Supply Chain Design and Strategy Flashcards
What is segmentation?
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
Define market segmentation
Process of dividing a potential market into distinct subsets of consumers, with common needs or characteristics
How can the supply chain department assist in market segmentation?
supply chain can develop different supply chain designs (strategies) to meet the requirements of the customer (perceived value)
What model can you use to segment customers based on their values?
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
What ways can you segment customers based on their importance to the org?
profitability, location, size, volume of purchases
Describe Ansoff’s product-market matrix
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
What model can you use to assess the importance of a supplier to an organisation (supplier positioning)?
Kraljic matrix - non-critical, bottleneck, leverage, strategic
What model can you use to assess the way in which a supplier sees your organisation (supplier preferencing)?
Spend vs attractiveness - nuisance, exploitable, development, core
What 3 areas do organisations need to embrace when developing supply networks?
Collective strategy development, win-win thinking, open communication
Describe the elements of Porter’s Value Chain
Primary - inbound logistics, operations, outbound logistics, marketing and sales, services
Secondary - procurement, tech development, HR, firm infrastructure
When carrying out a Value Analysis what are the 3 aspects that need to be assessed when reviewing Porter’s value chain?
Sub-activities of primary and secondary activities, linkages, opportunities
What is Supply Chain network optimisation modelling?
it uses computer software to assess risks and rewards for a range of different scenarios base on supply chain demand, cost and capacity
what are the 4 basic building blocks of distribution system configuration?
channel design, logistics for, physical network configuration, integration & collaboration strategy
what considerations does distribution system configuration that into account?
choice of channels, type, size, location of depots, warehouses, distribution centres, appropriate inventory policy, use of planning technology
what is channel design?
determining the number & types of intermediaries involved in getting goods from A to B
Aim- to deliver value and retain customer loyalty
what is logistics flow path design?
the way in which products or services physically flow from production to customer
what are the 4 factors that impact logistics flow path design according to Thomas & Tang
complexity of logistical operations
org’s supply/value chain positioning
customers logistical sophistication
org’s target market & product/service portfolio
what is the physical network configuration
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?
what are the 7 wastes according to Ohno?
over production, waiting, transport, inappropriate processing, inventory, unnecessary movements, defects
what management tools can you use to help with lean thinking?
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
describe agile supply
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
what issues can occur from not having accurate forecasting?
nothing to do no stock no material to work on excess stock poor performance unhappy customer
according to Githens, what are the 5 steps to improving demand forecasting and planning?
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)
