13: DELIVER: Supply chain planning and control Flashcards
supply chain management definition
the management of interconnection of organizations that relate to each other through upstream and downstream linkages between the processes that produce value to the ultimate consumer in the form of products and services
whats supply chain management
includes the entire supply chain from the supplier of raw materials to end-customers. it is concerned with managing the flow of materials and information between a string of operations that form the supply network
upstream flow of customers
Requirements. Payments, individual orders, long-term plans and requirements
downstream flow of products and services
Fulfilments. Payment request, delivery information, products and services
activities of supply chain management
1: SCM: coordinates all operations on supply and demand side
2: purchasing and supply management: deals with the operations interface with its supply market
3: physical distribution management: supplying immediate customers
4: logistics: material and information flow through a distribution channel
5: third party logistics: outsourced logistics specialist
6: materials management: flow of materials and information through immediate supply chain
what are the component activities of supply chain management
purchasing, logistics, customer relationship management, physical distribution management, material management
objectives of supply chain management
meeting requirements of end customers by achieving appropriate levels of the five performance objectives
describe single sourcing
+:better quality and communication, strong relationship
-:more vulnerable in case supply failure occurs
describe multi sourcing
+: can switch sources in case supply failure occurs, wide sources of knowledge and expertise
-: more effort to communicate, less likely to invest in new products and services
describe global sourcing
foreign country
+: saving if having low cost country suppliers
-:risk of increased delays
-:risk of increased complexity and distance
what is physical distribution management
when tangible products are being transported to customers. B2C.
+: transport companies, warehouses, suppliers and customers can track down the whereabouts of the product
types of relationships within supply chain management
1: B2B: Business to business: most common one, electronic marketplaces
2: B2C: Business to consumer: retail operations, online retailers
3: C2B: Consumer to business: customer offers, business responds
4: C2C: Consumer to consumer: modern internet era, file sharing networks
Supply chain improvement
Supply Chain Operations Reference model (SCOR) gives a framework for supply chain improvements.
bullwhip effect
to describe how a small disturbance at the downstream end of a supply chain causes increasingly large disturbances as it works its way upstream
reduce bullwhip
1: information sharing
2: channel alignments: adopting same or similar decision-making processes through the whole chain
3: operational efficiency: eliminating sources of inefficiency and ineffectiveness
