7 Supply Chain Management Flashcards
What is a supply chain?
A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system.
What are the levels of suppliers and what kind of relationship do you want to have with each?
Tier 1: Direct supplier and want to maintain a strong relationship
Tier 2: Suppliers supplier and want some knowledge but far less of a relationship that tier 1
Tier 3: Tier 2’s supplier and no need to have a relationship
Why would it be advantageous for a company to go global for suppliers and facilities?
Reduced labour cost
How is supplier location changing in the fashion industry?
More companies are starting to reshore mainly because of the shorten lead times
What question does vertical integration answer?
If the company should make or buy
Slide 8
Reasons to outsource
What ‘type’ of products should a company not outsource?
Critical parts, which are parts that are vital to a product and/or what makes it unique
eg. Tesla should produce their batteries
What has Arc’Teryx done in the way of vertical integration?
Arc’ONE which is a manufacturing facility in Vancouver. The facility focuses on Proprietary designs & new products and makes up 10% of manufacturing for the company
Why is procurement (purchasing) so important for a business?
Because it is often the biggest expense and minor reductions can have a substantial impact
How do companies pick suppliers and give examples?
Based on many criteria and putting a weight on how important each criterion is. Some criteria are Company, service, product, and sustainability
What is vendor development?
Improving supplier operations / efficiency will improve the entire supply chain’s performance
- Some companies offer “free consulting” to their vendors to help accomplish cost reductions, improved quality, fast & consistent delivery, etc
What are types of purchasing? (3)
- Centralized Purchasing
- Stockless Purchasing
- Blanket Purchase Orders (POs)
Slide 16
Slide 17
Benefits and challenges of VMI
Why is better to have fewer suppliers (to an extent)?
Because when you work with fewer suppliers you become a larger customer which gives more leverage, Suppliers are more willing to make accommodations and more likely to deliver on time
What are the three parts to logistics and explain and give an example of each?
- Time utility (When): provides goods to customers when wanted, not when produced. E.g. Storage, warehousing
- Place utility (Where): provide goods where they are needed, not where they are produced. E.g. Transportation
- Form utility (What): physical/chemical change in goods and/or packaging. E.g. Assembly, Manufacturing
Slide 20
What are four logistic costs to consider? (4)
Transportation (air, rail, ship, truck, etc.)
Inventory (holding costs)
Packing (materials required – boxes, Styrofoam, etc.)
Damage (in-transit, in-storage)
Slide 23
Transportation Modes
What are the shipment strategies? (3)
- Consolidation: Have a distribution centre to consolidate large shipments and reship to retail locations
- Cross-Docking: see slide 25
- Drop shipping: A retailer can order from a supplier who ship it directly to the customer
What are the most common logistic management strategies and what is an example?
Postponement: Intentionally “delay” supply chain activities
HP is a strong example they get the generic printer from the supplier and put in the right power cord and manual for each country after the fact and can adjust for changing demand in different countries
What are the types of postponement and give an example? (4)
Postponement of place utility (eg. Holding more stock at distribution centre)
Postponement of form utility (eg. HP example)
Postponement of labelling (eg. soup cans)
Postponement of the package (eg. batteries)
**Slide 32
third party logistics
What product characteristics fit with what type of supply chain?
‘Functional’ products (predictable demand) should have a ‘physically efficient’ supply chain
‘innovative’ product (unpredictable demand) should have a ‘market-responsive’ supply chain
What are some distinct differences between a humanitarian supply chain compared to a commercial one? (6)
- Cost is not as critical as speed
- High inventory levels
- Perishable items expire -> replaced
- Many stakeholders to coordinate with
- High visibility of performance
- Job satisfaction
What is the reverse supply chain?
Refers to the series of activities required to retrieve a product from a customer and either dispose or reuse it
- Used products (recycling) goods
- New products (returns)
What’s a circular economy?
When manufacturers design a product to be more easily recyclable and minimize waste
What’s an example of a company that implemented the reverse supply chain? (2)
- Xenox leases a large number of printers that are designed in a way that is easy for employees to break down and all printers are built on a single platform which saves hundreds of millions every year, so when the printer is returned the frame and other parts can be reused
- City of Calgary Recycling facility
What are the product design considerations for OSCM? (7)
- Design for Manufacturability
- Shipping and Handling Considerations
- Eco-Design strategy
- Modular Design Flexibility
- Design to “Target Cost”
- Compress the Design Process (Concurrent Engineering)
- Formalize for Production (BOM & Routing)
Slides 41-44
How has Arc’Teryrx implemented eco-design into their products?
ReBird: Gear Repair
ReGear: Buyback program and they refurbish the product and resell
Slides 46-49
What is the difference between Bill of Materials (BOM) and Routing
BOM: What items to order/pick up
Routing: How to make it
What are the new technologies of OSCM?
- Radio Frequency IDentification (RFID) (Slide 51)
- 3D Printing (Slide 52)
- Blockchain (Slide 53-55)
