10 Questions
What are the key components of logistics management in a supply chain?
Warehousing and inventory management, procurement management, and transportation management
What is the primary aim of customer service management in an organization?
To create and deliver value to consumers
What are the two ways in which customer relationship management occurs?
Internally and externally
What is the economic concern that arises when diesel is bought in US dollars?
Stability of currency
What is the environmental concern that can affect the supply chain?
Natural disasters
How can the use of just-in-time (JIT) inventory management help in reducing operational costs and improving profitability?
By lowering inventory levels and meeting delivery dates
What is the benefit of a supply chain that helps organizations exceed customer expectations?
Competitive advantage
What is the technological concern that involves employees' traceability and capacity planning in the supply chain?
Real-time data
What is the primary benefit of a supply chain that manages risk and uncertainty?
Reduced uncertainty and risk
What is the government and legislation concern that affects the supply chain?
Tolls, demarcations, tax, etc.
Study Notes
History of Supply Chain Management
- 1950: Manufacturers, wholesalers, retailers, and transporters operated independently, focused on their own customers and suppliers.
- 1960-1970: Importance of building relationships with suppliers and customers was recognized.
- 1970: Focus shifted to physical distribution function and improving product quality to meet consumer needs.
- 1980: Business functions like purchasing, operations, and distribution started to collaborate and group work activities together.
- 1990: Logistics management activities were adopted, and quality value-added supply chains emerged.
- 2000: Heavy dependence on technology to support operations, with an emphasis on flexibility and quality of raw materials.
- 2010: Companies compete with global consumer demands, focusing on niche markets, technology connectivity, cost minimization, and convenience for all stakeholders.
Supply Chain Cycle
- The supply chain cycle consists of production, logistics management, and customer service management functions.
Functions within the Supply Chain
- Operations and Production Management:
- Deals with how new products/services will be produced.
- Basic principles: innovative developments, value-added production activities, efficient and effective production, and meeting customer expectations.
- Logistics Management:
- Key components: warehousing and inventory management, procurement management, and transportation management.
- Seven Rs of logistics: right product, right quantity, right condition, right place, right time, right customer, and right cost.
- Customer Service Management:
- Aims to create and deliver value to consumers.
- Occurs internally or externally through customer relationship management.
Concerns within the Supply Chain
- Economy: Currency stability, fuel prices, and inflation.
- Government and Legislation: Tolls, demarcations, and taxes.
- Environmental: Natural disasters, climate change, and sustainability.
- Technological: Employee traceability, capacity planning, and real-time data.
Benefits of a Supply Chain
- Reduced uncertainty and risk.
- Quality customer service delivery.
- Operational costs and profitability.
- Competitive advantage: exceeding customer expectations.
Test your knowledge on the introduction to supply chain management, its history, evolution, and functions. This quiz covers the benefits of supply chains, major concerns, and analysing an organisation's supply chain structure.
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