final exam Flashcards
what is risk management
coordination of activities to direct and control an enterprise’s end-to-end supply chain with regard to SC risks
effort to prevent or limit the negative impacts supply chain issues have on your customers (internal and external)
what are the SC risk categories
design, quality, cost, availability, financial, legal, manufacturability, supply, evironmental, health, safety
explain the risk matrix
high
low
low higher
When there is low disruption, prob. and consequences there is low risk
What is resiliency
The ability to react to anything regardless of what it is
speed of discovery influences ability to mitigate
accelerate rev growth, improve customer satisfaction, increase savings and cash flow, minimize risk and increase resilience
pandemic lessons
- those who were best prepared were those who fared the best
-no one was totally prepared
-need a high degree of collaboration this can be made a part of the process
-supplier diversification identified to decreased risk. tradeoff is added complexity
-establish a key truth: a measurable quantified risk profile for all strategic suppliers. align on priorities
What was the crisis General Motors faced
Factory explosions
what are the 3 strategic levels
straegic : chiefs
tactical : managers
operational : everything else
SCM Job Categories
Planning: office work, inventory control, forecasting, customer issues
Operations: DC facilities, port terminals, operations centers, day-to-day management of people and the flow of products
True or false is there a talent gap in SC?
True.
demand for SC professionals exceeds the supply.
What contributes to the talent gap?
- changing skill requirements
-aging workforce
-lack of awareness fo the profession
lack of diversity
lack of talent pipeline development
perception that jobs lack excitement
Define Supply Chain
a set of three or more organization directly linked by one or more of the upstream and downstream flows of products, servies, finances, and information from a souce to a custoner
what is not a supply chain flow?
transportation
supply chain management defined
the art and science of integrating the flows of products, information and financials through the entire supply pipeline from the supplier’s supplier to the customer’s customer
SC and Engineering collab
evaluate technical capabilities during supplier site visits
interact with supply managers during product development
SC and Marketing
develop accurate and timely demand requirements related to product price place promotion
share end-customer requirements with SC planning groups
SC Finance
validate cost savings from SC activities
identify the impact of Sc initiatices on corporate performance indicators ROI andRONA
asses the impact of inventory improvements on cahs flow and working capital requirements
SC accounting
Provide accurate data to support internal and external costs analyses
SC Human Resources
support the recruitment of human resources to staff SC positions
provide training and education programs related to SC knowledge and skill areas
SC Legal
perform timely and effective reviews of SC contracts
SC IT
support the development of SC information systems, including performance measurement systems
what is the more strategic and broader concepts within SC
SCMw
which is more tactical
logistics!!
what segment do SC’s spend the majority of their moeny on?
transportation
what happens if you have a longer order cycle?
you need more inventory
buying and selling relationships
raw materials : bought by supplier
supplys : bought by manufacturers
goods: bought by distributors
distributed items: bought by customers
customer sells to consumer
what is logistics?
- getting the right product to the right costumer in the right quantity, in the right condition, at the right plac erihgt time and at the right cost (7 R’s def.)
- that part of the SC process that plans, implements, and ocntrols the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption in order to meet customer requirements.
Cost of lost sales to transportation costs
spend more, with more money, losing less sales
Inventory Management (IM)
A set of techniques used to manage the inventory levels within different companies in a supply chain
goal to reduce cost while maintaining service levels customers require (tradeoff)
Forecast+product price=inputs that IM needs to balance
3 types of inventory
cycle stock
safety stock
seasonal
EOQ
most cost-effective amount to purchase at a time
limitation-assumes consumer demand is constant
EOQ=SQRT 2UO/ch
Kraljic Matrix Model
bottlenecks items –> strategic
non-critical –> leverage
bottleneck
High supply risk, low profit impact
low supplier control
Innovation/product substitution/replacement
production-based scarcity
Strategic
High supply risk , high profit impact
Development of long term relationships
Collaboration and innovation
natural scarcity
non-critical (routine)
low supply risk, low profit impact
product standarization
process effiency
abundant supply
leverage items
low supply risk , high profit impact
exploitation of full purchasing power
ttargeted pricng strategies/negotiations
abundant supply
what are the 5 strategy types
competing
collaborating
compromising
avoiding
accomodating
Types of Assembly Processes
MTS
MTO
MTS
level of customization: none
cost of finished goods: low
order fulfillment speed: immediate
process complexity: low
example products: commodities, toilet paper, canned soup pharmaceuticals
ATO
level of customization: limited
cost of finished goods: moderate
order fulfillment speed: days-weeks
process complexity: moderate
example products: personal computers, automobiles
BTO
level of customization: moderate
cost of finished goods: high
order fulfillment speed: weeks-months
process complexity: high
example products: computer servers, private jets
ETO
level of customization: total
cost of finished goods: very high
order fulfillment speed: months-years
process complexity: extreme
example products: stadium, jumbotron, nuclear power plants
Truck
Strengths: accessible, fast and versatile, customer service
Limitations: Limited capactiy, high cost
Primary role: move smaller shipments in local, regional, and national markets
primary product characteristics: high value, finished goods, low volume
example products: food, clothing electronics, furniture
rail
strengths: hihg capacity, low cost
limitations: accessibility, inconsistent service, damage rates
primary role : move large shipments of domestic freight long distances
primary product characteristics: low value, raw materials, high volume
example products: coal/coke, lumber/paper, grain, chemicals
air
strengths: speed freight protection flexibility
limitations: accessibility, high cost. low capacity
primary role : move urgent shipments of domestic freight and smaller shimpments of internaltional freight
primary product characteristics: hihg value, finished goods low volume time sensitive
example products:computers, periodicals, pharmaceuticals, business to consumer (B2C) deliveries
water
strengths: high capacity low cost international capabilities
limitations:slow accessibility
primary role : move large domestic shipements via rivers and canals, move international freight
primary product characteristics: low value, raw materials, bulk commoditities, containerized finished goods
example prod: crude oil, ores minerals, farm products clothing electronics toys
pipeline
strengths: in transit storage efficiency low cost
limitations: slow limited network
primary role:move large volumes of domestic freight long distances
primary product characteristics: low value liquid commodities not time sensitive
example products: crude oil petroleum gasoline natural gas
intermodal transportation
rail truck, truck and boat
what do distributions add in SCM
balancing supply agasint demand
protect against uncertainty
allowing quantity purchase discounts
supporting production requirements
promotion transportation economies
4 main functions of distribution
accumulation
sortation
allocation
assortment
what is crossdocking
goods flow from receiving to shipping
eliminating time-consuming storage and order picking
finance connection to sc
logistics go up, profit goes down
inventory level goes up, capital goes down
cash to cash formula
+ days of inventory
+ days of receivables
- days of payables
———————————
cash to cash
days of inventory equation
avg inv * 365/ COGS
days of receivables equation
A/R*365/REV
Days of payables equation
A/P*365/COGS
bullwhip effect
small changes in demand can produce a whip like effect upstream
little wiggles make big waves
what factors lead to bullwhip effects
demand forecasting
order batching
product pricing
performance incentives
technology enables …
always on connecitons
what is a self-adjusting feedback loop
a continuous stream of feedback guides a system through an ever-changing environment towards its goal
requiremnts for self-adjusting feedback loops
- real time visibility (observe) (technology)
- authority to act (act) (process)
- stake in the outcome (win) (people)
supply chain management is all about managing
relationships risks and tradeoffs
