EXAM 5 Flashcards
Traits of good Logistics performance measurement
Quantitative
Easy to understand and calculate
Encourages appropriate behavior
Visible
Well-defined and mutually understood
Encompasses outputs & inputs
Measures only what is important
Multidimensional
Uses economies of effort
Facilitates trust
Margin vs Markup
margin is profit, market shows up much more the item is vs buying price
Different Process measurement categories
Time- on time deliver
Quality-Customer satisfaction
Cost-total delivered cost
High Level Relationships
logistics cost up=profit goes down, more tied up inventory=less capital goods needed to buy
ROA
Return on Assets= Profit/ Assets utilized
metrics used as a benchmark to compare management and organization performance.
Cash to Cash conversion Cycle
spending money and how long till they get the money back
Liquidity
Liquidity- how quickly an asset can turn into cash, stocks are high, real estate is low
How to Calculate Cash to Cash
inventory plus receivables, minus payables=cash to cash cycle
Flow of Information
Information connects the extended supply chain, providing cross-chain insights regarding demand, customer orders, delivery status, inventory stock levels and production schedules
EDI versus API
Use EDI for standardized, high-volume transactions in environments with established trading partners
Use APIs for dynamic, real-time, and diverse integrations, especially in modern, digital-first ecosystems.
Risks of Mitigate Technology
Unrealistic assumption that supply chain technologies will readily solve or fix flawed supply chains.
Weak technology-process alignment, leading to ill-fitting solutions that fail to achieve their promise
Technology gaps as a result of piecemeal purchases and deployment of technologies
Challenges in cross-chain systems integration with suppliers, service providers, and customers
Poor planning and preparation for technology implementation
Supply Chain Planning
Help organizations shift from autonomous planning activities to synchronized planning processes that use real-time data for collaboration across departments, suppliers & customers.
Supply Chain Execution
systems that help you move the product
Event Management
when a notification is sent when a product is picked up, shipped, received. A good event management means know one touched it, a smooth process from warehouse to home
ERP
Enterprise resource planning systems
Incorporate internal and external systems into a single unified solution that spans the enterprise
SRM
Supplier Relationship Management
A controlled and systematic approach to managing an organizations sourcing activities for goods and services
CRM
Customer relationship management
focuses on practices, strategies and technologies used to manage and analyze customer interactions and data throughout relationship lifecycle
Auto ID
Automatic identification and data capture technologies
-recognized objects, collects relevant information, and feed the data directly into the SCIS
What is a Supply Chain Strategy
Thoughtful planning
Identifying goals
Utilize resource
provides a framework
Why use a Supply Chain Strategy
Help achieve goals
Allocates resources
Clarifies purpose
Gives direction for action
7 principles of supply chain analytics
- adapt supply chain based on service
- customize logistics network for each segment
- align demand planning across the supply chain
- differentiate product closer to customer
- outsource strategically
- develop information technology that support multi-level decision making
- adopt both services and financial metrics
supply chain analytics
take a giant leap from data to info. then to understanding
supply chain analytics (descriptive)
uses data to answer what, where, and when questions generates execptionally large amounts of descriptive data
supply chain analytics (PRESCRIPTIVE)
shows predicted data based on sales and inventory.
tries to answer what should be done, often trying to take predictive findings and elevate them to prescriptive level
