Thursday, 2 May 2024, 11:04 AM
Site: Bcom International Supply Chain Management
Course: Bcom International Supply Chain Management (IMM)
Glossary: SCS Glossary
C

Cabotage

The right to transport in a specific territory. More specifically, it refers to transportation between two terminals located in the same country, irrespective of the country in which the mode providing the service is registered. Cabotage is subject to restrictions and regulations. Under such circumstances, each nation reserves for its national carriers the right to move domestic freight or passenger traffic.

 


Capacity Planning

Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products. In the context of capacity planning, design capacity is the maximum amount of work that an organization is capable of completing in a given period.

Capital

Capital refers to goods / equipment used in the production of other goods, example machinery.

Capital Formation

Capital formation is the process of investing in capital equipment.

Capital Goods

Capital goods are goods used in the production of consumer goods, example machinery.

Capital Intensive Production

Capital intensive production refers to companies that use more capital equipment than labour, example automation.

Capitalisation Structure

Way of funding operations and growth by using different sources of funds, e.g. equity, debt or preference share capital.

Carriage on Purchases

Carriage on purchases – cost of transporting goods purchased to the business premises.eg freight in and railage in

Carrying Cost

In marketing, carrying cost, carrying cost of inventory or holding cost refers to the total cost of holding inventory. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related to perishability, shrinkage and insurance.

Cash Budget

Used to facilitate the planning and control of cash.

Cash Cycle

The flow of cash begins with the payment for raw materials and ends with receipt of cash on goods sold.

Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Cash Reserve Requirement

Cash reserve requirement refers to the minimum amount banks are required to hold back out of total deposits.

Ceteris Paribus

Ceteris paribus is a Latin term which means “all other things being equal”

Change in Demand

Change in demand refers to a change in every quantity demand at every price, i.e. a shift of the demand curve.

Change in Quantity Demanded

Change in quantity demanded refers to a change in the number of items demanded because of a change in price.

Choice

Choice exists in every decision made in the economy and refers to accepting one option over another.

Circular Flow

Circular flow refers to the flow of money between households and firms in one direction and the flow of goods and services in the opposite direction.

Cite

the mention of the author’s name from whose work you obtained the idea as well as the date of the publication

Closing the Sale

The art of closing a sale has many salespeople believing that if they master the art of closing a sale, they will be known as the best salesperson. Closing, however, is not one technique that is used at the end of the sale. The process of closing starts the moment the salesperson meets the customer. Technically, ‘closing’ a sale takes place when products or services are delivered to the customer’s satisfaction and payments are received. Van Heerden and Drotsky (2018) define closing as ‘taking the order’.

Collusion

Collusion exists when competing suppliers meet to fix prices or divide market share.

Communication

Communication is any form of exhanging information by speaking and writing or any other methods. It is sharing information.

Commuter

A person who travels regularly between home and work or school.

 


Commuter Bus Service

Fixed-route bus service, predominantly in one direction during peak periods, with limited stops, using multi-ride tickets and routes of extended length, usually between the central business district and outlying suburbs.

 


Commuter Rail

Local and regional passenger train operations between a central city, its suburbs and/or another central city.

 


Company Equilibrium

Company equilibrium exists where the output or quantity produced is where profit is maximised and where marginal cost = marginal revenue.

Comparative / Relative Advantage

Comparative / relative advantage exists where a country has a lower opportunity cost in the production of a good or service than does another country.

Compensation

Compensation is more than money! There is a hugely positive effect when salespeople have their success behaviour rewarded. The design and implementation of effective sales reward systems are, therefore, vital to the success of a sales force.

Competitive Advantage

Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals.

Complements

Complements are products that can be used together, example bread and peanut butter.

Concurrent Engineering

Concurrent engineering is a work methodology emphasizing the parallelization of tasks, which is sometimes called simultaneous engineering or integrated product development using an integrated product team approach.

Congestion

Occurs when transport demand exceeds transport supply in a specific section of the transport system.

 


Connotations

words which are used for their subtext rather than their literal meaning: your manager may dislike being called “boss” because of the negative meaning associated with the word

Constant Prices

Constant prices are expressed in relation to a selected base year’s value or price. Also known as real prices.

Consumable Stores

Consumable stores – items such as packing material, stationery and any other consumable consumed within a financial period.

Consumer Buyer Behaviour

Refers to the actions taken (both on and offline) by consumers before buying a product or service.

Consumer Goods

Consumer goods are goods purchased by households, example bread.

Consumer Price Index (CPI)

Consumer price index is an index of the relative prices of a representative basket of goods and services and measures the cost of living.

Consumer Spending

Consumer spending refers to the spending by households.

Consumer Surplus

Consumer surplus is defined as the difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually do pay (i.e. the market price).

Consumption of Fixed Capital

Consumption of fixed capital is the use of all manufactured resources, e.g. machines, buildings, tools, etc. over time.

Context

The background to something you do.

Contractionary Policy

Contractionary policy refers to either monetary or fiscal policy aimed at counteracting inflation.

Contribution

Contribution – the difference between sales and variable/direct cost. It is as good as gross profit for a retail business.

Control

The definition of control is power to direct, or an accepted comparison model in an experiment, or a device used for regulation.

Convergence

The merging of distinct technologies, industries, or devices into a unified whole

Cooperative Relationship

The cooperative relationship is more of a network, although it a loose one. More people in the supplier’s organisation are getting involved with the customer, not only the key accounts manager.

Corridor

A linear orientation of transport routes and flows connecting important locations that act as origins, destinations and point of transhipment. Corridors are multi-scalar entities depending on the types of flow being investigated. Thus, they can be composed of streets, highways, transit routes, rail lines, maritime lines, or air paths.

 


Cost of Equity

The cost of equity is the return a company requires to decide if an investment meets capital return requirements. ... A firm's cost of equity represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership.

Cost Reduction

Cost reduction is a planned positive approach to reduce expenditure.

Cost-Push Inflation

Cost-push inflation where supply decreases and pushes prices up.

Counter-Argument

An argument or set of reasons put forward to oppose an idea or theory developed in another argument.

Credit Losses

Credit losses – credit clients that have defaulted. Also referred to as bad debts.

Cross Elasticity of Demand

Cross elasticity of demand refers to the sensitivity of the quantity demanded of one product to a change in the price of a related product.

Culture

Culture is an umbrella term which encompasses the social behavior and norms found in human societies, as well as the knowledge, beliefs, arts, laws, customs, capabilities, and habits of the individuals in these groups.

Current Account

Current account is a record of exports, imports, income receipts and payments and transfers of a country over a period of time.

Current Prices

Current prices are expressed in today’s value (i.e. today’s prices). Also known as nominal prices.

Custom Broker

These organisations oversee the movement of goods through customs and ensure that the documentation for a shipment is complete and accurate.


Customer Drivers

The three primary drivers of customer satisfaction are: Response time — the time it takes for the customer to get a response from a qualified person (i.e., someone who is going to attempt to resolve the issue). Resolve time — the time it takes for the customer to get the issue resolved to their satisfaction.

Customer Engagement

Definition of customer engagementCustomer engagement monitors the relationship between a consumer and a company. This relationship is important for encouraging customer loyalty, increasing awareness and looking at customer satisfaction.

Customer Exits

Part of managing a key account is the ability to know when to adopt, and similarly when to retire an account. A company with an unmanageable portfolio, since inappropriate customers have not been cleaned out, simply drains company resources, and ultimately profitability. There are two options for customers who should leave the portfolio: they should either be exited to customer tier below, or they should be completely exited, and their business lost to the supplier. When the choice to exit the customer to the below tier is done, the customer could be carefully and slowly withdrawn from company resources, as not to notice the change in key account status.

Customer Market Survey

Market survey is the survey research and analysis of the market for a particular product/service which includes the investigation into customer inclinations. A study of various customer capabilities such as investment attributes and buying potential.

Customer Orientation

Customer orientation stage, where the company conducts applied research through utilising various methods such as focus groups, and the internet to determine what the needs of the consumers are, thereafter produce products to satisfy those needs.

Customer Power

The change within the business environment that is having the most dramatic impact on the development of KAM is the new-found expertise and power of customers and consumers in exercising choice. Customer empowerment is not just a cultural change due to companies being more customer focused, it is a consequence of mature markets, and as a result of technology. Consumers today are extremely knowledgeable and make very informed buying decisions.

Customer Relationships

The development of an ongoing connection between a company and its customers.

Customer Retention

Customer retention is a company's ability to retain its customers over time

Customer Service

Customer service is the provision of service to customers before, during, and after a purchase. 

Customer Service Measurements

customer service metrics, as the name suggests, provide data on your customer service team's performance in terms of efficiency and speed. These metrics focus purely on numbers, such as how many emails you receive per day, how many calls you answer, the rate of response, and so on.

Cyclical Unemploymen

Cyclical unemployment coincides with a downswing or slump in the business cycle.