chap 1 Flashcards
a network of organizations, people, activities, information involved in moving a product or service from suppliers to customer
supply chain
minimize waste and maximize efficiency
supply chain management
6 components in supply chain
supplier
manufacturer
distribution center
transportation
service outlets
customer
provide raw materials, components, goods required for production or service delivery
supplier
transform raw materials into finished goods or prepare services ready for consumption by customers
manufacturers
store goods until they are needed, manage inventory
distribution center
movement of goods and materials between different parts of supply chain
transporation
serve as the final point of sale or service delivery to the end customer, it might be physical store
service outlet
end users or consumer who purchase and use the products
customer
supply chain structure
arrangement and organization of various entities
types of supply chain structures
linear
networked
global
vertical
supplier – manufacturer – distributor – retailer – consumer
linear
multiple suppliers, and distributors interact with each other
networked
entities located in different countries, focus on sourcing from regions
global
single company controls its own (from materials, parts of manufacturer)
vertical
essential features of supply chain management
integrated behavior
mutually sharing information
mutually sharing channel risk and rewards
cooperation
focus on serving customers
integration process
partners to build and maintain long term relationships
scm integrates stakeholder integration between the client and the provider (work together)
integrated behavior
exchange information between channel and participant, merchant to consumer share info
mutually sharing information
should be risk sharing and reward sharing (we lost, u lost aswell)
mutually sharing channel risk and rewards
successful scm have the common goals
cooperation
supply chain is effective where all supply chain members serve consumers with the same objectives (meeting customer needs)
focus on serving customers
implementing scm requires the convergence of a system from the supply chain to production and delivery
integration process
merge channel policies to reduce duplication and overlap
partners to build and maintain longterm relationship
functions of supply chain management
strategic level - plan, design and set goals
tactical level - allocate resources, supplier
operational level - who execute and what they do in front of customers
