Supply Chain Management Overview
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Questions and Answers

What is a global supply chain?

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

Identify the key members of a supply chain.

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

How do members of a supply chain collaborate?

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

What role do transporters and warehouse service providers play in a supply chain?

<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

Why is efficiency important in a supply chain?

<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

What are the components supplied to manufacturers in a typical supply chain?

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

In the context of supply chains, what does customer satisfaction entail?

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

What competitive advantages can a well-managed supply chain provide?

<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

What is the main objective of supply chain management?

<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

What three phases are involved in the decision-making process of a supply chain?

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

List the five typical stages of the supply chain.

<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

Which role does the customer play in the supply chain?

<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

Why is it important for supply chain strategy to be linked with a company’s business strategy?

<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

What are some strategic decisions included in supply chain design?

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

What is meant by the term 'supply network'?

<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

Describe the significance of information flow in supply chain processes.

<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

How often are decisions made in the supply chain planning phase?

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

What are the interactions of the four process cycles in supply chains?

<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

What role does customer needs play in shaping supply chain strategies?

<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

What must supply chain design support according to the context given?

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

Why might all stages not be present in every supply chain?

<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

What is the significance of integrating supply chain strategy with marketing strategies?

<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

What does the flow of cash represent in a supply chain context?

<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

In what way do competitors impact the business's supply chain decisions?

<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

What are the key processes involved in the Customer Order Cycle?

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

How does the Replenishment Cycle differ from the Customer Order Cycle?

<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

What triggers a retail order in the Replenishment Cycle?

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

Identify the initial step in the Manufacturing Cycle.

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

In the context of the Customer Order Cycle, what is meant by 'order fulfillment'?

<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

What is the significance of production scheduling in the Manufacturing Cycle?

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

Describe the role of receiving in both the Customer Order Cycle and the Manufacturing Cycle.

<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

What is the outcome of successfully executing the Replenishment Cycle?

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

What are the three phases of decision-making in supply chain organizations?

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

Why is customer information vital for optimizing production and inventory?

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

What role does analysis play in the tactical phase of decision-making?

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

What is the primary focus of the operational phase in decision-making?

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

What are the levels of functionality associated with strategic planning?

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

In contrast to strategic planning, what characterizes operational planning?

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

What are the two main activities required before making informed decisions in the supply chain?

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

How can organizations effectively act on their decisions in supply chain management?

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

What advantage does Zara gain from replenishing its stores multiple times a week?

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

How does the frequency of replenishment affect the design of Zara's distribution system?

<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

Do you think Zara’s responsive replenishment infrastructure is better suited for online sales or retail sales?

<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

Where should plants be located to optimize Zara's supply chain?

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

Should Amazon stock every product it sells in its warehouses?

<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

What advantages can bricks-and-mortar retailers derive from setting up an online channel?

<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

What characterizes products for which the online channel offers a greater advantage relative to retail stores?

<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

In an omni-channel setting, how should store inventories be managed?

<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

Flashcards

Supply Chain Management

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.

Supply Chain

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

Supply Network / Web

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

Supply Chain Stages

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

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Goods Flow

Physical movement of products through the supply chain.

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Cash Flow

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

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Information Flow

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

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Customer

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

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Global Supply Chain

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

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Supply Chain Members

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

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Customer Satisfaction

Meeting or exceeding customer needs and expectations for a product.

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Supply Chain Efficiency

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

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Competitive Advantage

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

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Supply Chain Network

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

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Product Journey

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

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Supply Chain Strategy

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

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Supply Chain Planning

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

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Supply Chain Operation

Daily or weekly supply chain decisions.

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Supply Chain Strategy Link to Business Strategy

Supply chain decisions must support the overall business objectives.

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Supply Chain Design Decisions

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

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Outsourcing Supply Chain Functions

Hiring a third party to handle supply chain tasks.

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Supply Chain Facility Locations

Determining the geographical placement of supply chain facilities.

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Supply Chain Facility Capacities

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

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Supply Chain Information Needs

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

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Three Phases of Supply Chain Decision Making

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

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Strategic Planning

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

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Tactical Planning

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

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Operational Planning

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

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Levels of Functionality in the Supply Chain

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

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Information Flow within the Supply Chain

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

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System Development Stages

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

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Zara's Replenishment Advantage

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.

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Replenishment Frequency and Distribution

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.

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Zara's Online vs. Retail Suitability

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.

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Plant Location Flexibility

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.

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Plant Allocation and Revision

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.

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Valuing Flexibility

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.

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Amazon Warehouse Expansion

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.

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Brick-and-Mortar Online Channel Advantage

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.

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Customer Order Cycle

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.

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Replenishment Cycle

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.

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Manufacturing Cycle

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

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What is the difference between customer order cycle and replenishment cycle?

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.

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What are the steps involved in a customer order cycle?

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

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What are the steps involved in a replenishment cycle?

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

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What are the steps involved in a manufacturing cycle?

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

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Study Notes

Supply Chain Management and Processes

  • Supply chains encompass every effort from the supplier's supplier to the customer's customer in producing and delivering a product or service
  • Stages in a supply chain include: farmer, syrup producer, bottler, distributor or retailer
  • Key learning objectives include explaining supply chain management, identifying decision phases, identifying supply chain stages, and explaining supply chain interactions
  • A supply chain involves all parties involved in fulfilling a customer request, including manufacturers, suppliers, transporters, warehouses, retailers, and customers
  • Each company in a supply chain includes all functions required to fulfill a customer request (product development, marketing, operations, distribution, finance, and customer service)
  • Supply chains include the movement of products, funds, and information between suppliers and customers
  • Typical stages within a supply chain are customers, retailers, wholesalers, distributors, and manufacturers, though all stages aren't always present in all chains
  • Supply chains encompass every effort involved in producing and delivering a final product or service, from the supplier's supplier to the customer's customer
  • Supply chain components include suppliers, manufacturers, distributors, retailers, and customers
  • Supply chains have good flow, cash flow, and information flow
  • A supply chain diagram shows the flow of goods from suppliers to customers, highlighting various stages and actors within this network
  • Specific companies or industries may use different layouts of the supply chain depending on their needs
  • Supply Chain Management (SCM) is the process of optimizing the delivery of goods and services and information from suppliers to customers, balancing supply and demand
  • SCM includes managing supply and demand, sourcing materials, manufacturing, warehousing, inventory tracking, order entry, distribution, and delivery to the customer
  • Key characteristics of SCM include inventory, visibility with pull systems, and landed costs
  • Companies must realize that their strategies can affect the landed cost and coordination in supply chains may lower the landed cost
  • SCM requires real-time two-way information flows, levels of customer service tailored to each customer, supply chain relationships, collaborative planning, and sharing risks and rewards
  • The objective of a supply chain is to maximize the overall value generated for customers, represented by the difference between customer value and supply chain cost
  • Supply chain success should be measured by total supply chain profitability, not individual stage profitability
  • Supply chain decisions are crucial for firm success and involve adaptation to changing technology and customer expectations
  • Decisions in supply chains should consider what the best supply chain is for the business, how all chains look alike, the changing customer needs, and if competitors are doing things better or cheaper
  • Supply chain decisions occur in three phases: strategy or design, planning, and operation
  • Supply chain strategy involves decisions about the configuration of the supply chain, resource allocation, and processes for each stage
  • Supply chain planning involves decisions over the next quarter or year
  • Supply chain operations involve daily or weekly operational decisions
  • Supply chain strategy needs to be connected to a company's business strategy and integrated with product creation and marketing strategies
  • Supply chain policies govern short-term operations
  • Supply chain planning involves decisions on market channels, inventory buildup, and subcontracting, also considering demand uncertainty, exchange rates, and competition
  • Supply chain operations are daily decisions that consider handling customer orders effectively, allocating orders to inventory/production appropriately, and managing delivery schedules
  • Barriers to effective supply chain management include regulatory and political considerations, lack of top management commitment, reluctance to share or use relevant data, incompatible information systems, and incompatible corporate cultures

Process Views

  • Cycle view: processes in a supply chain are divided into cycles at the interface between success stages
  • Push/Pull view: processes are divided into categories depending on whether they're executed in response to a customer order or in anticipation of one
  • Customer order, replenishment, manufacturing, and procurement cycles show the flow and process
  • The cycle view defines processes, owners, roles/responsibilities, and desired outcomes
  • Pull processes react to customer orders, while push processes anticipate orders

Macro Processes

  • Supply chain processes are classified into three categories: Customer Relationship Management (CRM), Internal Supply Chain Management (ISCM), and Supplier Relationship Management (SRM)
  • CRM involves all processes for receiving, tracking, and managing customer orders, and encompasses marketing and sales
  • Internal SCM involves processes internal to the firm, including planning and fulfillment
  • SRM involves processes related to suppliers, including design collaboration, sourcing, negotiation, and buying

Use of Information

  • Information is essential to decision making, including location choices, production scheduling, inventory management, managing facility schedules, managing transportation, and others
  • Effective information must be accurate, up-to-date, available anytime, and of the correct kind for the right person to promote supply chain visibility and informed decisions
  • IT systems can improve operational performance by aiding in problem identification, data collection, analysis support, information delivery, and decision execution

System Development

  • System development has three stages: operational requirements (supply chain cycles), software design (major processes), and software production

Case Studies

  • Examples of companies and industries that involve supply chains, such as Wal-Mart, Seven-Eleven Japan, Gateway/Apple, Zara, Toyota, Amazon, Macy's, and others

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EGT303 1.1 Supply Chain Management & Processes PDF

Description

This quiz explores the fundamental concepts of supply chain management, detailing its various stages from suppliers to customers. You will learn about decision phases, interactions among supply chain participants, and the overall significance in fulfilling customer requests. Perfect for understanding the dynamics of supply chain processes.

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