Supply Chain Management Overview

<p>As volume grows, it is necessary to maintain a rapid and efficient shipping infrastructure. (C)</p> Signup and view all the answers

<p>Offering a diverse approach to customer interaction or sales. (A)</p> Signup and view all the answers

<p>Integrating store stocking with online data and logistical needs. (A)</p> Signup and view all the answers

<p>Communication, critical thinking, ethical behaviour, and application of knowledge. (C)</p> Signup and view all the answers

<p>To ensure minimal time-to-market for fast fashion. (B)</p> Signup and view all the answers

<p>Manufacturers, suppliers, transporters, and customers (A)</p> Signup and view all the answers

<p>The difference between customer value and supply chain cost (B)</p> Signup and view all the answers

<p>It emphasizes the complex interactions between multiple entities (C)</p> Signup and view all the answers

<p>Maximize net value generated (D)</p> Signup and view all the answers

<p>Customer feedback system (D)</p> Signup and view all the answers

<p>By total supply chain surplus (D)</p> Signup and view all the answers

<p>Legal (A)</p> Signup and view all the answers

<p>The sum of profits from all supply chain stages (A)</p> Signup and view all the answers

<p>The difference between total revenue and total costs (C)</p> Signup and view all the answers

<p>To maximize supply chain surplus within constraints (B)</p> Signup and view all the answers

<p>Supply chain operation (A)</p> Signup and view all the answers

<p>Anticipation of customer orders (D)</p> Signup and view all the answers

<p>A series of cycles at interfaces between stages (C)</p> Signup and view all the answers

<p>Managing information and fund flows (D)</p> Signup and view all the answers

<p>They need to consider market uncertainties. (C)</p> Signup and view all the answers

<p>Wal-Mart (A)</p> Signup and view all the answers

<p>The timing of their execution (B)</p> Signup and view all the answers

<p>Processes at the interface between the firm and customers (C)</p> Signup and view all the answers

<p>Set order due dates and replenish inventory (D)</p> Signup and view all the answers

<p>It structures the supply chain for years ahead. (C)</p> Signup and view all the answers

<p>Demand uncertainty and competition (A)</p> Signup and view all the answers

A network of organizations and individuals involved in the process of fulfilling a customer's request, from raw materials to the final product.

The customer is a crucial part of the supply chain, not just an end point. It also includes the flow of information, funds, and products in both directions.

The primary goal is to maximize the net value generated for all parties involved. This is calculated by subtracting the total cost from the customer value received.

The supply chain surplus is the profit shared among all members of the supply chain.

It's about maximizing the overall value creation for everyone in the chain, not just profits at a single stage.

The supply chain involves three main flows: product flow (physical movement of goods), information flow (data sharing about orders, deliveries, etc.), and financial flow (money transfers between parties).

This refers to the complete network of organizations and individuals involved in the entire supply chain process. It emphasizes the complexity and interconnectedness of the system.

Includes customers, retailers, wholesalers, distributors, manufacturers, and suppliers. Each stage plays a vital role in the overall supply chain process.

Supplier Relationship Management (SRM) encompasses all processes that connect a company to its suppliers.

Zara's responsive supply chain allows it to react quickly to changing fashion trends and customer preferences, giving it a competitive advantage.

Inditex, Zara's parent company, uses both in-house and outsourced manufacturing to balance cost efficiency and control over product quality and production.

Zara sources products with uncertain demand from local manufacturers due to their quick turnaround times. Products with predictable demand are sourced from Asian manufacturers, where labor costs are lower.

By replenishing stores multiple times a week, Zara ensures its shelves are always stocked with the latest items, increasing sales and responding to changing customer preferences.

Amazon's growth necessitates the construction of more warehouses for storage and order fulfillment, strategically located to optimize delivery times.

Brick-and-mortar stores provide online retailers with a physical presence for customer interaction, product demonstrations, and potentially increased sales.

The online channel, for products like shoes and diapers, can provide more detailed information, customer reviews, and potentially a wider selection compared to retail stores.

The sum of all profits across all stages of the supply chain, measured by the difference between the revenue generated by the customer purchase and the total costs incurred throughout the supply chain.

Supply chain decisions are categorized into three key phases: strategy or design, planning, and operation. These phases build on each other and impact how a supply chain functions.

The strategic phase of supply chain management involves defining the overall structure, resource allocation, and processes for each stage of the supply chain. It sets the foundation for the future.

Long-term decisions like outsourcing supply chain functions, determining facility locations and capacities, choosing transportation methods, and designing information systems fall under the strategic phase of supply chain management.

The planning phase of supply chain management focuses on establishing policies for short-term operations. It aims to maximize supply chain surplus within the limitations set by the strategic phase.

Planning decisions involve activities like deciding which markets will be supplied from which locations, planning inventory buildup, considering subcontracting options, defining inventory policies, and scheduling marketing promotions. These decisions must account for uncertainties in demand, exchange rates, and competition.

The operational phase of supply chain management focuses on handling individual customer orders on a weekly or daily basis. It operates within pre-defined planning policies and a fixed supply chain configuration.

Operational decisions involve tasks such as allocating orders to inventory or production, setting delivery due dates, generating warehouse picking lists, assigning orders to shipments, scheduling deliveries, and placing replenishment orders. The focus is on maximizing efficiency with minimal uncertainty due to the shorter time horizon.

The cycle view framework breaks down supply chain processes into a series of interconnected cycles, each occurring at the interface between different stages of the chain.

The push/pull view categorizes supply chain processes based on whether they are initiated in anticipation of customer orders (push) or in response to customer orders (pull). This framework helps understand the reactive vs. proactive nature of processes.

The push/pull boundary represents the point where the supply chain transitions from a speculative, proactive approach (push) to a reactive, demand-driven approach (pull).

Customer Relationship Management (CRM) encompasses all processes that directly involve the firm's interaction with its customers, including customer service, sales, and marketing. These processes build and maintain customer relationships.

Internal Supply Chain Management (ISCM) encompasses all processes that take place within the firm, including procurement, manufacturing, warehousing, and transportation. These processes manage the internal flow of goods and information.

Supply chain processes are crucial for optimizing operations and improving efficiency. They are often categorized into different views like the cycle view and push/pull view, and involve various macro processes like CRM and ISCM.