M1BCh2 Flashcards
How do you make a supply chain resilient?
With redundancy and flexibility.
The Gap, Inc. has three separate but overlapping supply chains on different continents. How do they work?
Old Navy - Cost conscious consumers, sourcing in China
The Gap - Trendy with midpoint pricing. South America for speed and flexibility
Banana Republic - Better quality, supply chain in Italy
Networks back each other up in case of disruption
How is agility measured with the SCOR model?
By the ability to ramp up or down in production without major cost or disruption.
Why can supply chains not skip development stage?
Collaborative capacity takes time to mature.
Definition: A model of how the organization operates regarding information. The model considers four factors:
1. Organizational functions
2. Communication of coordination requirements
3. Data modeling needs
4. Management and control structures
This should be aligned with and match the architecture of the organization
Information system architecture
What is Sneffi & Rice’s argument on resilience?
Resilience is based on its competitive position and its ability to withstand disruption. By being resilient they will reinforce their position.
Definition: The determination of how to structure a supply chain. It includes selection of partners, the location and capacity of warehouse and production facilities, the products, the modes of transportation, and supporting information systems.
Supply chain design
Definition: The process of identifying a company that provides a needed good or service
Sourcing
Definition: A measure (usually expressed by a percentage) of satisfying demand through inventory or by the current production schedule in time to satisfy the customers’ requested delivery dates and quantities. In a make-to-stock environment, this is sometimes calculated as the percentage of orders picked complete from stock upon receipt of the customer order, the percentage of line items picked complete, or the percentage of total dollar demand picked complete. In make-to-order and design-to-order environments, it is the percentage of times the customer-requested or acknowledged date was met by shipping complete product quantities.
level of service
Definition: The ability of a supply chain to anticipate, create plans to avoid or mitigate, and/or to recover from disruptions to supply chain functionality
supply chain resilience
How are strategic decisions made in regards to technology?
Must be selected by specialists
Keep eye out for bottlenecks
How frequently data should be transferred
How data will be analyzed and used
Determine impact of internet and e-commerce
Design and set up infrastructure between partners
Integrating IT and decision
How is supply chain network optimization accomplished?
Through network modeling and operations researchd.
- math algorithms for least or best cost
- simulation models
What is the goal of information infrastructure design within information systems architecture?
- how to translate policies and controls to minimize data duplication and errors, provide appropriate access and support analysis
- what software and how to configure
- analysis and cost benefit of switching, upgrading or purchasing software
How are strategic decisions made in regards to customers and markets?
Configure to meet customer needs and trading partner capacities
How are strategic decisions made in regards to key processes and flows?
Select processes that are central to supply chain strategy, measure and benchmark them, and focus your attention on one process or a small number of manageable processes.
How are strategic decisions made in regards to sourcing?
Trend is to outsource non-core activities, but with growth, locate partners strategically based by climate, culture, resources, tax policy, etc.
What four factors comprise information systems architecture?
- organizational functions
- communication and coordination requirements
- data modeling needs
- management and control structures
What does the information strategy component of information systems architecture accomplish?
Sets the guiding principles, priorities, and goals of network design.
In which component of organizational architecture in an extended supply chain is business modeling included?
Information content definition
What should organizations in Stage 1 - Multiple Dysfunction focus on to optimize their supply chain network?
- standardize internal processes
- become internet and mobile device capable
- leverage continuous improvement measures
- phased approach, focus on procurement and logistics for 5-8% savings
What should organizations in stage 2 - semi functional enterprise focus on to optimize their supply chain network?
- appoint leader experienced in external integration
- start in areas that can be altered but doesn’t affect market performance (i.e. bulk discount)
- focus on lean strategies to cut transportation, warehousing, inventory, and equipment cost
What should organizations in stage 3 - integrated enterprise focus on to optimize their supply chain network?
- cultural and technical resistance to change
- get a visionary leader from business unit and IT officer
What should organizations in stage 4 - extended enterprise focus on to optimize their supply chain network?
- maintaining this stage
- development of human and technological supply chain expertise
- fully integrated performance management system
- tech continuous improvement
- adaptable and scalable software solutions
What are the cross-functional and cross-business teams?
executive team - sets the pace and examines strategies
technology team - examines requirements for databases, networking, software, and configuration
buying team
making team
selling team
inventory team
delivery team
