Chapter 1 – Introduction to Supply Chain and Operations Management

Supply Chain Management
Cooperation between different firms to create value
Operations Management
Managing transformation processes to convert inputs into products and services
Supply Chain and Operations
Combining supply chain and operations to serve customers
Processes
The means by which work is performed
Process Design
Configuring inputs and resources in a way what provides value, enhances quality, and is productive
Process Management
The act of executing and controlling the productive functions of a firm
Process Improvement
A proactive effort to enhance process performance
Process Control
The act of monitoring a process for its efficacy
Licensing
The sale of a product under another trademark in another region of the world
Strategic Alliance
Strategic Ventures with partners and suppliers
Globalization
Increasing global presence by establishing operations in other parts of the world
Outsourcing
The process of moving production to another firm
Near-sourcing
Moving production geographically closer to where products are sold
Sustainability
Proactively managing to save and to “green” production
Value Chain
Inbound logistics, Transformation processes, and outbound logistics; the core of what a firm does
Value-added Activities
Process step that enhances products and services in a way that makes them more valuable for consumers
Three Primary Flows of Supply Chain
Product flows, monetary flows, and information flows
Product Flows
Unidirectional flows of products from upstream to downstream
Reverse Logistics
The upstream movement of products through the supply chain
Lean
Managing and improving processes to reduce waste
Monetary Flows
the movement of money from downstream to upstream
Support Processes
Processes such as legal that support core processes
Information flows
Data that moves throughout the supply chain
Bidirectional Flows
Flows that go both upstream and downstream
Enterprise Resource Planning System
Computerized system used to manage supply chain data and information
Service Supply Chain Management
Supply chain management in a service setting
Business to Business
Business transactions between two commercial firms
Business to Consumer
Business Transactions between a business and a consumer
Four I’s of SC&O Management
Impacting, Improving, Innovating, and Integrating
Impacting
Efficiently managing core processes that affect customers
Improving
The act of making processes, products, and people better
Innovating
Large-scale, sudden improvements
Integrating
Collaboration and cooperation between stakeholders in a supply chain