Module 1: Intro to Supply Chain Managment

Question 1

What are the 7Rs of Supply Change Management (SCM)?

Answer 1

• right products and services to the
• right customers at the
• right cost
• right quantity
• right quality
• right time, and
• right place

Question 2

Business Analytics

Answer 2

The application of statistical techniques and programming in the process of capturing, sorting, sorting and transforming data into insightful knowledge and information for effective business decision making.

Question 3

What are the Four Types of Business Analytics?

Answer 3

1) Descriptive Analytics
2) Diagnostic Analytics
3) Predictive Analytics
4) Prescriptive Analytics

Question 4

Define Descriptive Analytics

Answer 4

Tells you WHAT happened.
Provides hindsight.

Descriptive analytics typically use a real-time dashboard to visualize, present, and report what is going on based on collected data.

Examples include:
- sales performance for various product categories
- financial performance for past months
- customer categories based on shopping patterns and styles

Question 5

Define Diagnostic Analytics

Answer 5

Tells you WHY that happened.
Provides insight.

Diagnostic analytics is the use of data to explore, determine, and explain what has happened and why something happened.

Examples include:
- quality monitoring with statistical process control
- maintenance engineers using diagnostics data to identify the cause for a jet engine failure

Question 6

Define Predictive Analytics

Answer 6

Tells you WHAT MIGHT HAPPEN NEXT.
Provides foresight.

Predictive analytics is the use of data to discover and identify patterns and trends to predict what will happen in the future.

Examples include:
- aggregate demand forecasting based on historical sales data
- specific products purchase prediction based on customers’ previous shopping history and patterns

Question 7

Define Prescriptive Analytics

Answer 7

Tells you WHAT YOU SHOULD DO NEXT.
Recommends decisions, actions, or strategies based on forecasts.

Prescriptive analytics is the use of data to reveal what actions should be taken to make best possible recommendations for next steps.

Examples include:
- the use of social media data, types of communications, reviews, comments to determine the best marketing campaign strategies, pricing optimization, and best product design features
- delivery route optimization based on customer locations, traffic information, road work, etc.
- safety stock and inventory level recommendations for different stock keeping units (SKUs)

Question 8

What are some benefits of blockchain

Answer 8

• synchronize transactions
• improve data reliability
• increase trust

Question 9

5 Steps to Develop a Supply Chain Analytics Team

Answer 9

1) Understand the fundamentals
2) Gain comfort with statistics
3) Learn to access and manipulate data
4) Know the tools and how to use them
5) Hone data visualization skills

Question 10

Supply Chain Drivers

Answer 10

1) Facilities (location, capacity)
2) Inventory (volume)
3) Transportation (right mode and cost)
4) Information (data)
5) Sourcing (evaluating suppliers)
6) Pricing (differential pricing)