Supply Chain Management Overview

Supply Chain Management

• A network between company and its supplier to produce and distribute a specific product to the final buyer.
• Includes different activities, people, entities, information, and resources.

Work-flow of Supply Chain at TSM

• Not specified in the provided text.

Supply Chain Processes

• Not specified in the provided text.

Scope of Supply Chain in a Firm

• Not specified in the provided text.

Key Activity in Macro Process Under Supply Chain Management

• Not specified in the provided text.

Order Generation & Fulfillment

• Five steps:
  • Receiving inventory shipments
  • Inventory storage
  • Order processing
  • Shipping
  • Returns processing

Important Concepts in Supply Chain

• Just-in-time manufacturing:

  • Also known as the Toyota Production System (TPS).
  • Adopted by Toyota in the 1970s.
  • Aims to increase efficiency and decrease waste by receiving materials just as they are needed.
  • Reduces inventory costs.
  • Requires producers to forecast demand accurately.

• FIFO (First In, First Out):

  • Method of cost lot tracking where items are valued and sold in the order they were purchased.

• LIFO (Last In, First Out):

  • Method of cost lot tracking where the most recent purchases are sold first.
  • Works opposite to FIFO.

• Landed Cost:

  • Total cost of ownership of an item.
  • Includes the cost price, shipping charges, custom duties, taxes, and any other charges borne by the buyer.

• Back Ordering:

  • Practice of placing a purchase order to a supplier for a product that's temporarily out of stock in your warehouse.
  • Typically adopted during times of high demand or for slow-moving products that suddenly see a spike in demand.

• Bill of Lading:

  • Shipping document showing the type of goods, their quantity, and the destination address.
  • Required whenever goods are transported by land, sea, or air.
  • Acts as a legal receipt of payment and must be signed by all parties involved in the shipment: the seller/shipper, the carrier, and the buyer/receiver.

• Cross Docking:

  • Method by which a business owner can ship goods received from vendors to customers with minimal storage time.

Different Incoterms in Supply Chain

• Incoterms are a set of internationally recognized rules defining the responsibilities of sellers and buyers in export transactions.

• EXW (Ex Works):

  • Seller fulfills its obligation when it places goods on its premises, ready for the buyer to pick up.

• FCA (Free Carrier):

  • Seller delivers goods to the carrier or person identified by the buyer on the seller's premises.

• CPT (Carriage Paid To):

  • Seller delivers goods to the carrier or person identified at another agreed upon location.
  • Seller pays for the costs to transport goods to the agreed upon place.

• CIP (Carriage and Insurance Paid To):

  • Expansion of CPT, where the seller agrees to pay for insurance to protect from buyer’s risk of loss or damage to goods during transit to the agreed upon place.
  • Seller must obtain minimum coverage, buyers may want additional protection.

• DAT (Delivered At Terminal):

  • Seller delivers goods to the buyer at an identified terminal like a quay, warehousing, shipping yard, or a rail or air cargo terminal.
  • Seller unloads goods for the buyer.

• DAP (Delivered at Place):

  • Expansion of DAT, requiring the seller to deliver and unload goods to the disposal of the buyer at a named destination.

• DDP (Delivered Duty Paid):

  • Seller must transport goods to a destination and have them cleared for import, including payment of duties or tariffs for importing or exporting products across borders.

• FAS (Free Alongside Ship):

  • Not specified in the provided text.

Supply Chain Management

• A network between a company and its suppliers to produce and distribute a specific product to the final buyer
• Involves different activities, people, entities, information, and resources

Supply Chain Processes

• Supply chain is a process that involves many steps
• Each step needs to be managed effectively to ensure that the final product reaches the customer on time and in good condition

Scope of Supply Chain in a Firm

• Supply chain is a key function of any business that manufactures or sells products
• Can be divided into different stages, each with its own set of activities

Key Activities in Macro Process Under Supply Chain Management

• Order generation and fulfillment
• Inventory management
• Procurement
• Production
• Logistics

Order Generation and Fulfillment

• Five steps in order fulfillment process:
  • Receiving Inventory Shipments
  • Inventory Storage
  • Order Processing
  • Shipping
  • Returns Processing

Important Concepts in Supply Chain

• Just-in-time manufacturing
  • Also known as Toyota Production System (TPS)
  • Adopted by Toyota in the 1970s
  • Increases efficiency and decreases waste
  • Reduces inventory costs
  • Requires producers to forecast demand accurately
• FIFO & LIFO
  • FIFO: First in, first out, items are valued and sold in the order they were purchased
  • LIFO: Last in, first out, most recent purchases are sold first
  • Works opposite to FIFO
• Landed Cost: The total cost of ownership of an item, including the cost price, shipping charges, customs duties, taxes, and any other buyer charges.
• Back Ordering: A practice of placing a purchase order to a supplier for a product that's temporarily out of stock in the warehouse and already been ordered by customers.
  • Adopted during times of high demand and for slow-moving products that see a spike in demand
• Bill of Lading: A shipping document showing the type of goods, their quantity, and the destination address.
  • Required whenever goods are transported from one point to another
  • Acts as legal receipt of payment
  • Has to be signed by all parties involved: seller/shipper, carrier, and buyer/receiver
• Cross Docking: A method by which a business owner can ship goods that they have received from vendors to their customers with little to no storage time.

Different Incoterms in Supply Chain

• Incoterms are a set of internationally recognized rules that define the responsibilities of sellers and buyers in export transactions.
• EXW: Ex Works
  • Seller fulfills its obligation when it places goods on the seller’s premises, ready to be picked up by the buyer.
• FCA: Free Carrier
  • Seller delivers goods to the carrier or person identified by the buyer on the seller’s premises.
• CPT: Carriage Paid To
  • Seller delivers goods to the carrier or person identified at another agreed upon location.
  • Seller must pay for the costs to transport goods to the agreed upon place.
• CIP: Carriage and insurance Paid To
  • An expansion of CPT, seller agrees to pay for insurance to protect from buyer’s risk of loss or damage to goods during transit to the agreed upon place.
  • Seller must obtain minimum coverage, buyers may want to purchase additional protection.
• DAT: Delivered At Terminal
  • Seller is obligated to deliver goods to the buyer at an identified terminal.
  • May include a quay, warehousing, shipping yard or a rail or air cargo terminal, and unload such goods for the buyer.
• DAP: Delivered at Place
  • An expansion of DAT by requiring the seller to deliver and unload goods to the disposal of the buyer at a named destination.
• DDP: Delivered Duty Paid
  • Seller must transport goods to a destination and have them cleared for import, including the payment of duties or tariffs for importing or exporting products across borders.
• FAS: Free Alongside Ship.

Supply Chain Management

• A chain connecting a company and its suppliers that produces and distributes products to final buyers.
• Includes activities, people, entities, resources and information.

Supply Chain Processes

• Activities that ensure products are available to customers in the right place at the right time.

Scope of Supply Chain in a Firm

• Covers all the activities that involve the flow of goods and services.

Key Activities in Supply Chain Management

• Procurement: Selecting and acquiring raw materials and finished goods.
• Production: Transforming raw materials into finished goods.
• Distribution: Moving finished goods from the factory to the customer.
• Inventory management: Managing the amount of inventory on hand.
• Customer service: Resolving customer issues and providing support.

Order Generation & Fulfillment

• Five steps in the order fulfillment process: receiving inventory shipments, inventory storage, order processing, shipping, returns processing.

Important Concepts In Supply Chain Management

• Just-in-Time (JIT): A manufacturing system where materials are delivered just in time for production.
  • Reduces inventory costs.
  • Requires producers to forecast demand accurately.
• FIFO (First-In, First-Out) & LIFO (Last-In, First-Out): Cost lot tracking methods for valuing and selling items in the order they were purchased.
• Landed Cost: The total cost of ownership of an item, including the cost price, shipping charges, customs duties, taxes, and any other charges borne by the buyer.
• Back Ordering: Placing an order for a product that is temporarily out of stock, usually during times of high demand or for slow-moving products.
• Bill of Lading: A document that shows the type of goods, their quantity, and the destination address. It serves as a legal receipt of payment.
• Cross Docking: Shipping goods directly from vendors to customers with minimal storage time.

Incoterms

• Internationally recognized rules defining the responsibilities of sellers and buyers in export transactions.

Different Incoterms

• EXW (Ex Works): Seller fulfills its obligation when goods are ready for pickup at the seller's premise.
• FCA (Free Carrier): Seller delivers goods to the carrier or person identified by the buyer on the seller's premises.
• CPT (Carriage Paid To): Seller pays for transport costs to an agreed upon location.
• CIP (Carriage and Insurance Paid To): Seller pays for insurance to protect the buyer from loss or damage during transit.
• DAT (Delivered At Terminal): Seller delivers and unloads goods at a specified terminal.
• DAP (Delivered at Place): Seller delivers and unloads goods at the buyer's disposal at a specified destination.
• DDP (Delivered Duty Paid): Seller transports goods to a destination and clears them for import, including payment of duties and tariffs.
• FAS (Free Alongside Ship): Seller fulfills obligation when goods are placed at the buyer's disposal alongside the ship.

Supply Chain Management

• A network connecting a company and its supplier to produce and distribute a specific product to the final buyer.
• Includes various activities, people, entities, information, and resources.

Work-Flow of Supply Chain at TSM

• (No information provided regarding the work-flow of supply chain at TSM.)

Supply Chain Processes

• (No information provided about the processes.)

Scope of Supply Chain in a Firm

• (No information provided about the scope.)

Key Activity in Macro Process Under Supply Chain Management

• (No information provided about the key activities.)

Order Generation & Fulfillment

• Five steps in the order fulfillment process:
  • Receiving inventory shipments
  • Inventory storage
  • Order processing
  • Shipping
  • Returns processing

Important Concepts in Supply Chain

• Just-in-time manufacturing:
  • Also known as the Toyota Production System (TPS)
  • Adopted by Toyota in the 1970s
  • Increases efficiency and decreases waste by receiving goods just in time for their use
  • Reduces inventory costs
  • Requires producers to forecast demand accurately
• FIFO (First In, First Out):
  • A method of cost lot tracking where items are valued and sold in the order they were purchased.
• LIFO (Last In, First Out):
  • A method of cost lot tracking where the most recent purchases are sold first.
  • Works opposite to FIFO.
• Landed Cost:
  • The total cost of ownership of an item.
  • Includes the cost price, shipping charges, custom duties, taxes, and any other charges borne by the buyer.
• Back Ordering:
  • Placing a purchase order to a supplier for a product that's temporarily out of stock in your warehouse and has already been ordered by customers.
  • Usually adopted during times of high demand and for slow-moving products that suddenly see a spike in demand.
• Bill of Lading:
  • A shipping document showing the type of goods, their quantity, and the destination address.
  • Required whenever goods are transported from one point to another, by land, sea, or air.
  • Acts as a legal receipt of payment and is signed by the seller/shipper, the carrier, and the buyer/receiver.
• Cross docking:
  • A method by which a business owner can ship goods they have received from vendors to their customers with little to no storage time.

Different Incoterms in Supply Chain

• Incoterms are internationally recognized rules that define the responsibilities of sellers and buyers in export transactions.

Incoterms Definitions

• EXW (Ex Works):
  • The seller fulfills its obligation when it places goods on the seller's premises, ready to be picked up by the buyer.
• FCA (Free Carrier):
  • The seller delivers goods to the carrier or person identified by the buyer on the seller's premises.
• CPT (Carriage Paid To):
  • The seller delivers goods to the carrier or person identified at another agreed upon location.
  • The seller pays for the costs to transport goods to the agreed upon place.
• CIP (Carriage and Insurance Paid To):
  • An expansion of CPT.
  • The seller agrees to pay for insurance to protect against the buyer's risk of loss or damage to goods during transit to the agreed upon place.
  • Seller must obtain minimum coverage, so buyers may want to purchase additional protection.
• DAT (Delivered At Terminal):
  • The seller delivers goods to the buyer at an identified terminal (quay, warehousing, shipping yard, rail, or air cargo terminal) and unloads them for the buyer.
• DAP (Delivered at Place):
  • An expansion of DAT, requiring the seller to deliver and unload goods to the disposal of the buyer at a named destination.
• DDP (Delivered Duty Paid):
  • The seller must transport goods to a destination and have them cleared for import, including payment of duties or tariffs for importing or exporting products across borders.
• FAS (Free Alongside Ship):
  • (No information provided.)

Explore the fundamentals of supply chain management, including the flow of goods from suppliers to consumers and key processes involved. This quiz covers essential concepts such as order fulfillment and just-in-time manufacturing.