Supply Chain-Quiz 1 Flashcards
What are the 8 sources of supplier complexity?
Network, process, range, product, customer, supplier, organizational, information
Network Complexity
- Growing number of nodes and links
- Outsourcing
- Lack of visibility beyond tier 1
- risk
Process Complexity
- Haphazard processes
- Additions and modifications over time
- Changing requirements
Range Complexity
- SKU proliferation
- Product introductions, new sizes or variants and brand extensions > elimination of products
- 80/20 rule moving towards 90/10
Product Complexity
- Design of product
- Materials, components, channels
- lack of product consistency
Customer Complexity
- Non-standard service options
- Customized solutions
- Only valuable if customer is willing to pay
Supplier Complexity
- Increasing number of supplier relationships
- restrict agility
What 3 complexities are tied to supplier complexity?
NPR- Network, Product, Range
Organizational Complexity
- Managing across silos
- Layers of management
Information Complexity
- Large amounts of info
- subject to distortion- bullwhip
- Bad info can hurt processes
What is supply chain management?
the management of relationships in the network of organizations, from end customers through original suppliers, using key cross-functional business processes to create value for customers and other stakeholders.
What are the 3 key elements of SCM?
- Who is key?
- What processes should be linked with each key member?
- What level of integration should be applied?
What are the 8 key processes in SCM?
- customer relationship management
- supplier relationship mgt
- customer service mgt
- demand mgt
- order fulfillment
- manufacturing flow mgt.
- product development and commercialization
- Returns Management
***Customers supply customer service during order MPR
What 2 aspects form the link in supply chain?
CRM and SRM
4 reasons why CRM is important
- customer retention
- customer selectivity
- Cost efficiency
- Competitive intensity
