Supply Chain Management Overview
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Questions and Answers

Which stage is NOT typically part of a supply chain?

  • Information Technology Providers (correct)
  • Distributors
  • Retailers
  • Manufacturers

What is considered an integral part of a supply chain?

  • Financial Institutions
  • Retailers only
  • Suppliers
  • The Customer (correct)

Which of the following correctly describes the flow in a supply chain?

  • Goods and information flow in both directions, along with cash. (correct)
  • Only cash flows from customers to suppliers.
  • Only information flows from suppliers to customers.
  • Goods flow in both directions while cash flows only towards suppliers.

What is the alternative term suggested to describe the concept of a supply chain?

<p>Supply Network (C)</p> Signup and view all the answers

What is the primary process involved in Supply Chain Management (SCM)?

<p>Balancing supply and demand (C)</p> Signup and view all the answers

Which of the following is NOT a key characteristic of SCM?

<p>Static supply strategies (B)</p> Signup and view all the answers

How can companies lower their landed cost?

<p>By coordinating supply chain activities (C)</p> Signup and view all the answers

Why must customer service levels in SCM be tailored to each customer?

<p>Not all customers require the same level of service (C)</p> Signup and view all the answers

What is meant by Supply Chain Surplus?

<p>Customer value minus supply chain cost (C)</p> Signup and view all the answers

What does 'value' represent in the Supply Chain equation?

<p>Benefit perceived by the customer (D)</p> Signup and view all the answers

What is an example of customer surplus in a pricing scenario?

<p>The difference between the value perceived and the actual purchase price (C)</p> Signup and view all the answers

Which of the following activities is NOT included in Supply Chain Management?

<p>Customer market research (C)</p> Signup and view all the answers

What is the primary measure of success for a supply chain?

<p>Total supply chain profitability (A)</p> Signup and view all the answers

What constitutes the primary source of revenue in a supply chain?

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

Which factor is NOT typically considered a cost in the supply chain?

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

What is supply chain profitability based on?

<p>Total profit shared across all stages (D)</p> Signup and view all the answers

What aspect is crucial for effective supply chain management?

<p>Managing the flows of products, information, and funds (B)</p> Signup and view all the answers

What is an example of a company benefiting from advanced supply chain strategies?

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

How should supply chain decisions be approached in a competitive environment?

<p>With an adaptive mindset to meet changing technology and customer needs (A)</p> Signup and view all the answers

Which of the following is a key consideration for sustaining supply chain competitiveness?

<p>Adapting to customer expectations (B)</p> Signup and view all the answers

What is essential for achieving global scope in a supply chain?

<p>Accurate and up-to-date information (A)</p> Signup and view all the answers

Which step is primarily focused on resolving operational problems in IT systems?

<p>Identifying an operational problem (B)</p> Signup and view all the answers

What is one characteristic of information that enhances supply chain visibility?

<p>Information must be accessible at any time (D)</p> Signup and view all the answers

In which phase is the facility location decision typically made?

<p>Strategic phase (D)</p> Signup and view all the answers

What is the goal of capturing and delivering needed information in supply chain management?

<p>To optimize inventory and production (C)</p> Signup and view all the answers

During which phase does demand planning typically occur?

<p>Tactical phase (C)</p> Signup and view all the answers

What is a key factor in making good business decisions in supply chains?

<p>Using accurate and relevant information (B)</p> Signup and view all the answers

Which of the following is NOT a characteristic of information needed for supply chains?

<p>Must be confidential (A)</p> Signup and view all the answers

What defines a pull process in supply chain management?

<p>Execution is initiated in response to a customer order. (C)</p> Signup and view all the answers

Which of the following correctly distinguishes between push and pull processes?

<p>Push processes anticipate demand, while pull processes react to demand. (A)</p> Signup and view all the answers

What is the purpose of the push/pull boundary in supply chain processes?

<p>To clearly differentiate between reactive and speculative processes. (C)</p> Signup and view all the answers

What is included in the Customer Order Cycle?

<p>Customer order receiving (B)</p> Signup and view all the answers

Which of the following is NOT one of the three macro processes in supply chain management?

<p>Supplier Resource Management (SRM) (B)</p> Signup and view all the answers

Which cycle occurs after the Customer Order Cycle?

<p>Replenishment Cycle (D)</p> Signup and view all the answers

Why is integration among the three macro processes crucial for supply chain management?

<p>It enables cohesive functionality and responsiveness throughout the supply chain. (D)</p> Signup and view all the answers

In the Cycle View of Supply Chains, which stage is involved in the Manufacturing Cycle?

<p>Supplier to Manufacturer (C)</p> Signup and view all the answers

Which sub-process is NOT part of Customer Relationship Management (CRM)?

<p>Order fulfillment (B)</p> Signup and view all the answers

What is the main focus of the Replenishment Cycle?

<p>Replenishing retailer inventories (A)</p> Signup and view all the answers

What is the main focus of Supplier Relationship Management (SRM)?

<p>To establish strong relationships with suppliers and manage their performance. (D)</p> Signup and view all the answers

Which of the following processes is NOT part of the Customer Order Cycle?

<p>Retail order fulfillment (A)</p> Signup and view all the answers

Which of the following statements about push processes is true?

<p>They rely on forecasts rather than actual demand. (C)</p> Signup and view all the answers

What best describes the purpose of each cycle in the Cycle View of Supply Chains?

<p>To define processes and responsibilities of each member (C)</p> Signup and view all the answers

Which option describes the processes included in the Procurement Cycle?

<p>Supplier to Manufacturer processes (A)</p> Signup and view all the answers

What initiates the Replenishment Cycle for a retailer?

<p>Retail order trigger (C)</p> Signup and view all the answers

Flashcards

Supply Chain Management

The management of all stages involved in fulfilling a customer request, from suppliers to customers.

Supply Chain

All stages, directly or indirectly, involved in fulfilling a customer request, including suppliers, manufacturers, distributors and customers.

Supply Chain Stages

Customers, retailers, wholesalers/distributors, manufacturers, and component/raw material suppliers are the typical stages of a supply chain.

Supply Network

An alternative term for a supply chain emphasizing the interconnectedness and complexity of the supply chain.

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Goods Flow

The movement of products through the different stages of the supply chain.

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Cash Flow

The movement of payments of the money among parties in the supply chain—for example, from customer to retailer, or from manufacturer to wholesaler.

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Information Flow

The exchange of information among parties in the supply chain.

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Customer as part of supply chain

The customer is an integral component of a supply chain since all stages of the process are designed to fulfill the customer's needs.

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Supply Chain Profit

The difference between the selling price of a product and the sum of all costs incurred throughout the supply chain, including information, storage, transportation, production, and assembly.

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Total Supply Chain Profitability

The overall profit generated from all stages of the supply chain, encompassing all activities from sourcing raw materials to delivering finished products to the customer.

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Supply Chain Objective

To maximize total supply chain profitability, not just profits at individual stages, by effectively managing all aspects of information, product, and fund flows.

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Impact of Supply Chain Decisions

Strategic choices made regarding supply chain design, planning, and operations significantly influence a firm's success or failure.

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Adapting Supply Chains

Supply chains must evolve and change over time to adapt to evolving customer needs, technological advancements, and competitive pressures.

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Competitive Supply Chain

A supply chain that consistently outperforms competitors by offering faster delivery, lower costs, and greater product customization.

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Source of Supply Chain Costs

Costs arise from various flows of information, products, and funds exchanged between different stages of the supply chain.

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Customer as Revenue Source

The customer is the sole source of revenue for any supply chain, emphasizing the importance of fulfilling their needs and expectations.

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What is Supply Chain Management (SCM)?

SCM is the process of optimizing the delivery of goods, services, and information from supplier to customer; it ensures a balance between supply and demand.

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Key SCM characteristics

Key characteristics of SCM include inventory visibility, pull systems, real-time information flow, tailored customer service, and collaborative supply chain relationships.

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Landed cost in SCM

Landed cost refers to the total cost of a product, including manufacturing, transportation, and other associated costs, until it reaches its final destination.

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Objective of a Supply Chain

The primary objective of a supply chain is to maximize overall value generated, which is the difference between customer value and supply chain cost.

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Supply Chain Surplus

Supply chain surplus is the difference between the value the customer receives and the cost the supply chain incurs to deliver that value.

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Real-time Information Flow in SCM

Real-time information flow allows for two-way communication and data sharing between all parts of the supply chain, improving decision-making and efficiency.

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Tailored Customer Service in SCM

Different customers have different needs; tailored customer service ensures each customer receives the specific level of service they require.

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Cycle View

A way to visualize the supply chain by breaking it down into different cycles that happen between each stage.

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Customer Order Cycle

All the steps involved in taking, processing, and fulfilling a customer's order.

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Replenishment Cycle

The process of restocking inventories at a retailer, where the retailer acts as the 'customer' to the distributor.

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What happens in the Customer Order Cycle?

It includes receiving customer orders, entering them into the system, and fulfilling them by shipping or delivering the products.

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Who are the players in the Customer Order Cycle?

The customer, the retailer, and the fulfillment center are all involved.

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What is the purpose of the Cycle View?

To clarify the different processes happening in the supply chain and who is responsible for each one.

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Why are Cycles important?

They help break down the supply chain into manageable chunks and ensure smooth flow of products from start to finish.

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What does the Replenishment Cycle involve?

Triggering a new order when inventory falls low, entering the order, fulfilling it, and receiving the products.

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Push/Pull View

Categorizes supply chain processes based on when they're triggered: in response to customer orders (pull) or in anticipation of orders (push).

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Push Process

A process initiated before a customer order, aiming to meet expected demand.

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Pull Process

A process initiated after a customer places an order, reacting to specific demand.

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Push/Pull Boundary

The point in the supply chain where the transition from push to pull strategies occurs.

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Customer Relationship Management (CRM)

All processes that interact directly with customers, including marketing, sales, order fulfillment, and customer service.

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Internal Supply Chain Management (ISCM)

All processes that occur within a company, such as manufacturing, warehousing, and inventory management.

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Supplier Relationship Management (SRM)

All processes that interact with suppliers, including sourcing, negotiation, and managing supplier relationships.

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Integration of Macro Processes

The successful coordination and collaboration between CRM, ISCM, and SRM, ensuring smooth flow of products, information, and finance.

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Accurate Information

Information in a supply chain must be correct and free from errors to ensure reliable decision-making.

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Up-to-date Information

Information in a supply chain needs to reflect the most recent changes and updates to be relevant and useful.

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Accessible Information

Information in a supply chain should be easily and readily available to all involved parties at any time.

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Right Kind of Information

Information in a supply chain should be tailored to the specific needs and roles of different individuals.

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Operational Problem

Any issue affecting the smooth functioning of a supply chain, such as production delays or customer dissatisfaction.

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IT System for Supply Chain

IT systems are tools used in businesses to collect, analyze, and share information to improve operational performance and decision-making within a supply chain.

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Strategic Decisions

Long-term choices made by businesses regarding where to locate facilities or how to allocate resources for the entire supply chain.

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Operational Decisions

Day-to-day decisions made by businesses concerning production schedules, inventory levels, and procurement tasks.

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Study Notes

Supply Chain Management

  • Supply chain management (SCM) is the process of optimizing the delivery of goods, services, and information from supplier to customer, balancing supply and demand.
  • The objective is to maximize overall value generated, calculated as Customer Value - Supply Chain Cost.
  • SCM encompasses producing and delivering a final product (or service) from the supplier's supplier through to the customer's customer, including: suppliers, manufacturers, distributors, retailers, and customers.
  • Information, funds, and products flow in both directions.
  • Flow of goods, cash, and information are key aspects.
  • Supply chain stages include but are not limited to: customers, retailers, wholesalers/distributors, manufacturers, component/raw material suppliers.
  • Not all stages are present in all supply chains.

Learning Objectives

  • Explain the term 'supply chain management' and its objective.
  • Identify the decision phases in SCM.
  • Identify the five stages of the supply chain.
  • Explain the interactions of the four process cycles of supply chains.

Key Characteristics of SCM

  • Inventory
  • Visibility
  • Pull systems
  • Companies must realize their strategies may affect landed cost
  • Coordination of supply chain activities lowers landed cost.
  • Real-time two way information flows
  • Customer service levels must be tailored to each customer.
  • Not all customers require the same type of service.
  • Supply chain relationships
  • Collaborative planning
  • Sharing risks and rewards

Decision Phases in a Supply Chain

  • Supply chain strategy/design: How to structure the supply chain over the next several years.
  • Supply chain planning: Decisions over the next quarter or year.
  • Supply chain operation: Daily or weekly operational decisions.

Supply Chain Strategy

  • Supply chain strategy needs to be linked to a company's business strategy and integrated with product creation and marketing strategies.
  • Key elements: New Product Strategy, Marketing Strategy, Marketing/Sales, Operations, and Distribution, Service, Finance, Accounting, Information Technology and Human Resources

Supply Chain Strategy or Design Decisions

  • Configuration of the supply chain
  • Allocation of resources
  • Processes for each stage.
  • Outsourcing supply chain functions.
  • Location and capacity of facilities.
  • Product location/storage.
  • Transportation modes.
  • Information systems.
  • Design must support strategic objectives.
  • Long-term, expensive decisions, must consider market uncertainty.

Supply Chain Planning

  • Definition of policies to govern short-term operations.
  • Supply configuration from the strategic phase.
  • Goal is to maximize supply chain surplus given constraints.
  • Starts with a forecast of demand in the coming year.
  • Decisions involve market selection, inventory buildup, subcontracting, inventory policies, market promotions timing/size, demand uncertainty, exchange rates, and competition.

Supply Chain Operation

  • Weekly or daily time horizon for decisions.
  • Decisions regarding individual customer orders.
  • Supply chain configuration and planning policies are defined.
  • Goal is to handle incoming customer orders as effectively as possible.
  • Allocation of orders, order due dates, pick lists, warehouse allocation, shipment assignment, delivery schedules, and replenishment orders.
  • Much less uncertainty (short time horizon).

Barriers to Supply Chain Management

  • Regulatory and political considerations.
  • Lack of top management commitment.
  • Reluctance to share, or use, relevant data.
  • Incompatible information systems.
  • Incompatible corporate cultures.

Process Views of a Supply Chain

  • Cycle View: Supply chain processes are divided into a series of cycles, each performed at the interface between two successive stages of the supply chain (e.g., customer order cycle, replenishment cycle, manufacturing cycle, procurement cycle).
  • Push/Pull View: Processes are categorized as pull (in response to a customer order) or push (initiated in anticipation of a customer order).

Key Learning Points Summary

  • Discuss the goal of a supply chain and its impact on firm success
  • Identify the three key supply chain decision phases and their significance
  • Describe the cycle and push/pull views of a supply chain
  • Classify the supply chain macro processes in a firm

Supply Chain Macro Processes

  • Customer Relationship Management (CRM): Processes at the interface between the firm and its customers.
  • Internal Supply Chain Management (ISCM): Internal processes within the firm.
  • Supplier Relationship Management (SRM): Processes at the interface between the firm and its suppliers.

Use of Information in a Supply Chain

  • Decision making: Strategic (location decisions), Operational (product production during today's run), Inventory (demand patterns, ordering costs), Transportation (costs and customer locations), Facility (location, capacity, schedules).

Characteristics of Information

  • Accurate and up-to-date.
  • Accessible at any time.
  • The right kind for the right person.
  • Provides supply chain visibility.

Steps in Using Information in IT Systems to improve Operational Performance

  • Identify operational problems.
  • Gain awareness and collect information.
  • Analyze the information.
  • Deliver needed information.
  • Make decisions.
  • Act on the decisions.

IT: The Information Enabler at 3 Different Phases

  • Strategic phase (analysis, facility location).
  • Tactical phase (demand planning, supply planning).
  • Operational phase (daily production, procurement, field servicing).

3 Stages of System Development

  • Operational requirements (4 supply chain cycles).
  • Software design (3 major processes).
  • Actual software produced.

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Supply Chain Management PDF

Description

This quiz explores the fundamental concepts of supply chain management (SCM), including its definition, objectives, and key stages. Learners will delve into the various decision phases in SCM and understand how value is generated through effective management of supply and demand. Test your knowledge on the flow of goods, information, and funds within a supply chain.

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