain: All activities associated with the flow and
transformation of goods from the raw material stage,
through to the end user, as well as the associated
information flows.
Demand Forecasting: Refers to efforts to estimate
product demand in a future time period. The growing
popularity of the supply chain concept has prompted
increasing collaboration among supply chain partners with
respect to demand forecasting.
Customer service: Involves making sure that the right
person receives the right product at the right place at the
right time in the right condition and at the right cost.
Material Handling: Involves the movement, protection,
storage, and control of materials and products throughout
manufacturing, warehousing, distribution, consumption,
and disposal.
Customized Customer: A customized customer approach
tailors products, services, and interactions to meet the
specific needs and preferences of individual customers.
Inventory Management: Refers to stocks of goods that
are maintained for a variety of purposes, such as for resale
to others, as well as to support manufacturing or
assembling processes.
Order Management: Refers to management of the
activities that take place between the time a customer
places an order and the time it is received by the customer.
Facility Locations Decisions: It can also be said that the
success of a particular logistics system is dependent on the
location of the relevant warehousing and production
facilities.
Reverse Logistics: Products can be returned for various
reasons, such as product recalls, product damage, lack of
demand, and customer dissatisfaction.
Transportation Management: Physical movement of
goods or people from one place to another, whereas
transportation management refers to the management of
transportation activities by a particular organization.
Information: Processed data that is meaningful and useful
for decision-making.
Data: Raw facts and figures that, when processed, become
information.
Big Data: Refers to extremely large and complex data sets
that require advanced tools and techniques for analysis
and management.
Information Technology: (IT) encompasses the use of
computers, networks, software, and other electronic
systems for storing, retrieving, and sending information.
Transaction processing system: (TPS) is a computerized
system that performs and records the day-to-day
transaction operations of a business.
Communication System: Enables the transfer of
information between individuals or organizations through
various mediums (e.g., phones, emails, messaging
platforms).
Global Position System: GPS is a satellite-based
navigation system that provides location and time
information anywhere on or near the Earth.
Enterprise System: Integrates core business processes
and functions across an organization into a unified system.
Balance scorecard: Strategic planning and management
tool that provides a comprehensive view of organizational
performance by measuring financial and non-financial
metrics.
Strategic profit model: or DuPont model, analyzes a
company's return on equity (ROE) by breaking it down into
its component parts (profit margin, asset turnover, and
financial leverage).
Financial ratios: Quantitative measures derived from
financial statements that assess a company's performance,
liquidity, profitability, and solvency.
Cost leadership strategy: Involves becoming the
lowest-cost producer in an industry while maintaining
acceptable quality.
Hierarchical function design: Organizes an
organization's functions and processes into a structured
hierarchy, with each level representing a different degree of
detail and complexity.
Matrix design: Organizational structure that combines
functional and product-based divisions, creating a grid-like
system where employees report to multiple managers.
Functional design: Organizational structure where the
company is divided into departments based on specialized
functions such as marketing, finance, and production.
Order cycle: Or order-to-cash cycle, is the time taken from
receiving a customer order to the delivery of the product
and receipt of payment.
Order processing: Involves all activities related to
receiving, handling, and fulfilling customer orders.
Order transmittal: Process of sending customer orders to
the appropriate department or system for fulfillment.
Order management: Encompasses the entire process of
receiving, tracking, and fulfilling customer orders.

Six Sigma Management: Is a data-driven approach to

improving business processes by reducing defects and
variability.

Different models of transportation;

A) Pipelines: Transport liquids and gasses over long
distances through a network of pipes.
B) Intermodal: Involves using multiple modes of transport
(e.g., truck, rail, ship) for a single shipment.
C) Railroads: Railroads transport goods overland using
trains on a network of tracks.
D) Brokers: Intermediaries that connect shippers with
carriers to facilitate the movement of goods.

Shipping method: Mode of transport chosen to move

goods from the supplier to the customer.
Size and weight: Dimensions and mass of a shipment,
which impact shipping costs and methods.
Special services: In shipping include additional options
such as expedited delivery, white-glove service, and
temperature control.
Time of delivery: Scheduled or actual time when a
shipment is delivered to the customer.
Public carrier: Transportation provider that offers services
to the general public under regulatory oversight.

FOB destination: (Free On Board) Destination means the

seller retains ownership and responsibility for the goods
until they are delivered to the buyer’s location.
FOB origin: The buyer takes ownership and responsibility
for the goods as soon as they leave the seller’s location.
Bill of lading: A legal document issued by a carrier to
acknowledge receipt of cargo for shipment.
Documentation: Includes all the necessary paperwork
required to move goods across borders and comply with
regulations.

Packaging inefficiencies: Suboptimal packaging practices

that result in wasted space, increased costs, and potential
damage to goods.
Functional trade-offs: Involve balancing different aspects
of logistics (e.g., cost, speed, reliability) to achieve optimal
performance.
Package testing: Evaluates the durability, strength, and
effectiveness of packaging materials and designs.
Packaging: Involves designing and producing containers
or wrappers for products.
Labeling: Involves attaching information to a product or its
packaging.