Overview[ edit ] A business process begins with a mission objective an external event and ends with achievement of the business objective of providing a result that provides customer value. Additionally, a process may be divided into subprocesses process decompositionthe particular inner functions of the process. Business processes may also have a process owner, a responsible party for ensuring the process runs smoothly from start to finish.
See Article History Alternative Title: The term was first associated with the military but gradually spread to cover business activities. Logistics implies that a number of separate activities are coordinated. In the Council of Logistics Management, a trade organization based in the United States, defined logistics as: Logistics also can be thought of as transportation after taking into account all the related activities that are considered in making decisions about moving materials.
In some firms, all these activities are placed within a single logistics department; in others, they are shared among departments.
The firm may contract with an outside party to perform specific logistics services; this practice is referred to as third-party logistics. The phrase business logistics is often associated with firms that have large volumes of products to move, such as appliance manufacturers or retail chain stores.
Service industries also have logistic concerns, however. Banks with automatic teller machines must keep them supplied with currency and paper forms and must collect deposits.
Television networks operate many vehicles to help collect the news; and, at a major sports event, broadcasters may have several dozen vehicles present. Governments and nonprofit organizations also have logistics programs. Some of the most challenging logistics assignments have been associated with the military buildup in the dispute between the United Nations and Iraq in —91 and in the famine relief efforts in Ethiopia and other African nations in the s.
These activities must be planned and executed in coordination with each other. The logistics manager may pay more for one element of service in order to save an even larger amount on a different element.
For example, air freight, an expensive form of transportation, saves money on packaging because airlines are more careful with cargo than are some of their competitors.
Also, because the goods will be delivered more quickly, payment for them is received more quickly.
Customer service Customer service involves an array of activities to keep existing customers satisfied. An example is computer software manufacturers who allow consumers to telephone them to discuss problems they are encountering with the software.
Servicing equipment in the field and training new users are other examples of customer service. The term user-friendly is sometimes applied; the firm wants to develop a reputation as being easy to do business with.
Firms continually monitor the levels of customer service they—and their competitors—offer. They might use machines to record how many times customer-service telephones ring before being answered or what percentage of requested repair parts they can deliver within a certain time span.
These needs include both delivery to customers and receipt of raw materials or components for assembly. Because the logistics staff is involved with order processing, it also has early information about what customers are actually ordering. This is important intelligence for others in the firm who are planning and scheduling production.
Documentation flow The paperwork that accompanies the flow of physical product is considered to be the documentation flow. A bill of lading is the contract between the shipper and carrier. International shipments require many more documents. The typical number ranges from 6 to 10, but the number can climb to more than Documentation also links the shipment to payment for the product—a form of control necessary to ensure that goods are not shipped without regard to their being paid for.
Electronic data interchange is often used in place of paper for the documentation process. Interplant movements During the production process a firm moves products between its various plants. A large automobile manufacturer might have several thousand suppliers feeding parts into factories that assemble components that will be used by, say, 20 assembly lines.
Flows must be controlled and altered to meet changing demands. The just-in-time JIT inventory replenishment system insists on small, accurate resupply deliveries to be made just as they are needed—no sooner and no later.
Also, the components must be free of defects, because there is no batch of spare parts from which to pick a replacement. Inventories Stocks of goods or materials are inventories. They often are located at points where there is a change in the rate and unit of movement.
A grain elevator might receive grain from local farmers at the rate of two or three truckloads a day during the harvest season and hold the grain until it is shipped out at the rate of several railcars a week over a six-month period.
Inventories represent an investment that the owner hopes to sell. There are costs associated with holding inventories, however, including interest on the money invested in the inventory, storage costs, and risks of deterioration, obsolescenceand shrinkage. They include company supplies, finished goods made by the firmpackaging materials, labels, promotional materials catalogs and samplesraw materials and components, resale goods purchased from other firms for resale—e.
This is referred to as the FIFO first in—first out system.In this article, we explore, 1) the definition and purpose of strategic marketing, 2) the three phases of the strategic marketing process, 3) guidelines for effective strategic marketing process, 4) problems to expect in the strategic marketing process, 5) p.e.s.t: trends to consider when implementing marketing strategy, 6) strategic marketing process simplified, and 7) why Apple’s strategic.
A business plan is a very important part of creating a business. This plan includes things such as marketing strategies, an analysis of the competition, development plans, operation and management.
An amount that has to be paid or given up in order to get something..
In business, cost is usually a monetary valuation of (1) effort, (2) material, (3) resources, (4) time and utilities consumed, (5) risks incurred, and (6) opportunity forgone in production and delivery of a good or service.
All expenses are costs, but not all costs (such as those incurred in acquisition of an income.
Encyclopedia of Business, 2nd ed. Delphi Technique: Cos-Des. The Delphi technique is an intensive and fairly specialized group problem-solving method used to harness and reconcile the knowledge and judgment of several experts. Business Process Modeling in Software Development.
Software development is a risky field. Twenty years ago, the CHAOS report by the Standish Group reported that 90 percent of software projects fail. Today that numbers are lower, but still reflect that there is work to be done. Logistics, in business, the organized movement of materials and, sometimes, people.
The term was first associated with the military but gradually spread to cover business activities. Logistics implies that a number of separate activities are coordinated. In the Council of Logistics Management, a trade organization based in the United States, defined logistics as: “the process of.