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
What are the 3 components for Supply Chain Success?
- Supply chain strategy (the 7 principles of SCM)
- Utility for customers
- Cross-chain alignment
What are the 3 types of utility? Describe them.
- Time utility (like putting sunscreen on shelves at the right time)
- Place utility (having the product where demand actually exists)
- Form utility (more customization than ever before, which leads to high customer expectations)
What are the 3 benefits of SCM?
- Lowered (operating) costs
- Increased revenue
- Asset utilization
What are the 5 basic components in a supply chain management system?
- Planning (forecasting demand)
- Sourcing (strategic sourcing)
- Making
- Delivering
- Returning
What are key supply chain information requirements? (7 things)
High quality data is essential and is:
1. Accurate
2. Accessible
3. Relevant
4. Timely
5. Transferable
6. Reliable
7. Usable
What are the benefits and capabilities that are created by supply chain information technology (goals of technology; 8)?
- Optimization
- Cross-chain visibility
- Speed to market
- Agility (recalibrate plans to adjust to volatility in supply and demand)
- Collaboration (access to a common data pool)
- Adaptability
- Differentiation (org’s. must align demand & supply to optimize profit)
- Risk management (use predictive analytics and risk management technology)
What are the 5 major categories of supply chain software?
- Supply Chain Planning
- Supply Chain Execution
- Event Management and Visibility
- Business Intelligence
- Facilitating (Supporting) Tools
What major category of supply chain software does this describe:
Extract key data across the supply chain and provide it for key decision makers. These tools improve access to data residing on multiple platforms.
business intelligence
What major category of supply chain software does this describe:
provide accurate, detailed information about issues that affect planning and development of supply chain activities.
supply chain planning
What major category of supply chain software does this describe:
facilitate improved performances of day-to-day operating tasks. They help the supply chain operate smoothly and cost-efficiently.
supply chain execution
What major category of supply chain software does this describe:
systems that monitor processes inside a facility or across the supply chain for unexpected events that are out of tolerance and inform managers about it (ex: the shortage of parts on an assembly line or the breakdown of equipment in a distribution center)
event management and visibility
What major category of supply chain software does this describe:
includes tools such as enterprise resource planning, supplier relationship management, customer relationship management, and automatic identification.
Facilitating (Supporting) Tools
business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources.
enterprise resource planning
software enables businesses to manage the relationship between buyers and suppliers. Procurement personnel use SRM software to define replenishment strategies, manage contracts, evaluate supplier performance, and establish strategic sourcing relationships. Event management tools such as alerts and notifications help minimize inventory stock-outs and stockpiles.
supplier relationship management
system for managing a company’s interactions with current and future customers. It often involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support.
customer relationship management
methods of automatically identifying objects, collecting data about them, and entering that data directly into computer systems (i.e. without human involvement). Technologies include bar codes, Radio Frequency Identification (RFID), biometrics, magnetic stripes, Optical Character Recognition (OCR), smart cards, and voice recognition
automatic identification
Automatic identification is ________ and highly _________.
inexpensive; accurate
What are the 3 capabilities of supply chain planning in regards to supply chain software?
- Configure (support a company’s efforts to design their supply chains, taking account of future alternative operating models and/or trade-offs between different configurations)
- Optimize (Creation and evaluation of optimal plans within the context of the company’s current operating model)
- Respond (Support the ability to profitably respond to changes in any aspect of execution in a near-real-time manner.)
_________ is the lifeline of business.
information
What are the 3 future drivers of supply chain software?
- Cloud Computing
- Mobile Technology
- Analytics
_____ ______ makes access to supply chain tools more affordable for smaller companies and eliminates information time-lag.
cloud computing
________, ________ mobile tools provide supply chain managers with ready access to critical decision making information, enhanced visibility and communication, capture/ track/ report data in real-time, inexpensive data terminals, and mobile applications for smart phone tablets.
smaller, cheaper
the combination of skills, technologies, applications and processes used by organizations to gain insight into their business based on data and statistics to drive business planning; handles the vast amounts of data generated through quantitative analysis, data mining, and predictive modeling.
business analytics
What are the 7 principles of SCM?
- Segment customers based on service needs
- Customize the logistics network
- Drive operations from demand (create products AFTER demand is established)
- Differentiate product closer to customer
- Source strategically
- Develop supply-chain side technology strategy
- Measure success by using supply chain spanning performance measures
The first step in cross-chain alignment requires a company to achieve:
functional excellence
_______________ will greatly enhance a supply chain professional’s ability to evaluate scenarios and understand future requirements for the purpose of forward-focused decisions.
predictive analytics
T or F: Cloud computing is a viable option for on-demand access to supply chain software applications and data sharing. The model operates on a pay-as-you-go structure and offers a consistent environment for deployment.
True
the _____________ component of a supply chain involves selecting suppliers who will provide the goods, raw materials, or services that create the product.
sourcing
successful demand forecasting and inventory management will require a balance of artificial intelligence and:
human intuition
