Session 1 Flashcards
Transport cost sensitivity
The relationship of transport costs to freight value: High sensitivity implies minor changes in transport rates will have a major impact on transport choice decisions
Consignment
A shipment of freight which is passed on, usually to some type of logistics service provider, from a manufacturer or other source
Deregulation
Reduction/removal of various government-imposed barriers that hinder competition in markets
Downstream
Customer end of the supply chain
Intersectionist view
Suggest that there is overlap between parts of both logistics and SCM, but also that each has parts that are separate and distinct
Logistics
The process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods including services, and related information from the point of origin to the point of consumption for the purpose of conforming
Material substitution
Replacement of physical product by virtual product
Re-labelling view
Contends that logistics has been re-labelled by the more recent term SCM
Supply chain
The supply chain is the network of organisations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumers
Traditionalist view
Regards SCM as a subset to logistics, as if it were and add-on to logistics
Unionist view
Logistics is seen as part of a wider entity, SCM
Upstream
Supplier end of the supply chain
Vertical integration
Ownership, or at least control, of upstream suppliers and downstreams customers
Supply chain management
Supply chain management is the management, across and within a network of upstream and downstream organisations, of both relationships and flows of material, information and resources. The purposes of SCM are to create value, enhance efficiency and satisfy customers
