Supply Chain Management Description Part 1 Flashcards
It involves various participants who perform a sequence of activities in moving physical goods or services from a point of origin to a point of consumption.
supply chain
Supply chain involves various _________ who perform a sequence of activities in moving physical goods or services from a point of origin to a point of consumption.
participants
The APICS Dictionary defines a supply chain as “the __________ used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash.”
global network
downstream order of supply chain
- source supplier
- manufacturer
- distributor
- retailer
- customer
upstream order of supply chain
- customer
- retailer
- distributor
- manufacturer
- source supplier
Key Characteristics of a Supply Chain:
- can only be formed if there are ____________ participating companies
- participating companies within a supply chain normally do not belong to the same business ownership, and hence there is a __________ in between
- companies are inter-connected on the common commitment to ________ to the steam of material flow that run through the supply chain
more than one, legal independence, add value
It is simply and ultimately the business management, whatever it may be in its specific context, which is perceived and enacted from the relevant supply chain perspective.
supply chain management
‘To be fully effective in today’s competitive environment, firms must expand their integrated behavior to incorporate customers and suppliers. This extension, through __________, is referred to as supply chain management.’
external integration
It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities.
supply chain management
Supply chain management encompasses the ___________ involved in sourcing and procurement, conversion, and all logistics management activities.
planning and management of all activities
Supply chain management also includes ________ and _______ with channel partners, which can be suppliers, intermediaries, third party service providers, and customers.
coordination, collaboration
It integrates supply and demand management within and across companies.
supply chain management
Any supply chain management practice and activities is captured by the three conceptual components which are: _________, ________, and ________.
supply chain configuration, supply chain relationship, supply chain coordination
It is about how a supply chain is constructed from all its participating firms. This includes how big is the supply base for OEM; how wide or narrow is the extent of vertical integration; how much of the OEM’s operations are outsourced; how the downstream distribution channel is designed; and so on.
supply chain configuration
It is also known as supply chain architecture.
supply chain configuration
The decision on _________ is strategic and at a higher level.
supply chain configuration
It is about inter-firm relationships across the supply chain albeit the key focus of relationship is often around the OEM and its first-tier suppliers and first tier customers and the relationship in between.
supply chain relationship
In a supply chain relationship, the type and level of the relationship is determined by the contents of __________.
inter-organizational exchanges
type of relationship given that they only exchanged the volume and price of the transaction
arm’s length
type of relationship given that the parties exchanged their vision, investment planning, NPI process and detailed financial information
close partnership
The decision on _________ is both strategic and operational.
supply chain relationship
It refers mainly to the inter-firm operational coordination within a supply chain.
supply chain coordination
It involves the coordination of continuous material flows from the suppliers to the buyers and through to the end-consumer in a preferably JIM manner.
supply chain coordination
_________ throughout the supply chain could be a key focal point for the supply chain coordination.
inventory management
The decision on the _______ tends to be operational.
supply chain coordination
As global competition increases and businesses extend their reach into foreign markets, they become more dependent on their supply chains. A supply chain depends on the _______ of each of these participants.
continued profitability
difference between revenue and costs
total profit
Regardless of the means taken to achieve business goals, all firms need to synchronize the flows of _____, _______, and _____.
products, information, funds
Supply Chain Management Today - Development Trends
- functional to process perspective
- operational to strategic viewpoint
- single enterprise to extended enterprise
- transactional to relationship-based engagement
- local to regional, and regional to global
Supply Chain Management Tomorrow - Obstacles to Supply Chain Integration
- need for globalization
- complexity of arranging entities with common interests
- lack of effective interorganizational systems
- need for multiple supply chains within companies
- lack of trust between participants
It is the supply chain for just one part used in a product.
pipeline
The Four Intrinsic Flows of a Supply Chain
- Material Flow
- Information Flow
- Finance Flow
- Commercial Flow
from the raw materials at the beginning of the supply chain to the finished products at the end of the supply chain
material flow
the money flow or the blood stream of a supply chain
Finance Flow
the transactional process of buying and selling shifts the material flow’s ownership from the supplier to the buyer repeatedly until the end of the supply chain - the end-consumer
Commercial Flow
Supply chain management is concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed:
- in the right quantities
- to the right locations
- at the right time
