Questions and Answers
A supply chain consists of the flow of products and services from raw materials to customers.
True
Porter’s Value Chain focuses exclusively on the financial aspects of a supply chain.
False
The efficiency of a supply chain can be influenced by transportation and information.
True
It is important to consider customers’ suppliers when examining supply chain costs.
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A network level approach is essential for efficiency throughout the supply chain.
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Retailers are the last link in the supply chain before products reach the customers.
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The Networked Enterprise model requires more complexity in supply chain operations.
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Intermediate goods manufacturers fall between raw materials manufacturers and finished goods manufacturers in a supply chain.
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Reducing complexity involves increasing the number of steps in a process.
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Eliminating unnecessary operations is a way to reduce complexity.
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Standardizing packaging can complicate the packing and shipping process.
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Intermediaries should be included to reduce complexity in processes.
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Reducing complexity can lead to better management of variations in products.
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Simplifying processes may also involve changing the number of products offered.
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Reducing complexity can be achieved by making processes more complicated and added with new steps.
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The reduction of complexity may require the elimination of redundant operations.
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The materials contained in the learning packets can be reproduced without any legal consequences.
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The authors provided guarantees concerning the accuracy of the information in the materials.
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The purpose of including links to other materials is for non-commercial teaching purposes.
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The Copyright Act (RA) 8293 allows for the reproduction of copyrighted works without permission.
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Pamantasan ng Cabuyao may take legal action against copyright infringement.
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Interoperability can be achieved by integrating different information systems across various companies.
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Visibility in the supply chain refers to the inability to track raw materials and finished goods.
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A supplier's inventory management system can help avoid delays by automatically updating the manufacturer's production schedule.
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Interoperability is solely dependent on the technologies used within a single department.
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Real-time tracking of shipments is a critical aspect of visibility in the supply chain.
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Compatible systems can lead to delays in the supply chain due to miscommunication.
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Visibility in the supply chain is unnecessary once a product is completed.
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The supply chain can be disrupted by incompatible information systems.
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Interoperability requires synchronization of processes across different companies.
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Limited visibility of supply chain components can enhance efficiency.
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All components of the supply chain need monitoring to ensure smooth operations.
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A lack of interoperability can cause problems across different supply chain departments.
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The automatic updating of production schedules has no impact on supply chain efficiency.
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Companies must rely on manual processes to track shipments effectively.
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Switching costs are decreased by providing buyers with valuable incentives such as lower costs or useful information.
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The bargaining power of suppliers is strongest when there are many firms available to choose from.
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The threat of substitute products is influenced by buyers' willingness to switch and the switching costs they face.
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Rivalry among industrial competitors tends to be lower when it is costly for companies to exit the industry.
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Primary activities in Porter's Value Chain Model relate directly to the value created in a product or service.
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Support activities in the Value Chain are essential for coordinating primary activities and ensuring their existence.
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The drivers of Supply Chain Management (SCM) include only the final delivery of products to customers.
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The Value Chain Model addresses how a company can create and support its products or services.
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Study Notes
Understanding the Supply Chain
- A supply chain encompasses the flow of products and services from suppliers to customers, involving multiple stages including manufacturers, distributors, and retailers.
- Efficient coordination among the components of the supply chain is essential for maximizing supply chain surplus.
Porter’s Value Chain
- The value chain model identifies primary and support activities that create, deliver, and maintain a company's products or services.
- Primary Activities: Directly related to the creation of value in products/services, including inbound logistics, operations, outbound logistics, marketing, and sales.
- Support Activities: Enable primary activities to function effectively and include procurement, technology development, human resource management, and firm infrastructure.
Supply Chain Management (SCM) Drivers
- SCM drivers include key elements such as facilities, inventory, transportation, information, sourcing, and pricing.
- Facilities: Locations where products are manufactured or stored significantly affect operational efficiency.
- Inventory: Management of inventory levels at various stages impacts responsiveness and cost-effectiveness.
- Transportation: Influences delivery speed and costs, affecting customer satisfaction.
- Information: Data sharing across the supply chain improves decision-making and coordination.
- Sourcing: Selection of suppliers can enhance product quality and influence production costs.
- Pricing: Competitive pricing strategies can drive demand and influence overall service levels.
Network Level Approach
- The Networked Enterprise model emphasizes interoperability and visibility within the supply chain, simplifying complexities while enhancing communication.
- Achieving interoperability may require integration of varying information systems across different businesses.
- Supply chain visibility allows real-time tracking of products, facilitating proactive responses to delays or issues.
Reducing Complexity
- Simplification of processes and reduction of unnecessary steps can optimize efficiency and resource management within the supply chain.
- Standardizing operations, such as packaging, can streamline logistics operations and reduce variations in handling.
Challenges in Supply Chain Competitiveness
- Switching costs can be increased by providing buyers with lower costs or valuable information.
- The bargaining power of suppliers is strongest when there are few alternatives for buyers or when supplier inputs are critical.
- The threat of substitutes depends largely on customer willingness to switch and the cost associated with changing products or services.
- High industrial competition arises in markets with limited differentiation or declining growth rates, prompting aggressive strategies to retain market share.
Key Observations
- To maximize supply chain efficacy, attention should be given to all facilities that influence costs, including those of suppliers and customers.
- Adopting a network-level approach fosters efficiency across the entire supply chain, yielding competitive advantages.
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Description
Dive into the fundamentals of supply chain management in this Week 2 discussion led by Asst. Prof. Sarah C. Vanguardi. Explore key concepts such as Porter’s Value Chain and the importance of coordination among the various components and stages of a supply chain.
