22 Questions
What is logistics in supply chain management?
The part of a supply chain involved with the forward and reverse flow of goods, services, cash, and information
What are some key issues in supply chain management?
All of the above
What is the goal of supply chain management?
To match supply to demand as effectively and efficiently as possible
What is the definition of supply chain?
The sequence of organizations involved in producing and delivering a product or service
What is the demand component of a supply chain?
The part of the chain that starts where the organization's output is delivered to its immediate customer and ends with the final customer
What is the lifeblood of any business organization?
The supply chain
What are the key aspects of supply chain management?
Matching supply to demand as effectively and efficiently as possible
What are the supply chain functions and activities?
Forecasting, purchasing, inventory management, information management, quality assurance, scheduling, production and delivery, customer service
What are the three types of flow involved in flow management?
Product flow, information flow, and financial flow
What is the purpose of measuring supply chain ROI?
To incorporate economics into outsourcing and other decisions
What is the process of 'greening' the supply chain?
Redesigning products, reducing packaging, near-sourcing, choosing 'green' suppliers, managing returns, and implementing end-of-life programs
What is the purpose of integrating IT in supply chain management?
To enhance strategic planning and help businesses control costs, measure quality and productivity, respond quickly to problems, and improve supply chain operations
What are the benefits of adopting lean principles in supply chain management?
Eliminating non-value-added processes, improving product flow, using fewer suppliers, and never ceasing to improve the system
What are the risks of outsourcing?
Inflexibility due to longer lead times, increased transportation costs, language and cultural differences, loss of jobs, loss of control, lower productivity, loss of business knowledge, knowledge transfer and intellectual property concerns, increased effort required to manage the supply chain
What is the benefit of adopting new delivery modes in supply chain management?
Providing more options for shippers
What are the three types of flow management involved in supply chain management?
Product flow, information flow, and financial flow
What is the benefit of measuring supply chain ROI?
To incorporate economics into outsourcing and other decisions
What is the process of 'greening' the supply chain?
Implementing end-of-life programs to reduce waste
What is the benefit of adopting lean principles in supply chain management?
To eliminate non-value-added processes in the supply chain
What is the risk associated with outsourcing?
Lower productivity
What is the benefit of adopting blockchain technology in supply chain management?
To provide greater transparency and anti-counterfeit databases
What is the benefit of adopting new delivery modes in supply chain management?
More options for shippers
Study Notes
Trends and Benefits of Supply Chain Management and Outsourcing
- Flow management involves three types: product and service flow, information flow, and financial flow.
- Technological advances have enhanced the ability to manage these flows effectively.
- Measuring supply chain ROI enables managers to incorporate economics into outsourcing and other decisions.
- "Greening" the supply chain involves redesigning products, reducing packaging, near-sourcing, choosing "green" suppliers, managing returns, and implementing end-of-life programs.
- Reevaluating outsourcing is essential, especially global suppliers.
- Integrating IT produces real-time data that can enhance strategic planning and help businesses control costs, measure quality and productivity, respond quickly to problems, and improve supply chain operations.
- Managing risks is essential for some businesses that consider the supply chain a major source of risk.
- Adopting lean principles can improve the performance of supply chains by eliminating non-value-added processes, improving product flow, using fewer suppliers, and never ceasing to improve the system.
- Being agile is essential to respond quickly to unpredictable changes or circumstances.
- Adopting blockchain technology can improve supply chain processes by providing greater transparency, anti-counterfeit databases, and tracking items with specific qualities that rely on product authenticity.
- Establishing transparency is essential, especially for buyers who are increasingly interested in knowing where and how the goods they purchase are made.
- Adopting new delivery modes, such as self-driving vehicles and drones, can provide more options for shippers, but also more challenges.
Benefits of outsourcing:
- Lower prices may result from lower labor costs.
- The ability of the organization to focus on its core strengths.
- Permits the conversion of some fixed costs to variable costs.
- It can free up capital to address other needs.
- Some risks can be shifted to the supplier.
- The ability to take advantage of a supplier's expertise.
- Makes it easier to expand outside of the home country.
Risks of outsourcing:
- Inflexibility due to longer lead times.
- Increased transportation costs.
- Language and cultural differences.
- Loss of jobs.
- Loss of control.
- Lower productivity.
- Loss of business knowledge.
- Knowledge transfer and intellectual property concerns.
- Increased effort required to manage the supply chain.
Test your knowledge of supply chain management with this introductory quiz! From understanding the sequence of organizations involved in production to grasping the functions and activities that make up the supply chain, this quiz will help you gauge your understanding of this critical business concept. Whether you're a seasoned professional or just starting out in your career, this quiz is a great way to brush up on your knowledge of supply chain management.
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