SCM Flashcards
What is a value chain?
Sequence of activities converting inputs into valuable outputs.
What are primary activities in a value chain?
Direct activities creating value, like logistics, operations, sales.
What are secondary activities in a value chain?
Support activities, like HR and finance, aiding primary activities.
Example of a PRIMARY type activity in a value chain?
Inbound logistics, operations, or marketing.
What is a supply chain?
Flow of materials, information, money, and services to customers.
What are the three sections of a supply chain?
Upstream, internal, and downstream.
What is the ‘upstream’ part of a supply chain?
The supplier end of the chain.
What is the ‘downstream’ part of a supply chain?
Distribution of products to customers.
Three flows within a supply chain?
Material flows, information flows, financial flows.
Difference between a supply chain and a value chain?
Supply chain is an external network; value chain is internal.
What is the main goal of Supply Chain Management (SCM)?
To optimize activities from sourcing to customer delivery.
List the main components of SCM.
Plan, Source, Make, Deliver, Return (info and actual returns of products)
What does ‘Plan’ mean in SCM?
Develop strategies and metrics for managing the supply chain.
What does ‘Source’ involve in SCM?
Selecting suppliers and creating purchasing contracts.
What is the ‘Make’ component in SCM?
Scheduling production and ensuring product quality.
Define the ‘Deliver’ component in SCM.
Fulfill orders, choose transport, and handle invoicing.
What is the ‘Return’ component in SCM?
Manage defective/excess products and customer issues.
What are Interorganizational Information Systems (IOS)?
Systems supporting SCM across different partners.
Benefits of Interorganizational Information Systems (IOS)?
Reduce costs, improve info flow, and eliminate paper processes.
What is the push model in SCM?
Production based on demand forecasts (make-to-stock).
What is the pull model in SCM?
Production starts with customer orders (make-to-order).
Key advantage of the pull model?
Lower inventory costs and enables customization.
An example of a company using the pull model?
Dell uses pull model for custom computers.
Main problems in supply chain management?
Uncertainties and coordination complexities.
What is the bullwhip effect?
Demand forecast errors magnifying up the supply chain.
How does Vendor-Managed Inventory (VMI) help in SCM?
Reduces the bullwhip effect by supplier managing stock.
Example of Vendor-Managed Inventory in action?
Walmart provides P&G with real-time sales data.
What is EDI in SCM?
Electronic Data Interchange - standard for routine electronic documents.
Key advantage of EDI in SCM?
Reduces data entry errors and speeds up processes.
What is RFID in SCM?
Technology for tracking products using radiofrequency tags.
Benefits of RFID over barcodes?
No direct contact needed, more data storage.
How does blockchain benefit SCM?
Enhances transparency and security in supply chains.
Example of blockchain in SCM?
Walmart Canada uses blockchain to track products.
What is back order in SCM metrics?
An unsatisfied order due to insufficient stock.
What is the inventory replenishment cycle time?
Time from production to deployment in distribution.
Best practice for SCM partners?
Realign processes to show commitment to partnership.
How should SCM partners handle performance?
Establish clear metrics for roles and goals.
Security in SCM best practices involves what?
Protecting data exchanged between partners.
How does information sharing help SCM?
Improves demand forecast and reduces stock issues.
Key impact of Vendor-Managed Inventory?
Minimizes bullwhip effect and improves stock control.
