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Supply Chain Management > Exam > Flashcards

Exam Flashcards

1
Q

Upstream vs. downstream

A

Upstream: all stages in bringing raw materials to the company

Downstream: all stages in bringing product to the customers

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2
Q

Bullwhip effect

A

Small fluctuations in demand at retail level –> progressively larger fluctuations at other SC stages (distributor, manufacturer, supplier)

Fluctuation / distortion of information increases as it moves up the supply chain

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3
Q

Supply chain management

A

Design and management of flows of products, information, and funds throughout the supply chain

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4
Q

Supply chain stages

A

Different trading partners in supply chain; suppliers, producers, distributors, retailers, customers etc.

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5
Q

Driving force of SC

A

Final customer is driving force of supply chain (demand drives supply)

Products are pulled backwards through the SC (from customer –> raw material supplier)

Each stage is a customer for their supplier. Final customer demand spills down into each stage

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6
Q

Activities of SCM

A

Coordination, information sharing, collaboration

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7
Q

Consequences of poor SCM (activities)

A
  • Differing / conflicting objectives between different stages
  • Distorted view of customer demand / requirements
  • Shortages or excess inventory
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8
Q

Trends in SCM

A
  • Globalisation
  • Outsourcing
  • Postponement
  • Lean supply chain
  • Managing disruptions
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9
Q

Types of production

A

Make-to-stock: produces in anticipation of sale; high inventory, high waste, fast delivery

Assemble-to-order: partially completed (generic form), finalised/customised after order; high intermediate goods inventory, not fast delivery

Make-to-order: for customised products or infrequent demand; low inventory, low waste, slow delivery

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10
Q

Competitive advantage matrix

A

Cost-productivity advantage: low-cost producer with highest sales volume

Value advantage: product quality, perceived value of brand, higher service level, scarcity / limited addition / only select customers

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11
Q

Building blocks of SC strategy

A

Sourcing strategy: outsourcing vs. retaining in-house –> identify strengths, expertise, unique features, strategic differentiators

Operations strategy: how company produces goods and services –> make-to-stock / assemble-to-order / make-to-order

Distribution strategy: getting products/services to customer –> using channel intermediaries (distributor, retailer) or sell directly

Customer service strategy: based on volume/profitability of market segments (matrix) –> how to meet demand, which segments to prioritise

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12
Q

Single-sourcing vs. multiple-sourcing

A

Single: close relationships, easy scheduling, consistent quality

Multiple: geographical diversification, high negotiation power

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13
Q

Competitive bidding vs. negotiation

A

Competitive bidding: for set performance criteria, standard products, high volume, many qualified suppliers exist

Negotiation: for new or complex product, customised product, few suppliers

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14
Q

Functions of SCM

A

Sourcing function: responsible for linking organisation to suppliers

Operations function: organises transformation of raw materials –> finished goods/services

Logistics function: responsible for moving/positioning inventory throughout SC

Marketing function: responsible for linking organisation to its customers (identifying needs)

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15
Q

Opportunities of international SCs

A
  • Large markets
  • Economies of scale (production, distribution)
  • Lower select costs (labour, marketing, supply)
  • Better ability to target markets
  • Leverage good ideas quickly, efficiently
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16
Q

Barriers of international SCs

A
  • Longer, more varied lead time
  • Political risk and instability
  • Higher overall costs (transportation, tariffs etc.)
  • Infrastructure access (facilities, transportation, labour)
  • Exchange rate and VAT risks
17
Q

Global environmental factors

A

Economic, cultural, political, demographic

18
Q

Global vs. local marketing

A

Global approach: standardisation (distribution, sourcing, packaging, operations)

Local approach: localised differentiation, micro-segmentation –> adds complexity

Postponement: strategy for merging global and local approaches; product kept in generic form as long as possible in distribution process –> adapted last minute

19
Q

Sustainability risks

A

Social risks: unmet community expectations –> violence, riots, economic damage

Political risks: governmental influences/interventions –> damage to company’s economic value

Environmental risks: unpredictable/uncontrollable –> geological or meteorological (weather)

20
Q

Sustainability in SCM

A
  • Product design, waste management
  • Packaging
  • Sourcing, supplier selection
  • Process design
  • Marketing sustainability
21
Q

Scope vs. criticality

A

Scope: variety of services/products provided by supplier

Criticality: impact of sourced item/task on ability of firm to perform its core competencies (relevance)

22
Q

Non-strategic transactions

A
  • Low scope, low criticality
  • Standardised products, supplier can be substituted
  • Must still comply with minimum requirements
  • Example: Office supplies, work wear
23
Q

Contractual relationships

A
  • High scope, low criticality
  • Supplier of generic direct materials, supplier can be substituted
  • Low degree of relationship management, moderate communication frequencies
24
Q

Partnerships

A
  • Low scope (narrow variety), high criticality
  • Highly specialised, difficult to substitute
  • High degree of relationship management needed
  • Much communication, high degree of trust –> commitment from both sides
  • Opportunity for customisation
  • Example: transport solutions provider,
25
Q

Alliances

A
  • High scope (broad variety), high criticality
  • Supermarket’s manufacturer for private label products (same for all cereals, dairy products)
  • Automotive companies with high innovation/sustainability standards focus on few suppliers
  • High degree of relationship management needed
  • Much communication, both parties are dependent on the other
26
Q

Trust-based relationships

A
  • Building collaboration and long-term relationships/partnerships
  • Moving away from transactional / arms-length adversarial relationships
  • Finding win-win solutions, development of joint objectives
  • For high-criticality suppliers
27
Q

Power-based relationships

A
  • Transaction focus
  • Leveraging power, win-lose relationship
  • Power balance might shift
  • Negotiation power dynamics (supply vs demand factors, dependencies)
  • For low-criticality suppliers
28
Q

Sources of conflict

A
  • Relationship
  • Data
  • Interests
  • Structural
  • Values
29
Q

Position vs. interest

A

Position: surface statements; requirements, expectations etc. – ‘what’

Interest: underlying reasons, motivations, values, incentives – ‘why’

30
Q

Adversarial vs. problem-solving negotiation style

A

Adversarial: hostile negotiations, zero-sum game i.e. win-lose situation

Problem-solving: Non-zero-sum game i.e. win-win situation possible

Supply Chain Management (1 decks)

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