Exam Flashcards
What are stages?
the different trading partners involved in a supply chain
-ex. Suppliers, Producers, Wholesalers, Retailers, or Consumers
SCM Activities:
Coordination, Information Sharing, and Collaboration
SCM vs. Logistics
-SCM is focused on EVERYTHING
-Logistics is primarily externally focused; SUBSET of SCM
Various SCM Flows:
-Product/Services Flow
-Information Flow
-Finance/Cash Flow
-Demand Flow
What 5 external forces can affect SCM:
-Government Policy & Regulation
-Globalization
-Technology
-Empowered Consumer (amazon offering 2-day shipping)
-Organizational Consolidation
What is Logistics?
part of SCM with four major subdivisions (Business, Military, Service, and Event)
Five Principal Types of Economic Utility:
Time, Place, Quantity, Possession, and Form
Single Channel vs. Early Multichannel vs. Current Multichannel vs. Omnichannel
-Single: refers to a producer/retailer’s effort to reach customers through only ONE distribution option (online, in-person, etc.)
-Early Multi: focused on selling products through a FEW distinct channels
-Current Multi: involves a much wider range of sales channels with a greater emphasis on integrating these channels to provide a seamless customer experience
-Omni: customers can get a product through ANY channel
Production Tradeoffs: Volume vs. Variety
-Volume: Higher-volume production with lower cost per unit of output; suitable when there’s high fixed costs for production (TESLA)
-Variety: Low-volume production with flexible capabilities of
producing a wide variety of products; important in markets
characterized by changing customer demand
Production Tradeoffs: Responsiveness vs. Efficeincy
-Responsiveness: prioritizes speed and adaptability
-Efficiency: prioritizes cost-effectiveness and consistent output
Relationship Types:
-Transactional: relationship where the focus is on the transaction itself rather than building a deeper partnership (VENDING MACHINE)
-Collaborative: when two or more businesses work together to plan and execute supply chain operations (SET x PARKE)
-Strategic: a collaborative partnership between a company and its suppliers where both parties work together to achieve mutual benefits (STARBS & BARNS)
Collaborative Relationship vs. Strategic Relationship
-collaborative relationship focuses on day-to-day operational cooperation and information sharing to optimize efficiency
-strategic relationship involves a deeper, long-term commitment to achieving shared goals and mutual benefits
Types of Collaborative Relationships:
-Vertical Collaboration: occurs when entities at different levels of the supply chain, such as manufacturers, distributors, and retailers, work together
-Horizontal Collaboration: focuses on collaboration between entities operating at the same level in the supply chain
-Full Collaboration: all stakeholders within a supply chain, including suppliers, manufacturers, distributors, retailers, and even customers, actively work together
What are the drivers of out/insourcing?
cost reduction, access to specialized skills, increased efficiency, scalability of workforce, focusing on core competencies
Production Execution: Make-to-Order Options
Assemble-to-Order (ATO): limited customization, moderate cost of finished goods, takes days/weeks to fulfill orders, moderate process complexity, (ex: personal computers, automobiles, fast food, etc.)
Build-to-Order (BTO): moderate customization, high cost of finished goods, takes weeks/months to fulfill orders, high process complexity, (ex: computer services, private jets etc.)
Engineer-to-Order (ETO): total customization, very high cost of finished goods, takes months/years to fulfill orders, extreme process complexity, (ex: stadium, JumboTron, nuclear power plant, etc.)
What are likely Logistics/SCM outsourcing areas?
transportation, warehousing, inventory management, order fulfillment, distribution, freight consolidation, demand forecasting, strategic sourcing, and reverse logistics
Reasons to Make/Buy:
MAKE:
-high quality requirements/ special processing methods required
-competitive, social, political, or environment factors
-reduce risk
-market potential is increasing
-forecasts of future shortages in the market or rising prices
BUY:
-lack of managerial or technical experience
-insufficient volume to justify in-house production
-ability to bring a product/service to market faster
-customer preference for a specific brand
Why are supply chains complex?
because they involve many different steps and parties, from getting raw materials to delivering finished products to customers
What is the significance of ports?
they are the main places where goods are shipped between countries by sea
What are the factors behind global trade and the challenges associated with it?
FACTORS: driven by factors like comparative advantage, technological advances, and the need for resources, allowing countries to access goods they can’t produce themselves.
CHALLENGES: tariffs, political instability, supply chain disruptions, and cultural differences make it complex and risky
Absolute advantage vs. Comparative advantage
-Abs: when a country can produce more of a good or service using fewer resources than another country
-Comp: when a country can produce a good at a lower opportunity cost than another
What are the countries belonging to the USMCA, KORUS, and CTPA?
USMCA: United States, Mexico, and Canada
KORUS: South Korea and the United States
CTPA: Colombia and the United States
What are the roles of logistics managers?
responsible for a company’s supply chain, which includes the movement and storage of supplies
Make-to-Stock vs Make-to-Order
-Make-to-order: works on the basis that a product need not be produced until a customer requires it
-Make-to-stock: works on the assumption that a customer will require the product eventually, and thus it should be made beforehand
What is a 2PL? What is a 3PL? What is a 4PL? What are some examples of each?
-2PL: second-party logistics provider, essentially a carrier company that transports goods (airlines, hauling companies)
-3PL: a third-party logistics provider who manages a wider range of logistics functions like warehousing and inventory (FedEx, UPS)
-4PL: a fourth-party logistics provider who acts as a supply chain integrator, overseeing the entire logistics process by managing multiple 3PLs and optimizing the whole supply chain network (Amazon)
What are the strengths and weaknesses of 3PLs?
Strengths: cost savings, relationships, flexibility, risk and inventory management, and time savings
Weaknesses: loss of control, hidden costs, dependency, possible errors due to miscommunication and lack of compatibility
What logistics activities are frequently outsourced to 3PLs?
warehousing, domestic transportation, international transportation, customs brokerage, freight forwarding, and inventory management
