week 4 Flashcards
Definition supply chain network
interconnection of
organizations that relate to each other through
upstream and downstream linkages between
the different processes and activities that
produce value in the form of products and
services to the ultimate consumer.
3 important points to buld a socially responsible supply chain
auditing
visibility
colloboration
Definition bottle-neck
In supply chain risk management, it is essential to identify firms that induce high losses due to supply chain disruptions in a focal firm or the supply chain network as a whole
Benefits of looking at the whole supply chain
- puts the operation into its competitive context
- helps to identify the key players
- shifts emphasis to the long term
- sensitizes the operation to macro-changes
key message bottleneck
competition im supply chain management is essential, a whole branche (network) can make a differnce, individual firms cannot
Supply side of the chain network
First tier suppliers & second tier suppliers
Distribution side of the chain network
first tier customers & second tier customers
Disadvantage indirect distribution
Margin of each intermediary is added, mostly 3 intermediaries -> price x3
advantage indirect distribution
Goods geographically transformed and bundled in retail trade, better distribution and larger quantities
disadvantage direct distribution
high distribution costs, interface must be actively managed
Factors for locations decisions
- variable costs
- potential revenue
- influences of community
Variable costs of the operations at location
- Labor costs
- Land costs
- Energy costs
- Transportation costs
Possible Influences of
Community on the
Operations at Location
- Political environment
- Economic environment
- Social environment
- Technological environment
- Ecological environment
- Legal environment
- Cultural environment
Potential
evenue of the
Operations at
Location
- Availability of skilled labor
- Suitability of site itself
- Image of the location
- Convenience for custome
definion blue banana
densely populated zone, European metropolitan area between the Irish Sea and the Mediterranean, whose urbanisation forms a chain of agglomerations, also known as megalopolis or megaregion.
