Intro to Supply Chain Chapter 1

Who has the best hair ever?

Chase

What do supply chains now focus on?

Companies are focusing on _building their own core competencies, and outsourcing those things that are not their core competencies to use the expertise of their trading partners Company's are focusing on their area of specialization and entering into voluntary, trust-based relationships, with their suppliers and customers by _outsourcing non-core competencies_. -All participants in the supply chain benefit. -Boundaries are dynamic and extend from "the company's suppliers' suppliers to its customers' customers (i.e., "end-to-end")

What is deliver?

Deliver, also known as the Logistics phase, this is the part of supply chain management that oversees the planning and execution of the forward flow of goods and related information between various points in the supply chain to meet customer requirements. Where companies coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to transport products to customers, and set up an invoicing system to receive payments, among other aspects.

What is good for efficient model? What types of products?

Ideal for _functional products_: §Common products that people buy anywhere and everywhere §Lots of suppliers / competition §Don't change much over time §Stable predictable demand

What is good for responsive model? What types of products?

Ideal for _innovative products__: §Rapidly changing §Very short life-cycle products §Great variety §Very unpredictable demand

What is supply chain management?

It is the _______coordination____of the __network_____of otherwise ___________ ___independent trading partners___________who are creating a desired product or service, and then moving it through the supply chain out to customers, when and where the customer wants it.

The Supply chain is facilitated through the use of....

Logistics

What is the difference between logistics and supply chain management?

Logistics: §is just one (albeit vital) component of Supply Chain Management. §refers to activities that occur within the _scope of responsibilities of a single organization_. §focuses on moving a product or material in the most efficient way so it arrives _at the right place at the right time. Supply Chain: §refers to a _network of independent companies_that work together and coordinate their actions to deliver a product(s) or service(s) to the market for the benefit of all companies in the network (i.e., collaboration and coordination). §involves a _more expansive range of activities_, such as: •strategic sourcing of raw materials •procuring the best prices on goods and materials •coordinating supply chain visibility across the supply chain network, etc.

What is make?

Make or manufacturing is the series of operations performed to convert _materials into a finished product. Finished product is manufactured, tested, packaged, and scheduled for delivery. Quality management is an important aspect of the manufacturing process. This is the most metric-intensive portion of the supply chain, where companies are able to measure quality levels, production output, and worker productivity

What was Supply Chain in the 50s and 60s?

Manufactures were _internally focused on maximizing their own internal operations. -Their focus was on _mass production techniques as their principal _cost reduction_ and ___productivity improvement_strategies

What was supply chain like in the 1970s and 1980s?

Manufacturing Resource Planning: Material Requirements Planning Production Planning:

What is planning?

Planning establishes the parameters within which the supply chain will operate. Planning includes the determination of marketing and distribution channels, promotions, quantities, timing, inventory and replenishment policies, and production policies

What new concepts came around in the 1990s and 2000s?

Sales and Operations Planning Collaborative Planning, Forecasting and Replenishment Just-in-time Total Quality Management Business Process Reengineering

What is source?

Sourcing is the process of _identifying the suppliers that provide the materials and services needed for the supply chain to deliver the finished product(s) desired by the customer(s). Supply chain managers must also develop pricing, shipping, delivery, and payment processes with suppliers and create metrics for monitoring and improving the performance

The links in the supply chain are....

Suppliers, Manufacturers, Customers

What does supply chain management represent?

Supply Chain Management represents the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage.

Who has the biggest d*ck?

Trevor

What is Supplier Relationship Management?

a comprehensive approach to managing a company's long-term interactions with the key organizations that supply the materials and services that the company needs.

What is Manufacturing Resource Planning?

a method for the effective planning of all resources of a manufacturing company through business planning, production planning, master production scheduling, material requirements planning, capacity requirements planning, and the execution support systems all linked together.

What is Production Planning?

a process to determine the overall level of _manufacturing output to best satisfy the planned level of sales_while meeting the company's profitability objectives.

What is Material Requirements Planning?

a time-phased method of determining what materials are needed and when they are needed to support the production plan.

What is next for supply chain management?

adapt to emerging technologies and strategies §The _pace of change__in the supply chain continues to accelerate, and it's only going to get faster. §With the _explosion of e-commerce_, things are moving at internet speed in both the B2C and B2B markets. §New _technical innovations_offer the opportunity to reduce this complexity, transforming the supply chain from technology-enabled to technology-centric. §Logistics labor shortages will continue through 2020 and beyond. _wages will continue to rise_due to demand. §Warehouses are increasing adoption of automation such as _autonomous mobile robots (AMR)_to meet the requirements of direct-to-consumer fulfillment.

What is Enabling Systems?

all of the systems, processes and tools that support and facilitate_a company's ability to manage the supply chain.

Where are supply chains located?

any business with a product or service; large or small businesses, public or private companies, for-profit and not-for-profit companies

What are the reasons why companies manage supply chains?

cost savings, better coordinate resources

What are 2 Basic Supply Chain Capability Models?

efficient and responsive model

What is total quality management?

is a management approach to long-term success through customer satisfaction based on the participation of all members of an organization in improving processes, goods, services, and the culture in which they work. Everyone in the organization has to take ownership for quality.

What is Business Process Reengineering?

is a procedure that involves the fundamental rethinking and radical redesign of business processes to achieve dramatic organizational improvements in such critical measures of performance as cost, quality, service, and speed.

What is Sales and Operations Planning?

is a process to develop tactical plans that provide management the ability to strategically direct the business to achieve a competitive advantage by integrating customer-focused marketing plans with the management of the supply chain.

What is Collaborative Planning, Forecasting and Replenishment?

is a process whereby supply chain trading partners can _jointly plan key supply chain activities from production and delivery of raw materials to production and delivery of final product to end customers.

What are customers paying for in a service industry?

labor, intellectual property; customers are more directly involved and usually provide an item to do service on

How does Supply chain management create value?

managing trading partners to collaborate efficiently, effectively, and cost safe way

What is service response logistics?

the management and coordination of the company's activities that occur __while the service is being performed_.

What is the pull business model?

used by 5% Make-to-Order: Producing finished products in response to actual demand, i.e., only after an actual customer order is received.

What is push business model?

used by 95% _Make-to-stock: Producing finished products on the basis of anticipated demand before receipt of an actual customer order.

What is Process Management?

using _LEAN manufacturing__ to improve the flow of materials and eliminate waste in the process, and using __Six Sigma_to improve quality compliance across all suppliers (internal and external)

What else do supply chains focus on?

§Building strategic partnerships §Corporate Social Responsibility (CSR) §Supply chain sustainability §Risk and opportunity management Accelerated pace of change driven by the _explosion of e-commerce

What is integration?

§Enabling Systems §Supply Chain Risk and Security Management §Performance Measurement §Project Management

What are advantages of pull business model?

§High levels of customer service and opportunities for customization. §Reduce dependency on forecasting. §Very low inventories.

What are supply chain advantages in the 50s and 60s?

§Higher output and more productivity §Reduced cycle times (i.e., producing faster) §Lower in-process inventories

What are benefits of supply chain management?

§Improved customer service §Increased revenue §Lower costs §Better asset utilization §Adds customer value / retain customers §Minimize delays / shorter lead-times §Elimination of rush (unplanned) activities §Reduced uncertainty throughout the supply chain §Lower inventory levels throughout the supply chain §Ability to effectively respond to disruptions and conflicts

What are advantages of push business model?

§Product is immediately available to ship to customers on demand from the inventory created on basis of the forecast. §Manufacturers can better plan the utilization of resources. §Opportunities to take advantage of economies of scale and reduce costs.

What is supply management?

§Purchasing Management §Strategic Sourcing §Supplier Relationship Management

What is logistics management?

§Warehousing & Distribution §Transportation §International Trade Management §Customer Relationship Management §Service Response Logistics

What is transportation?

§planning, scheduling and controlling activities related to mode, carrier, and _movement of inventories _into and out of a company.

What is Purchasing?

§responsibility for _acquiring the materials, supplies, and services that the company needs to provide their products and services to the market.

What is customer relationship management?

§strategies to ensure deliveries, resolve complaints, _improve communications, and determine service requirements.

What is distribution?

§the activities associated with the _movement of finished goods from the manufacturer to the customer.

What is warehousing?

§the activities related to _receiving, _storing_, and shipping_ materials to and from production or distribution locations.

What is International Trade Management?

§the exchange of goods and services _across international borders_or territories.

What is Planning Systems?

§the process and tools used to manage a _company's resources_to achieve the company's goals.

What is Forecasting & Demand Planning?

§the process of forecasting the demand for a product or service so it can be produced and delivered more efficiently and satisfy customer needs_.

What are goals of supply chain?

increase customer service and reduce inventory operating expenses

What is Just-in-Time?

is a philosophy of manufacturing based on the planned _elimination of all waste_and continuous productivity improvement

What are the foundations of supply chain management?

operations management, supply management, logistics management, integration

What is Inventory Management?

the activities and techniques used to plan and control the _desired levels of items_needed to support production.

What is Supply Chain Risk and Security Management?

the series of strategies and activities for continuously monitoring risk__and __enhancing the security of the supply chian to reduce vulnerabilities and ensure business continuity.

What is Performance Measurement?

the system for collecting, measuring, and comparing a _measure to a standard___for a specific criterion for an operation, item, service, business, etc.

What is Project Management?

the use of skills and knowledge in coordinating, organizing, planning, scheduling, directing, controlling, monitoring, and evaluating prescribed activities to ensure that the stated objectives__of a project _are achieved.

What is the first step to understand the supply chain?

visualize flow of materials

What are disadvantages of pull business model?

§Every customer order is basically a rush order. §Manufacturing problems and resource issues will have an immediate impact on throughput and customer satisfaction. §Reduced ability to take advantage of economies of scale.

What is operations management?

§Forecasting and Demand Planning §Planning Systems §Inventory Management §Process Management

What are disadvantages of push business model?

§High inventories (and money tied up in inventory). §Heavily dependent on accurate forecasting. §Forecasting errors create inefficiencies, additional cost, and can lead to inventory shortages or excesses and obsolescence.

What are supply chain disadvantages in the 50s and 60s?

§High investment in facilities and equipment §Production throughput limited by the slowest operation §The breakdown of one machine will stop an entire production line.

Who is a sex coach?

:)

What is supply chain planning and control?

A major principle of supply chain management is the use of a _standardized and _stepwise approach to managing the supply chain. World class operational excellence_begins with effective supply chain planning and control techniques which: §provide a single set of numbers used to run the business. §generate significant improvements in customer service, productivity, inventory, and costs.

What two ideas are supply chain management based on?

Every product that reaches an end user represents the cumulative effort of multiple organizations Most organizations have only paid attention to what was happening within their own "four walls."

What is enable?

Enabling processes facilitate a company's ability to manage the supply chain and are spread throughout every stage

What is return and reverse logistics?

Return, also known as Reverse Logistics, this is the part of supply chain management that deals with planning and controlling the process of moving goods specifically from the point of consumption back to point of origin_ for repair, reclamation, remanufacture, recycling, or disposal.

What is responsive model?

The supply chain is configured to be fast and flexible to respond quickly to dynamic market demand and new product launches. Characterized by: §Need flexible capacity (volume) §Minimize lead time §Inventory of parts §Minimal stock outs

What is efficient model?

The supply chain is configured to produce a large volume of product, as quickly as possible, and at the lowest possible cost. Characterized by: §Predictable supply §Highly utilized capacity §Low cost production §High inventory turns

Who is a "daddy"?

Tommy

What is Strategic Sourcing?

a comprehensive approach for locating and sourcing _key material and service suppliers___. Includes a focus on developing long term relationships.

What is the SCOR model?

a framework that focuses on a basic supply chain of plan, source, make, deliver, and return processes, repeated again and again along the supply chain