Intro to Supply Chain mgmt

Question 1

What is a supply chain?

Answer 1

A network between a company and its suppliers to produce and distribute a specific product to the final buyer; it includes different activities, people, entities, information and resources.

Question 2

Steps of a supply chain (in terms of people)

Answer 2

Raw Materials
Supplier
Manufacturer
Distributer
Retailer
Consumer- Consumer demands keep the supply chain afloat i.e. if they do not have a demand for the product, more will not be produced.

Question 3

Why is SCM important?

Answer 3

1, Modern supply chains help improve living standards by enabling consumers to buy essential products at
lower costs. This is because an effective supply chain streamlines the process of getting products to market, and ultimately to consumers.

Question 4

Advantages of Supply Chain Management

Answer 4

1. Better collaboration with suppliers-Suppliers that understand the business’s cost constraints and objectives can be particularly important
   for businesses with tight margins.
   But cost is not the only consideration. Flexibility matters too. In volatile market conditions
2. Better quality control- When you and your suppliers are working to the same standards, quality control problems can be
   detected earlier and strengthening trust in relationship
3. Shipping optimisation- . Reducing the
   number of separate distribution channels and making use of logistics specialists could reduce your
   distribution costs relative to your competitors, helping you to maintain stronger cash flow and profits.
   Less Channels but greater efficiency through the supply chain, from a distribution stand point.
4. Reduced inventory and overhead costs- An efficient Supply Chain can reduce the need to maintain inventory, therefore cutting overhead costs
   associated with storage and security. However, a very lean inventory increases pressure on distribution networks and reduces resilience to supply chain shocks. So it’s important to identify your
   optimal inventory level. This can be done through analysis of the different channels and ensuring the
   refining of the process.
5. Improved risk mitigation- In general, the further along a supply chain issue is detected, the more expensive it is to fix.
   That’s why supply chain management, which offers visibility of the supply chain from end to end, is
   so important.
   ¡ And it isn’t only financial risk that can be mitigated: greater visibility across all your suppliers can
   reduce the reputational risk of unwittingly engaging either a company that falls foul of your ESG
   standards
6. Stronger cash flow- Running an efficient supply chain that is based on good supplier relationships, maintains strict
   quality and stock control, and keeps a watchful eye on costs and prices can greatly benefit a business’s liquidity by Improving the cash flow.
7. A more agile business
8. Better visibility and data analytics- Business managers can keep in constant touch with suppliers using mobile phone apps,
   conferencing platforms and shared dashboards. Software tools can also help to manage stock
   levels efficiently, track distribution channels and monitor business performance. Having real-time
   data metrics at your fingertips will enable you to put in place contingency plans to enable your
   business to ride out storms and take advantage of opportunities as they arise.
   ¡ Use of Apps, AI, Big Data analysis.

Question 5

Recipe for Diverse supply chains

Answer 5

¡ A Recipe for Sustainable Supply Chains
¡ 1. Find and recruit diverse support
¡ All pushes for sustainability are driven by executive buy-in, employee advocacy, and consumer commitment. Generate a goal and ensure that
everyone from leadership to the people making better decisions are committed to your firm’s role as a change agent.
¡ 2. Measure and benchmark
¡ There is a reason we continue to say, “That which is measured gets managed” - it works. Model your supply chain, attribute metrics to activities,
create waste assessments in BOMs, and baseline your footprints. Build transparent assessment and the more comprehensive your measures
and acknowledgements become, the more opportunities you’ll identify for improvement.
¡ 3. Include your suppliers
¡ Mapping diverse and complex global supply chains requires honest partnerships. Information transparency isn’t perfect and the best way to get
information is to ask for it. Work with your suppliers to acquire Scope 3 measures and collaborate with them on the mitigation of those impacts.
Drive stronger partnerships with shared responsibilities and identify who your best suppliers are as you pursue sustainable supply chain goals.
4. Balance KPIs in models and score cards
¡ There can be a strong push toward trying to do everything, yet a mature organization will find the optimal balance between
increasing cost and reducing impacts. Some initiatives will save on both as the cost of extended supply chains is often
matched by a focus on cost per unit. Adjusting the balance between cost controls and impact reductions provides a menu of
potential options for creating a series of improvement initiatives.
¡ 5. Set targets and prioritize quick wins
¡ Identify the quick wins and the simplest changes on your path to build a sustainable supply chain. This can give credibility to
budding programs; for example, in many instances it has been found that up to 40% reduction in harmful emissions can be
delivered for a 2%–4% increase in the cost of production. Ideally, make a public statement of the goal and demonstrate the
commitment.
¡ 6. S.M.A.R.T. goals
¡ The same logic of personal goals applies to sustainability initiatives. Make sure goals are S.M.A.R.T.: specific, measurable,
attainable, relevant, and time-bound, otherwise they can fail to create the behavioral change that delivers results
¡ 7. Sustain the sustainability
¡ Design sustainable supply chain programs that not only correct the existing course, but also put in safeguards to monitor your supply chain and
raise flags when something is amiss. For example:
* Has a supplier’s behavior changed?
* Have your country of origins declarations shifted?
* Are you reading concerning news sentiment shifts?
* Has your model shown that your transactional activity would cause increased emissions or waste?
¡ Trust, but verify, continuously.
¡ 8. Integrate with product development and onboarding
¡ Problems you don’t make don’t have to be fixed. Proactively add elements to your contracts and supplier onboarding, setting out clear values,
goals, and expected adherence to them. Create thoughtful recipes and bills of material that remove undesirable components and raw materials
and consider the sourcing of the ones you keep in. Do product sampling and facility tours early. Implement irregular, asynchronous auditing
practices. Implement machine learning tools to detect trends in information or malfeasance in provenance.

Question 7

What does a sustainable supply chain entail (think tbl)

Answer 7

1. Economic needs- cost savings and payback and reduced business risks
2. Social needs- Worker health and safety, enhanced corporate image/brand, healthy communities
3. Environmental needs-Air emissions, waste water, hazardous waste, toxins