Chapter 2 and 4 Flashcards
a plan for the company
that clearly defines:
– the company’s long-term
goals
– how it plans to achieve
these goals, and
– the way the company plans
to differentiate itself from its
competitors
can be described as?
The Business Strategy
a long-range plan for the
design and ongoing
management of all supply
chain decisions that
support the business
strategy is known as?
Supply Chain Strategy
All organizational functions should be designed to support the business strategy (which involve six parts of a company) what are the 6?
- Supply Chain Management (SCM)
– Marketing
– Operations
– Distribution
– Purchasing
– Finance
A well designed supply chain can provide companies with needed competitive advantage. Two advantages provide a basis of strategy and competitive positioning in the marketplace and they are known as?
- Cost-Productivity Advantage
– Value Advantage
Which competitive advantage comes from offering the lowest cost product or service
Cost-Productivity Advantage
What enable the company to spread its fixed costs over a greater volume
Economies of Scale
What business feature refers to organizational costs that are reduced due to experience that results from processing a higher volume
Experience Curve
What are three examples of a Cost-Productivity Advantage at work
Economies of Scale
Experience Curve
Efficient Supply Chain Network
What are two methods to gain a value advantage
-Identify “Value-Segments”
– Service
Which competitive advantage comes from providing a product/service with the greatest perceived differential value compare with its competitors
Value Advantage
Improving Supply Chain Management can
provide a way for companies to achieve a cost-value advantage over competitors by?
Reduce Supply Chain Costs
– inventory, distribution, coordination
Service Excellence
– shorter lead times, just-in-time deliveries
New Supply Chain Technologies
-Determining the design & manufacture of a company’s
manufacturing processes
– The design of internal processes
– Use of equipment & information technology
– Types of employee skills needed
are all apart of *** strategy
Operations Strategy
The *** strategy involves decisions about how it will produce goods and services
operations
What strategy determines the degree of product customization
offered
Product Positioning Strategy
T/F- The operations strategy is a dynamic process that needs to change as the product moves through different life-cycle changes
True
What strategy relates to the form in which the company stores its finished products and delivery lead
time
Product Positioning Strategy
What are the three options for the product positioning strategy?
- Make to stock
- Assemble to order
- Make to order
Which operation strategy produces finished products for immediate sale or delivery, in anticipation of demand can be described as what strategy
Make- to- stock
What is the best operation strategy for standardized products that sell in high volume
Make-to-stock
Which operations strategy is best for producing these characteristics?
- large production batches
- provides finished products in inventory
- typically assembly line operations
- delivery lead time is shortest
- no customer involvement in product design
Make-to-stock
Which operations strategy states that the product is partially completed and kept in a generic form, then finished when an order is received
Assemble-to-order
Which operations strategy is best for producing these characteristics?
- provides for many variations of the end product
- standard components held in inventory
- components combined to customer specifications
- shorter lead times than make-to-order
- low finished-goods inventory
Assemble-to-order
Which operation strategy am I stating? The product is made to customer specifications after an
order has been received
Make-to-order
Which operation strategy is for customized products or products with infrequent demand
Make-to-order
Which operations strategy is best for producing these characteristics?
- provides for many variations of the end product
- low product volumes
- longest delivery time
Make-to-order
Which operation strategy has the shortest delivery lead time?
Make-to-stock
Which operation strategy has the longest delivery lead time?
Make-to-order
What strategy determines how the company plans to get its products and services to customers
Distribution Strategy
What strategies duties are described by the following characteristics?
- channel intermediaries (distributors) vs. direct sales
to customers
– market segment analysis
– competition analysis
– vary strategies by market segment
What are the two different types of distribution strategy?
- Distributing the product to retailer
- distributing the product to the customer
What strategy determines which aspects of a company’s business it is going to outsource and which ones it will retain internally
Sourcing Strategy
What are two sourcing strategies?
- Outsourcing Advantages
- Outsourcing Risks
Outsourcing advantages produce?
- Cost savings
– Expand into new markets/geographic areas
– Achieve technological capability
Outsourcing Risks contributes to
- loss of control
- dependency
What strategy determines how the company is going to meet the demands of its customers
Customer Service Strategy
T/F- For customer service strategy, the market is divided by volume and
profitability
True
Should be based 1st on the overall volume and
profitability of market segments
* Next, understand what customers in each segment
want and decide how to meet customers demands
Customer Service Strategy
A high volume and high value market segment is highly or lowly desirable
Highly
A low volume and low value market segment is highly or lowly desirable
lowly desirable
The way a company competes in the
marketplace is called
Competitive Priority
T/F- The supply chain strategy must support the competitive priorities identified in the firm’s business strategy.
True
What are 5 competitive priorities?
1) Cost
2) Quality
3) Time
4) Innovation
5) Service
T/F- Companies that compete on cost offer products the highest price possible
False, Companies that compete on cost offer products do it at the lowest price possible
What are four supply chain considerations for companies that compete on cost?
- asset utilization
- inventory days of supply
- product and supply chain costs
- product and process standardization
What are three ways companies can utilize competing on time?
- tech to speed processes
- flexible workforce for peak demands
-system analysis to eliminate/combine processes
T/F- Companies that compete on time deliver products in as short a time as possible
True
Competing on time is measured by two different types of measures called?
- Rapid Delivery
- On-time Delivery
T/F- Companies that compete on innovation focus on developing “must have” products
True
Companies that use competing on innovation focus on what two details?
Speed and product design collaboration
Companies that compete on *** have products and services known for their premium nature. What am I referring to?
Compete on quality
Embed quality throughout the supply chain is guaranteed by
TQM and Six Sigma
The supply chain has the ability to easily trace a product
Product Traceability
Companies that compete on ** tailor their products to meet the specific needs of target customers
Compete on Service
Companies that compete on service rely on what three characteristics
Customer Loyalty
Consistency
Reliability
Characteristics that win orders are known as
Order Winners
Characteristics that qualify the company to participate in a particular market are known as
Order Qualifiers
Successful companies focus on the strategically important dimensions. This is known as competing on?
competing on all dimensions
Larger firms have advantages they can offer and receive. What is an advantage of a large firm to customers? to the firm?
- Quantity discounts
- high degree of supply chain control
T/F-Smaller companies can develop supply chain strategies within a particular market segment
True
These characteristics describe supply chain **
- development of a new technology
– change in the scope of a company’s business
– ANY change in a company’s competitive
position
adaptability
What is a measure of how well a
company uses its resources
productivity
The formula for productivity is?
Productivity= Output divided by input
A dry cleaning company has a monthly dollar value of outputs worth $18,000 and inputs worth
$9,000. Calculate the monthly total productivity.
total productivity = 2.0
The machines at the dry cleaning company can clean 32 garments in eight hours. Calculate the
machine productivity.
Machine Productivity= 4 garments/hr
Productivity is a useful metric for evaluating **?
competitiveness
This term can be evaluated overtime and may be benchmarked against a standard
Productivity
The dry cleaning company chose to track machine productivity on a monthly basis and had purchased new machines in the third month:
Month 1- 3.8; Month 2- 4.0; Month 3 5.3; Month 4-6.4; Month 5-6.9
Current period- previous period / previous period multiples by 100%
will = % productivity improvement
=5.26%
Who purchases are made by an individual or household to satisfy personal needs
End Customer
Who makes purchases for an organization in order for employees to perform their jobs
Organizational End User
What does the customer-driven supply chain look like
Supplier then manufacturer then distributor/wholesaler then retailer and the the customer which could be an individual or organization
What does CRM stand for?
Customer Relationship Management
An information industry term for methodologies, software, and internet capabilities that help an
enterprise to manage its customer relationships in an organized way.
Customer Relationship Management
A marketing philosophy based on putting the customer first is known as
Customer Relationship Management
Enabling marketing departments to identify and target their
best customers, manage marketing campaigns, and
generate quality leads for the sales team. This is an example of?
Customer Relationship Management
Allowing the formation of individualized relationships with
customers, in order to improve customer satisfaction and
maximize profits by identifying the most profitable customers and providing them with the highest level of service. Is an example of what?
Customer Relationship Management
Who provides employees with the information and processes
necessary to know their customers; understand and identify
customer needs; and effectively build relationships among
the company, its customer base, and distribution partners
CRM
Who assists the organization in order to improve sales management by optimizing information shared by multiple employees, preparing metrics on sales effectiveness, and monitoring social media sites as a vehicle for crowd-sourcing solutions
to client-support problems.
CRM
CRM uses automated customer
transactions to gather data captured by what kind of software
modules
ERP Software modules
After the data is collected from the modules provides insights in to?
Market Segmentation
After collecting data and receiving insight about the market segmentation what does CRM do for the customer?
It will then create customized customer communication
T/F- The CRM method is expected to grow up to 35 billion dollars by 2023 and its growth is part fueled by the integration of AI.
TRUE
What is the central focus of SCM?
Bring value to customers
T/F- Responsibility of marketing to understand what the customer perceives as value
True
the process of
capturing customer needs and preferences is known as
Voice of the customer
Customer needs can be divided into three categories. What are the 3?
Basic Needs
- minimum customer expectations
Performance Needs
- differentiate one product from another
Excitement Needs
-elicit delight over the product
What are the three categories for the VOC process
1- Divide Customers into Market Segments
2- Conduct Market Research
3- Utilize Quality Function Deployment (QFD)
What is an example of VOC process step 1: Divide Customers into Market Segments
A woman may value price and the other may be willing to pay a higher premium for higher quality therefore they are in separate segments
What is an example of VOC process step 2: Conduct market research
Do this by conducting surveys or interviewing customers to shift through feedback to identify key drivers of value for each market segment
What is an example of VOC process step 3: Utilize Quality Function Deployment (QFD)
the company will take back key drivers of value and relate them back to product or service characteristics by employing the QFD tool
T/F- Effective customer service performance measures focus on the viewpoint of the supplier rather than the customer
False, Effective customer service performance measures focus on the viewpoint of the customer rather than the supplier
T/F-The measures companies use to measure customer service permit the company to benchmark their performance against others in their industry
True
T/F- Most companies rely on very few measures of customer service
False- Most companies rely on multiple measures of customer service
T/F- If a company wishes to be effective at customer service performance, they must shift their focus to a customer-oriented type standard
TRUE
What does the customer oriented standard look like?
- order received on time
- order received and completed
-order received damage free - and was received on time
Customer service impacts the supply chain on four dimensions
Time
– speed at which the company responds
Dependability
– consistency in meeting promises to customers
Communications
– providing real time order status
Convenience
– providing more customization to customers
