29 Questions
In the five-stage model of supply chain management evolution, which stage is characterized by 'multiple dysfunction'?
Stage 1
According to the text, how many stages are typically recognized in the development of a supply chain?
Four to five stages
What might cause some small and midsize organizations to be at a lower level of supply chain management evolution than their larger peers?
Lack of resources for improvements
According to the text, why might an organization believe it is in the highest stage of supply chain management evolution when it has actually slipped down a notch?
Complacency within the organization
What behavior is likely to be exhibited by some enterprises early in the evolution of the supply chain, according to the text?
Behaviors from two or more phases of maturity
'Stable supply chain' is characterized by which of the following according to the text?
$f(x) = $ predictable demand and minimal need for changes
What is another term used in the text for Stage 5 in the five-stage model of supply chain management evolution?
Orchestrated supply chain
What is the core model of the orchestrated supply chain emphasizing?
Security, resilience, value realization, and orchestrating people and processes
What is required for Orchestrated Supply Chain (Stage 5)?
Skilled leaders, teams, technology, and adaptation to change
What does digital transformation involve?
Embracing change management and integrating technology and processes
What do evolved supply chains in higher stages focus on?
Creating net value through highly integrated and synchronized connectivity
What is involved in Stage 4 of supply chain maturity?
Advances in e-commerce, including interactive customer sites and increasing business-to-business e-commerce
What does global competition now involve?
Entire supply chains battling for customers, workers, and capital across countries
What replaces traditional production planning in Stage 4 companies?
Sales and operations planning meetings
What is crucial for digital transformation?
Strong leadership, cross-functional relationships, and IT transformation
What does the Orchestrated Supply Chain require?
Improvement and change management teams that are cross-functional and technically skilled
What characterizes Stage 1 of supply chain evolution?
Reactive supply chain with lacking management discipline and clear goals
What is a characteristic of Stage 2 of supply chain evolution?
Improved information flow but independent functional areas without collaboration
What is emphasized in Stage 3 of supply chain evolution?
Companywide processes, collaboration, and compatibility between systems
What is basic in Stage 1 of supply chain evolution?
Material requirements planning (MRP)
What is a characteristic of Stage 2 in terms of automation?
Functions may be automated but with little collaboration and compatibility issues with new software
What drives the evolution of supply chains according to the text?
The need to adapt to the challenges posed by globalization and technological advancements
What is true about internal activities in Stage 1?
They are ad hoc and forecasting is unreliable.
What is the focus of the third stage of supply chain evolution?
Increased cross-functional communication and training
What does Stage 4, the extended enterprise, involve?
Collaborating on planning, design, replenishment, or logistics with suppliers or customers
What facilitates the focus on business processes in supply chain evolution?
Electronic communications, file transfers, powerful databases, and enterprisewide software applications
How does MRP II and ERP initiatives impact order processing in supply chain evolution?
Reduce the time it takes to get an order from a supplier, create the product, and deliver it to the customer
How does product design change in supply chain evolution?
Becomes a team effort resulting in products ready for manufacturing without costly modifications
How does customer service improve in supply chain evolution?
Increases cross-functional communication and training
Study Notes
Stages of Supply Chain Evolution
- The third stage of supply chain evolution is characterized by increased cross-functional communication and training, centrally located databases, and periodic sales and operations planning meetings.
- Proactive efficient supply chain proposes new raw materials or product designs to lower complexity and costs and invests in integrated information systems.
- Exhibit 1-6 visually represents a linked internal supply chain with collaboration and sharing of information through enterprise resources planning software (ERP).
- The focus on business processes is facilitated by electronic communications, file transfers, powerful databases, and enterprisewide software applications.
- MRP II and ERP initiatives reduce the time it takes to get an order from a supplier, create the product, and deliver it to the customer.
- Product design is now a team effort, resulting in products ready for manufacturing without costly modifications.
- Customer service improves due to market segmentation and efficient replenishment policies.
- Inventory is managed strategically with Just-in-Time procedures, accurate demand planning, and improved logistics.
- Warehouse management benefits from more advanced equipment and automation.
- The nucleus company may begin to integrate with external supply chain members by contracting with a logistics supplier.
- Stage 4, the extended enterprise, involves collaborating on planning, design, replenishment, or logistics with suppliers or customers, integrating internal networks for efficiency and quality.
- The extended enterprise involves initial exploratory collaboration between a channel master and one or several partners in the supply chain, often leading to more fully networked relationships and multicompany collaborations.
Test your knowledge about proactive efficient supply chain strategies, including milestones, software introduction, cross-functional communication, databases, and sales and operations planning meetings.
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