(2, 1) - Segmentation and Networked Supply Chains Flashcards
What relationships are in a supply chain? Which are upstream and which are downstream?
Supplier network > Buying Organisation > Distribution Network > Customers & Market
The supplier network is upstream and the distribution network / customers are downstream.
What is Segmentation?
Segmentation is the separation of suppliers, customers or products and services are separated into different categories based on the volume, value of business, profitability, market complexity, risk or importance to the organisation. Each segment will then have a strategy which will determine the resources deployed.
Market segmentation is the separation determined by customer types. This is the most common starting place. What 3 broad strategies are there for market segmentation?
Undifferentiated Marketing (targeting the whole market regardless of segment) Differentiated Marketing (targeting all segments but with multiple strategies) Concentrated Marketing (targeting one specific customer segment)
What is the PADI framework?
A method for strategising based on customers importance to the organisation.
External Emphases, Objective Focus: Pragmatism (demanding results driven customers e.g. price / time)
Internal Emphases, Objective Focus: Administration (customers want accuracy and reliability, they are price sensitive)
External Emphases, Subjective Focus: Divergence (customers want value and innovation)
Internal Emphases, Subjective Focus: Integration (customers value and seek caring interaction, teamwork and participation)
What is Ansoffs matrix to determine strategy based on the range of products and services to be fulfilled?
Existing Markets, Existing Products: Market penetration
Existing Markets, New Products: Product development
New Markets, Existing Products: Market development
New Markets, New Products: Diversification
What different models can be used to provide decision making of allocation of resources to maximise competitive advantage?
Pareto analysis (80/20 rule) Supply positioning (Non-critical, Leverage, Bottleneck, Strategic) Supplier preferencing (Nuisance, Exploitable, Development, Core)
What is supplier tiering?
Using sub-contractors to make the management of the supply base into an organisation easier.
What 3 areas do supply networks require organisations to consider to manage the changing competitive structure?
Collective strategy development (agreement on network goals)
Win-Win thinking (less adversarial, more collaborative)
Open communication (transparent information flow)
What is Porters value chain?
A source of differentiation and value adding activity. It analyses the costs for each value adding activities and identifies the key financial aspects of each strategically relevant activity in the organisation and wider supply chain. The cost is compared to the value-add that is given to the end product.
What is value stream mapping?
It is an approach to lean manufacturing. It aims to identify, demonstrate and decrease waste in the supply and manufacturing process.
What is value analysis?
It maps all key activities with cycle times, down times, in-process inventory, material moves and information flows in two ways, as:
the current process and
the desired or optimal process
What is NOM?
Supply chain network optimisation modelling, it is software used to accurately assess risks and rewards for a range of different scenarios based on varying amounts of supply chain demand, cost and capacity. This information can then be used to select the optimal supply chain strategy.
What are 3 supply network decisions as highlighted by Nigel Slack and co.?
- How should the network be configured?
- Where should each part of the network owned by the company be located?
- What physical capability should each part of the network owned by the company have?
What is a networked supply chain?
Multiple relationships with customers, distributors, manufacturers and suppliers across a supply chain for a product or service.
What is reverse logistics?
The process of planning, implementing and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished good and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.
