Lecture 1

Question 1

What are the key flows in SCM?

Answer 1

• physical flow of materials
• flow of information to inform the SC
• resources (especially financial, but also people and equipment) to improve the effectivity of a SC, doesn’t have to be tangible (good inter company relationships are highly important for an effective SC)

Question 2

What is intra company?

Answer 2

The system and processes are managed as 1 company

E.g boots

Question 3

What is inter-company?

Answer 3

Many companies involved

All may be required to adapt/adopt and manage internal systems in accordance with supply chain partners

Question 4

What is logistics?

Answer 4

Concerned with the storage and movement of service and goods and related information

Question 5

Describe the evolution of integrated supply chain

Answer 5

Fragmentation (1960), evolving integration (1980), total integration

Question 6

Is transport an additional cost?

Answer 6

Yes, regarded as a non value adding cost, allows the realisation of the products value, and causes/permits the SC to become more effective

Question 7

What are the modes of transport?

Answer 7

Air, road, rail, water, pipeline

Information superhighway regarded as sixth

Question 8

What do you need to consider when selecting a mode of transport?

Answer 8

• volume and value of the freight
• distance travelled
• availability of different services
• freight rates (LSP usually provide volumetric charging)

Question 9

What is intermodal transport?

Answer 9

Intermodal transport unit (ITU) freight moves within ITU, can be transferred from different transport modes

TEU is standard, igloo for air freight

Question 10

What are the 5 key developments on SCM and logistics?

Answer 10

Reduced transport intensity of freight 
Falling product prices
Deregulation of transport
Productivity improvements
Inventory reduction

Question 11

What is reduced transport intensity of freight?

Answer 11

Was dominated by bulky raw materials

Now in process and finished products

E.g 320000 bottles in 1 container bladder

Transport cost sensitivity: increase value before you transport

Question 12

What is falling product price?

Answer 12

Because the process is lean and JIT the product price will reduce (Toyota)

Question 13

What is deregulation of transport?

Answer 13

Removal of controls imposed by governments (taking away barriers to entry)

Opening up markets to competition achieved by:

One route
Penalties for price fixing
Short franchises

Question 14

What are productivity improvements?

Answer 14

Standardisation of TEU

Propulsion tech: more efficient

ICT tech: RFID

Question 15

What is inventory reduction?

Answer 15

Stock represents capital, costs to store,

Question 16

Whats the definition of a supply chain?

Answer 16

Network of orgs that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer

Question 17

What’s the definition of supply chain management?

Answer 17

The management, across and within a network of upstream and downstream organisations, of both relationships and flows of materials, information and resources that lead to the creation of value in the form of products and or services