Exam 1 Flashcards
Value Chain
activities that are performed to design, produce, market, deliver, and support its product
value activities
physically and technologically distinct activities that a firm performs
Margin
the difference between total value and cost of performing the value activities
primary activities
inbound logistics, operations, outbound logistics, marketing and sales, service
support activities
procurement, technology, human resources, firm infrastructure
inbound logistics
receiving, storing, and disseminating incoming goods
Operations
transforms raw materials or inputs into goods and services
outbound logistics
collecting, storing, and physically distributing the products to buyers
Marketing and Sales
providing a means by which buyers can purchase the product and inducing them to do so
ex: advertising, promotions
Service
providing service to enhance or maintain the value of the product
procurement
the purchasing of inputs used in firm’s value chain
Human Resource Management
recruiting, hiring, training, and development, and compensation of all types of personnel
firm infrastructure
general management, finance, accounting, legal, government affairs, quality management.
supports the entire chain and not individual activities
direct activities
creating value for the buyer, such as assembly, parts machining, salesforce operation, advertising, product design, recruiting, etc.
Indirect activities
make it possible to perform direct activities. maintenance, scheduling, operation of facilities, salesforce administration, research administration, vendor record keeping, etc.
Supply Chain Management
sourcing, of materials, transforming, and providing, a product or service to customer
Demand planning responsiveness
The assessment of demand and strategic design to achieve maximum responsiveness to customer requirements
Customer collaboration
The development and administration of relationships with customers
Order Fulfillment and Delivery
The ability to execute superior and sustainable order-to-delivery performance and related essential services
Product or Service Development Launch
participation in product and service development and lean launch
Manufacturing Management and Customization
The support of manufacturing strategy and facilitation of postponement throughout the supply chain
Supplier Collaboration
development and administration of relationships with supplier
Life-Cycle Support
repair and support of products during their life cycle
Returns Management and Reverse Logistics
return and disposition of inventories cost-effectively and securely
