(4, 1) - Optimising the Effectiveness of Supply Chain Flashcards
What is Strategic Supply Chain Management (SSCM)?
It is activities which are undertaken to optimise the effectiveness of the supply chain. Optimum effectiveness when all variables such as cost, quality, pricing and margins of products etc have been considered and the supply chain is operating at the lowest possible cost.
What is network optimisation modelling?
Uses computer software to accurately assess the risks and rewards for a range of future scenarios based on different levels of demand, cost and capacity within the supply chain.
To optimise a supply chain you must consider the environments it operates in. What are they?
Macro-environment (Steeple)
Micro-environment (porters 5 forces)
Internal environments of each of the organisations (values, systems, cultures etc.)
What must be considered in terms of organisational strategy when setting your SSCM strategy?
They must align. Your functional strategy must support and align with the business level strategy and the corporate strategy.
What different Business level strategies are there for achieving competitive advantage?
Diversification Innovation Product and service optimisation Eliminating non-core or non-value add activities Increasing market share Growth Quality improvement Reducing time to market
What ways are there of segmenting prior to setting your strategic supply chain management activities?
Customer - PADI
Range of Products of Services - functionality of goods, complexity etc.
Category market - kraljic matrix
Suppliers attitudes - Core, development, nuisance, exploitable
What two categories can strategic supply chain management strategies be put into?
Co-operative organisational relationships e.g. collaborative relationships, restructuring the supply chain, integrating the supply network, maximising use of capital assets, outsourcing, offshoring
Effective business processes e.g. process re-engineering, reducing cycle times, eliminating waste, lean or agile supply, applying ICT systems
What strategic supply chain management strategies are available in respect of co-operative organisational relationships?
Network sourcing Strategic alliances Outsourcing Insourcing Internationalisation Supplier Relationship management
What is involved in supplier relationship management strategies?
Involve a high level of contact with a supplier you have categorised as important should enjoy a high level of contact, sharing of information, trust, mutual benefit improvements and joint problem solving. Focus on longer term contracts and a focus on continuous improvement.
What strategic supply chain management strategies are available in respect of improving effective business processes?
Improving demand management Reverse logistics Outcome of a value chain analysis Lean thinking Agile supply Reconfiguring the distribution network
What is Reverse logistics?
Moves responsibility for end of life disposal back to the manufacturer and recognising the importance of re-use, recycling or resale of products.
What methods are there for improving demand management?
Statistical forecasting Promotions management Causal event management Demand plan integration Reduced variability
What is a value chain analysis as created by Michael Porter?
Splits things into primary activities and secondary activities. This is used to understand the costs and value adding activities within an organisation.
What 4 elements can be done when reconfiguring the distribution network, a strategic supply chain management strategy to improve business processes?
Channel design
Logistics flow path
Physical network configuration
Integration and collaboration strategy
How can a supply chain stay optimised over time when the initial strategic activity has been done?
Implementing performance measures such as KPI’s or a balanced scorecard to measure a suppliers or buyers actual performance against the required or target performance level.
