Supply Chain Management
Supply chain Responsiveness
* Requires firms to reevalute supply chain relationships, utilize business processes, reengineer, repetitive, automate warehouse, design new products and services, and ect (pg 25) -part of increasing supply chain responsiveness
Distribution Network
*Entire chain of distribution intermediaries from the supplier to the consumer. *Ensures successful product delivery and customer satisfaction. However high cost of distribution from warehouses, inventory costs and transportation costs.
Greenwashing
*Green marketing is deceptively used to promote the perception that an organization's products, aims or policies are environmentally friendly.
Reverse Logistics Activities
*Reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics." The reverse logistics process includes the management and the sale of surplus as well as returned equipment and machines from the hardware leasing business. *Any process after the sale of a product include reverse logistics activities *Moving in the opposite direction of the supply chain (http://i1.wp.com/cerasis.com/wp-content/uploads/2014/02/what-is-reverse-logistics.jpg?resize=596%2C320)
Global supply chain
*Supply chains with foreign trading partners * Global supply chain refers to the network created among different worldwide companies producing, handling, and distributing specific goods and/or products *adv: larger market for products, lower labor costs,higher quality suppliers, innovation ideas from foreign suppliers *dis: fluctuating exchange rates, warehouse purchasing and selling prices, operating exposure, government intervention **To overcome disadvantages firms must create FLEXIBILITY
Flow of Goods (random def)
*The path and direction in the movement of goods throughout the world or placement within the supply chain.
Vertically integrated firms
*When a company expands its business into areas that are at different points on the same production path, such as when a manufacturer owns its supplier and/or distributor. *Help companies reduce costs and improve efficiency by decreasing transportation expenses and reducing turnaround time, among other advantages ***However it may be more efficient for companies to rely on more efficient partnerships- with transporters,suppliers, or warehouse companies.** *Where the supply chain is of company is owned by that company** (verify)
Fourth-Party Logistics Provider (4pL)
*When a firm outsources its logistics A company hired to manage all of a firms logistics and supply chain capabilities **This firm manage and coordinates activities of the (3pl)**
Materials requirements planning
*a production planning, scheduling, and inventory control system used to manage manufacturing processes. *a software for managing inventory
Supply Chain performance measurement
*an additional process integration topics * Allows firms to evaluate their supply chain strategies if they are effective or not. - used to highlight the values of their tactics
Right shoring
A restructuring of a global company's workforce or processes that seeks to utilize a mix of offshoring, nearshoring and outsourcing to achieve the optimum level of efficiencies and productivity. Rightshoring typically involves the outsourcing of simple processes while retaining complex processes at the local level. *benefit: low-cost approach in the supply chain management
Lean production system, or "Just-in-time"
Benefits: Lower inventory levels, faster delivery times, and better quality
Customer relationship management
Derived from on going relationships with customers. results in strategies for meeting due dates of delivery, successfully deal with customer complains, and determine the proper logistics services.
Distribution
Individual or firm (such as an agent, distributor, wholesaler, retailer) that links producers to other intermediaries or the ultimate buyer. Distribution intermediaries help a firm to promote, sell, and make-available a good or service through contractual arrangements or purchase and resale of the item. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until the item reaches the final buyer. Also called marketing intermediary.
Strategic Partnership
Party with which a long-term agreement is reached for sharing of physical and/or intellectual resources in achievement of defined common objective.
Logistics
Planning, execution, and control of the procurement, movement, and stationing of personnel, material, and other resources to achieve the objectives of a campaign, plan, project, or strategy *managment of items between the point of origin and the point of consumption *involves transportation, warehousing, packaging & informational services.
Perfect order fulfillment
Product arriving on time, complete and damage free.
Business Process Reengineering
Redesigning of business task to reduce waste and increase performance. Was implemented for firms to hold long term competitive advantages *Term eventually came to down-sizing
Supply Chain Management
Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.
Inventor Visibility
The ability of a supply chain companies to see inventory quantities of the various members, typically using the internet
Focal Firms
The initiator of an International business transaction, they conceive, design and produce the offerings [goods or services] intended for consumption
Ethical and sustainable sourcing
The practice of purchasing from suppliers that are governed by environmental sustainability (approved) and social/ethical practices.
Operating Exposure
The risk calculated from fluctuating exchange rates which affect warehouse production, purchasing and selling prices.
Process integration
The sharing of information and coordinating resources to jointly manage a process *Supply chain is integrated when: members of supply chain work together making purchasing, inventory, production, quality and logistics decision which impact overall profits of supply chain. *robust decision relate to better flow of goods
Bullwhip effect
Where orders sent to the manufacturer and supplier create larger variance then the sales to the end customer. These irregular orders in the lower part of the supply chain develop to be more distinct higher up in the supply chain. This variance can interrupt the smoothness of the supply chain process as each link in the supply chain will over or underestimate the product demand resulting in exaggerated fluctuations. (http://www.aalhysterforklifts.com.au/index.php/about/blog-post/what_is_the_bullwhip_effect_understanding_the_concept_definition)
First-tier supplier
a company that provides parts and materials directly to a manufacturer of goods:
Second-tier supplier
a company that supplies materials or parts to another company that then supplies them to a manufacturer:
Demand Management
planning methodology to forecast the demand for products and services *Benefits- matching demand to available capacity, by improving production scheduling, curtailing demand, or using a back-order system to increase capacity.
Third-party logistic providers (3pl_
providers play an essential role in hooking up shippers with the right kind of transportation service. ***specialise in integrated operation, warehousing and transportation services that can be scaled to meet their customers needs.** *example- contract warehousing, packing and distribution services, transportation management along with freight and inventory management.
Enterprise resource planning
provides real time sales data, inventory and production information to all business units & key supply chain participants
Procurement (random def)
the action of obtaining or procuring something. *procure: (obtain something carefully and with effort)
exchange rate (random definition)
the value of one currency for the purpose of conversion to another.