• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/64

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

64 Cards in this Set

  • Front
  • Back
supply chain management
the planning and control of all activities across the supply chain
5 core processes in supply chains
1. plan
2. source
3. make
4. deliver
5. return
strategy
an integrated and coordinated set of commitments and actions pertaining to resources designed to exploit and/or develop core competencies and gain a competitive advantage
strategic competitiveness
achieved when a firm formulates and implements a value-creating strategy for its stakeholders
shareholder value
created by achieving above average or superior returns to those an investor expects to earn from other investments with a similar amount of risk
customer value
created by offering a product or service that has a price/performance ratio superior to products or services by competitors
performance attributes valued by customers
1. exceptional service
2. higher quality
3. faster delivery
4. flexibility
performance attributes/cost
customer value
resources
inputs into a firm's value-creating process such as plant and equipment, the skills of individuals, finances, patents, and talented managers
capability
the capacity for a set of resources to perform a task or activity in an integrated manner
core competencies
resources and capabilities that serve as a source of competitive advantage of a firm over another
business or corporate strategy
1. the primary task of the organization is market terms
2. the organization's competitive properties
1. cost
2. quality
3. delivery
4. flexibility
in general, competitive priorities
differentiation
when a business focuses on achieving superior performance in one of the dimensions
positioning
-defining a point in the consumers' mind about what you do and who you are
-very important tool in determining strategies
-must be supported by product, price, place, and promotion
supply chain strategy
consists of developing a long-term plan for determining how to best utilize the resources of the organization to implement and support the firm's long-term business or corporate strategy
-a statement of a firm's unique purpose and the scope of its operations in product and market terms
-defines the firm to both its employees and its external environment
-provides boundaries and focus
mission statement (3)
business or corporate strategy
provides vision, establishes future goals, and keeps the organization moving in the right direction consistent with the company's mission. it defines how the company is going to get there
76%
percentage of service sector in total U.S. employment
customer contact
refers to the presence and interaction of the customer in the system
degree of contact with customer
the percentage of time the customer must be involved in the system relative to the total time it takes to perform the service
degree of labor intensity
-the degree of labor involved in the delivery of the service
-usually expressed as the ratio of labor cost compared to capital cost
criteria for competition
1. cost
2. quality
3. dependability
4. flexibility
cost
the cost of providing the service, including both capital and operating expenses
quality
derived from the relationship between a customer's prior expectations of the service and his assessment of the service experienced during and after the service delivery
dependability
relates to the availability of the service when needed
flexibility
measures the degree of customization provided to accommodate any individual requirments
1. material flows
2. process flows
3. information flows
4. cash flows
success in SCM requires the synchronization and optimization in these four flows...
electronic data interchange (EDI)
used by Levi Strauss Company for a successful supply chain network
ERP
an accounting oriented information system for identifying and planning the enterprise wide resources needed to manufacture and account for customers
MRP II
system built around material requirements planning that includes the additional planning functions of sales and operations
direct materials spend
expenses that a company incurs making their product or providing their service that are captured in the cost of goods sold section of the income statement
indirect material spend
miscellaneous (overhead) expenses a company incurs that are not associated with building the firm's core products that are captured in the sales, general, and administrative section of the income statement
make-or-buy decision
decision of whether a firm should make a product (or perform a service) internally or utilize an external supplier or provider
vertical integration
when a firm decides to perform a function internally
outsourcing
when a firm decides to have a function performed externally
offshoring
when a firm moves an operation to a foreign country, but still retains ownership of that facility
virtual or hollow corporation
firms that outsource most of the functions across the supply chain network, choosing instead to focus their resources on new product development and marketing
50% of total spend in 2010
researchers expect global sourcing to account for approximately...
four key reasons for sourcing globally
1. superior quality
2. lower total cost
3. access to advantaged technology
4. expanded supply base
four potential problems with sourcing globally
1. long lead-times
2. cultural differences
3. higher inventories
4. higher cost of doing business
20%
approximate percentage of price reduction that supply management professionals have been able to realize by sourcing globally
12%
approximate net reduction in total cost of ownership (TCO) by firms due to global sourcing
strategic sourcing
the procurement process of evaluation, selecting, and partnering with key suppliers in order to achieve operational performance improvements that support both the organization's supply chain strategy and its even broader corporate objectives
strategic sourcing steps
1. spend analysis
2. supply market assessment
3. total cost analysis
4. supplier identification/evaluation
5. sourcing strategy
6. supplier negotiation/selection
7. sourcing strategy implementation
8. compliance assessment/return to step 1 periodically
spend analysis
a detailed analytical assessment of how much the company is spending in a particular category or commodity classification, who their top suppliers are in the category, and from where the purchases are originating
spend visibility
the amount of the applicable spend data that a firm can access through its information technology systems
1. spend data is often obscured in legacy systems
2. information systems don't have a standardized name for a particular company
3. product descriptions and part numbers are not uniform across devisions or countries
3 impediments to spend visibility
legacy systems
information technology infrastructure leftovers from previous mergers and acquisitions
total cost analysis
-detailed analysis of how much it "should cost" the supplier to produce a desired produce or service
-focuses on the total cost of ownership over life of the product
supplier identification/evaluation
-when a strategic sourcing analyst compiles a list of suitable suppliers
-primary objective is to reduce the compiled supplier selection pool down to only the most qualified suppliers
detailed financial condition analysis
-quick way to reduce a compiled supplier selection pool to the most qualified supplier
qualities that are evaluated at site visits
1. quality
2. technology
3. capacity
4. flexibility
demand aggregation
a methodology where a buying firm consolidates its requirements across the entire enterprise, in a particular commodity classification, or between related classification groups, into a single purchasing request, so as to maximize their buying strength in the marketplace
1. demand aggregation
2. supplier rationalization
two ways to enhance a buying firm's leverage in the marketplace
supplier rationalization
-process by which a buying firm determines the optimal number of suppliers in a particular supply network and who those suppliers will be
-involves reducing the number of suppliers utilized in a particular supply category
demand aggregation + supplier rationalization
leveraged spend
leveraged spend
when a firm maximizes its buying strength in the marketplace
e-procurement systems
-strategy that many firms have implemented in the market quadrant of the portfolio matrix
-computerized systems designed to reduce costs associated with processing purchase orders by supply management personnel
-prices are negotiated in advance and company personnel can buy products directly from the supplier through an on-line catalog
supplier selection criteria
1. price
2. availability
3. lead-time
4. quality
5. total cost of ownership (TCO)
two key factors that cause most companies to fail to realize all of the potential savings from a new supply contract
1. maverick spend
2. spend leakage
maverick spend
when purchasing personnel buys outside of the supply contract where product prices are often significantly higher
spend leakage
failure of a supplier to adhere to the supply contract terms and conditions
causes of spend leakage
failure of the vendor to
1. provide rebates as stipulated in the contract
2. correctly price items on the purchase order according to the quantity discount schedule
3. charging for shipping when the contract specifies that the vendor will be responsible for these charges