An Overview Flashcards
When the rate of change outside of the organization is faster than the inside
the end is near
What are the five major external forces that are driving the rate of change
Globalizations, Technology,Organizational consolidation, the empowered consumer and government policy
Globalization as a driver of rate
The increasing interconnectedness and interdependence of nations, economies, and cultures around the world.
Technology as a driver of rate
The rapid development and adoption of new technologies that are changing the way we live, work, and interact with each other.
Organizations Consolidation as a driver of rate
The trend towards mergers, acquisitions, and partnerships that is leading to larger and more powerful organizations.
Empowered consumer as the driver of rate
The increasing power and influence of individual consumers, who have more information and choice than ever before.
Government policy as the driver of rate
The regulations and policies set by governments that can shape the way businesses operate and impact society as a whole.
What was the most frequently cited change factor by business leaders?
Globalization
What did globalization replace as the dominant driving force in world economics?
The post-World War II Cold War
What does the concept of the global marketplace or the global economy refer to?
A special meaning for all enterprises (profit and nonprofit; small, medium, and large; products or services) and for individual consumers in the 1990s and the first decade of the twenty-first century.
What are some questions that companies seeking to rationalize their global networks ask?
(1) Where in the world should we source our materials and/or services? (2) Where in the world should we manufacture or produce our products or services? (3) Where in the world should we market and sell our products or services? (4) Where in the world should we warehouse and distribute our products? (5) What global transportation and related service alternatives should we consider?
What are some challenges for supply chains in the global economy?
More economic and political risk; shorter product life cycles; and the blurring of traditional organizational boundaries.
What is the risk of interruption or disruption to a supply chain?
It is analogous to a “heart attack” that cuts off the flow of blood to the heart and can have lasting effects.
Why do shorter product life cycles present a challenge for inventory management?
Products that are duplicated will most likely face a faster reduction in demand and require new pricing policies, both of which present challenges to effective inventory management.
What is the blurring of traditional organizational boundaries?
The result of companies having to adjust or transform their business model or the way that they do business in the more competitive global economy.
What is outsourcing?
Companies outsourcing activities and processes to another company that can provide what they need more efficiently and hopefully more effectively.
What has been a strong compliment to the growth in the global economy?
: The growth and development in the technology related to supply chains.
How has technology impacted supply chains?
Technology has had a major impact on supply chains as it has facilitated change and transformed processes. It has also changed the dynamics of the marketplace by making individuals and organizations “connected” 24/7 and providing access to information on the same basis via the internet.
What role do search engines play in gathering information?
earch engines, such as Google and others, have made it possible to gather timely information quickly. We no longer have to wait for information to be “pushed out” to us; we can “pull” information as we need it. Vast stores of data and information are virtually at our fingertips.
How have social networks influenced supply chains?
Social networks such as Facebook or Twitter are playing an ever-increasing role in business organizations and influencing supply chains because of their impact on customer demand and the speed of information transfers. Many companies see opportunities to “data mine” the social media to uncover demand-related information for improved forecasting and marketing.
What opportunities has technology created for collaboration in supply chains?
Technology has allowed individuals and smaller organizations to connect to the world’s “knowledge pools” to create and establish opportunities for collaboration in supply chains. Collaboration opportunities with individuals and companies throughout the globe have increased, which has created market opportunities as employment opportunities increased.
What organizations have been developed as a result of technology, and how have they disrupted their respective marketplaces?
Answer: Technology has spawned the development of Uber, Airbnb, and other such organizations, which have disrupted their respective marketplaces.
What was the driving force in supply chains after World War II?
Product manufacturers.
What were the different ways in which product manufacturers exerted their influence throughout the supply chain?
They developed, designed, produced, promoted, and distributed their products.
What were the services accorded to large retailers by product manufacturers?
Services such as scheduled deliveries, “rainbow” pallets (mixed arrays of products or stock-keeping units [SKUs]), advance shipments notices (ASNs) shrink-wrapped pallets, etc.
What were the services accorded to large retailers by product manufacturers?
Services such as scheduled deliveries, “rainbow” pallets (mixed arrays of products or stock-keeping units [SKUs]), advance shipments notices (ASNs) shrink-wrapped pallets, etc.
What are the benefits of collaboration among organizations in the supply chain?
Shared cost savings and improved customer service.
What is a powerful collaborative tool for mitigating the “bullwhip effect” of inventory in the supply chain?
Sharing point-of-sale data.
Where do companies that report innovative best practices usually obtain about half of their innovative insights from?
Collaboration with suppliers and customers.
What is the power of information sharing and collaboration in supply chains?
Answer: It cannot be overstated.
What is the impact of the consumer on supply chains today?
consumers demand an expanded variety of products and services, competitive prices, high quality, tailored or customized products, convenience, flexibility, and responsiveness.
How are consumers empowered in terms of information?
: Consumers are empowered by the information that they have at their disposal from the Internet and other sources. Their access to product sources and related information has expanded exponentially.
What challenges do the demographics of our society pose to supply chains?
The demographics of our society, with the increase in two-career families and single-parent households, have made time and convenience critical factors for many households. The expectation for service is frequently 24/7 availability with a minimum of wait time.
What has caused much change in how supply chains function?
The power of the consumer has caused much change in how supply chains function. Supply chains have felt the pressure to keep prices stable even during inflationary periods. Collaboration has frequently been the basis for efficiencies to mitigate increased costs.
What is the fifth external change factor mentioned in the text?
What is the fifth external change factor mentioned in the text?
The fifth external change factor mentioned in the text is the various levels of government (federal, state, and local) that establish and administer policies, regulations, taxes, etc., which impact businesses and their supply chains.
What is an example of deregulation in the US economy that occurred in the 1980s and 1990s?
An example of deregulation in the US economy that occurred in the 1980s and 1990s is the deregulation of several important sectors, including transportation, communications, and financial institutions.
What was the net effect of the deregulation of the transportation industry at the federal level?
The net effect of the deregulation of the transportation industry at the federal level was that it became possible for transportation services to be purchased and sold in a more competitive environment. Transportation companies were also allowed to offer more than just transportation services, with many becoming logistics services companies and offering services such as order fulfillment, inventory management, and warehousing.
What changes in the financial sector resulted from deregulation of financial institutions at the federal level?
The deregulation of financial institutions at the federal level fostered changes in how businesses can operate with respect to cash flow, purchase cards, and short-term investment. These changes made organizations more cognizant of the role that supply chain management could play with asset efficiency and cash flow.
What are some examples of improvements and opportunities in logistics and supply chains resulting from communications efficiency and effectiveness?
Examples of improvements and opportunities in logistics and supply chains resulting from communications efficiency and effectiveness include asset visibility, quick response replenishment, improved transportation scheduling, rapid order entry, and same-day delivery. The omni-channel option discussed in Chapter 4 is also a major change in meeting customer needs at the retail level. Supply chain practices have been improved, leading to lower cost and better customer service, and the supply chain technology continues to improve
What is supply chain management?
Supply chain management is the coordination and integration of all activities involved in the production and delivery of products or services, from the acquisition of raw materials to the delivery of the finished product to the end customer.
When did the development of physical distribution concept begin?
The development of physical distribution concept began in the 1960s.
: What is the physical distribution concept?
The physical distribution concept focuses on the outbound side of a firm’s logistics system, including transportation, inventory requirements, warehousing, exterior packaging, materials handling, and other activities or cost centers.
