Supply Chain Design and Strategy

Question 1

What is segmentation?

Answer 1

allocate a strategy for suppliers, customers, products and services depending on the importance to the organisation - The segment will determine the type and quantity or resource

Question 2

Define market segmentation

Answer 2

Process of dividing a potential market into distinct subsets of consumers, with common needs or characteristics

Question 3

How can the supply chain department assist in market segmentation?

Answer 3

supply chain can develop different supply chain designs (strategies) to meet the requirements of the customer (perceived value)

Question 4

What model can you use to segment customers based on their values?

Answer 4

The PADI buyer value framework - Dr. Chorn
Pragmatism - demanding, results driven, competitive, quick response. Time an price driven. not loyal
Administration - accuracy, reliability, consistency. Price sensitive, discounts & efficiency
Divergence - innovation, creativity, flexibility. lower price sensitivity
Integration - caring, teamwork, partnership. Loyal, lower price sensitivity

Question 5

What ways can you segment customers based on their importance to the org?

Answer 5

profitability, location, size, volume of purchases

Question 6

Describe Ansoff’s product-market matrix

Answer 6

Looks at growth strategies with existing and new products and markets.
Market Penetration - greater market share, selling more of the same
Product Development - new products to current market
Market Development - same products new market
Diversification - new products and new markets

Question 7

What model can you use to assess the importance of a supplier to an organisation (supplier positioning)?

Answer 7

Kraljic matrix - non-critical, bottleneck, leverage, strategic

Question 8

What model can you use to assess the way in which a supplier sees your organisation (supplier preferencing)?

Answer 8

Spend vs attractiveness - nuisance, exploitable, development, core

Question 9

What 3 areas do organisations need to embrace when developing supply networks?

Answer 9

Collective strategy development, win-win thinking, open communication

Question 10

Describe the elements of Porter’s Value Chain

Answer 10

Primary - inbound logistics, operations, outbound logistics, marketing and sales, services
Secondary - procurement, tech development, HR, firm infrastructure

Question 11

When carrying out a Value Analysis what are the 3 aspects that need to be assessed when reviewing Porter’s value chain?

Answer 11

Sub-activities of primary and secondary activities, linkages, opportunities

Question 12

What is Supply Chain network optimisation modelling?

Answer 12

it uses computer software to assess risks and rewards for a range of different scenarios base on supply chain demand, cost and capacity

Question 13

what are the 4 basic building blocks of distribution system configuration?

Answer 13

channel design, logistics for, physical network configuration, integration & collaboration strategy

Question 14

what considerations does distribution system configuration that into account?

Answer 14

choice of channels, type, size, location of depots, warehouses, distribution centres, appropriate inventory policy, use of planning technology

Question 15

what is channel design?

Answer 15

determining the number & types of intermediaries involved in getting goods from A to B
Aim- to deliver value and retain customer loyalty

Question 16

what is logistics flow path design?

Answer 16

the way in which products or services physically flow from production to customer

Question 17

what are the 4 factors that impact logistics flow path design according to Thomas & Tang

Answer 17

complexity of logistical operations
org’s supply/value chain positioning
customers logistical sophistication
org’s target market & product/service portfolio

Question 18

what is the physical network configuration

Answer 18

modelling analysis used to develop a set of strategic decisions that will optimise all the network variables
it asks: what level of Inventory is suitable, where to located distribution facilities, who’s being served, type of distribution centre, outsource?

Question 19

what are the 7 wastes according to Ohno?

Answer 19

over production, waiting, transport, inappropriate processing, inventory, unnecessary movements, defects

Question 20

what management tools can you use to help with lean thinking?

Answer 20

value engineering, value analysis, JIT, cross-functional teams, integrated information systems

lean requires: close supply partnerships, based on single or dual sourcing, info transparency, (high volume, low variability)
Lemming-
systems: EDI, JIT, ESI, cost transparency, kanban
behaviours: kaizen, TQM, joint cost reduction prog
strategies: international collaboration, single/dual sourcing, optimise customer value

Question 21

describe agile supply

Answer 21

responsive, quick, adapts to change easily, (low volume, high variability)

requires agility of all orgs in the SC - it is a business wide capability that embraces org structures, logistic processes & mind sets

Question 22

what issues can occur from not having accurate forecasting?

Answer 22

nothing to do
no stock
no material to work on
excess stock
poor performance
unhappy customer

Question 23

according to Githens, what are the 5 steps to improving demand forecasting and planning?

Answer 23

1- statistical forecasting (trends, seasons)
2- promotions management (impact of past and future)
3- causal event management (competitor promotions)
4- demand plan integration (int & ext stakeholders)
5- reduce variability (demand aggregation & management)