M1ACh1

Question 1

What are the ten common characteristics of a supply chain at Stage 2 (Semi-functional enterprise) supply chain maturity?

Answer 1

• no partnerships
• reactive efficient
• places greater importance on technology
• efficient inventory management
• procurement strategy to lower cost
• strategic selection of carriers and lanes to lower cost
• more hard skills training
• reliable research and forecasting
• MRP software in place, cross-functional integration

Question 2

What are twelve common characteristics of a supply chain at Stage 3 (Integrated Enterprise) supply chain maturity?

Answer 2

• focus on company wide business processes
• introduction of enterprise wide software
• increased cross-functional communication and training
• centrally located and easily accessible databases
• periodic sales and operations meetings
• proactive efficient
• instigates changes to product design for efficiency
• sharing of information across functions
• inventory is strategic (just in time) with more accurate demand and planning and logistics
• warehouse automation
• warehousing and logistics work in tandem
• contract with logistics supplier

Question 3

What are the four flows of a supply chain?

Answer 3

• information
• primary product flow
• primary flow of cash
• reverse flow of product

Question 4

What is the process for developing supply chain strategy?

Answer 4

• align with business strategy
  
  • review business, financial plans, competitive advantage, core capabilities and
    avoided areas
  • info on external environment
  • review sc capacity, resilience, sustainability and adaptablility (actualized strategy)
  • how it relates to strategy 1 and 2
• create supply chain strategy
  
  • define customer service objectives
  • select revenue model
  • map objectives
  • align in-house vs. contracted models
  • document, present, get feedback, monitor and adjust accordingly

Question 5

1) In its narrowest sense, an organization that provides an intangible product (e.g. medical or legal advice) 2) In its broadest sense, all organizations except farming, mining and manufacturing,. includes retail trade; wholesale trade, transportation and utilities; finance, insurance, and real estate; construction; professional, personal, and social services; and local, state, and federal governments.

Answer 5

service industry

Question 6

The design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally.

Answer 6

supply chain management

Question 7

The process of developing a strategic plan.

Answer 7

strategic planning

Question 8

What is vertical integration, and what is the primary benefit?

Answer 8

The practice of bringing the supply chain into one organization.
Primary benefit is control (i.e. Henry Ford)

Question 9

What is lateral/horizontal integration, and what is the primary benefit?

Answer 9

Where the organization specializes in its core competencies and relies on other specialists for the rest of the supply chain.
To achieve economies of scale and scope.

Question 10

What are the types of supply chains for the four stages of maturity?

Answer 10

Stage 1 - multiple dysfunction - reactive supply chain
Stage 2 - semi functional enterprise - reactive efficient
Stage 3 - integrated enterprise - proactive efficient
Stage 4 - extended enterprise - strategic driver

Question 11

A form of cooperative relationship among companies in Japan where the companies largely remain legally and economically independent, even though they work closely in various ways such as financial backing. A member of [this] generally owns a limited amount of stock in other member companies. [It] generally forms around a bank and a trading company, but ‘distribution’ (supply chain) alliances [of this type] have been formed of companies ranging from raw material suppliers to retailers.

Answer 11

keiretsu

Question 12

What are the three strategies of a business?

Answer 12

business strategy - how it will compete
organizational strategy - how it will execute
supply chain strategy - how the supply chain will support business and organizational strategy

Question 13

What are the four stages of supply chain evolution

Answer 13

Stage 1 - multiple dysfunction
Stage 2 - semi functional enterprise
Stage 3 - integrated enterprise
Stage 4 - extended enterprise