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Supply Chain > Supply Chain New Stuff > Flashcards

Supply Chain New Stuff Flashcards

1
Q

5 goals of firms regarding their supply chain management

A 
Ensure timely availability of resources
Reduce total costs
Enhance quality
Access technology and innovation
Foster sustainability
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2
Q

Steps of the strategic sourcing process

A 
Analyze spend & markets
Develop sourcing strategy
Identify potential suppliers
Assess & select suppliers
Manage relationship
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3
Q

Spend analysis

A

process to understand what purchases are being made and at what price from which suppliers

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4
Q

4 types of sourcing strategies or relationships

A

Strategic
Leverage
Bottleneck
Noncritical

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5
Q

Strategic

A

build collaborative partnerships

High level or risk and high value of spend

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6
Q

Leverage

A

Standardize purchases and use competition to select suppliers
Low level of risk and high value of spend

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7
Q

Bottleneck

A

Use multiple sources and find substitute materials

High level and risk and low value of spend

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8
Q

Noncritical

A 
Increase inefficiencies (VMI)
Low level or risk and low value of spend
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9
Q

Sourcing strategy must consider (3 things)

A

Number of suppliers to use, capabilities and location of suppliers, and type of relationship and contract length

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10
Q

4 Types of relationships and their definitions

A

Adversarial- lots of distrust, limited communications and short-term transactions (buyers minimize dependency on suppliers)
Arms-length- more purchasing transactions, but less distrust and antagonism between the two parties
Relationships with mutual goals- major step towards collaboration, but lacks the commitment of a full partnership
Full partnership- close working relationships with trust, mutual respect and highly integrated operations

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11
Q

Competitive bidding

A

suppliers submit bids to win the buyers business (RFP and then buyer rates the potential suppliers)

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12
Q

Online reverse auctions

A

Allow suppliers to competitively bid for buyer’s business in real time (drive prices lower rather than higher)

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13
Q

Negotiation

A

supplier is qualified, but they negotiate terms of contract. This is the preferred method of supplier selection (requires early supplier involvement)

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14
Q

Strategic suppliers and strategies

A

market leaders, specific know-how, buyer or supplier can have more power
create mutual commitment and long-term relationship

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15
Q

Leverage suppliers and strategies

A

many competitors, commodity products, buyer dominated

Obtain best deal for short-term

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16
Q

Bottleneck suppliers and strategies

A

technology leaders, few or only one supplier alternative, supplier dominated
Secure short and long term supply and reduce risk

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17
Q

Noncritical suppliers and strategies

A

larger supply, many suppliers with dependent position, reduce number of suppliers
Reduce logistics complexity and improve operation efficiency

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18
Q

Reasons why B2B relationships fail

A 
Lack of clear goal
Cultural distance
Lack of trust
Lack of coordination between management
Difference in operation procedure
Relational risks
Operational risks
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19
Q

How to partner effectively?

A

should be driven by overall corporate strategy

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20
Q

Types of partnerships

A

Arm’s length
Type 1- coordinated activities, planning and short term focus (one division)
Type 2- coordination, planning and integration of activities, long term focus but limited period (multiple divisions)
Type 3- sharing significant levels of operational integration, partners view each other as an extension of own firm, no end date
Joint ventures
Vertical integration

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21
Q

Benefits of partnering

A

Improve assets/cost efficiencies
Improve customer service
Enhanced marketing advantage
Profit and stability

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22
Q

Levels of strategic planning

A

Corporate- overall mission of the firm and the types of businesses the firm wants to be in
Business unit- part of the overall firm, but act as a semi-independent organization (use SWOT analysis)
Functional strategic planning- determines how the function will support the overall business unit strategy

23
Q

Critical customer

A

customer receiving priority because it is critical to the firm’s current or future success

24
Q

Value proposition

A

all of the intangible and tangible benefits that customers can expect to receive by using the products offered by the firm

25
Q

Order-winners, qualifiers and losers

A

Order-winners- traits that cause customers to choose a product over a competitor
Order-qualifiers- trait that must be met at a certain level for the product to even be considered
Order-losers- traits that, if not satisfied, cause loss of current or future orders

26
Q

4 characteristics of a good value proposition

A

Offers a combination of features that a customer is willing to pay for
Differentiates the firm from its competition
Satisfied the financial and strategic objectives
Reliably delivered given the capabilities of the firm and its supporting supply chain

27
Q

Capabilities

A

operation activities that the firm can perform well

28
Q

Core capabilities

A

skills, processes and systems that are unique to the firm and enable it to deliver products that are difficult to imitate for competitors

29
Q

Fit

A

exists when operation capabilities support the value proposition and the outcomes desired by critical customers

30
Q

Lean system

A

improve efficiency by eliminating waste (aka just-in-time manufacturing)

31
Q

Benefits of a lean system

A

lower breakeven amount by increasing the contribution amount and reducing fixed costs
Lower variable production costs (labor, materials and energy)
Make smaller quantities and allow niche marketing

32
Q

Objectives and principles of a lean system

A

only produce what customers want
only as quickly as customers want
with only feature that customers want
with perfect quality
with minimum lead times
with no waste of labor materials or equipment
using methods that reinforce development of workers

33
Q

Steps to achieve lean system principles

A

Precisely specify value for each specific product
Identify the value stream for each product
Make value flow without interruptions
Let the customer pull value from the producer
Pursue perfection

34
Q

Reasons for employees being critical in a lean system

A

Acceptance- lean requires acceptance from the top down
Source of flexibility- flexible to meet customer demand
Working in teams
Power in their hands- responsibility of improving product quality (frontline workers)

35
Q

Beliefs of lean

A

Data solves problems
Waste is a symptom- result of a problem elsewhere
Goals are to be met- realistic, achievable goals
Standardization is fundamental to performance improvement
Process orientation- if you don’t like the outcomes, then change the process

36
Q

Triple bottom line

A

measures and attempts to reduce potentially negative impacts of a firm’s process on people, planet and profits

37
Q

Life Cycle Assessment

A

a tool that helps assess the full impact of waste in everything that goes into a product

38
Q

5 stages of life cycle assessment

A

Extraction- getting inputs
Production- costs incurred to produce finished good
Packaging/transport- includes wasted material and energy for packaging
Usage- waste related costs in use including maintenance repair and operation
Disposal or recycling costs- costs incurred at the end of the product life cycle

39
Q

5 Categories of waste

A 
material choice
energy usage
solid residuals
liquid residuals
gaseous residuals
40
Q

4 key stakeholders

A

customers
workers
suppliers
investors

41
Q

Typical supply chain strategies

A

Continuous replenishment- close relationship, high predictability of demand
Lean- not close relationship, high predictability of demand
Fully Flexible- close relationship, low predictability of demand
Agile- not close relationship, low predictability of demand

42
Q

Agility

A

a firm’s responsiveness to external stimuli

43
Q

Reacting quickly requires

A

Spare capacity
Accurately forecasting capacity
Switch into high priority production when necessary

44
Q

Being able to deliver in a short time requires

A

spare capacity
power over suppliers
close relationships with suppliers
good scenario planning

45
Q

Solving Lead time gap

A

Source- same country suppliers and near shoring
Make- re-design and new technology
Deliver- closer to customer and faster transportation

46
Q

Lead time gap

A

The gap between the source of discovering customer demand and the customer’s order cycle. We want to shrink the lead time gap as much as possible for agility

47
Q

Drivers

A

compelling reasons to partner

48
Q

Facilitators

A

supportive environmental factors that enhance partnership growth (corporate comparability, physical proximity

49
Q

Possible facilitators in relationships

A 
Corporate comparability
Compatible management philosophy
Strong perspective of mutuality
Symmetry between the two parties
Shared competitors
Physical proximity
Prior relationship experience
50
Q

General outcomes of partnership

A

Global performance outcomes
Enhancement of profits
Leveling the flow of profits over time

51
Q

Effective supply chain evaluation audit

A 
flexible
comprehensive
objective
mathematically straightforward
reliable
52
Q

Strategic competitiveness

A

when a firm successfully formulates and implements a value-creating strategy

53
Q

Strategy

A

an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage

Supply Chain (8 decks)

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