Week 2 - The Role Of Warehousing In Supply Chain Management

Question 1

What are the four fundamentals of supply chain?

Answer 1

• Aims
• Philosophy
• Flows
• Relationships

Question 2

What is the main aim of supply chain management? (one of the four fundamentals)

Answer 2

To achieve a competitive advantage

Question 3

How can a competitive advantage be achieved in supply chain management? (2)

Answer 3

• Enhanced customer service
• Optimised customer service and investments

Question 4

What does Supply chain management provide to the end customer?

Answer 4

It provides the end customer with the right product at the right time, priced at the right level, in the right quantity and quality

Question 5

3 Characteristics of warehousing costs (Grant, 2012)

Answer 5

• Make up 23% of all distribution costs
• Direct labour makes up 45% of warehousing costs, Property makes up 40% and 15% made up by machines etc
• Costs of warehouse functions include: Picking (40%), Storage (30%), Goods in (15%) and goods out (15%)

Question 6

What is the philosophy of a supply chain?

Answer 6

A product reaches the final consumer through a chain of companies which will typically include suppliers, processors, distributors and retailers

Question 7

What is the importance of having a strong supply chain?

Answer 7

A supply chain is only as strong as its weakest link so without the right companies across the supply chain a company will never achieve a true competitive advantage

Question 8

5 main function in Supply chain management (Fundamental 3 - flows)

Answer 8

• Buy
• Make
• Store
• Move
• Sell

Question 9

How does supply chain management integrate the 5 main functions? (Fundamental 3 - flows)

Answer 9

By holistically managing the information, material and financial flows

Question 10

Characteristics of Fundamental 4 - Relationships (3)

Answer 10

• Re-assessment of internal and external customer/supplier relationships
• SCM is not a “zero-sum game” based on adversarial relationships - will lead to a bad working relationship which could impact the financial performance of a company
• SCM is a “win-win” game based on partnership relationships - must be mutually beneficial to business partners

Question 11

What is the role of logistics in SCM?

Answer 11

Is part of the movement and storage of goods within the 5 main functions of a supply chain