Chapter 1: 21st Century Supply Chains
creative
companies need to be more _______ about how they recruit and retain workers
artificial intelligence, internet of things and blockchain
companies will continue to concern themselves with ongoing trends in the areas of:
economic value
focus is on economies of scale in product and service creation, and striving to achieve the lowest total landed cost
market value
focus on achieving economies of scope in product and/or service presentation
breadth
foreign manufacturing, office and retail sites, foreign suppliers and customers
spanning from end-to-end
from suppliers-suppliers on one end, through internal operations, and out to customers-customers on the other end
forward deployment
generally postponed until customer orders are received
diversity in work practices
global logistics operations must deal with significant _______ and various local operating environments
cultural variations
how consumers demand products and services must be set up to accommodate _______
postponement
hybrid of push and pull models
strategic sourcing
identifying and matching the sources of raw materials and components to manufacturers and distributors using the global market
combined postponement
in combination, manufacturing and time postponement involves keeping the basic products centralized and performing the final product customization at the destination distributor, rather than at the manufacturing site
efficiency and productivity
in the future the number of networked devices will increase enormously, boosting ___ and ____ in supply chain
smart sensors
in the supply chain, IoT devices could be ____ on manufacturing floors in order to efficiently manage planned and predicted maintenance work
-augmented reality -machine learning -artificial intelligence -internet of things -blockchain -everything as a service (XaaS) -warehouse robots -distributed inventory
innovations and technology in the supply chain
artificial intelligence
intelligence demonstrated by machines, in contrast to the natural intelligence displayed by humans
blockchain technology (distributed ledger)
it is a shared database creating a permanent transaction record that can be changed only with the permission of the other members of the network
labor shortages
logistics _____ will continue through 2019 and beyond. wages will continue to rise due to demand
warehouse managements systems, robotic vision systems, supply chain planning, supply chain visibility, and more
machine learning is applicable to a wide range of logistics like...
large, dynamic data sets
machine learning is especially useful for
machine learning and AI
many of the more innovative logistics technology enhancements have included _____ and it is expected that these will be applied much more extensively across the supply chain in 2019 and beyond
market and distribution strategy
market value is provided through
generated, analyzed, linked and patterned
masses of data are not only ____, but ___, ____ and _____
distributed inventory
means moving the product closer to the customer
relevancy value
means the right products and services (market value), at the right price (economic value), modified, sequenced, synchronized, and otherwise positioned in a manner that creates valuable segmental diversity (i.e distinctiveness)
SAP, Oracle
most common/widely used erp software packages
truly integrated
most existing supply chain organizations are not ______ or empowered
regional carriers, metro area couriers and other delivery options
moving inventory closer to the customer means it is possible to use ____ that aren't cost-effective on multi-day moves
offshoring
moving manufacturing and distribution operations to countries with favorable labor costs and tax laws
cost-cutting
must be balanced with the need to provide optimum levels of customer service and satisfaction
technical innovations
new ______ offer the opportunity to reduce this complexity
distributed inventory
new technology will likely become popular to implement _______, allowing smaller businesses to keep up with amazon
to maintain products in an uncommitted status as long as possible while building a sufficient quantity of "ready to customize" basic units
objective of manufacturing postponement
augmented reality
offers numerous assistive technologies to facilitate the everyday work of employees, particularly in the areas of logistics, manufacturing and warehousing
warehouse robots
omni channel fulfillment, escalating labor costs and increased access to process automation solutions are changing the way enterprises run their distribution and fulfillment centers
cloud-based SCM
one of the ways businesses might be able to save resources upfront. the cloud market will continue to grow as more businesses become less fearful
automating the recruiting process
online applications, pre-hire testing, on boarding, and increasing the quantity and quality of applicants for positions
warehouse automation
only a part of the solution to a company's fulfillment needs, and it is expected to only mitigate, not solve, labor imbalance
exchange of value, smart contracts, payments and tracking
other uses of bloackchain
minimize wrong inventory, expedited shipping costs and obsolete and markdown products
postponement can help
make-to-order, assemble-to-order, engineer-to-order
producing stock in response to actual demand
make-to-stock
producing stock on the basis on anticipated demand. Demand forecasting can be done via a variety of sophisticated techniques
responsive business model
pull model
anticipatory business model
push model
timely arrival and continuous inventory flow between supply chain partners
reduces dwell
time postponement (aka geographic or logistics postponement)
refers to a situation where a fully stocked inventory is maintained at one or only a few strategic locations
supply chain strategy
relevancy value is provided through
assembly postponement
relevant for companies with modular product design. having base materials in modules and flexible design, it is possible to construct various end-products from the modules in one kit
management control
reporting
innovative products
responsive supply chains are ideal for
robotics as a service (RaaS)
scale up warehouse robots services for peak times, and drop back when volumes return to normal
depth
second and third tier suppliers and customers
monitor and track stock
smart sensors can be used to closely ____ and ____ stock and the entire inventory to optimally plan future production
food and pharmaceutical safety
some of the first applications in the supply chain are targeted towards _____, tracking items to their source in case of a recall or as an anti-counterfeiting measure
postponement
strategies that provide the greatest opportunity for supply chain professionals to minimize the risks of stock outs and excess inventory by leaving the final configuration of a product to the last possible moment and moving those operations closer to the customer
strategic planning
strategy evaluation
efficient
supply chain and processes designed to minimize cost
responsive
supply chain designed to respond quickly to market demand
convenient product/service assortment choice
take-away from market value
a unique product/service bundle
take-away from relevancy value
high quality at a low price
takeaway from economic value
capacity crunch
the ______ will likely continue, forcing companies to find more ways to cut costs and avoid scaring off customers with rising prices
pace in change
the ________ in supply chain management continues to accelerate, and it's only going to get faster
low-value tasks
the ability of current generation of robots to work alongside humans while performing _____ that increase overall warehouse productivity is applicable across a broad range of industries
order fulfillment/service delivery
the ability to execute superior and stainable order-to-delivery performance and related essential services
demand planning responsiveness
the assessment of demand and strategic design to achieve maximum responsiveness to customer requirements
enterprise resource planning (erp)
the backbone of a company's logistical information system; an integrated database of current and historical data
at the lowest cost
the challenge for the logistics expert is to design a system that delivers a desired level of customer service ________
business logistics
the coordination of projected requirement, procurement, physical movement, and storage of components, parts, raw materials, and semi-finished and finished goods
customer relationship collaboration
the development and administration of relationships with customers to facilitate strategic information sharing, joint planning, and integrated operations
supplier relationship collaboration
the development and administration of relationships with suppliers to facilitate strategic information sharing, joint planning, and integrated operations
adaptable and scalable
the highly variable characteristics of today's e-commerce industry are causing retailers and distributors to seek out more ______ and ______ solutions
retool quickly enough
the labor shortage cannot be solved with automation in the short-run because companies simply cannot ____
bottleneck of goods
the lack of available drivers is rippling through the supply chain, causing a ______ that is delaying deliveries and prompting some companies to increase prices by as much as 20%
security within the supply chain
the need for ______ will likely continue to be addressed as AI and IoT grow in ubiquity
customer service
the output of the logistics system is
product/service development launch
the participation in product service development and lean launch
cash spin
the potential benefits of reducing assets across a supply chain. the concept is to reduce overall assets committed to supply chain performance
dwell time
the ratio of the time that an asset sits idle to the time required to satisfy its supply chain mission
life cycle support
the repair and support of products during their life cycle, including warranty, maintenance, and repair
reverse logistics
the return and disposition of inventories in a cost-effective and secure manner
machine learning
the scientific stud of algorithms and statistical models that computer systems use to perform a specific task without using explicit instructions relying on patterns and inference instead
manufacturing customization
the support of manufacturing strategy and facilitation of postponement throughout the supply chain
cash-to-cash conversion
the time required to convert raw material or inventory purchases into sales revenue
dell time minimization
to reduce dwell time, firms collaborating in a supply chain need to be willing to eliminate duplicate and non-value-added work
everything as a service (XaaS) model
today all types of supply chain tools including warehouse and inventory management systems, transportation management systems and shipping systems can be accessed as a service
technology-centric
transforming the supply chain from technology-enabled to ______
3PL
used to provide scalable, flexible space for the inventory, and to manage fulfillment operations
proactive and multi-faceted approach
using a _____ and ______ approach to recruiting and retention in tight labor markets
restock shelves
using distributed inventory, retailers can ____ in a better of course instead of days
shuttle systems and autonomous mobile robots (AMR)
warehouses are increasing adoption of automation such as ___ and _____ to meet the requirements of direct-to-customer fulfillment
hands-free picking with AR
wearable technology such as smart glasses, displayed all relevant information in the user's field of sight exactly when they need it so that picking tasks and barcode scanning can be done simultaneously
autonomous mobile robots (amr)
were built to optimize the order picking and fulfillment process, and they are particularly suitable for e-commerce
packaging postponement
when goods, that might be offered in different packages are not packaged until the last moment. this allows for storage of finished products unpacked, and minimize the risks of excessive stocks
labeling postponement
when product differentiation takes place only by putting the labels on the package. this is useful when companies use different markets
manufacturing postponement
where a standard or a base product is manufactured in sufficient quantities in order to realize economies of scale, while the finalization of some features of the product are delayed until after actual customer orders are received
explosion of e-commerce
with the _____, things are moving at internet speed in both B2C and B2B markets
promote career opportunities
working with universities and colleges to ______ available in supply chain management while helping prepare students to enter the industry
push model
-create forecast -create supply plan -buy materials to produce products -warehouse products -sell products to customers -deliver products to customers
enterprise operations
-customer relationship management -logistics -manufacturing -purchasing -inventory deployment
management control
-financial measurement: cost, asset management -customer service measurement -productivity measurement -quality measurement
enterprise integration and administration
-general administration -accounts receivable and payable -financial inventory accounting -general ledger -human resources
common ways companies do postponement
-manufacturing one order at a time -base modular construction of a product, ie design the product as a set of interdependent units or 'modules'
postponement strategies
-manufacturing postponement -assembly postponement -packaging postponement -labeling postponement -time (or geographic) postponement -combined postponement
transaction system
-order management -inventory assignment -order selection -shipping -pricing and invoicing -customer inquiry
enterprise integration and administration
-sales and operations planning (s&op), senior management tool to run the business -supply chain compliance, regulatory -supply chain visibility and event management, control towers
pull model
-sell products to customer -create supply plan -buy materials to produce products -manufacture products -deliver products to customer
strategic planning
-strategic alliance formulation -development and refinement of capabilities and opportunities -focused/profit-based customer service analysis
decision analysis
-vehicle routing and scheduling -inventory levels and management -network/facility location and integration -vertical integration vs. third-party/outsourcing
demand exceeds local supply
90% of global demand is not fully satisfied by local supply. global supply market offers more options
lower-level decision-making
AI can be used to automate ____ so that managers can concentrate on high-level decision-making
analyze the patterns of today's operations to predict the possible outcomes of tomorrow's scenarios
AI has the ability too..
robots, drones, vehicles or appliances
AI offers a wide range of products like ..... to facilitate logistical coordination and organization in warehouses
waiting for shipping times
B2B service organizations can have high priority parts available without....
supply chain strategy
channel and business organizational arrangement, based on acknowledged dependencies, and collaboration
hacker attack
IoT poses a threat of ______ with the number of connected devices, hence the security aspect will play an important role in the future
primary logistics activities
basic functions that have to be performed in any logistics system. These activities are all interrelated, and a change in one will likely create a ripple effect of change throughout the entire system
certify the origin of products
blockchain can also be used to ______ such as organic or non-go foods or conflict-free minerals
speed of implementation, cost of upgrades, and the overall lifecycle of the software
XaaS helps mitigate concerns with...
integration
______ of the overall business process creates value
risk and opportunity management
______ should span the entire supply chain, including supply chains of key partners
ability to reduce investment in inventory and related assets
a benefit of reducing dwell time and associated logistics cost
hub-and-spoke warehouse network
a centralized warehouse (hub) holds most of the inventory and is linked to a series of smaller decentralized and geographically dispersed warehouses (spokes) which hold only a small amount of inventory to support their local area in the immediate time frame
cash-to-cash conversion
a measure of how efficient your supply chain is at generating revenue
driverless trucks
a proposed long-term solution to the problem, but there are more practical solutions like increased pay, flexible schedules, benefits, etc
who is adding information to the chain
adapting blockchain to track physical objects in the supply chain will require knowing....
plan-source-make-deliver
all supply chains follow the basic model:
transportation
an area with growing labor shortages sue to the rapid growth in online shopping that is creating strong demand for delivery drivers
decision analysis
analytical tools
internet of things (IoT)
concerns optimally networked devices that know exactly what they have to do and when
supply chain volatility
consumers are increasingly price sensitive and less brand-loyal, resulting a permanent increase in _____
transaction system
day to day information flows
significantly longer
distance of typical order-to-delivery operations is _________ for global logistics compared to domestic logistics
e-commerce
distributed inventory was prompted by the desire to speed up delivery for ____ business
significantly more complex
documentation requirements for business transactions is _______
procurement and manufacturing strategy
economic value is provided through
functional products
efficient supply chains are ideal for
basic supply chain capabilities models
efficient, responsive
cost optimization
end-to-end supply chain ______ will remain critical in the future
customer of their suppliers, supplier to their customers
every link in the supply chain is a _____ and ____
enterprise planning and monitoring modules
facilitate the exchange of planning information
