Chapter 15: Supply Chain Management Flashcards
Purchasing Cycle
Series of steps that begin with a request for purchase and end with notification of shipment received in satisfactory condition
Centralized Purchasing
Purchasing is handled by one special department
Decentralized Purchasing
Individual departments or separate locations handle their own purchasing requirements
Vendor Analysis
Evaluating the sources of supply in terms of price, quality, reputation, and service
Strategic Partnering
Two or more business organizations that have complementary products or services join so that each may realize a strategic benefit
Inventory Velocity
The speed at which goods move through a supply chain
Bullwhip Effect
Inventory oscillations become progressively larger looking backwards through the supply chain
Vendor-managed Inventory
Vendors monitor goods and replenish retail inventories when supplies are low
Order Fulfillment
The process involved in responding to customer orders
Logistics
The movement of materials, services, cash and information in a supply chain
Traffic Management
Over-seeing the shipment of incoming and outgoing goods
Radio Frequency Identification (RFID)
A technology that uses radio waves to identify objects, such as goods in supply chains
Engineer-to-Order
Products are designed and built according to customer specifications
Make-to-Order
A standard product design is used, but production of the final product is linked to the final customer’s specifications
Assemble-to-Order
Products are assembled to customer specifications from a stock of standard and modular components I.e. Dell
Make-to-Stock
Production is based on forecast, and products are sold to the customer from finished goods
Cross Dock
A full inbound pallet is redirected to an outbound shipment
Cross Distribution
An inbound pallet is broken down into cases right on the dock, and then the cases are immediately distributed to outbound pallets
Vendor-Management Inventory
Vendors of some non-store brand items such as bread and soft drinks handle replenishment, and those items come directly from the vendor’s warehouse to the stores
Block Pick
An entire pallet of goods int he warehouse is placed on an outbound truck
Case Pick
Individual cases or packages are pulled from inventory, placed on pallets and shrink wrapped, and then placed on outbound trucks
Third-Party Logistics (3-PL)
The outsourcing of logistics management
Strategic Sourcing
Analyzing the procurement process to lower costs by reducing waste and non-value-added activities, increase profits, reduce risks, and improve supplier performance
Supply Chain Visibility
A major trading partner can connect to its supply chain to access data in real time
Event Management
The ability to detect and respond to unplanned events
Fill Rate
The percentage of demand filled from stick on hand
Reverse Logistics
The process of transporting returned items
Gatekeeping
Screening returned goods to prevent incorrect acceptance of goods
Avoidance
Finding ways to minimize the number of items that are returned
Closed-loop Supply Chain
A manufacturers controls both the forward and reverse shipment of product
Cross-docking
A technique whereby goods arriving at a warehouse from a supplier are unloaded from the supplier’s truck and loaded onto outbound trucks, thereby avoiding warehouse storage
Delayed Differentiation
Production of standard components and subassemblies, which are held until late in the process to add differentiating features
Disintermediation
Reducing one or more steps in a supply chain by cutting out one or more intermediaries
