Midterms Flashcards
set of processes used to effectively and efficiently integrate suppliers, manufacturers, distribution centers, distributions, and retaillers
Supply Chain Management
it also includes coordination and collaboration with channel partners, which can be suppliers, customers
Supply Chain according to Supply Chain Management Professionals
Provides combination of Product, service or solution to end customer
Common Definition of SCM
Designing, planning, executing, or measuring activities related to:
- Sourcing
- Procurement
- Manufacturing
- Integrated Operations Planning
SCM and Logistics
Use product in additional process or product
Customer
Residential homes that consume food and use appliances
Consumers
- Reduced operating cost
- Increased revenue
- Asset Utilization
Supply chain Value Adds
Supply Chain Application
Involving suppliers, manufacturers, distributors, and retailers for consumer products
Product
Supply Chain Applications:
For items that are being heavily promoted such as end-aisle tasting displays in wholesale clubs.
Promotional
Supply Chain Applications:
Moves bulk products such as grains, metals, and chemicals. In many cases, these materials are relatively low value
Bulk material
Supply Chain Applications:
Applies supply chain principles to talent management, where individual talent represents that products that are moved through the supply chain with the value-added process being training and education.
Talent
Supply chain Applications:
Addresses the increasing volume of product that is sold online from manufacturers or distributors directly consumers.
Business to consumer (B2C)
Supply chain Applications:
Handles product returns for recycling of products, components, reprocessing, and packaging.
Recycling
Supply chain Applications:
Provides facility resources for information-based supply chains, such as servers farms for cloud or social media applications.
Resource
Supply chain Applications:
Provides and sequences the equipment and the building suppliers for construction
Construction
Supply chain Applications:
Recovers material that has reached its useful life in the field.
Recovery
Supply chain Applications:
Provides post-event support for disaster recovery, This includes bringing in equipment for recovery, food and medical care items, and commodities to support reconstruction.
Humanitarian
Supply chain Applications:
Sources and delivers from multiple regions around the world
Global
Supply chain Applications:
Facilitates the handling and delivery of heavy equipment, such as agricultural, construction, or military equipment
Durables
Supply chain Applications:
Moves agricultural product from the farm to the commodity elevator or processing plant.
Agricultural Commodity
Supply chain Applications:
Rapidly introduces new product to the market, this is typically a responsive supply chain that is defined to bring new product variation to market or to have souvenirs such as for movies, athletics events
Innovative
Supply chain Applications:
Specialized requirements include the ability to provide chains for range of products
Military
Supply chain Applications:
Supports the very precise demands for completing.
Clinical trials
Assessment of demand and strategic design to achieve maximum responsiveness to customer requirements
Demand Planning Responsiveness
Development and administration of relationships with customers to facilitate strategic information sharing joint planning and integrated operations
Customer Relationship Collaboration
Ability to execute superior and sustainable order-to-delivery performance
Order Fulfillment & Service Delivery
Participation in production/service development and lean launch
Product/Service Development Launch
Support of manufacturing strategy and facilitation of postponement
Manufacturing Customization
Development and administration of relationships with suppliers to facilitate strategic information sharing, join planning and integrated operations
Supplier Relationship Collaboration
Repair and support of products during their life cylce
Life Cycle Support
Return and disposition of inventories in a cost effective, secure and responsible manner
Reverse Logistics
Achieving a high degree of cooperative behavior requires
Information sharing paradigm
Commitment to focusing collaborative arrangements on planning joint operations
Process specialization paradigm
- Transportation specialists
- Warehousing specialist
Integrated Service Providers
- Environmentally friendly raw materials
- Substitution of environmentally questionable materials.
- Taking environmental criteria into consideration
- Environmental design considerations
Green Supply Chain Management Practices
- Firms Can be Fast Alone, The Goal is Supply Chain Synchronization
- “Hurry up and wait.”
Integrated Supply Chain Management
- Synchronized Operating Environment
- Cycle time compression 10x
- Point in time performance
World Class Supply Chain
Discuss how firms employ supply chain competencies to create competitive advantage
Supply Chain Value Adds
Configure in a customer relevant way while simultaneously increasing quality, productivity and operational excellence.
- Service Excellence —> Effectiveness
- Cost Minimization and Avoidance —> Efficiency
- Value Generation —> Relevancy
- Continuous Improvement —> Sustainability
Supply Chain Value Proposition
- Anticipatory (Push)
- Responsive (Pull or demand driven)
Responsiveness
- Pushed based on forecast
- Essential work is completed prior to experience demand
Anticipatory Business Model (“Push”)
- Seeks to reduce or eliminate reliance on forecast
- Employs joint planning with supply chain partners
Responsive Business Model (“Pull”)
Needs for publicly held firms to delivery quarterly profits, which motivates them to push products to customers
Systems
Globalization Opportunities and Differences
Globalization
90% of global demand is not fully satisfied by local supply
Demand exceeds local supply
Identify and matching the sources of raw materials and components to manufacturers and distributors
Strategic Sourcing
Moving manufacturing and distribution operations to countries with favorable labor costs and tax laws.
Offshoring
Distance of typical order-to-delivery operations
Significant difference for global logistics
Logistics should be managed as an integrated effort to achieve customer satisfaction at the lowest total cost
Logistics Value Proposition
Service benefits, Cost benefits, Value generation
Logistics Value Proposition
The more significant the service failure impact upon a customer’s business, the greater priority placed on error-free logistical performance
Logistics Service Benefits
Having inventory meet customer requirements
Availability
Time required to deliver an order
Operational Performance
Quality of performance, how consistent
Service Reliability
Key to achieving logistical leadership is to master the art of matching operating competency and commitment to key customer expectations
Logistics Value Generation
Gives emphasis on accuracy, work balancing, forecasting and communication
Order Processing
Core customer segmentation, product profitability, and transportation integration
Inventory
integrated nature, integral part of other areas, forward facing logistics
Warehousing, materials handling, and packaging
- Number of Facilities,
- Location
- Ownership arrangement
Facility network design
The operational management of logistics is concerned with movement and storage of inventory in the form of materials, work-in-progress, and finished products
Inventory Flow
Flow of components and product from the raw material provider to the consumer
Facility Network Design
Achieve logistical integration within a supply chain context, six operational objectives must be simultaneously achieved:
- Responsiveness
- Variance Reduction
- Inventory Reduction
- Shipment consolidation
- Quality
- Life Cycle Support
Logistical Integration Objectives
Logistical Integration Objectives:
A firm’s ability to satisfy customer requirements in a timely manner. Importance of information technology
Responsiveness
Logistical Integration Objectives:
Common solutions to safeguard against variance include additional inventory and/or expedited transpotation
Variance Reduction
Logistical Integration Objectives:
Control of asset commitment and turnover
Inventory Reduction
Logistical Integration Objectives:
- Transportation cost is the most significant logistical expenditure
- Transportation cost is directly related to product type, size of shipment, and distance traveled.
Shipment Consolidation
Logistical Integration Objectives:
- Focus on continuous quality improvement
- Total Quality Management (TQM)
Quality
Logistical Integration Objectives:
Few products are sold without some guarantee the product will perform as advertised
Life Cycle Support
Logistical Operating Arrangement:
The potential for logistical services to favorably impact customer experience is directly related to operating system design
Balance of Performance, Cost, and Flexibility
Logistical Operating Arrangement:
Flow of product typically proceeding through an established arrangement of firm as it moves from origin to final destination
- Use of warehouse
Echelon
Logistical Operating Arrangement:
Systems designed to ship product direct to the customers destination from one or a limited number of centrally located inventories
Direct
Logistical Operating Arrangement:
Ideal logistical arrangement, wherein the inherent benefits of echelon and direct logistics structures are combined.
Combined
Logistical Operating Arrangement:
Preplanned contingency strategies to prevent logistical failures, typically on the importance of meeting the needs of a specific customer
Flexible
- Multi-firm operational integration across a supply chain.
- Seeks to coordinate flow of materials, products, and information between supply chain partners to reduce duplication and redundancy
Supply Chain Synchronization
Represents the elements of work necessary to complete the logistics related to customer accommodation, manufacturing, or procurement
Logistics Performance Cycle Structure
Input = Demand
Output = Level of Performance
Logistics Performance Cycle Structure