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33 Cards in this Set
- Front
- Back
Definitions of Supply Chain Management
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See Definitions on page 5
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Vertically Integrated Firms
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A firm whose business boundaries extend to include one-time suppliers and/or customers.
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Examples of Reverse Logistics Activities
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Returning products for warranty repairs.
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Second-Tier Suppliers, Second-Tier Customers
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Suppliers' Suppliers, Customers' Customers.
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Bullwhip Effect
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Magnification safety stock due to unsure demand expectations.
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Supplier Management, Supplier Evaluation, Strategic Partnerships
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Getting your firm's suppliers to do what you want. Assessing your suppliers' current capabilities and then figuring out how to improve them. Trading-partner relationships have come to be termed as strategic partnerships.
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Cross-docking
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is a process by which manufactured goods are unloaded from factory shipments, staged on the docks (but not sent to storage), and quickly reloaded for shipment to individual customers.
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Demand Management
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Objective of matching demand to available capacity, either by improving production scheduling, curtailing demand, using a back-order system, or increasing capacity.
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Total Quality Management (TQM)
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A strategy in place to ensure continued quality compliance among suppliers and with internal production facilities.
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Transportation Management
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Decisions typically involve a trade-off between cost and delivery timing or customer service.
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What is a business model?
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The mechanism by which a business intends to generate revenue and profits. It is a summary of how a company plans to serve its customers at the strategic level.
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Brick and Mortar Company
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Land Based commerce only
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Internet only retailer
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Net commerce only
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Click & Mortar
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Land and net commerce
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Plan, Execute, Measure, Improve
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What do you want to do?
Get it done See if you did a good job If you could have done better, start again. |
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Competitive Priorities
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Cost
Quality Flexibility Speed/Time |
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What are measurements or metrics that companies use?
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Resources: available, used, produced
Money: Cost, sales, profits, theft, fines Flexibility: Ability to change product line, demographics. Speed: Delivery, response time. Quality: Customer satisfaction, level produced. Outputs: Volume, acceptable items, value Waste: Inventory, production, motion, defects, waiting... |
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Three categories of Measurement
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Effective? - What are you trying to accomplish, did you get it done?
Efficient? - Minimal effort, cost, resources, time, etc. Adaptable? - The market changes, the conditions change, costs increase, technology changes, each customer is different, busy times, slow times... Is your system ready to adapt? |
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Value - customer perspective
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What do I get/What is the price
Quantity, Quality, size/Money, waiting time, warranty |
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Productivity - Organizational perspective
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What did I make/What was the cost
or Outputs/Inputs |
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How much of every dollar is in the supply chain?
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60-80%
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Goals of Supply Change Management
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Eliminate Waste
Minimize Inventory Profits Quality Speed Flexibility Value Productivity |
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Ways to reach Supply Chain goals
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Business Processes
Plan, Execute, Measure, Improve Project Management |
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Procurement
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The process of obtaining services, supplies, and equipment in conformance with corporate regulations
Duties of procurement -Supplier Selection -Purchasing Negotiations -Supplier Relationship Management -Materials/Inventory management |
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Operations
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Design, operation, and improvement of PRODUCTION SYSTEMS that EFFICIENTY transform INPUTS into Finished goods and services, maximizing productivity.
Duties -Process management, Plant management -Capacity Planning - resources, speed -Scheduling jobs/people -Waiting line management -Process improvement projects |
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Logistics
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The Coordinated Planning and execution of
-Product distribution -Preparation of packaged products -Movement Itinerary -Storage Itinerary Duties -Distribution/Warehousing,Infrastructure Mgmt. -Packaging, containerization, transportation, documentation -Third party management and communication |
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Distribution Network
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When a firm utilizes large numbers of regional or local warehouses in order to deliver products quickly to customer.
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Supply Chain Integration
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Successful supply chain integration occurs when the participants realize that supply chain management must become part of all of the firms strategic planning processes, in which objectives and policies are jointly determined based on final customers' need and what the supply chain as a whole does well.
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Global Supply Chains - Advantages and risks
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Advantages - Larger market for products, allowing for economies of scale in purchasing and production, which reduces costs; lower labor costs; access to foreign supply base of potentially cheaper, higher quality suppliers; access to foreign employees.
Risks- Fluctuating exchange rates affecting production, warehousing, and purchasing and selling prices - OPERATING EXPOSURE; government intervention or political instabilities, causing changes in subsidies, tariffs, taxes, or corporate operating laws; and, finally, failure to identify particular foreign customer needs and local reactions to products. |
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Supply Chain Performance Measurement
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How supply chain firms keep track of their supply chain efforts
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Supply Chain Responsiveness
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Agile manufacturing
JIT Mass customization Efficient consumer response Quick response Firms must look at end customers' needs, what the competition is doing and position the supply chain's products and servicesto successfully compete, and then consider the impact to these requirements on the supply chain participants and the intermediate products and services they provide. |
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Supply Chains and the Environment
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Reducing discarded packaging materials, carbon emissions, noise, traffic congestion.
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Supply Chain Cost Reduction
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Reduction of non-value added activities such as, waste, excess inventories, purchasing costs
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