Supply Chain Management, Week 1, Chapter 2

Front 1

Relative to its competitors, the set of customer needs that it seeks to satisfy through its products and services.

Back 1

Competitive Strategy

Front 2

competitive strategy is defined based on how the customer prioritizes these four things:

Back 2

product cost, delivery time, variety, and quality.

Front 3

A typical value chain consists of these five core processes or functions that must be performed for a successful sale:

Back 3

new product development, marketing and sales, operations, distribution, and service

Front 4

The strategy that specifies the portfolio of new products that a company will try to develop

Back 4

product development strategy

Front 5

The strategy that specifies how the market will be segmented and how the product will be positioned, priced, and promoted.

Back 5

marketing and sales strategy

Front 6

Consistency between the customer priorities that the competitive strategy hopes to satisfy and the supply chain capabilities that the supply chain strategy aims to build.

Back 6

Strategic Fit

Front 7

What are the three steps of achieving strategic fit?

Back 7

1) Understanding the customer and supply chain uncertainty

2) Understanding the supply chain capabilities

3) Achieving strategic fit

Front 8

customer demand from different segments varies along these several attributes:

Back 8

*The quantity of the product needed in each lot;

*The response time that customers are willing to tolerate

*The variety of products needed

*The service level required

*The price of the product

*The desired rate of innovation in the product

Front 9

Demand uncertainty imposed on the supply chain because of the customer needs it seeks to satisfy.

Back 9

implied demand uncertainty

Front 10

Reflects the uncertainty of customer demand for a product.

Back 10

Demand uncertainty

Front 11

Two products with low demand uncertainty

Back 11

Salt and pasta

Front 12

A product with high implied demand uncertainty

Back 12

New cell phone

Front 13

Uncertainty from the customer and the supply chain combined and mapped

Back 13

implied uncertainty spectrum.

Front 14

Supply chain responsiveness includes a supply chain’s ability to do the following:

Back 14

*Respond to wide ranges of quantities demanded

*Meet short lead times

*Handle a large variety of products

*Build highly innovative products

*Meet a high service level

*Handle supply uncertainty

Front 15

The inverse of the cost of making and delivering a product to the customer.

Back 15

Supply chain efficiency

Front 16

The curve showing the lowest possible cost for a given level of responsiveness.

Back 16

The cost-responsiveness efficient frontier

Front 17

Requires sharing some links in the supply chain with some products, while having separate operations for other links

Back 17

Tailoring the supply chain

Front 18

The functions within the firm and stages across the supply chain that devise an integrated strategy with an aligned objective.

Back 18

Scope of strategic fit

Front 19

Each stage of the supply chain devising strategy independently.

Back 19

The intraoperation scope

Front 20

Aligning operations within a function.

Back 20

Intrafunctional Scope

Front 21

Expanding the scope of strategic fit and aligning strategy across all functions within the firm.

Back 21

The interfunctional scope

Front 22

The Maximize Supply Chain Surplus View

Back 22

Intercompany Scope

Front 23

A firm’s ability to achieve strategic fit when partnering with supply chain stages that change over time.

Back 23

Agile intercompany scope

Front 24

The biggest challenges to maintaining strategic fit?

Back 24

Growth in product variety and the decrease in the life cycle of many products.

Front 25

What has increased both the opportunities and risks for supply chains?

Back 25

Globalization

Front 26

Over the past several decades, have firms become more or less vertically integrated.

Back 26

Less