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38 Cards in this Set
- Front
- Back
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Supply Chain |
the set of entities and relationships that cumulatively define materials and information flows both downstream (toward the customer) and upstream (toward the suppliers) |
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Downstream Flow |
Materials, inventory levels, invoices |
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Upstream Flow |
Defective Units, recyclables, forecasts, monetary payments |
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Distribution Channel |
a specific route from a producer forward through the various nodes to the customer |
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Physical Supply |
the flow of materials from upstream nodes into 'Z' |
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Physical Distribution |
the flow of materials from Z through downstream nodes toward the end customers |
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Supply Chain Management(SCM) |
the design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer |
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Supply chain Management(key Notes) |
-Must be tightly integrated by having processes that are designed and systematically managed to allow information to flow within and across organizational boundaries -Reduce uncertainty across the entire supply chain -Involves the integration of purchasing, quality, operations, marketing, and logistics |
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Supply Chain Reference Model |
1. Plan 2. Source 3. Make 4. Deliver 5. Return |
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Plan (SCOR) Model |
Process refers to the development of a strategy for balancing demand and supply while meeting the requirements of sourcing, production, and delivery |
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Source (SCOR) Model |
Process refers to the set of activities involved in procuring materials and services to meet planned or actual demand |
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Make (SCOR) Model |
Refers to processes that transform materials into a finished product
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Deliver (SCOR) Model |
Process is the set of activities involved in order entry, materials handling, and transporting of goods and services to meet demand |
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Return (SCORE) Model |
the set of activities for handling returns of goods |
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Purchasing Function |
buys goods and services from other organizations |
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Purchasing Function Key Notes |
-Tangible Products & Services -Needs Specifications/drawings that explicitly describe the "input" to be acquired -Potential Suppliers are identified, evaluated, and selected -Most Suppliers, a purchase agreement is agreed upon and a subsequent purchase is created - Primary Contact(in most instances) with the supplier (to ensure that conflicting communications do not occur) |
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Global Sourcing Concers |
-Potential Product Quality Issues -Potential Safety Issues - Potential Human Rights Violation Issues - Potential Environmental Issues -Fluctuations in Exchange Rate -Delivery Lead Time |
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Logistics Function |
-Typically Responsible for the actual Movement and storage of goods across organizations in a supply chain -Oriented Downstream toward the customer |
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Key Decisions Regarding Logistics Function |
-Choice of Transportation -Type of Packaging and Material Handling - Location and Management of Storage Points |
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Supply Chain Metrics |
-Each Company in a supply chain can determine its own performance measures as long as it does not sub-optimize the overall performance of the supply chain |
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Common Types of Supply Chain Metrics |
-Delivery
-Quality -Flexibility -Cost |
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Common Delivery Metrics |
-On-time Delivery -Fill Rate -Lead Time |
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On-Time Delivery |
% of orders delivered complete and on the date requested by the customer |
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Fill Rate |
% of orders filled completely from inventory |
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Lead Time |
Time it takes from taking an order to its delivery to customer |
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Common Quality Metrics |
-Performance of the product or service based on customer perceptions -Conformance to product specifications/drawings |
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Common Flexibility Metrics |
-Volume Flexibility -Mix Flexibility |
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Volume Flexibility |
The time it takes to increase or decrease output by a specified amount |
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Mix Flexibility |
the time it takes to change the mix of products or services delivered |
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Common Cost Metrics |
Time it takes to get paid by customer Unit Cost of the product or service |
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Inventory & Lead Time |
-the level of raw-materials inventory is a function of the suppliers' lead times and the safety stock needed to handle variance in lead times and demand |
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Bullwhip Effect |
Describes the increasing variability in orders that occur as an end customer order moves upstream through the supply chain |
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Bullwhip Effect Observations |
-There is variability in the orders received by each entity from period to period - As one moves farther and farther back from the end user, the greater the variability in the orders - Inventory Level variability also increases as one moves upstream in the supply chain |
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Supply Chain Structure |
frequently long-range in nature and require considerable capital |
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Supply Chain Structural Improvements |
-Engaging in Vertical Integration -Pursuing Major Process simplification -Changing the Configuration of factories, warehouses, and/or retail locations -Pursuing major Product Redesign -Working with third-part logistics Providers |
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Vertical Integration Shortcomings |
-Greater Management Challenges -Lack of Expertise -Over-reliance on internal Supplier -Potential Lost Supplier Sales to Competitors |
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Supply Chain Infrastructure Improvements |
-Partnerships with suppliers and/or customers (long-term, mutually beneficial relationships) -Setup Time Reduction -Integrated Information Systems -Cross-docking (refer to prior video) |
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Supply Chain Risk and Resilience |
-the ability to quickly respond to unexpected disruptions in supply or demand that can be either natural or manmade - Strikes, recessions, natural disasters, product recalls, or unexpected demands |
