Lecture 1 - Supply Chain Basics Flashcards
What is the sourcing process?
1) Make/buy decision
2) Category management
3) Supplier selection
4) Contracting and negotiation
5) Supplier relationship management
What is a supply chain?
“A supply chain consists of all parties involved directly or indirectly in fulfilling a customer request”
Chopra and Meindl, 2004
What is the process of strategic alignment?
Corporate strategy level
Business strategy level
Fluctuation level
Talk through Dell’s supply chain.
Why did dell change their supply chain approach?
CORPORATE LEVEL
Provides innovation and quality products
BUSINESS LEVEL (Direct model) Cost efficiency
FUNCTIONAL LEVEL No warehouses Close supplier relationships No middle man Customisation Modularity Internet ordering opportunities
Changed their supply chain due to: Threats from Apple Price of laptops are continually falling Reduced effect of economies of scale Globalisation pressures
How did Dell respond to facilitate survival in the market through supply chain processes?
Build to order computers ( low volume )
Build to plan (retail)
Build to stock (online/popular configurations)
Build to specification (corporate clients)
What is supply chain management?
SOURCE - MAKE - DELIVER
Procurement - operations - logistics