18 Questions
What is the main belief of the information-sharing paradigm in supply chain management?
To maximize participation, sharing of information and joint plan strategies are essential
What is the main focus of the process specialization paradigm in the supply chain?
Elimination of non-value-adding work and redundancy
What is the role of Integrated Service Providers (ISPs) in the supply chain?
Performing multiple tasks for a company as outsourced firms
How are Integrated Service Providers (ISPs) classified based on their operational model?
Asset-based and non-asset-based providers
What is a key characteristic of asset-based Integrated Service Providers (ISPs)?
They own and operate transportation equipment and warehousing buildings
How has Supply Chain Management changed the business model according to the text?
Shifted to a more responsive model focused on market/consumer orientation
What does cash-to-cash conversion measure in the context of the Supply Chain?
The time needed to turn products into sales revenue
What is the primary goal of dwell time minimization in the supply chain?
To reduce the time an asset sits idle in the supply chain
What is the main benefit of strategic sourcing for firms going global?
Ability to tap into skilled labor force
In the context of globalization, what are the four logistical differences mentioned?
Distance, documentation, demand, and diversity
What is the purpose of cash spin in the supply chain?
Reduce assets and reinvest in other projects
What is the measure of how well the Supply Chain is doing according to financial sophistication?
Cash-to-cash conversion efficiency
What is the key difference between the anticipatory model and the responsive model in Supply Chain Management?
The anticipatory model sells items first and then makes the product, while the responsive model makes products first then sells.
How does the responsive model in Supply Chain Management differ from the anticipatory model regarding inventory?
The responsive model incurs almost no inventory, while the anticipatory model incurs inventory by predicting future demand.
What key strategy helps in keeping supply chains responsive while maintaining low inventories?
Manufacturing postponement and geographical postponement
Which type of postponement is considered a more efficient form of built-to-order strategy?
Manufacturing postponement
What is the primary source of information for production decisions in the anticipatory model?
Current forecast of future demand
What distinguishes the responsive model from the anticipatory model in terms of market/consumer orientation?
The responsive model depends on actual customer orders, while the anticipatory model is dictated by forecasts.
Study Notes
Supply Chain Management Models
- The responsive model is market/consumer-oriented, producing products based on actual customer orders, and incurs almost no inventory, allowing for customization.
- The classic anticipatory model is internal, relying on forecasts to dictate production, resulting in inventory buildup.
Postponement Strategies
- Manufacturing postponement: a type of built-to-order production, but more efficient.
- Geographical/logistics postponement: building products and storing them in a logistics hub, awaiting orders.
- Combined postponement: a combination of manufacturing and geographical postponement.
Integrative Management and Supply Chain Processes
- Information-sharing paradigm: sharing information and joint planning strategies to increase participation from supply chain participants.
- Process specialization paradigm: eliminating non-productive, non-value-adding, and redundant work in the supply chain.
Integrated Service Providers (ISPs)
- Outsourced firms that provide multiple services, including transportation and warehousing.
- Classified as third-party/asset-based or fourth-party/non-asset-based providers.
Financial Sophistication
- Cash-to-cash conversion: the time required to convert raw materials or inventory purchases into sales revenue.
- Dwell time minimization: minimizing the time assets sit idle to optimize supply chain efficiency.
- Cash spin: reducing assets in the supply chain and reinvesting in another project.
Globalization
- Opportunities for firms going global include: demand exceeding local supply, strategic sourcing, and offshoring.
- Four logistical differences in globalization: distance, documentation, diversity, and demand.
Learn about the differences between the responsive supply chain model, which focuses on market/consumer orientation, and the classic anticipatory model. Explore how Supply Chain Management has shifted towards a more responsive approach.
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