33 True/False questions
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Cash-to-Cash Conversion → - reducing assets in the supply chain can "spin" cash for reinvestment in other projects
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Example of Manufacturing Postponement → Keeping all the car panels a base color (white or gray) until the order is received, then painting to the color ordered
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Globalization → - Expanding the Supply Chain. International, mature and emerging markets have become a part of the overall business growth strategy for many companies.
-Breadth - foreign manufacturing, office & retail sites, foreign suppliers & customers
-Depth - second and third tier suppliers & customers -
Dwell Time Minimization → - Expanding the Supply Chain. International, mature and emerging markets have become a part of the overall business growth strategy for many companies.
-Breadth - foreign manufacturing, office & retail sites, foreign suppliers & customers
-Depth - second and third tier suppliers & customers -
Enterprise Operations → - Expanding the Supply Chain. International, mature and emerging markets have become a part of the overall business growth strategy for many companies.
-Breadth - foreign manufacturing, office & retail sites, foreign suppliers & customers
-Depth - second and third tier suppliers & customers -
Geographic (or Logistics) Postponement → -Build or stock a full-line inventory at one or a few strategic locations
-Forward deployment of inventory is postponed until customer orders are received
-Once orders received, specific item is expedited to the local distributor
-Advantages are manufacturing economies of scale along with responsiveness to customer
-Often used for critical, high cost parts and assemblies (e.g. engines) -
Trends in SCM → ...
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Responsive business model → Forceast ->Buy materials ->Maufacture->Warehouse->Sell->Deliver (This is a push or Make-to-Stock model)
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Example of Geographic Postponement → Keeping full inventory in a central warehouse and releasing customer orders to local distributors or direct shipping to customer
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Benefits of Actively Managing the Supply Chain → Improved customer service
Increased revenue
Lower costs
Better asset utilization
Reduced uncertainty throughout the supply chain
Elimination of rush (unplanned) activities
Minimize delays / shorter lead-times
Lower inventory levels throughout the supply chain
Adds customer value / retain customers
Ability to effectively respond to disruptions and conflicts
Organizations that benefit the most are those with large inventories, large numbers of suppliers, complex products, and large purchasing budgets because they have the most to gain or lose. -
Effecient → Supply chain and process are designed to minimize cost.
-Predictable supply and low cost
-Low cost production and highly utilized capacity
-High inventory turns
-Ideal for FUNCTIONAL products -
Globalization Offers Firms Several Attractive Opportunities → Distance of typical order-to-delivery operations is significantly longer compared to domestic business.
Documentation requirements for business transactions is significantly more complex. A typical cross-border shipment now involves....
Accurately completing and filing about 35 documents
Compliance with > 600 laws & 500 trade agreements which are constantly changing.
Interfacing with about 25 parties, including customs, carriers, freight forwarders, government agencies, etc.
Operations must deal with significant Diversity in work practices and local operating environments.
How consumers demand products and services must accommodate cultural variations. -
Concepts Necessary for Achieving Integrated Management → Consists of firms collaborating to leverage strategic positioning, and to improve operating efficiency
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Cost Reduction and Continuous Improvement: → -Keeping the basic products centralized and performing the customization at the destination distributor
-Historical example - Autos
-Installing dealer options like sound systems, GPS, sun roofs on new cars purchased
-Contemporary example - Computers
-Dell Computers, doing final assembly or packaging additional system options like printers, digital cameras at a distribution center -
Responsive → ...
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Anticpatory business model → Forceast ->Buy materials ->Maufacture->Warehouse->Sell->Deliver (This is a push or Make-to-Stock model)
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Significant Differences for Global Logistics → -Economic value
-Lowest cost
- Economicies of scale
- Product/service creation
-Market Value
-Attractive assortment
- Economy-of-scope effectiveness
-Relevancy value
-Customization
-Segmental diversity
-Product/service positions -
Integrative managements creates → Consists of firms collaborating to leverage strategic positioning, and to improve operating efficiency
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Cash Spin → -The backbone of most firm's logistical information systems
-Maintains an integrated database of current and historical data
-Processes most (if not all) transactions across all business functions
-Most common / widely used ERP software packages;
-SAP
-Oracle
-Example transactions include
-Order entry and order management
-Inventory assignment
-Shipping and receiving -
Sustainability and "Greening" the Supply Chain: → Improved customer service
Increased revenue
Lower costs
Better asset utilization
Reduced uncertainty throughout the supply chain
Elimination of rush (unplanned) activities
Minimize delays / shorter lead-times
Lower inventory levels throughout the supply chain
Adds customer value / retain customers
Ability to effectively respond to disruptions and conflicts
Organizations that benefit the most are those with large inventories, large numbers of suppliers, complex products, and large purchasing budgets because they have the most to gain or lose. -
Responsive → Supply chain designed to respond quickly to market demands
-Fast response
-Minimal stockouts
-Need flexible capacity (volume)
-inventory of parts
-minimize lead times
-Need to have a variety of products
-Ideal for INNOVATIVE products -
Flexibility & Responsiveness: → Firms will increasingly need to be more flexible and responsive to customer needs adapting to unexpected changes and circumstances. Necessitating closer integration and collaboration
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Logistics → -The work required to move and geographically position inventory
-Order Management
-Inventory
-Transportation
-Warehousing
-Material Handling
-Packaging -
ERP → - reducing assets in the supply chain can "spin" cash for reinvestment in other projects
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Combined Postponement → -Keeping the basic products centralized and performing the customization at the destination distributor
-Historical example - Autos
-Installing dealer options like sound systems, GPS, sun roofs on new cars purchased
-Contemporary example - Computers
-Dell Computers, doing final assembly or packaging additional system options like printers, digital cameras at a distribution center -
Supply Chain Strategy → Consists of firms collaborating to leverage strategic positioning, and to improve operating efficiency
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Manufacturing (or Form) Postponement → -Build or stock a full-line inventory at one or a few strategic locations
-Forward deployment of inventory is postponed until customer orders are received
-Once orders received, specific item is expedited to the local distributor
-Advantages are manufacturing economies of scale along with responsiveness to customer
-Often used for critical, high cost parts and assemblies (e.g. engines) -
Supply Chain Management → Consists of firms collaborating to leverage strategic positioning, and to improve operating efficiency
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Basic supply chain model → Is a channel and business organizational arrangement, based on acknowledge dependency, and collaboration
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Barriers to Implementing Responsive Systems → Need for publicly held corporations to maintain planned quarterly profits
-Expectations of continued financial results often
drive promotional and pricing strategies to "load the
channel" with inventory, i.e., "Channel Stuffing"
Need to establish collaborative relationships
-Most business managers do not have training or
experience in development of collaborative
arrangements -
Enterprise Integration and Administration Modules → Support day to day supply chain operations
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More Opportunities Exist for Improvements at Higher Levels of Functionality → Strategic planning: Formulaiton of strategic alliance, Develop and refine capabilities and Customer service analysis
Decision analysis: Vehichle routing and scheduling, inventory levels and mangement, Network/facility locations and integration and Vertical integration Vs. Third party
Management control: Financial measurement, Customer service measurement, Productivity measurement and quality measurement.
Transaction system: Order management, Inventory assignment, Order selection, Shipping, Pricing and invoicing and customer inquiry. -
Supply Chain Information System Functionality → Strategic planning: Formulaiton of strategic alliance, Develop and refine capabilities and Customer service analysis
Decision analysis: Vehichle routing and scheduling, inventory levels and mangement, Network/facility locations and integration and Vertical integration Vs. Third party
Management control: Financial measurement, Customer service measurement, Productivity measurement and quality measurement.
Transaction system: Order management, Inventory assignment, Order selection, Shipping, Pricing and invoicing and customer inquiry.