3832 CH.13
__________ transportation has the lowest traceability
pipeline
Supply chain teams typically cut across organizational boundaries, embracing all parties who participate in moving the product to market
true
Transportations has traditionally accounted for __/___ % of goods, though rising fuel costs have recently elevated this to as much as ____%
5/10; 17
Accessibility:
A carrier's ability to move goods over a specific route or network
There are eight critical business processes on which supply chain managers must focus:
Customer relationship management; Customer service management; Demand management; Order fulfillment; Manufacturing flow management; Supplier relationship management; Product development and commercialization; Returns management
By working closely with its clients and understanding their needs, A Plus Z has improved its service encounter to a level that was not thought possible in mass retailing. Which of the eight critical business processes performed by supply chain managers does this best illustrate?
Customer service management
companies operating under a ______________ are better at their business because all of the different divisions within the company "play from the same sheet of music
DSI philosophy
It is important to limit the number of supply chain partners in the product development and commercialization process.
False
Storage reduces time utility for buyers and sellers.
False
(those that are successful in achieving many or all of these types of integration) have been shown to be better at satisfying customers, managing costs, delivering high-quality products, enhancing productivity, and utilizing company or business unit assets
Highly integrated supply chains
Which of the following is a disadvantage of using a manual, non-automated materials-handling system?
Increases risk of damage
Which of the following is an advantage of using customer care software?
It enables companies to enhance their customer service management process.
Proper order processing is critical to good service
true
Research has shown a clear relationship between supply chain performance and profitability
true
________________________ is a key means of differentiation for a firm and a critical component in marketing and corporate strategy
Supply chain management
________________ is any potential disruption that threatens a supply chain's efficient and effective operations.
Supply chain risk
Capability:
The ability of the carrier to provide the appropriate equipment and conditions for moving specific kinds of goods, such as those that must be transported in a controlled environment (e.g., under refrigeration)
Reliability:
The consistency with which the carrier delivers goods on time and in acceptable condition
Traceability:
The relative ease with which a shipment can be located and transferred
Relative Cost:
The total amount a specific carrier charges to move the product from the point of origin to the destination
Transit time:
The total time a carrier has possession of goods, including the time required for pickup and delivery, handling, and movement between the point of origin and the destination
Many modern companies are turning to supply chain management for competitive advantage
True
Supply chain management is a key means of differentiation for a firm and a critical component in marketing and corporate strategy.
True
The customer relationship management process enables companies to prioritize their marketing focus on different customer groups according to each group's long-term value to the company or supply chain.
True
The customer relationship management process includes customer segmentation by value and subsequent generation of customer loyalty for the most attractive segments.
True
Using three-dimensional printing (3DP) technology, objects are built to precise specifications using raw materials at or near the location where they may be consumed.
True
________________ reflects inventory that is being assembled or manufactured from its raw state into finished goods for sales.
Work-in-process inventory
fourth-party logistics company (4PL or logistics integrator)
a consulting-based organization that assesses another's entire logistical service needs and provides integrated solutions, often drawing on multiple 3PLs for actual service
The manufacturing process begins with
a customer order
electronic distribution
a distribution technique that includes any kind of product or service that can be distributed electronically, whether over traditional forms such as fiber-optic cable or through satellite transmission of electronic signals
third-party logistics company (3PL)
a firm that provides functional logistics services to others
order fulfillment process
a highly integrated process, often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time
postponement
a hybrid production method whereby basic units of a finished good are manufactured in advance of actual demand and held in strategic form or location until demand occurs, when final customization takes place
supply chain management
a management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value
outsourcing (contract logistics)
a manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing
inventory control system
a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or a customer's demand
materials-handling system
a method of moving inventory into, within, and out of a warehouse
build-to-stock
a production method whereby products are made in advance of demand based on forecasts and are stored until customer orders arrive
mass customization (build-to-order)
a production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications
automatic replenishment program
a real-time inventory system that triggers shipments only when a good is sold to the end user
stockout
a situation where a customer demand for an inventory item goes unfulfilled because the requested item is unavailable at the needed time and place
sustainable supply chain management
a supply chain management philosophy that embraces the need for optimizing social and environmental costs in addition to financial costs
demand-supply integration (DSI)
a supply chain operational philosophy focused on integrating the supply-management and demand-generating functions of an organization
order processing system
a system whereby orders are entered into the supply chain and filled
supply characteristics: short lead time and unpredictable
agile
_________ transportation has the highest relative cost
air
supply chain team
an entire group of individuals who orchestrate the movement of goods, services, and information from the source to the consumer
seasonal inventory
an extra inventory buffer that is held in response to predictable demand increases that occur annually
distribution resource planning (DRP)
an inventory control system that manages the replenishment of goods from the manufacturer to the final consumer
materials requirement planning (MRP or materials management)
an inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer
smart RFID (radio-frequency identification)
an inventory handling and tracking system that employs radio-frequency electromagnetic fields to transfer and read product data via an electronic tag
supply chain agility
an operational strategy focused on inducing inventory velocity and operational flexibility simultaneously in the supply chain
supply chain risk
any potential disruption that threatens the supply chain's efficient and effective operations
Integration involves a balance between ________ and _________
barriers; enablers
Because a logistics service provider is focused on logistical functions only, clients receive
better service in a timely, efficient manner, thereby increasing their customers' satisfaction and boosting the perception of added value to a company's offerings
The hybrid leagile system incorporates
build-to-stock strategies for high volume, stable demand products, and build-to-order strategies for everything else
business processes
bundles of interconnected activities that stretch across firms in the supply chain
In the context of the several criteria based on which supply chain managers choose an appropriate mode of transportation, ______________ is the ability of a carrier to provide the appropriate equipment and conditions for moving specific kinds of goods, such as those that must be transported in a controlled environment.
capability
Members of the supply chain
communicate, coordinate, and cooperate extensively
the most notable disadvantage of build-to-stock scheduling (based on pull selling) is that
companies risk making products that may become obsolete or that consumers do not want in the first place.
Supply chain management reflects a completely _________________ management philosophy
customer-driven
The final supply chain management process deals with situations in which
customers choose to return a product to the retailer or supplier, thereby creating a reversed flow of goods within the supply chain
Outsourcing enables companies to
cut inventories, locate stock at fewer plants and distribution centers, and still provide the same level of service or even better
_____________ is the inventory that supports what the business expects to sell during the period
cycle stock
the supplier relationship management process has a
direct impact on each supply chain member's bottom-line financial performance
supply chain security
efforts made by companies to protect their in-transit inventory or value-transforming assets from external or internal threats
returns management process
enables firms to manage volumes of returned product efficiently while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain
When stock at the customer's location drops below predetermined levels, the supplier takes responsibility
for restocking the shelves or the warehouse
The manufacturing flow management process is
highly dependent on supplier relationships for flexibility
supplier relationship management supports manufacturing flow by
identifying and maintaining relationships with highly valued suppliers
product development and commercialization process
includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms
electronic data interchange (EDI)
information technology that replaces the paper documents that usually accompany business transactions, such as purchase orders and invoices, with electronic transmission of the needed information to reduce inventory levels, improve cash flow, streamline operations, and increase the speed and accuracy of information transmission
Management practices that reflect a highly coordinated effort between supply chain firms or across business functions within the same or different firms are
integrated
Technology and planning
integration refers to the creation and maintenance of information technology systems that connect managers across the firms in the supply chain
Designing a new product with the help of suppliers and customers can enable a company to
introduce features and cost cutting measures into final products
in-transit inventory
inventory that is currently moving within a transportation network to or from the company's facilities (plant, warehouse, or sales location)
Customer integration
is a competency that enables firms to offer long-lasting, distinctive, value-added offerings to those customers who represent the greatest value to the firm or supply chain
The goals of the manufacturing flow management process are centered on
leveraging the capabilities held by multiple members of the supply chain to improve overall manufacturing output in terms of quality, delivery speed, and flexibility, all of which tie to profitability
integration can be improved through
long-term agreements, cross-organizational integrated product teams, and improved communication between partners
Relationship integration
is the ability of two or more companies to develop social connections that serve to guide their interactions when working together; capability to develop and maintain a shared mental framework across companies that describes how they will depend on one another when working together
supply characteristics: long lead time and unpredictable
leagile
supply characteristics: long lead time and predictable
lean
supply characteristics: short lead time and predictable
lean
Several companies are using ____________________ to give themselves an edge over competition
mass customization
work-in-process inventory
materials inventory that is currently in the process of being converted into finished goods
Th postponement strategy it allows companies to
maximize customer satisfaction (by giving them exactly what they want) while at the same time controlling costs (by minimizing the number of basic units needed to do so)
The goal of inventory management is to:
minimize inventory levels while maintaining an adequate supply of goods to meet customer demands.
The flow of goods and information must be continually monitored so that
mistakes can be corrected before an invoice is prepared and the merchandise shipped
Some of the business trends that are affecting supply chain management include
outsourcing logistics, maintaining a secure supply chain and minimizing supply chain risk, and maintaining a sustainable supply chain
Supply managers
plan strategies, develop specifications, select suppliers, and negotiate price and service levels
customer relationship management (CRM)
process allows companies to prioritize their marketing focus on different customer groups according to each group's long-term value to the company or supply chain
manufacturing flow management
process concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process
customer service management
process presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced
supplier relationship management
process supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers
returns management process allows the firm to recognize weaknesses in
product design and/or areas for potential improvement through the direct customer feedback that initiates the process
Automated materials-handling systems decrease
product handling, ensure accurate placement of product, and improve the accuracy of order picking and the rates of on-time shipment
A similarity between the customer relationship management process and supplier relationship management process is that both:
provide structural support for developing and maintaining relationships with their respective supply chain partners.
The five major modes of transportation are
railroads, motor carriers, pipelines, water transportation, and airways
The goal of most supply management activities is to
reduce the costs of raw materials and supplies
The goal of most supply management activities is to:
reduce the costs of raw materials and supplies.
The best order fulfillment processes
reduce the time between order and customer receipt as much as possible while ensuring that the customer receives exactly what he or she wants
Smart companies manage suppliers strategically in order to
reduce the total cost of materials and services while assuring supplier success as well
Measurement integration
reflects the idea that performance assessments should be transparent and measurable across the borders of different firms, and should also assess the performance of the supply chain as a whole while holding each individual firm or business unit accountable for meeting its own goals
five types of external integration are sought by firms interested in providing top-level service to customers:
relationship, measurement, technology and planning, material and service, and customer
supply chain managers choose a mode of transportation on the basis of several criteria:
relative costs, transit time, reliability, capability, accessibility, traceability
Material and service supplier integration
requires firms to link seamlessly to those outsiders that provide goods and services to them so that they can streamline work processes and thereby provide smooth, high-quality customer experiences
Handling _______ gives the company an additional opportunity to please the customer
returns
demand management process
seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand-related plans of action prior to actual customer purchasing behavior
safety (buffer)
stock extra inventory held in addition to cycle stock as insurance against unexpected demand increases
cycle
stock inventory held temporarily for the purpose of fulfilling predicted demand in a period
By integrating suppliers into their companies' businesses, supply managers have become better able to
streamline purchasing processes, manage inventory levels, and reduce overall costs of the sourcing and procurement operations
When the process is well executed, it can have a
strong positive impact on revenues, often as a result of quick positive response to negative customer feedback, and sometimes even in the form of additional sales gained through the additional customer contact
Storage helps manufacturers manage
supply and demand, or production and consumption
Through the use of computer-generated shipping notices, AllCare Hardware successfully removes unnecessary costs in its supply chain. According to its vice president of inventory for the retailer, "Information that had to be gathered through three or four phone calls before is now just one click away." This is an example of the use of
technology and planning integration
supply chain resiliency
the ability of a supply chain to return to its ideal operational state after being disrupted
supply chain
the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function
three-dimensional printing (3DP)
the creation of three-dimensional objects via an additive manufacturing (printing) technology that layers raw material into desired shapes
The best supply chain teams also move beyond the organization to include
the external participants in the chain, such as suppliers, transportation carriers, and third-party logistics suppliers
As an order enters the system, management must monitor two flows:
the flow of goods and the flow of information
Sustainable supply chain management primarily involves:
the integration and balancing of environmental, social, and economic thinking into all phases of the supply chain management process.
logistics information system
the link that connects all the logistics functions of the supply chain
offshoring
the outsourcing of a business process from one country to another for the purpose of gaining economic advantage
nearshoring
the transfer of an offshored activity from a distant to a nearby country
__________ transportation has the highest accessibility
truck
A key principle of supply chain management is that multiple firms and their functional areas work together to perform tasks as a single, unified system rather than as several individual companies or business units acting in isolation
true
As firms become increasingly supply chain oriented, they develop management practices that are consistent with this system-oriented approach.
true
Companies that work closely with their suppliers encounter problems such as corporate culture, information hoarding, and trust issues
true
Good communication among sales representatives, office personnel, and warehouse and shipping personnel is essential to correct order processing
true
In the modern supply chain, integration can be either internal or external to a local firm or, in an ideal scenario, both
true
Inventory decisions, for both raw materials and finished goods, have a big impact on supply chain costs and the level of service provided
true
Once higher-value customers are identified, firms should focus more on providing customized products and better service to this group than to others
true
One of the most fundamental processes in supply chain management is the order fulfillment process, which involves generating, filling, delivering, and providing on-the-spot service for customer orders
true
The activities such as collecting customer data, forecasting future demand, and developing activities that serve to "smooth out" demand help bring available inventory into alignment with customer desires
true
The capability for developing and introducing new offerings quickly is key for competitive success versus rival firms, so it is often advantageous to involve many supply chain partners in the effort
true
The use of customer care software enables companies to enhance their customer service management process.
true
A similarity between materials requirement planning (MRP) and distribution resource planning (DRP) is that both inventory systems:
use various inputs, such as sales forecasts, available inventory, and so on, to determine what needs to be done to replenish goods at all points in the supply chain.
The CRM process includes customer segmentation by
value and subsequent generation of customer loyalty for the most attractive segments
___________ transportation has the highest transit time
water
supply chain integration
when multiple firms or business functions in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer