Lecture 2 Flashcards
What is the value chain?
It’s about understanding a firms competitive edge
Porters framework distinguishes between primary and support activities
Value chain analysis operates by separating the firms functions at board and finer levels
What is competitive advantage?
Firms ability to outperform rivals on the primary performance goal
What are cost drivers?
Improve the value to the ultimate consumer
Reduce costs
What are drivers of uniqueness?
Making them fit the needs of the customer better
What is supply chain integration?
The alignment and interlinking of business processes
Embodies various communication channels and linkages within a supply network
Enables collaboration but is possible without it
What is collaboration?
Relationship between supply chain partners developed over a period of time
Relies on the provision of mutual benefit, mb is difficult to achieve and trust becomes an issue
What is functional organisation?
All working along side each other
No change in the way they work
What is matrix organisation?
Efficient and flexible structure
Good market adaptation
Can respond fast to customer demand, less less time
Not good for stagnant environment (should use functional)
What is product/process oriented organisation?
People involved in each product specifically associated with each activity
What’s internal integration?
Mode 1
To incorporate communication and info systems to optimise their effectiveness and efficiency
Access to an integrated communication and info system spanning multiple activities and functions, to increase effectiveness
Trying to get parts to work better together
What is external integration?
Each company works together to achieve the same goal
Electronic Data Interchange (EDI) is a key enabler
What is the prisoners dilemma?
Do you trust your partner to make the same decision as you ?
What’s the journey from open market negotiations to collaboration?
Open market negotiations (price based discussions)
Cooperation (fewer suppliers, LT contracts)
Coordination (EDI exchange, linkages)
Collaboration (SC integration, Technology sharing)
What are the 2 dimensions of collaboration applied to transport management?
Vertical collaborative transport management (suppliers and customers)
Horizontal collaborative transport management (other orgs and competitors)
What is CPFR?
Collaborative planning, forecasting and replenishment
Combines intelligence of multiple trading partners in the planning and fulfilment of customer demands
