7-Supply chain management Flashcards
What is SCM?
It is the management of the relationship & (phisical+non physical) flows between operations and processes that add value to the ultimate consumer.
there exist
-Internal SCM: between processes
-External SCM: between firms
What are the supply chain objectives?
ultimate objectives are meeting consumer requirements by supplying appropriate product at right time and at reasonable cost.
-speed: how fast consumers can be served
-cost: attempt to min. costs
-quality: avoid the consumer to encounter problems with the product.
-dependability: deliver when accorded/expected.
-flexibility: adapt to changes
-sustainability: sustinable purchase
What type of SCM should we adopt/exist?
depending on the type of product, we have: (fisher’s matrix)
-lean (efficient) SCM-for stable products
-Agile (responsive) SCM-for innovative products
What different type of relationships can be established between supplying adn buying org?
it depends on their needs and closeness to each other. (depening on the amount of outsourcing and nº of different suppliers)
-Vertical integration
-Partnership
-Transactional
-Virtual spot trading
What are the benefits of partnership or transactional relationships?
partnership: low transaction costs. less quality failures, joint problem solving, loyalty
transactional: more freedom, supplier competition, more innovation, good for irregular purchasing.
What sourcing configurations exist?
different options depending on your needs.
-single sourcing
-multiple sourcing
-delegated sourcing
-parallel sourcing
What sourcing strategy should a company adopt?
it depends on the criticallity of the product to the firm, and the availability of supply (Kraljic matrix)
-leverage: screen-delegated
-strategic: processor-single, delegated, parallel
-non-critical: packaging-multiple
-bottleneck: battery-single
What should you consider when making supplier selection?
making a good supplier selection is crucial for achieving efficient SCM.
consider:
-technical capabilities
-operational capabilities
-financial capabilities
Useful to use weighted method scoring to make comparison between potential suppliers.
What do you have to consider when analyzing effectiveness run of SC?
-managing information flows correctly (SLAs)
-perception differences in SC relationships
-developement of suppliers
-logistics
what differences in perception can occur in SC?
-requirement perception gap: what customer wants vs. what supplier thinks customer wants
-fulfillment perception gap: how supplier thinks is doing vs. how customer thinks supplier is doing.
-supplier improvement gap: what customer wants vs. how customer thinks supplier is doing
-supplier performance gap: what supplier thinks cust wants vs. how suppliers thinks is doing.
What is the bullwhip effect?
bullwhip effect represents when a small disturbance at the end of one chain causes increasing disturbances as it works its way towards the end.
How can you minimize the bullwhip effect?
-align info channels & control in the SC (VMI)
-increase efficiency and quality in SC
-improve forecasts
-share info all over the SC
