Test 3 Blueprint Flashcards
a plan for the company
that clearly defines:
– the company’s long-term
goals
– how it plans to achieve
these goals, and
– the way the company plans
to differentiate itself from its
competitors
can be described as?
The Business Strategy
T/F- Supply chain Strat supports business strategy
True
a long-range plan for the
design and ongoing
management of all supply
chain decisions that
support the business
strategy is known as?
Supply Chain Strategy
All organizational functions should be designed to support the business strategy (which involve six parts of a company) what are the 6?
-Supply Chain Management (SCM)
– Marketing
– Operations
– Distribution
– Purchasing
– Finance
All organizational functions should be designed to support the business strategy is also known as
Strategic Alignment
A well designed supply chain can provide companies with needed competitive advantage. Two advantages provide a basis of strategy and competitive positioning in the marketplace and they are known as?
- Cost-Productivity Advantage
– Value Advantage
Which competitive advantage comes from offering the lowest cost product or service
Cost-Productivity Advantage
What are the contributing factors to the cost-productivity advantage?
1) High volume contributes to cost advantage (such as economies of scale)
2) Experience Curve ( the more you do- the more skilled and efficient)
What business feature refers to organizational costs that are reduced due to experience that results from processing a higher volume
Experience Curve
What enable the company to spread its fixed costs over a greater volume
Economies of Scale
Segmenting the market based on features preferred by different customer groups is known as
Value Segments
Which competitive advantage comes from providing a product/service with the greatest perceived differential value compare with its competitors
Value Advantage
What are methods to gain a value advantage?
- Identify “Value-Segments”
- Service
T/F- SCM as a source value (cost-value adv) is the most desirable and offers the best differentiation from other competition
False- SCM as a source value (cost-value adv) is the least desirable and offers no differentiation from other competition
T/F- Supply chain improvements can reduce inventory, distribution and coordination costs
True
Which strategy determines the design & manufacture of a company’s manufacturing processes. This strategy also designs internal processes and determines the equipment, tech and employees required for project.
Operations Strategy
The *** strategy involves decisions about how it will produce goods and services
Operations
What strategy determines the degree of product customization offered
Product Positioning Strategy
T/F- The operations strategy is a dynamic process that needs to change as the product moves through different life-cycle changes
True
What operations strategy relates to the form in which the company stores its finished products and delivery lead time
Product Positioning Strategy
What are the three different types of Product Positioning Strategy?
- Make to stock
- Assemble to order
- Make to order
What is the best operation strategy for standardized products that sell in high volume
Make-to-stock
Which operations strategy is best for producing large production batches and providing. finished products in inventory. These are typically assembly line operations and delivery lead time is shortest
- no customer involvement in product design
Make-to-stock
Which operations strategy states that the product is partially completed and kept in a generic form, then finished when an order is received
Assemble-to-order
Which operations strategy is best for providing many variations of the end product.
The standard components are held in inventory, the components are then combined to the customer specifications.
- shorter lead times than make-to-order
- low finished-goods inventory
Assemble-to-order
The product is made to customer specifications after an order has been received
Make-to-order
Which operation strategy is for customized products or products with infrequent demand
Make-to-order
Which operation strategy has the shortest delivery lead time?
Make-to-stock
Which operation strategy has the longest delivery lead time?
Make-to-order
What strategy determines how the company plans to get its products and services to customers
Distribution Strategy
When purchasing an item online this process is known as a (direct or indirect) sale
Direct because you ordered it and it will go straight to you from the company
When purchasing an item at a chain store like Belk, after you purchase the item what is this considered as (direct or indirect) sale
Indirect because the sale is going through channel intermediaries ( retail or wholesale stores) before the profit can get back to the supplier
What strategy determines which aspects of a company’s business it is going to outsource and which ones it will retain internally
Sourcing Strategy
What are the 3 advantages of outsourcing?
-Cost savings
-able to expand into new markets/ geographical ares
- ability to achieve technological capability
What are the risks of outsourcing?
- Loss of control
- Dependency
T/F- It is rare for a company to outsource 100% of manufacturing (NIKE), but common for companies to outsource to 3PLS
True
What strategy determines how the company is going to meet the demands of its customers
Customer Service strategy
T/F- For customer service strategy, the market is divided by volume and profitability
True
Which strategy should be based 1st on the overall volume and profitability of market segments and have the ability to understand what customers in each segment
want and decide how to meet customers demands
Customer service strategy
The way a company competes in the marketplace is called
Competitive Priority
What are the 5 competitive priorities of strategic design?
1) Cost
2) Quality
3) Time
4) Innovation
5) Service
T/F- Companies that compete on cost offer products the highest price possible
False, Companies that compete on cost offer products do it at the lowest price possible
What are four supply chain considerations for companies that compete on cost?
- asset utilization
- inventory days of supply
- product and supply chain costs
- product and process standardization
T/F- Companies that compete on time deliver products in as short a time as possible
True
What are three ways companies can utilize competing on time?
- tech to speed processes
- flexible workforce for peak demands
-system analysis to eliminate/combine processes
T/F- Companies that compete on innovation focus on developing “must have” products
True
Companies that use competing on innovation focus on what two details?
Speed and product design collaboration
Have a very SHORT window of opportunity before copied
The supply chain has the ability to easily trace a product
Product Traceability
Companies that compete on ** tailor their products to meet the specific needs of target customers
Compete on service
Companies that compete on service rely on what three characteristics
Customer Loyalty
Consistency
Reliability
Companies that compete on *** have products and services known for their premium nature. What am I referring to?
Compete on Quality
Characteristics that qualify the company to participate in a particular market are known as
Order Qualifiers
T/F- companies that win orders are known as
Order Winners
Larger firms have advantages they can offer and receive. What is an advantage of a large firm to customers? to the firm?
- Quantity discounts
- high degree of supply chain control
T/F-Smaller companies can develop supply chain strategies within a particular market segment
True
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