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Many
of the terms used in the world of third-party logistics do
not appear in a standard dictionary, nor is there a dictionary
of fulfillment or warehouse management definitions. We offer
this glossary to help you better understand our business.
If
you have a term you would like defined, or have a definition
that you would like to share with us, please send us an e-mail.
C
call
center
see Telemarketing
Service Bureau
carton
a corrugated box
case
a container (usually a corrugated box) that contains multiple
units of an item.
CASS certification
the Coding Accuracy Support System certification process is
used to improve deliverability and qualification for postal
automation discounts. Mailers or their list suppliers must
use "CASS" certified software to update the zip
code, zip+4,
and DP Barcode data on their mailing lists. Mailers must be
able to demonstrate that their lists are CASS certified to
claim postal discounts by submitting a report to the Postal
Service
caging
the opening and processing of orders and handling of checks,
cash and credit cards. Historically, caging personnel often
worked in fenced in areas, or cages, for security purposes,
hence the name.
COD (Cash On Delivery or Collect on Delivery)
status and type of shipment to a consumer or business in which
payment for the product and its freight expense must be paid
for upon delivery. Also the payment.
chargeback
a credit card transaction that is debited from the merchant
after the sale has been settled, It is initiated by the card
issuer on behalf of the card member, usually after the cardholder
has been unable to resolve the dispute with the merchant.
Chargebacks can be reduced by having a responsive, proactive
customer service department that can resolve disputes with
cardholders before a dispute results in a chargeback. Outsourcing
customer service can be one of the quickest, most-effective
solutions to chargeback problems.
check character
a character added to a bar code to verify that the bar code
is accurate and/or authentic. The specific check character
is usually the result of an algorithim based upon the data
in the bar code.
check digit
see check character
compliance labels
standardized label formats used by trading partners. Compliance
labels are used as shipping labels, container/pallet labels,
carton labels, or piece labels, and usually contain bar codes.
compounding a sample
method used with counting scales to use a smaller sample and
then use the scale to build a larger quantity that is then
resampled to represent the final sample.
consignment inventory
inventory that is in the possession of the customer, but is
still owned by the supplier. Consignment inventory is used
as a marketing tool to make it easier for a customer to stock
a specific supplier's inventory. The customer pays for the
inventory only after it is resold or consumed.
container
in supply chain management, containers are standardized metal
compartments for for intermodal transportation of products.
Standard external dimensions for containers are a width of
8 feet, and a height of either 8.5 feet or 9.5 feet, and lengths
of 20, 40, and 45 feet.
contract warehouse
a business that handles shipping, receiving, and storage of
products on a contract basis. Contract warehouses will generally
require a client to commit to a specific period of time (generally
in years) for the services. Contracts may or may not require
clients to purchase or subsidize storage and material-handling
equipment. Fees for contract warehouses may be transaction
and storage based, fixed, cost plus, or any combination. See
also 3PL.
count frequency
the number of times per year an item is counted. Count frequency
is used to calculate cycle count period. See also cycle
count period.
CRM
see customer relationship management
customer service
(see also customer relationship management)
in third party logistics (3PL) management, customer service
is the management of the relationship between the company
shipping the orders and the recipient of those orders on behalf
of a manufacturer or marketing (client). Customer service
can be B2B or B2C, but is more often thought of as being consumer
oriented. Though some customer service operations can be automated,
such as an e-mail acknowledgment that an order has been received
or is being sent, or a B2B operation, with the sending of
an advance shipping notification (ASN) via EDI, much customer
service is handled one on one, directly between a customer
service representative and the customer. A well-maintained
online database of all customer ordering history and correspondence
is crucial to maintaining good customer service. Communication
can be via telephone, e-mail, online, mail or by fax. At its
most basic level customer service answers questions about
a product, handles inquiries about the shipping status of
an order, or the purchasing transactions themselves (“What’s
this charge from XYZ Widget Company doing on my credit card?).
On a more advanced level customer service is more proactive,
extending itself into the realm of Customer Relationship Management
(CRM), to increase the communication with the customer to
make ongoing purchases by the customer more pleasant and more
frequent.
customer relationship management (CRM)
the science of maintaining a positive relationship between
a company and its customers. Establishing a “brand name”
is primarily about establishing a perception in the mind of
the consumer that the branded product is somehow enhancing
the consumer’s life more than a non-branded product
with the same intrinsic value. Thus all successful brands
already succeed on one level of CRM, through creating the
perception of a life-enhancing relationship. Shipping a quality
product in a timely manner and offering the customer easy
ways to get service or addition related information, are all
key aspects to customer relationship marketing. Knowing the
customer -- though database management -- and communicating
effectively with one’s customers is crucial to CRM success.
For direct response marketing companies, acquiring customers
for the first time (prospecting) is much more costly than
maintaining them, thus, the adage that “The most expensive
order is the first order.” As a direct response marketing
company grows its database of customers, good customer relationship
management is key to maintaining a base of customers to ensure
financial stability.
cycle count
any process that verifies the correctness of inventory quantity
data by counting portions of the inventory on an ongoing basis.
In other words, any process that uses regularly scheduled
counts but does not count the entire facility's inventory
in a single event.
cycle time
the time from start to finish of a specific tasks of group
of tasks. Cycle time is an important measurement for benchmarking,
budgeting, and staffing.
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