Supply Chain Management Exam 2

The transparent supply chain article

discusses the importance of transparency and the different technologies.

provenance knowledge

information about products' origin, production, modifications, and custody—enables customers to be assured of their purchasing decisions.

consignment

ownership remains with the manufacturer or wholesaler until the goods are sold

Reverse Consignment

pre-positioning buyer owns components and place them at suppliers site

Should identigen focus on beef and pork or expand to serve other proteins?

short term focus on meat and pork and in the long term focus on seafood

whose question

the ownership of inventory at warehouse constitutes the first design questions

How can blockchain technology address the issues currently facing the supply chain?

1. Transparency 2. Scalability 3. Security 4. Real time transactions 5. Innovation

Where is inventory located

1. buyers on site inventory 2. supplier hubs (VMI hubs) 3. third party site

Whose, Where, and How Inventory Article

3 components 1. who owns the inventory 2. Where it is located 3. How replenishment is controlled

VMI (Vendor Managed Inventory)

An arrangement where retailers allow vendors to monitor in-store inventories, initiate orders/shipments to the store when inventories are low, and also bring the items into the store and onto the shelf. -Key benefit is avoidance of bullwhip effect -Supplier does not have to be reactive to every order a buyer places and as a result may have more flexibility to schedule production runs or replenishments to optimize its supply chain

Why are companies concerned with tracking their data and the province of items?

Consumers want to know where the products are coming from Ensure supply chain is offering ethical sourced products Authenticity concerns (provenance or petigure) Safety concerns Labor concerns (Child labor) (SweatShops)

Identigens Key Value Proposition

Enabled customers to identify and trace meat products throughout the supply chain Robust profiles based on DNA Other companies offer this but none worked the supply chain like Identigen Create value throughout the supply chain creating allies rather than alienating powerful stakeholders

What is Tropicana doing with this information?

Even though there are standards for determining a carbon footprint companies have the freedom to apply them in different methods. A company determines the level of severity they use in acknowledging emissions in the supply chain. With this information in mind Tropicana was struggling to determine the best course of action. The company eventually posted their carbon emissions on Tropicana's website but could not decide whether to put it on the packaging of the juice. Tropicana is also making strides to reduce their carbon footprint. The company is partnering with farmers and researchers at the University of Florida to find alternative low carbon techniques to grow oranges. Tropicana and Pepsico have completed the first step in achieving a carbon neutral supply chain. If a company never measures their carbon footprint they will never be able to improve it.

What are some challenges in adopting blockchain?

Getting everyone on the same page Requires integration of systems Secured, risk of information

supplier assessment known as 15 questions

Helpful in tracking progress Energy and requirement Social issues in the survey Efficient way to get suppliers to reveal their supply chain Looked to CDP (carbon disclosure project)

How should Identigen work with the government and other national and international regulatory bodies concerning food safety and traceability?

Increased visibility= increased liability Synchronize services not indirect collaborations Delicate line to balance working with the government

Initiative that Wal-Mart implemented to enhance its supply chain sustainability includes all of the following except: Certifying environmentally sustainable products based on mostly on externally verified certifications Encouraging suppliers to license environmental innovations Cutting out the middle-man Increasing the number of suppliers that they are dealing with

Increasing the number of suppliers that they are dealing with

JMI

Jointly managed inventory

The term drop shipping refers to: a. Freight carriers that leave packages at a warehouse b. 3PL that carry good from carrier to a receiver c. The use of multiple modes of transportation for delivery of goods d. All of the above e. None of the above

None of the above (correct)

Adidias Recommendations

Omnichanel experience is necessary but timing is critical Implement technology in three phases Phase 1: RFID Phase 2: Click and collect, ship from store Phase 3: endless aisle, mi adidas

In general, online sales outperform traditional brick and mortar retail sales along the dimension of

Order status tracking

How should Identigen (a) manage greater adoption of its technology? (b) consider other technologies? And (c) reach more customers without compromising its integrity or the quality of its technology?

Stick with beef and pork for now (more expertise and most financial returns) Incrementally expand geographically Increase adoption by expanding databases and locations Synchronize but not collaborate with the government Minimize the employee constraint. Expand the team Meet current demand

Greening of Walmart Supply Chain

Sustainability strategy to meet three environmental goals -Be supplied by 100% by renewable energy -Create zero waste -Sell products that sustain people and the environment

What is the Bullwhip effect and how does it apply to supply chains?

The bullwhip effect is prevelanent in many supply chains. It relates to order variability of products.What this means is that orders placed are vastly different than actual sales (demand). The farther upstream in the supply chain the greater the variability. For example, manufacturers experience the bullwhip effect more than retailers. Suppliers must be aware of this effect to prevent over stock and increased costs

When considering green issues in the supply chain, what does greenwashing mean? To implement measurement for reduction of carbon footprint impact of a supply chain stage The treatment or process of raw materials during manufacturing to make them more recyclable To identify and use in production only products that can be easier to dispose at the end of the objects life's cycle To falsely portray some characteristics or product as being sustainable To wash your recyclables before putting them in the proper trash bid

To falsely portray some characteristics or product as being sustainable

How green is my orange?

Tropicana and Pepsico were on a mission to measure the carbon emissions from their operations involving the factory and transportation of juice cartons. The purpose of the investigation was to determine the area where carbon was being released in the supply chain. From the analysis Tropicana discovered a staggering finding that the biggest source of emissions in the chain was from simply growing oranges. The nitrogen fertilizer utilized in citrus groves requires natural gas that can become a dangerous greenhouse gas when distributed on the fields. The company estimated that half a gallon of orange juice emits 3.75 pounds of carbon dioxide into the atmosphere.

Who decides replenishment

VMI vs. JMI

VMI is

Vendor Managed Inventory

What criteria should Identigen use in selecting its customers? Should it focus on customers in one part of the food supply chain (e.g. retailers, fast food restaurants, farmers, etc.) or in one geography?

-geographic focus (target big brand names will pay higher premiums and yield a higher financial return)

Five Initiatives

1. Click and Collect 2. Mi Adidas 3. Endless Aisle (EA) 4. Ship from store 5. RFID

Walmart 8 Practices

1. Identifying goals, metrics, and new technologies 2. certifying environmentally sustainable products 3. Providing network partner assistance to suppliers 4. committing to larger volumes of environmentally sustainable products 5. cutting out the middle men 6. restructuring the buyer role 7. consolidating direct suppliers 8. licensing environmental innovations

What are present issues with managing the supply chain?

1. Integrity of Goods 2. Trust 3. Tracking

benefits of Walmart's Incentives

1. Packaging reduction 2. new sources of revenue (selling plastic waste) 3. greater voice with policy makers 4. greatest benefit: boost public relations

List and describe 3 of the causes to the Bullwhip effect

1. Promotional Sale 2. Volume and Transportation Discounts 3. Inflated Orders 4. Long Cycle Lead Times 5. Demand Forecasting

As discussed in the class notes, the benefits of blockchain include all of the following except:

Mature technology

The benefits of upstream transparency include all of the following except

Quality assurance Authenticity concerns Labor issues at origin Environmental issues Increased viability of demand (correct)

What are some of the technologies that companies are using to enhance supply chain transparency?

RFID Bar coding Product Labels None of the above All of the above (correct)

Why would not companies want to reveal this information to customers?

Release information is too transparent (when companies cut corners) Must have everything in order Logistical and financial barriers Costly to implement some of these technologies Potentially gives information to competitors

In general, traditional brick and mortar retail sales outperform online sales along the dimension of Product variety Request fulfillment Time to market for a new product Order status tracking

Request Fulfillment

Consignment shop

Retail store where people sell items and the owner of the shop gets a percentage of the sale ex. Plato's Closet

Reverse Consignment is

When a manufacturer owns inventory located at a supplier Also called pre-positioning Used in apparel manufacturing All of the above (correct) None of the above

Benefits of RFID include all the following except

a. Clearly defined specification for the good or service b. Increased sales (correct) c. More accurate inventory tracking d. Decreased systems complexity

What are the consequences of the Bullwhip effect?

a. Increased b. transportation costs c. Reduced service level d. Increased safety stock d. All of the above (Correct) e. None of the above