Ch 1 Supply Chain Management Flashcards
Supply Chain
A network of organizations, people, activities, information, and resources involved in supplying a product or service to a customer.
Supply Chain Management (SCM)
The process of overseeing and managing the entire flow of goods and services, ensuring efficient movement from raw materials to finished products. SCM helps to create net value, balances competing interests, and improves overall process flow.
What are the main Supply Chain objectives?
Adding value for customers and stakeholders, improving customer service, effectively using system-wide resources, efficiently using system-wide resources, and leveraging partner strengths.
Make to Order (MTO)
Products are made only after a customer order is received.
Make to Stock (MTS)
Products are manufactured in advance and stocked based on demand forecasts.
Assemble to Order (ATO)
Products are assembled from pre-manufactured components only after a customer order is received.
Customer Service
Supports customers before, during, and after the sales process to enhance customer satisfaction.
Value
Defined by the customer based on perceived benefits versus cost.
Stakeholder
Anyone who has an interest or concern regarding an organization’s objectives, goals, actions, or policies.
Primary Stakeholder
An internal stakeholder directly engaged in an economic business activity (e.g., employees, suppliers, customers).
External Stakeholder
Those outside the business who are affected by the business (e.g., investors, lenders, communities).
Velocity
The speed at which products move through a supply chain, order process, or get delivered to a customer.
Visibility
The ability to see from one end of the supply chain to the other, improving tracking and coordination.
Core Competency
A company’s key strength that provides a competitive advantage.
Core Capability
An essential business activity that differentiates a company from competitors.
Economies of Scale
Competitive advantages gained through high manufacturing volume, bulk purchases, or operational efficiencies.
Efficient Supply Chain
Focused on minimizing costs, high efficiency, and stable demand products with long product life cycles (PLC).
Responsive Supply Chain
Focused on flexibility, fast delivery, and adapting to fluctuating customer demand.
Supply Chain Resilience
The ability to quickly adjust and restore supply chain operations after a disruption.
Vertical Integration
When a company owns and controls its upstream suppliers and downstream distributors.
Horizontal Integration (Lateral Integration)
When a company focuses on core competencies and outsources non-core activities.
Keiretsu
A Japanese business network where companies own small portions of each other and work closely together.
Business Model
A conceptual framework describing how an organization creates, delivers, and captures value.
Value Chain
A series of value-adding activities within an organization to enhance customer perception and profitability.
Value Stream
A set of activities required to meet customer needs, spanning across functional departments.
Value Stream Mapping (VSM)
A lean tool that visually maps supply chain processes to identify inefficiencies and areas for improvement.
Value-Added Activities
Processes that contribute directly to enhancing the value of a product or service for the customer.
