Chapter 1: SCM Concepts and Tools Flashcards
an integrated collection of organizations, people, activities, information, and resources
supply chain
Who are the key participants in a supply chain?
- Manufacturers
- Retailers
- Suppliers
- Customers
What type of supply chains tend to be fairly straightforward?
local supply chains (ex: say you want to buy corn. So, you go to your local farmers market and buy the corn directly from the farmer who grows it, harvests it, delivers it to the market, and sells it to you)
What type of supply chains tend to be very complex and involve long distances?
global supply chains (looks more like a spider web with multiple paths, connections, participants, and international flows)
encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Also includes coordination and collaboration with channel partners (can be suppliers, intermediaries, third party service providers, and customers); it integrates supply and demand management within and across companies.
supply chain management
What are the 7 rights of supply chain management (companies must get these things for no errors, delay, or do-overs)?
- Right product
- Right quantity
- Right customer
- Right time
- Right place
- Right condition
- Right cost
What are the 4 key goals of SCM?
- Customer care
- Industry competitiveness
- Efficiency (not overspending)
- Responsiveness and resilience
By meeting the key goals of SCM, organizations can create _________, ________, _______ and more responsive supply chains than the competition.
better, faster, cheaper
What are the 4 essential activities of SCM?
- Planning and forecasting activities
- Procurement activities
- Operations Management
- Logistics and Transportation
help companies decide what they want to build, buy, or sell.
planning and forecasting activities
help companies determine what should be bought vs. made in house (how will we buy or make it?)
procurement activities
all the things that go into transforming input into output. (ex: transforming crude oil into gasoline)
operations management
What are the 3 key flows of SCM?
- Product
- Information
- Money
What are the 5 primary processes of SCM?
- Plan
- Buy
- Make
- Move
- Service
What part of the integrated processes of SCM does this describe:
Questioning how much are we going to make? When and where will we make it/deliver it?
Plan
What part of the integrated processes of SCM does this describe:
focuses on logistics and the fulfillment of customer demand
move
What part of the integrated processes of SCM does this describe: takes place after the customer buys a product and takes it home. (customer satisfaction from customer service for returns, repairs, etc)
service
What are the 4 challenges of SCM?
- Product life cycles are shrinking
- Customers demanding customized products
- Competition is intensifying
- Companies need to be much more efficient