Föreläsning 7 Flashcards
How do you capture demand in emerging economies (e.g. India)?
Companies have scrambled to open channels and formed joint
ventures
Joint venture = business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task
Why have the capturing of demand in emerging economies led to a complex mishmash?
Because companies have rapidly moved to develop supply capabilites from the same low-cost countries, which leads to a complex mishmash of channels downtream and supply capabilites upstream. Companies are struggling to achieve end-to-end visibility, optimize production and inventory, and continously synchronize their downstream channels and upstream supply.
(Upstream supply chain is the process of getting materials to the manufacturer, while downstream supply chain is the process of getting products from the manufacturer to the end consumer.)
The continued globalization of supply and demand has also increased the level of risk inherent in the supply chain.
What does escalating consumer expectations in the age of online retailing lead to?
Companies that can’t meet the expectations of a seamless shopping experience are losing customers as a result.
What are the benefits of Supply Chain Networks?
*VThe intense competition in today’s market place forces organizations to collaborate andVoperate as members of a SC.
- Being a member of a chain helps firms to be more focused on their main specialty, to respond quickly to the changing needs of customers and to improve their flexibility and agility.
- Integrating parts of a chain in the form of a supply network and managing the material flow throughout this structure, plays an important role in chain performance and competitiveness.
What outcome does it bring when retailers master a supply chain network collaboration?
Retailers and manufacturers that have mastered this level of collaboration consistently outperform on several key financial metrics, including better inventory turns, lower costs, and improved service levels.
What is a Supply Chain Network?
Supply chain networks allow us to look at the big picture to analyse the overall movement of materials and information from start to end.
This allows organisations to see the value in creating partnerships and the value in working together to ensure the best possible value is provided to the end-customer.
What is the difference between Supply Chain and Supply Network?
Supply chain: Shows the movement of material flow from
raw materials right through the production process to the end users.
Supply Network: Shows supply chain nodes and flow paths
between organisations and how information and materials run between them. As seen in the figure the focal firm has an upstream network and a downstream network.
What is Supply Chain Network Design? (SCND)
It’s an analytical process that determines the best mix of suppliers, locations, logistics and production facilities for optimizing product manufacture and distribution.
SCND entails answering questions about, procurement, manufacturing & the finished goods such as:
qWhere are your suppliers?
qHow will you procure raw materials and components?
qWhere will you locate the factories for manufacturing/assembly?
qWhere will you hold inventories, Number of Warehouses, Location of warehouses etc.?
qHow will you distribute to markets - Transportation and Distribution logistics?
All above answers are influenced and driven by customer fulfilment.
What three levels of decisions are there in SCND?
Operation Decisions (fulfilment of customer demands, pricing, provided service level)
Tactical Decisions (IT, knowedge management, inventory volume and type in SCs facilities)
Strategic Decisions (location of SC’s facilites, type of tech, quality of SC’s facilites)
What is the PPRR risk management model?
a popular global supply chain risk management
strategy used by organizations around the world.
The PPRR stands for:
Prevention - Take precautionary measures for supply chain risk mitigation.
Preparedness - Develop and implement a contingency plan in case of an emergency.
Response - Execute on your contingency plan in order to reduce the impact of the disruptive event.
Recovery - Resume operations and get things running at normal capacity as quickly as possible.
What is agility?
Agility refers to speed and efficiency that is why an agile supply chain is focused on speed, cost efficiency, responsiveness, flexibility, and productivity in the production and delivery of goods.
Combined, it creates a more robust process that saves businesses and consumers money,
eliminates waste of excess inventory, foresees potential shortages, and does it all quickly and productively
what does a lean supply chain focus on?
cutting costs by producing high volumes of products with low variability
reliability and predictability
Production is planned months or even years in advance rather than adapting to a changing market thus,
best for products with low market variability. Lean SCND only consider economical objective functions.
How did Walmart apply green supply chain practices?
Reducing the fuel footprint of their truck fleet by doubling fleet efficiency through better routing and truck loading; driver training focused on minimizing idle time and progressive shifting
Reducing total annual waste generated from operations in the U.S. by asking suppliers to use recyclable material and reduce packaging
Ban of harmful chemicals by making sure the products they source that include chemicals, have chemicals that are not hazardous to humans or the environment
The organization uses these initiative as competitive weapons to gain advantages over peers and also
decreases its environmental footprint to lower greenhouse gas (GHG) emissions, reducing their waste
stream, and sourcing sustainable products all to increases profitability.
How do modern supply chains resemble ecosystems rather than linear chains?
The linear concept of a chain or one dimensional concept to describe today’s complex international network of suppliers, partners, regulators and customers is not enough.
‘In this context, organizations must develop the capabilities to effectively work with multiple
different partners in their own ecosystem, but also the same partners playing multiple different roles
across other ecosystems.
The idea is that each entity in the ecosystem affects and is affected by the others, creating a constantly
evolving relationship in which each entity must be flexible and adaptable in order to survive, as in a
biological ecosystem.
