1.1.1 Supply Chain Management Overview Flashcards
Why should we care about supply chains?
1) Supply chains have grown
2) They’re a bridge between producers and customers
3) They’re a shock absorber, adapting to exogenous changes
4) They’re becoming more efficient
5) They continue to evolve (transport and logistics spend is shrinking as a proportion of GDP)
What are the drivers of uncertainty in SCM?
1) Demand
2) Manufacturing yield
3) Sourcing
4) Transit times
Why are metrics a challenge in SCM?
1) It’s difficult to measure a system
2) There is a trade off between breadth and validity -> this is driving the shit to “outcomes based logisitics” - “Perfect order, perfect shelf”
What are the major challenges in SCM?
1) Metrics - difficult to measure
2) Politics and (market) power within supply chain
3) Visibility - data is often siloed within companies and isn’t shared up and down the supply chain
4) Uncertainty
5) Increased complexity (more SKUs, more demanding customers)
6) Global operations
Explain the systems perspective of supply chains
The supply chain is a system that reacts within itself, and responds to outside factors. Each aspect of the system has constraints and variables, as you broaden the scope of analysis constraints turn into variables, increasing complexity
What are some examples of the cycle view of supply chains?
1) Customer Order Cycle
2) Replenishment Cycle - how the retailer get replenished from the distributor
3) Manufacturing Cycle
4) Procurement Cycle
What are the three components of the software view of SCM
SRM - Supplier Relashionship Management
ISCM - Internal Supply Chain Management
CRM - Customer Relationship Management
All three are interelated
What does the product flow diagram do?
It shows a supply chain moving left to rihgt, from manufacturers to distributors
Drawing supply chains geographically allows you too…
analyse risk exposure at a regional level
What is the difference between SCM and logistics?
Logistics is the physical movement of goods between the point and origin and consumption. Logistics is an older term, linked to Ancient Rome and Greece.
SCM encompasses all activities, including procurement, channel partners, invoicing and order processing. It is a newer terminology, dating to a Booz consultant in the 1980s.
BLANK are downstream of BLANK
Customers are downstream of suppliers
What are the three flows in a supply chain?
1) Money
2) Information
3) Material/Product
List four common dynamics/variables in supply chains
Perishability
Sourcing
Components
B2C or B2B
What is the SCOR Model?
Supply-Chain Operations Reference Model
Designed by the Supply Chain Council
A series of metrics designed to measure SC efficiency across firms. Four main parts, plan, sourcing, making, delivery. Returns now included.
How does the Supply Chain Council separate supply chains within the SCOR model?
1) Make to stock
2) Make to order
3) Engineer to order
