Supply Chain Chapter 1 Notes

What are the two goals of supply chain?

1. Increase customer service 2. Reduce inventory investment and operating expenses Aka Cost savings and better coordination of resources

What year was supply chain founded

1950s

Around what decade did companies start to include external people into their supply chain?

1980s

__% of U.S. consumers say their buying preferences are influenced by a firm's environmental reputation.

75%

Why are supply chains generally described as, "spanning from end-to-end"

Because they consist of a lot of people including your customers customers and your suppliers supplier

What are some other things besides core competencies that companies start to focus on

Building relationships Sustainability Corporate Social Responsibility (CSR) Improving supply chain capabilities

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

Business Process Reengineering

Supply chain is the __________ of a network of otherwise __________ trading partners creating a desired product or service, and moving it from suppliers, through __________, and out to customers when and where they want it

Coordination Independent Manufacturing

Which of the 3 elements of Logistic Management is this? strategies to ensure deliveries, resolve complaints, improve communications, & determine service requirements.

Customer Relationship Management -

Which Scor model phase is also known as the logistics phase

Deliever

Which model of scor oversees the planning and execution of the forward flow of goods and relates information between various points of the supply chain to meet customer requirements

Deliver

Firms will increasingly need to be more flexible and responsive to customer needs, adapting to unexpected changes and circumstances. Necessitating closer integration and collaboration

Demand volatility and Forecast Inaccuracy:

What are the two basic Supply Chain capability models

Efficient Responsive

Which of the 4 elements of supply management is this... recognizing suppliers' impact on reputation and carbon footprint

Ethics and Sustainability

Disadvantages of Pull Business Model

Every order is basically a rush order, and any problems will lead to customer dissatisfaction. Pull models are highly dependent on customer relationship. They have a reduced ability to take advantage of economies of scale. Fast, responsive, flexible, robust and integrated systems and processes are a must for this model to work. Resource issues will have a significant and immediate impact on throughput and customer satisfaction.

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

Facilitate

Which of the three operation management elements is this... match demand to available capacity

Forecasting & Demand Planning

Expanding the Supply Chain. International, mature and emerging markets have become a part of the overall business growth strategy for many companies. Both breadth and depth of global operations.

Globalization

What are the disadvantages of Push Business Model

High inventories (and capital tied up in inventory), long lead-times, dependency on forecasting, forecasting error creates non-value adding time, inefficiencies, obsolescence, shortages, and additional cost.

What were some of the drawbacks to the 1950s and 1960s internal focus methods?

High investment in facilities cycle time limited by the slowest operations breakdown of one machine will stop an entire production line

Advantages of pull business model

High levels of customer service through responsiveness and flexibility to meet uncertain customer demand. Pull models have short lead times, reduce dependency on forecasting, use short and flexible production runs, store very low inventories, reduce waste, provide opportunities for customization, and improve cash flow

A Responsive model of supply chain is ideal for what kind of products?

Ideal for Innovative Products: Rapidly changing Very short life-cycle products Great variety Very unpredictable demand

What are advantages of Push Business Model

If the manufacturer creates a good forecast and supply plan, the product is immediately available to ship to the customer on demand from the existing finished product inventory in the warehouse. Manufacturers also have the opportunity to plan resources better or with more flexibility, and can maximize the utilization of resources at the lowest cost.

What kind of operation management is this... Enabling Systems Supply Chain Risk and Security Management Performance Measurement Project Management

Integration

In the 1950s manufactures were __________ focused on maximizing their own internal operations

Internally

What are the 4 things traditional logistics focuses on?

Inventory management Warehousing Distribution Transportation

What is a drawback of a service product?

It can not be produced in advance or be inventoried

is a philosophy of manufacturing based on the planned Elimination of waste_and continuous productivity improvement.

Just-in-Time

What do customers pay for in the service industry?

Labor and Intellectual property

What kind of operation management is this... Warehousing & Distribution Transportation International Trade Management Customer Relationship Management Service Response Logistics

Logistics Managment

What are the 4 traditional aspects of activities that SCM acknowledges? (they also acknowledge the 4 things logistics focuses on)

Marketing New product development finance customer Service

The focus in the 1950s was on _______ production techniques their principle cost reduction and productivity improvement strategies

Mass

Introduction of new computer techonologies in the 1960s and 1970s lead to these two things

Materials Requirements Planning (MRP) Manufacturing Resource Planning (MRPII)

Which of the 3 elements of Logistic Management is this? creating distribution networks based on tradeoff decisions between cost & sophistication of distribution system.

Network Design

A company in a supply chain focuses activities in its' area of specialization and enters into voluntary and trust-based relationships with supplier and customer firms. "Outsourced non-core competencies" All participants in the supply chain benefit. Boundaries are dynamic and extend from "the firm's suppliers' suppliers to its customers' customers (i.e., "end-to-end") Supply chains also deal with reverse logistics to handle product returns, warranty repairs, and recycling.

New paradigm

A company gained synergy as a vertically integrated firm encompassing the ownership and coordination of several supply chain activities. Organizational cultures emphasized short term, company focused performance_.

Old paradigm

What kind of operation management is this... Forecasting and Demand Planning Planning Systems Inventory Management Process Management

Operations managment

What are the four things each trading parter has to do for their part of the supply in order to satisfy the underlying demand for the product or service?

Plan Source Make Deliever

Which of the three operation management elements is this... linking supply to demand via MRP and ERP systems

Planning Systems

Which of the three operation management elements is this... using LEAN manufacutring toimprove the flow of materials to reduce inventory levels, and using six sigma to improve quality compliance across all suppliers (internal and external)

Process Management

Producing stock in response to actual demand. Short lead times, reduce dependency on forecasting

Pull or Make-to-Order:

Producing stock in response to actual demand

Pull or Make-to-order

Which of the 4 elements of supply management is this... responsibility for procuring materials, supplies, and services

Purchasing

Producing stock on the basis of anticipated demand. Demand forecasting can be done via a variety of sophisticated techniques.

Push or Make-to-Stock

what are some things given from the supplier side of a supply chain

Raw materials, intermediate, and/or finished materials

Scor model phase also known as reverse logistics and 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 the point of origin for repair, reclamation, re-manufacture, recycling, or disposal.

Return

Which process of the scor model goes against the normal outbound flow of products to the market

Return

Many companies have started shifting supply chain risks such as holding inventory, upstream to their suppliers, and shipping finished products to customers immediately after production. Supply chain risks can only be effectively mitigated by managing risk at each node in the supply chain.

Risk managment:

Customers increasingly prefer products that are made and sourced in 'the right way'; minimizing business' social, economic and environmental impact on society and enhancing positive effects.

SUstainability and "greening" the supply chain:

(definition) The process of identifying the suppliers that provide the materials and services needed for the supply chain to deliver the finished products desired by the customers

Sourcing

Which phase of the SCOR model requires identifying reliable suppliers and building a strong relationship with those suppliers

Sourcing

Which of the 4 elements of supply management is this... successful and trusting relationships with top-performing suppliers

Strategic Partnerships

Which of the 4 elements of supply management is this... improve performance through Supplier evaluation (determining supplier capabilities) Supplier certification (third party or internal certification to assure product quality and service requirements)

Supplier Management

Producing and delivering products and services requires _______, Manufacturers, and Customers; all of which make up a supply chain.

Suppliers

Reducing purchasing costs, waste, excess inventory, non-value added activities. Improving demand planning. Increased outsourcing of non-core competencies.

Supply chain cost optimization

What kind of operation management is this... Purchasing Management Strategic Sourcing Supplier Relationship Management

Supply managment

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 tehy work __. Everyone in the organization has to take ownership for quality.

Total Quality Management

(definition) when customers sell out all remaining inventory

Total market stockout

Which of the 3 elements of Logistic Management is this? tradeoff decisions between cost & timing of delivery / customer service via truck, rail, air, pipeline & water.

Transportation Management

True or False: In the 1950s external collaboration and partnerships were virtually nonexistent

True

SCM creates _____ by managing the process of all of those independent trading partners so that they can _________ with one another in an effect, effective and cost conscious way

Value Collaborate

What kinds of customers are impacted by a total market stockout?

all customers

Companies are focusing on their Own core __________, outsourcing those things that are not their core competencies, using the expertise of their trading partners

competencies

Products and Services are created from materials, _________, labor, time, money, and other resources

equipment

Supply chain management is the way business gets done. It is the __________ process of any business

execution

An Efficient model of supply chain is ideal for what kind of products?

functinoal products: Staples that people buy everywhere Don't change much over time Stable predictable demand

What were some of the advantages to the 1950s and 1960s internal focus methods?

higher output/ productivity Reduced cycle times Lower in-process inventories

Service firms offer what kind of products?

intangible

MRP II help to improve ________ communication and operations

internal

(definition) refers to activities that occur within the preview of a single organization

logistics

MRP is a method of determining what _____ are needed and when they are needed to support the production plan

materials

Each link in a supply chain is a customer of the _______ link and a supplier to the _______ link

preceding link Succeeding link

World class operational excellence begins with effective supply chain planning and control techniques which: Provides a single set of numbers used to run the business. Generates significant improvements in customer ___________, ______________, inventory, and ____

service, productivity, cost

Any organization, anywhere in the world, offering a product or a service has a ______ _____

supply chain

(Definition) refers to a network of independent companies taht work together and coordinate their actions to deliver a product or srevice to market for the benefit of all companies in the network

supply chain management

Typically, the service in a service firm is not tangible, but the work involved is usually on a __________ item provided by the customer.

tangible

What does planning establish?

the parameters of the supply chain

What part of the supply chain consists of wholesalers, distributors, and retailers

the supply chain that goes to customers m

which tier of suppliers and customers do you want to build a relationship and share information with first?

tier 1 suppliers and tier 1 customers

In the 1950s what was the main focus of supply chain?

to focus on how to produce as much product as possible at he lowest possible cost

A supply chain is only as strong as its ______ link

weakest