Supply Chain Management Flashcards
Supply Chain
Interconnected of firms process across other firms and suppliers to produce g/s
Supply Chain Management
synchronization of firms processes with supplies and customers to match flow of materials, services and information with demand
Functions or Steps of SCM (5)
sourcing, purchasing, inventory management, logistics, customer relationship
Customer benefit bundle
defined set of goods and services that customer recognizes, purchases or use
Tier 1 supplier and ex
buy primary material from supplier, etc buy denim for jacket production company
Tier 2 supplier and ex
primary material supplier buys from input used for primary material. Ex denim company buys cotton from external supplier
focal firm (3)
companies that rule the supply chain
provide direct contact to customer
design product or service offererd
Upstream
organizations suppliers and processes for managing relationships with them
downstream
organization’s and processes for distributing and delivering products to final customers
Efficient Common Designs (4)
minimizing inventory
predictable demand
limited product variety
Compete on cost and consistency
Responsive Common Designs (5)
minimize reaction time
high product variety
low demand predictability
inventory stored across the supply chain
compete on customization, quality
Efficient Supplier Perspective (3)
limited excess capacity
work with suppliers to reduce lead time, without increasing costs
selection based on consistency, low prices, on-time delivery
Responsive Supplier Perspective (3)
flexible operations
inventory minimized for expensive finished goods
work with suppliers to reduce lead times, process order & receive shipment
Postponement
Assemble product to a certain point (efficient strategy), send to a warehouse to finish remaining 20% to specifications (responsive). Ex dell computers
Make or Buy Decision
involve more integration or more outsourcing
integration
make decisions (involve more processes and production methods)
outsourcing
buy decision, payment to suppliers to provide needed service and materials
Break-even analysis
help with make or buy decision: quantity for cost to buy = cost to make
Internalization forms (4)
Offshoring
Vertical integration
backward integration
forward integration
offshoring
relocate processes and production in another country
Vertical Integration
internalize activities across tiers of supply chain
backward integration
movement upstream towards source of raw material
forward integration
movement downstream, acquiring distribution channels
Inventory Pooling
store finished goods at manufacturer and ship to customer, merges variable demand
Forward Placement (more safety stock)
locating stock closer to customers at a warehouse, wholesaler etc
Supplier relationships (5)
Sourcing
Design Collaboration
Negotiation
Buying
Information Exchange
Sourcing
seeking out and evaluating suppliers
cost, quality and delivery
Performance Matrix
Assign weights to different criteria for suppliers etc W1S1 + W2S2…..WKSK
Design Collaboration (3)
Early Supplier Involvement
Presourcing
Value Analysis
Early Supplier Involvement
supplier expertise in creation of new products/services to increase efficiency of operation
Presourcing
suppliers selected early in design process and given responsibility for specific component
Value Analysis
effort to reduce cost or improve performance of service or products
Competitive Negotiation (4)
suppliers as competition
zero-sum game
short-term advantage
leverage purchasing power
Cooperative Negotiation (4)
suppliers and partners
mutually beneficial objectives: share and trust
long term orientation
better when few suppliers/sole sourcing
Buying (5)
Electronic Data Interchange (EDI)
Catalogue Hubs
Exchanges
Auctions
Reverse Auctions
Electronic Data Interchange
Technology that enables transmission of standard documents in standard format
Catalogue Hubs
enable employees to place orders for approved items
Exchanges
Online marketplace, necessary purchases
Auctions
exchange where competitive bids are placed
Reverse Auctions
bid for contracts with buyers, compete to offer lowest price
Information Exchange
transmission of forecasts, schedules, inventory and data
Radio Frequency Identification
radio signals and transponders attached to labels to track real time info about products
Vendor Managed Inventory
firm locates inventory at customer facility and responsible for managing it
Bullwhip effect
ordering patterns show increasing variance as you move upstream
Bullwhip example
Grocery ordering is constant, distribution is more variable, warehouse is extremely variable
Supply Chain Dynamic External Causes (3)
change to order size and product mixes, late deliveries, underfilled shipments
Supply Chain Dynamic Internal Causes (4)
shortages from breakdown or low productivity, order batching, new or changes to product design, promotions
