Podcast
Questions and Answers
What was the scenario in supply chain management until the 1960s?
What was the scenario in supply chain management until the 1960s?
- Activities were independent from each other (correct)
- There was no concept of supply chain management
- All activities were under one umbrella
- Only three main activities were present
What is the primary purpose of inbound logistics?
What is the primary purpose of inbound logistics?
- To manage company finances
- To deliver products to customers
- To receive, store, and disseminate inputs to the production process (correct)
- To market products
What is the category of support activities that involves managing staff and talents?
What is the category of support activities that involves managing staff and talents?
- Technology Development
- HRM - Human Resource Management (correct)
- Procurement/Sourcing
- Firm Infrastructure
What is the main difference between supply chain and value chain?
What is the main difference between supply chain and value chain?
What is the term for all processes associated with transferring finished products from operations to customers?
What is the term for all processes associated with transferring finished products from operations to customers?
What is the category of primary activities that includes machining, assembly, and packaging?
What is the category of primary activities that includes machining, assembly, and packaging?
What is the term for everything done to either improve or maintain a sold product?
What is the term for everything done to either improve or maintain a sold product?
What is the primary purpose of the value chain?
What is the primary purpose of the value chain?
What is the category of support activities that involves purchasing and sourcing inputs?
What is the category of support activities that involves purchasing and sourcing inputs?
What is the term for the chain of events that follows value creation?
What is the term for the chain of events that follows value creation?
What is the primary focus of logistics management?
What is the primary focus of logistics management?
What is the primary purpose of supply chain management?
What is the primary purpose of supply chain management?
What percentage of companies focus on integration with their first-tier suppliers?
What percentage of companies focus on integration with their first-tier suppliers?
What are the different levels of suppliers in a supply chain?
What are the different levels of suppliers in a supply chain?
What is the definition of supply chain?
What is the definition of supply chain?
What is the vision of supply chain management that few companies succeed at?
What is the vision of supply chain management that few companies succeed at?
What is the primary goal of value chain management?
What is the primary goal of value chain management?
What is the primary advantage of optimizing logistics according to the text?
What is the primary advantage of optimizing logistics according to the text?
What is the main principle of IKEA's inventory management strategy?
What is the main principle of IKEA's inventory management strategy?
What is the term used to describe the strategy of minimizing touchpoints in IKEA's warehouse operations?
What is the term used to describe the strategy of minimizing touchpoints in IKEA's warehouse operations?
What is the main benefit of strong internal linkages in the value chain, according to the text?
What is the main benefit of strong internal linkages in the value chain, according to the text?
What is the primary focus of IKEA's operations?
What is the primary focus of IKEA's operations?
What is the primary objective of logistics management?
What is the primary objective of logistics management?
What is the supply chain?
What is the supply chain?
What is supply chain management?
What is supply chain management?
What is the focus of 47% of companies?
What is the focus of 47% of companies?
What is the vision of supply chain management that few companies achieve?
What is the vision of supply chain management that few companies achieve?
What is the primary goal of managing a supply chain?
What is the primary goal of managing a supply chain?
What percentage of companies focus on integration with key customers?
What percentage of companies focus on integration with key customers?
What are the 8 key sub-processes of supply chain management?
What are the 8 key sub-processes of supply chain management?
What is the role of tier 3 suppliers in the supply chain?
What is the role of tier 3 suppliers in the supply chain?
What is the definition of supply chain according to the text?
What is the definition of supply chain according to the text?
What is the ultimate goal of improving logistics according to the text?
What is the ultimate goal of improving logistics according to the text?
What is the focus of the 'three Cs' in competitive advantage?
What is the focus of the 'three Cs' in competitive advantage?
What is the result of optimizing logistics according to the text?
What is the result of optimizing logistics according to the text?
What is the strategy used by IKEA to minimize costs in their warehouse operations?
What is the strategy used by IKEA to minimize costs in their warehouse operations?
What is the benefit of strong internal linkages in the value chain?
What is the benefit of strong internal linkages in the value chain?
What is the primary activity that involves managing inventory and storing products?
What is the primary activity that involves managing inventory and storing products?
What is the goal of value chain management according to the text?
What is the goal of value chain management according to the text?
What is the result of developing closer relationships with suppliers according to the text?
What is the result of developing closer relationships with suppliers according to the text?
What is the focus of IKEA's retail and warehouse processes?
What is the focus of IKEA's retail and warehouse processes?
What is the term for the strategy of minimizing touchpoints in IKEA's warehouse operations?
What is the term for the strategy of minimizing touchpoints in IKEA's warehouse operations?
What is the main reason for the separation of activities before the 1960s in supply chain management?
What is the main reason for the separation of activities before the 1960s in supply chain management?
What is the main challenge in modern supply chain management context?
What is the main challenge in modern supply chain management context?
What is the primary focus of primary activities in the value chain?
What is the primary focus of primary activities in the value chain?
What is the main difference between inbound and outbound logistics?
What is the main difference between inbound and outbound logistics?
What is the main purpose of human resource management in the value chain?
What is the main purpose of human resource management in the value chain?
What is the primary goal of the value chain?
What is the primary goal of the value chain?
What is the main difference between supply chain and value chain?
What is the main difference between supply chain and value chain?
What is the primary purpose of marketing and sales in the value chain?
What is the primary purpose of marketing and sales in the value chain?
What is the main benefit of primary activities in the value chain?
What is the main benefit of primary activities in the value chain?
What is the main purpose of technology development in the value chain?
What is the main purpose of technology development in the value chain?
Study Notes
Logistics Management
- Logistics management plans, implements, and controls the efficient flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customers' requirements.
Supply Chain
- A supply chain is all processes involved in making raw material into a product, and the transportation of said product into the hands of a customer.
- It involves different levels of suppliers and customers, including tier 1, tier 2, and tier 3 suppliers and customers.
Supply Chain Management
- Supply chain management is the systematic, strategic coordination of traditional business functions and tactics across these business functions within a company and across businesses within the supply chain.
- It aims to improve the long-term performance of individual companies and the supply chain as a whole.
- There are 8 key sub-processes for SCM: customer relationship management, customer service management, demand management, order fulfillment, manufacturing flow management, supplier relationship management, product development and commercialization, and returns management.
Evolution of Supply Chain Management
- Until the 1960s, all activities under SCM were independent from each other.
- From 1960 to 2000, processes were merged into three overarching activities: purchasing/materials management, logistics, and physical distribution.
- From 2000 to present, all processes fall under SCM.
Challenges and Opportunities in Modern Supply Chain Management
- System complexity, lead time, transport, tracking, packaging, 3D printing, footprint, energy, and security are challenges in modern supply chain management.
Supply Chain vs Value Chain
- A supply chain is a subset of the value chain.
- A supply chain consists of 3 or more organizations linked directly by one or more upstream or downstream flows of products, services, finances, and information.
- A value chain consists of activities that create value, divided into primary and support activities.
Value Chain
- Primary activities are related to the physical transformation and handling of final products, including inbound logistics, operations, outbound logistics, marketing and sales, and services.
- Support activities support primary activities, including procurement, technology development, HR management, and infrastructure management.
Michael Porter's Value Chain
- Primary activities are divided into 5 categories: inbound logistics, operations, outbound logistics, marketing and sales, and services.
- Inbound logistics involves receiving, storing, and disseminating inputs to production.
- Operations transform inputs into final products.
- Outbound logistics transfer finished products to customers.
- Marketing and sales involve advertising, promotion, and distribution.
- Services involve installation, repair, and maintenance.
Value Chain Management
- Value chain management involves improving the value proposition to the next customer, and ultimately, the end consumer.
- All stakeholders in the value chain are challenged and incentivized to improve its value proposition.
Case Study - IKEA's Value Chain
- IKEA's primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and services.
- Inbound logistics involves in-store logistics management and inventory management.
- Operations involve retail and warehouse processes, cost-per-touch inventory strategy, and minimizing touchpoints.
- Outbound logistics involve presenting products in showrooms and allowing customers to pick desired products.
- Marketing and sales involve distribution channel strategy and developing customer relations.
- Services involve installation, repair, and maintenance.
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Description
Test your knowledge of logistics management, including the supply chain and value chain. Learn about the flow of goods, services, and information from origin to consumption. Covers key concepts and processes in logistics.
