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A supply chain can be formed with a single organization managing all aspects independently.
A supply chain can be formed with a single organization managing all aspects independently.
False
The term 'supply chain management' first appeared in the early 1980s.
The term 'supply chain management' first appeared in the early 1980s.
True
All companies within a supply chain must belong to the same business ownership.
All companies within a supply chain must belong to the same business ownership.
False
Elements such as leadership and strategic management are part of effective supply chain management.
Elements such as leadership and strategic management are part of effective supply chain management.
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A supply chain only adds value through the products it delivers, not through services.
A supply chain only adds value through the products it delivers, not through services.
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The primary focus of early supply chain management publications in the 1980s was on purchasing activities and cost reduction.
The primary focus of early supply chain management publications in the 1980s was on purchasing activities and cost reduction.
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The 1990s saw a decline in the number of publications regarding supply chain integration and supplier-buyer relationships.
The 1990s saw a decline in the number of publications regarding supply chain integration and supplier-buyer relationships.
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A supply chain consists of only one supplier and one customer.
A supply chain consists of only one supplier and one customer.
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Material flows in a supply chain go from finished products to raw materials.
Material flows in a supply chain go from finished products to raw materials.
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The supply chain flow starts from the retailer and ends with the supplier's supplier.
The supply chain flow starts from the retailer and ends with the supplier's supplier.
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Finance flow in a supply chain can be described as the bloodstream essential for operation.
Finance flow in a supply chain can be described as the bloodstream essential for operation.
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The terms 'Value Chain' and 'Demand Chain' can be used to describe different perspectives of a supply chain.
The terms 'Value Chain' and 'Demand Chain' can be used to describe different perspectives of a supply chain.
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There are multiple sources of finance flow within a supply chain.
There are multiple sources of finance flow within a supply chain.
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Information flows in a supply chain can only move downstream.
Information flows in a supply chain can only move downstream.
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The major components of a supply chain include supplier, OEM, distributor, and retailer.
The major components of a supply chain include supplier, OEM, distributor, and retailer.
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The study of supply chains has remained static since the early 1980s.
The study of supply chains has remained static since the early 1980s.
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Forecasting information flow is a type of information flow used in supply chains.
Forecasting information flow is a type of information flow used in supply chains.
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The commercial flow of a supply chain refers to value-added processes rather than transactional flows.
The commercial flow of a supply chain refers to value-added processes rather than transactional flows.
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The supply chain is better conceptualized as a 'chain' rather than a 'network'.
The supply chain is better conceptualized as a 'chain' rather than a 'network'.
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One of the intrinsic flows of a supply chain is the information flow.
One of the intrinsic flows of a supply chain is the information flow.
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Business management traditionally focused on processes rather than functional silos.
Business management traditionally focused on processes rather than functional silos.
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Decentralized purchasing allows for faster decision-making and improved purchasing efficiency.
Decentralized purchasing allows for faster decision-making and improved purchasing efficiency.
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An Industrial Purchase Order is a one-time request for specific goods and services.
An Industrial Purchase Order is a one-time request for specific goods and services.
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One disadvantage of standard purchase orders is the potential for increased bureaucratic delays.
One disadvantage of standard purchase orders is the potential for increased bureaucratic delays.
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Lack of expertise is considered an advantage of indirect purchasing.
Lack of expertise is considered an advantage of indirect purchasing.
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Decentralized purchasing can result in higher costs for a business.
Decentralized purchasing can result in higher costs for a business.
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One of the advantages of using a standard purchase order is that it helps in monitoring prices.
One of the advantages of using a standard purchase order is that it helps in monitoring prices.
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Supplier performance is a recognized disadvantage of standard purchase orders.
Supplier performance is a recognized disadvantage of standard purchase orders.
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One of the benefits of decentralized purchasing is the reliance on distributors.
One of the benefits of decentralized purchasing is the reliance on distributors.
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In the early years of supply chain management, managers primarily viewed it as a strategic tool rather than an operational tactic.
In the early years of supply chain management, managers primarily viewed it as a strategic tool rather than an operational tactic.
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The connections of supply networks have expanded primarily from local to global over the last two decades.
The connections of supply networks have expanded primarily from local to global over the last two decades.
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Hardly any major enterprise's supply chain is connected to other parts of the world.
Hardly any major enterprise's supply chain is connected to other parts of the world.
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The trends of supply chain development are always positive and encouraging.
The trends of supply chain development are always positive and encouraging.
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Enterprise management has largely replaced supply chain management in recent years.
Enterprise management has largely replaced supply chain management in recent years.
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Purchasing, also known as procurement, is a process that involves acquiring goods or services to meet an organization's goals.
Purchasing, also known as procurement, is a process that involves acquiring goods or services to meet an organization's goals.
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Business engagement in the past was mostly focused on relationship-based connections.
Business engagement in the past was mostly focused on relationship-based connections.
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Supplier selection criteria can include price, quality, and service.
Supplier selection criteria can include price, quality, and service.
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Centralized purchasing is a model where multiple teams handle an organization's purchasing needs.
Centralized purchasing is a model where multiple teams handle an organization's purchasing needs.
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Maintaining appropriate inventory includes ensuring proper amounts and proper items.
Maintaining appropriate inventory includes ensuring proper amounts and proper items.
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The disadvantages of a centralized purchasing model include reduced purchasing power.
The disadvantages of a centralized purchasing model include reduced purchasing power.
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Educating suppliers about needs is an important part of maintaining supplier relations.
Educating suppliers about needs is an important part of maintaining supplier relations.
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Improved cash flow is considered a disadvantage of centralized purchasing.
Improved cash flow is considered a disadvantage of centralized purchasing.
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Disorganized data and inefficiencies are common issues associated with decentralized purchasing.
Disorganized data and inefficiencies are common issues associated with decentralized purchasing.
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FIFO, LIFO, and FEFO are methods associated with supplier relationship management.
FIFO, LIFO, and FEFO are methods associated with supplier relationship management.
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One disadvantage of centralized purchasing is supplier risk.
One disadvantage of centralized purchasing is supplier risk.
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Study Notes
Supply Chain Management
- A supply chain is a group of independent organizations that work together to add value to products and services.
- Old business practices focused on re-engineering, strategic management, lean thinking, agile manufacturing, balanced scorecards, and blue ocean strategies.
- The term "supply chain management" first appeared in the 1980s.
- Early publications in the 1980s focused on purchasing and cost reduction.
- Significant increases in publications about supply chain integration and supplier-buyer relationships emerged in the 1990s.
- Globalization, increased competition, customer expectations, and technological improvements impact the business environment.
Fundamentals of Supply Chain Management (SCM)
- Better business management involves managing along the supply chain.
- Key aspects of SCM include strategic positioning, adequate structural configuration, collaboration, integration, and leadership.
- A supply chain involves multiple companies, not just one business.
- Supply chains are legally independent.
- A supply chain is characterized by the flow of materials and value addition.
- The process of adding value through the supply chain involves the upstream (supplier) and downstream (customer) sides.
- OEM (Original Equipment Manufacturer) and OBM (Original Brand Manufacturer) are terms for the focal companies.
Supply Chain Flows
- Supply chains have material flows (raw materials to finished products), information flows (throughout the chain, including demand, forecasting, production scheduling, and design), and financial flows (money).
- Supply chain flows can be seen as a "network" rather than a "chain."
- A supply chain can also be seen as a "value chain" or a "demand chain."
Development Trends in Supply Chain
- Supply chain management is not stagnant; it constantly evolves.
- Initially, SCM was seen as a functional improvement.
- It has evolved into an extended enterprise.
- Business interactions have shifted from transactional to relationships.
Purchasing
- Purchasing is the process of acquiring goods and services from suppliers.
- This process involves:
- Supplier selection (price, quality, expertise, schedules, financing terms).
- Maintaining appropriate inventory levels.
- Two purchasing models are centralized and decentralized.
Purchasing Activities
- Centralized purchasing involves a single team managing all purchasing needs, though it has disadvantages like a lack of centralized control, inefficiencies, disorganized data, missed opportunities for bulk purchasing, and high overall costs.
- Decentralized purchasing distributes decision-making to individual departments or branches. This can lead to faster decision-making, improved efficiency, greater flexibility, and immediate replacements, but it can lead to inefficiency and a lack of centralized control overall.
Types of Purchasing
- Direct purchasing involves buying raw materials, components, and labor for goods or services.
- Indirect purchasing covers the purchase of supporting materials (e.g. office supplies, maintenance).
Purchasing Documents
- Standard Purchase Order: A one-time request for a specific shipment. Used for accuracy and avoiding errors.
- Planned Purchase Order: A long-term commitment, useful for predictable needs.
- Industrial Purchase Order: A legally binding agreement between a buyer and seller outlining terms for purchase.
Purchasing Challenges
- Inaccurate data,
- Lack of transparency,
- Poor procurement planning,
- Supplier dependence,
- and Forecasting challenges are issues to be mindful of when running a purchasing process.
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Description
This quiz explores the key concepts and developments in Supply Chain Management (SCM). It covers the evolution of SCM practices from the 1980s to present-day influences like globalization and technology. Test your knowledge on strategic positioning, collaboration, and integration in supply chains.
