Supply Chain Management Overview

A global supply chain is a network of organizations and activities that supply a firm with goods and services across different countries.

The key members of a supply chain include suppliers, manufacturers, distributors, retailers, and customers.

Members of a supply chain collaborate by sharing information and resources to enhance efficiency and customer satisfaction.

<p>Transporters and warehouse service providers support the supply chain by facilitating the movement and storage of goods.</p> Signup and view all the answers

<p>Efficiency is important in a supply chain as it helps reduce costs and improves the speed of delivering products to customers.</p> Signup and view all the answers

<p>Manufacturers are supplied with components such as plastic casings, printed circuit boards, and integrated circuits.</p> Signup and view all the answers

<p>Customer satisfaction entails meeting or exceeding customer expectations regarding product quality and delivery times.</p> Signup and view all the answers

<p>A well-managed supply chain can offer competitive advantages such as lower costs, faster delivery, and improved product quality.</p> Signup and view all the answers

<p>The main objective of supply chain management is to efficiently manage the flow of goods, information, and funds to fulfill customer requests.</p> Signup and view all the answers

<p>The three phases are supply chain strategy or design, supply chain planning, and supply chain operation.</p> Signup and view all the answers

<p>The five stages of the supply chain are customers, retailers, wholesalers/distributors, manufacturers, and component/raw material suppliers.</p> Signup and view all the answers

<p>The customer is an integral part of the supply chain, influencing demand and driving the processes involved in fulfilling their request.</p> Signup and view all the answers

<p>Linking supply chain strategy to business strategy ensures that the supply chain effectively supports the overall goals and objectives of the company.</p> Signup and view all the answers

<p>Strategic decisions include outsourcing functions, determining facility locations and capacities, and selecting modes of transportation.</p> Signup and view all the answers

<p>The term 'supply network' refers to the interconnected structure that includes various suppliers, manufacturers, distributors, and retailers involved in fulfilling a customer request.</p> Signup and view all the answers

<p>Information flow is crucial as it enables the coordination of activities across the supply chain, ensuring that all stakeholders are informed about product availability and demand.</p> Signup and view all the answers

<p>Decisions in the supply chain planning phase are typically made over the next quarter or year.</p> Signup and view all the answers

<p>The four process cycles in supply chains interact to facilitate the movement of goods and information, ensuring that each stage effectively responds to the needs of the subsequent stage.</p> Signup and view all the answers

<p>Customer needs drive the adjustments and evolution of supply chain strategies to ensure satisfaction and competitive advantage.</p> Signup and view all the answers

<p>Supply chain design must support strategic objectives of the business.</p> Signup and view all the answers

<p>Not all stages may be present in every supply chain due to variations in business models, such as Dell's direct sales strategy that bypasses retail and distribution.</p> Signup and view all the answers

<p>Integrating supply chain strategy with marketing strategies helps ensure that product availability aligns with marketing efforts, enhancing customer satisfaction.</p> Signup and view all the answers

<p>The flow of cash in a supply chain represents the transfer of funds between different stages, from customers paying retailers to suppliers receiving payments from manufacturers.</p> Signup and view all the answers

<p>Competitors influence supply chain decisions by prompting businesses to improve efficiency and reduce costs to remain competitive.</p> Signup and view all the answers

<p>The key processes are customer arrival, order entry, order fulfillment, and order receiving.</p> Signup and view all the answers

<p>The Replenishment Cycle focuses on replenishing retailer inventories, whereas the Customer Order Cycle centers on fulfilling customer orders.</p> Signup and view all the answers

<p>A retail order is triggered by inventory level assessments that indicate the need for replenishment.</p> Signup and view all the answers

<p>The initial step is the arrival of orders from distributors, retailers, or customers.</p> Signup and view all the answers

<p>Order fulfillment refers to the process of picking, packing, and shipping the ordered products to the customer.</p> Signup and view all the answers

<p>Production scheduling is significant as it determines the production timeline and resource allocation for fulfilling orders.</p> Signup and view all the answers

<p>Receiving in both cycles involves accepting and verifying the arrival of goods to ensure accurate order fulfillment.</p> Signup and view all the answers

<p>The outcome is a well-stocked inventory that can meet customer demand without delays.</p> Signup and view all the answers

<p>Strategic, Tactical, and Operational.</p> Signup and view all the answers

<p>It enables better decision-making that maximizes performance and profitability.</p> Signup and view all the answers

<p>Analysis helps in demand planning and supply planning.</p> Signup and view all the answers

<p>Daily production and procurement management.</p> Signup and view all the answers

<p>High level, long time frame, and highly analytical.</p> Signup and view all the answers

<p>Low level, short time frame, and mostly transactional.</p> Signup and view all the answers

<p>Collecting information and analyzing the information.</p> Signup and view all the answers

<p>By executing or operationalizing the decisions made during planning phases.</p> Signup and view all the answers

<p>Zara gains a competitive edge by maintaining fresh inventory, which increases customer engagement and sales.</p> Signup and view all the answers

<p>The distribution system needs to be highly flexible and efficient to support rapid inventory turnover and frequent deliveries.</p> Signup and view all the answers

<p>Zara's infrastructure is better suited for retail sales due to the immediate consumer interaction and quick inventory turnover.</p> Signup and view all the answers

<p>Plants should be located near high-demand retail markets to reduce transportation costs and delivery times.</p> Signup and view all the answers

<p>No, Amazon should prioritize stocking fast-moving and high-demand products to optimize warehouse space and efficiency.</p> Signup and view all the answers

<p>These retailers can reach a broader customer base and enhance sales through online presence, while using physical stores for fulfillment.</p> Signup and view all the answers

<p>Products that are often bulky, low-frequency purchases, or require extensive consumer information tend to perform better online.</p> Signup and view all the answers

<p>Store inventories should be managed centrally to allow for flexible fulfillment options between stores and online orders.</p> Signup and view all the answers

Management of all stages involved in fulfilling a customer request. This includes all companies and functions involved in getting goods and services to the customer.

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

A wider term for supply chain; emphasizes the interconnected nature of companies involved in fulfilling a customers request.

Typical stages include customers, retailers, wholesalers, manufacturers, and supplier of raw materials; not every stage is needed for all supply chains.

Physical movement of products through the supply chain.

Movement of money through the supply chain; payment for goods and services, revenue to/from the retailer and manufacturer.

Flow of information (orders, inventory, etc.) within the supply chain.

An integral part of the supply chain; their needs drive the entire process.

A network of organizations and activities supporting the production and distribution of goods and services.

Organizations involved in the process of producing and delivering a product.

Meeting or exceeding customer needs and expectations for a product.

Minimizing costs and time while maintaining quality in the supply chain.

Having an edge over competitors by offering better products, services, or prices.

The set of organizations and activities, such as transporters and warehouses, that support a supply chain.

The process a product follows through the stages of the supply chain.

Long-term plan for supply chain structure and resource allocation.

Short-term decisions for the next quarter or year, related to the supply chain.

Daily or weekly supply chain decisions.

Supply chain decisions must support the overall business objectives.

Decisions about supply chain setup, resource allocation and responsibilities of each stage.

Hiring a third party to handle supply chain tasks.

Determining the geographical placement of supply chain facilities.

Deciding the production or storage capacity of facilities in the supply chain.

The information necessary to make informed decisions about the production and delivery of goods to meet customer needs.

Decisions within a supply chain are made at three phases: Strategic, Tactical, and Operational.

Focuses on long-term goals, facility location, and capacity planning, considering trends and market changes.

Involves mid-term planning, demand forecasting, and supply planning for production and distribution.

Focuses on day-to-day operations, production scheduling, procurement, and field servicing.

Different stages within the supply chain have varying levels of functionality – strategic, operational, and transactional.

Information flows between different stages of the supply chain, enabling effective coordination and communication.

Supply chain systems are developed in three stages: Requirements Gathering, Design, and Implementation.

Zara replenishes its stores multiple times a week, allowing it to quickly respond to changing customer preferences and trends. This results in higher sales and less markdowns compared to less frequent replenishment.

The frequency of store replenishment greatly influences the design of a distribution system. Frequent replenishment requires efficient and responsive logistics, often with a focus on speed and flexibility.

Zara's responsive replenishment infrastructure is more suited to retail sales than online sales. This is because retail stores allow for visual merchandising and immediate customer feedback, which inform quick replenishment decisions.

Companies should consider the location of their production facilities and their flexibility in accommodating different market needs. Plants may need to be versatile enough to serve multiple markets or specialize in specific products.

The allocation of markets to production facilities is crucial for supply chain effectiveness. This allocation needs to be periodically reviewed to ensure efficient resource utilization and meet evolving market demands.

The investment needed to create flexible manufacturing facilities needs to be evaluated. The potential benefits, such as adaptability to changing market preferences, should be considered.

As Amazon grows, it strategically expands its warehouse network. The number and location of warehouses are crucial to maintaining efficient delivery times and minimizing shipping costs.

Traditional retail stores can leverage their existing infrastructure and customer base when establishing an online channel. This creates a hybrid approach that offers both physical and digital shopping experiences.

The series of steps involved in receiving and fulfilling a customer's order. It starts with the customer's order arrival and ends with the delivery of the order.

The process of replenishing the inventory of a retailer, where the retailer is considered the customer. It involves receiving orders, processing them, and delivering the products.

The process of producing and delivering goods to a distributor, retailer, or customer. It involves receiving orders, planning production, manufacturing, and shipping the products.

The customer order cycle focuses on fulfilling individual customer orders, while the replenishment cycle focuses on replenishing a retailer's inventory. The customer is the end user in the customer order cycle, while the retailer is the customer in the replenishment cycle.

The customer order cycle typically includes: customer order arrival, customer order entry, customer order fulfillment, and customer order receiving.

The replenishment cycle typically includes: retail order trigger, retail order entry, retail order fulfillment, and retail order receiving.

The manufacturing cycle typically includes: order arrival, production scheduling, manufacturing and shipping, and receiving at the distributor or retailer.