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16 Cards in this Set
- Front
- Back
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What is the 1st stepof the internal supply chain and a primary point of contact w/suppliers?
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receiving |
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Receiving |
•Thefirst step in the internal supply chain•Closureof the contract with the supplier •Buyingfirm accepts responsibility for the goods•Involvesinspection, physical handling of goods, and information processing •Receivinginspection ensures goods arrive in the quantity and condition in the purchaseorder |
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Receiving Documents |
•Receivingreport –Documentsthe activities in the receiving process •Packingslip –Producedby the supplier –Providesinformation (description of the goods, quantity, customer purchase ordernumber, possibly a tracking number) –Mayconfirm that quantity shipped matches quantity ordered •Billof lading –Thecontract between the shipper and carrier –Informationabout quantity shipped, origin and final destination |
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Logistics and Warehousing |
•Warehousingand inventory storage –internalfunction, or –outsourcedto a third-party logistics firm (3PL) •Supplyinvolvement –directaccountability for warehouse personnel or –for3PL supplier selection and oversight –Trend:outsource logistics activities |
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Key Logistics Decisions |
•Shouldit be stored? •Howand where should it be stored? •Howit should be moved? •Howshould the inventory be tracked? |
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Inbound and Outbound Transportation |
•Ensureproper, cost-effective delivery •Maybe one of largest cost components •Suppliersmay have responsibility (FOB destination) •Inbound:company-owned fleet or dedicated carriers •Supplyfrequently has input or direct control over inbound transportation, especiallyfor JIT deliveries •Costreduction and improved utilization rates if inbound and outboundtransportation-related resources are coordinated |
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Production Planning |
•Involvesshort-, medium- and long-term schedules for controlling inventory andproduction schedules •Relieson: –salesforecasts –deliveryand storage of key raw materials with suppliers –operationsimplementation •Supplyplays key role on team or manages |
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Accounts Payable |
•Paymentterms included in purchase contract •Problemsif: –Changesto the original order (engineering changes) –Mismatchedpaperwork (bill of lading, PO) –Buyingorganization delays payment to finance short-term working capital •Accountspayable reporting to Supply –familiaritywith the supplier and the order–opportunitiesto reduce transaction costs/headcount–ensurepayments made on time |
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Investment Recovery |
•Effective,efficient, and profitable recovery and disposal of scrap, surplus, obsolete,and waste•Scrap/Unsoldproducts have gone from being a “cost center” to a “profit center” |
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Benefits of Effective Disposal Programs |
•Costrecovery •Costreduction and avoidance •Customerservice •Qualitycontrol •Protectintellectual property and brand identity •Complywith government regulations •Reclaimvaluable materials from customers •Controlproduct liability •Improvepublic image |
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Environmental Management |
•Reduce••Reuse••Recycle less riskless complexityeasier to implementsmaller environmental benefits |
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Disposal Channels |
•Useelsewhere in the firm “as is” •Reclaimfor use within the plant •Sellto another firm for use on an “as is” basis •Returnto the supplier •Sellthrough a broker •Sellto a local scrap or surplus dealer •Sellto alternative, post-retail outlet •Donate,discard or destroy the material or item |
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Other Supply Responsibilities |
•Receiving •Logisticsand warehousing •Inboundand outbound transportation•Productionplanning •Accountspayable •Investmentrecovery |
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Reduce |
•Infirst 3 years of packaging reduction program saved: •400Mgallons of water, 95M lbs. of plastic, 125M lbs ofcardboard •500Kgallons of diesel fuel due to reduced shipping weight/bulk & less shipments •Millionsof dollars •Coca-Colaon track to achieve 100%water replenishment by 2020•Currentlydoing so with 94%•Efficiencyyielded 60B liter reduction in 2011 |
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Reuse |
47% net increase in Rack salesWill open 48 new Rack’s in 2015-16Now 80 more Rack’s than Nordstrom’sMacy’s is launching “Backstage” inresponse •Nikefocusing on outlets •22%of total sales •Added$75M of new revenue through “direct to consumer” (DTC) channels |
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Recycle |
Diverted 82% of materials from landfillsSuppliers design “for reuse/end-of-life” •In2015 Apple was able to recover 61M lbs. of reusable material (from 90M lbsof waste)•Recovered2,204lbs of gold from recycled products–$40Million•23Mlbsof steel, 13M lbs. of plastic, 12M lbs. of glass–Reducesneed to mine/exploit |
