Chapter 1 Flashcards
Its supply chain strategy is the delivery of winning customer solutions.
Apple
It is a pioneer in demand management, incorporating a range of inputs, including consumer social data.
Proctor and Gamble
It has ambitiously sought sustainable growth, with a goal of doubling its revenue using half its environmental footprint by 2020.
Unilever
Two of its current strategies are further coordination along its supply chains and higher speed to market.
McDonald’s
It continues a push to create innovative products and services.
Amazon
The pressure of the competitive market and new information technologies has affected the structured of the production systems, calling for:
-reduction of time to market
-higher flexibility of the systems
-drastic reduction of costs
-extended quality concept
Is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer.
Supply Chain
What are the three key parts of supply chain?
-Supply
-Manufacturing
-Distribution
It focuses on the raw materials supplied to manufacturing, including how, when, and from what location.
Supply
It focuses on converting these raw materials into finished products
Manufacturing
It focuses on ensuring that the products reach the consumers through an organized network of distributors, warehouses and retailers
Distribution
In ______, used products may re-enter the supply chain at any point where residual value is recyclable.
Sophisticated supply chain systems
Refers to how the supply chain should operate in order to compete in the market
Supply chain strategy
Flow in a supply chain
Raw Material Suppliers - Manufacturing - Retailers - End customers
Refers to the act of identifying, acquiring, and managing resources and suppliers that are essential to the operations of an organization
Supply Management
Also known as ______, supply management includes the purchase of physical goods, information, services, and any other necessary resources that enable a company to continue operating and growing
Procurement
Encompasses the planning and management of all activities involved in sourcing and procurement, demand and replenishment and all logistics management activities including customer service
Supply Management
To manufacture quality products at the lowest imaginable controllable cost, in order to deliver volume targets
Plant Management
Functional scope for supply management is based on four pillars
-Logistic Operations
-Customer Service
-Demand and Replenishment
-Purchasing
What are the current trends in SCM?
-Expanding (and Contracting) the supply chain
-Increasing supply chain responsiveness
-The greening of supply chain
-Reducing cost
Defines supply chain management as: The planning and management of all activities involved in sourcing and procurement, conversion and all logistic management activities
The Council of Supply Chain Management Professionals (CSCMP)
Describes supply chain management as: The design and management of seamless, value -added processes across organizational; boundaries to meet the real needs of the end customer
The Institute for Supply Management (ISM)
Defines supply chain management as: The design, planning, execution, control and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally
The Association for Operations Management (APICS)
Defines supply chain management as follows: “Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities”
Council of Supply Chain Management Professionals
SCM is also called the _______ of providing the right product, at the right time, right place and at the right cost to the customer.
Art of management
Supply chain management can be divided into three main flows
-Product
-Information
-Financial
Includes moving goods from supplier to consumer, as well as dealing with customer service needs
Product flow
Includes order information and delivery status
Information flow
Includes payment schedules, credit terms, and additional arrangements
Financial flow
Is the amount consumers are willing to pay for what a company provides and it is measured by total revenue
Value
Can be defines as the total profit shared by all the stages and intermediaries of a supply chain
Supply chain surplus
Objectives of supply chain management
-enhancing customer service
-expanding sales revenue-
reducing inventory costs
-improving on-time delivery
-reducing order to deliver cycle time
-reducing lead time
-reducing transportation cost
-reducing warehouse cost
-reducing supplier base
-expanding depth of distribution
The importance of supply chain management is to:
-reduce inventories along the chain
-share better information among the partners
-plan in consultation rather than in isolation
Activities of supply chain management
-Strategic
-Tactical
-Operational
At this level, strategic decisions concerning the whole organization, such as the size and location of manufacturing sites, partnerships with suppliers, products to be manufactured and sales markets are taken
Strategic
Focus on adopting measures that will produce costs benefits such as using industry best practices, developing a purchasing strategy with favored suppliers, working with logistics companies to develop cost effect transportation and developing warehouse strategies to reduce the cost of storing inventory
Tactical
Decisions at this level affect how the products move along the supply chain
Operational
Refers to how the supply chain should operate in order to compete in the market
Supply chain strategy
