Chapter 13: supply chains and supply chain management

supply chain
the connected chain fo all the business entities, both internal and external to the company, that perform or support the logistics
supply chain management
a management sysem that coordintaes and integrates all of the activities performed by supply chain members into a seamless provvess, from the source to the point of consumption, resulting in enganced customer and economic value
supply chain agility
an operational strategy focused on inducing inventory velocity and operational flexibility simultaneously in the supply chain
supply chain integration
when multiple firms or business functions in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer
demand supply integration (DSI)
a supply chain operational phillosophy focused on integrating the supply management and demand generating functions of an organization
business process
bundles of interconnected activities that stretch across firms in the supply chain
customer relationship management (CRM) process
allows companies to prioritize their marketing focus on different customer groups according to each groups long term value to the company or supply chain
customer service management process
presents a multi company , unified response system to the customer whenever complaints, concerns, questions, or comments are voiced
demand management process
seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand related plans of action prior to actual customer purchasing behavior
order fulfillment process
a highly integrrated process, often requiring person from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time
manufacturing flow management process
concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process
supplier relationship management process
supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers
product development and commercialization process
included the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms
return management process
enables firms to manage volumes of returned product efficiently while minimizing returns related costs and maximizing the value of the returned assets to the firms in the supply chain
supply chain team
an entire group of individuals who orchestrate the movement of goods, services, and information from the source to the consumer
inventory control sytem
a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturers or a customers demand
stockout
a situation where a customer demand for an inventory item goes unfulfilled because the requested item is unavailable at the needed time and place
cycle stock
inventory held temporarily for the purpose of fulfilling predicted demand in a period
safety (buffer) stock
extra inventory held in addition to cycle stock as insurance against unexpected demand increases
in-transit inventory
invenory that is currently moving within a transportiaion network to or from the companys facilities
work-in-process inventoy
materials inventory that is currently in the process of being converted into finished goods
seasonal inventory
an extra invenroey buffer that is held in response to predictable demand increases that occur annually
materials requirement planing (MRP or materials management)
an inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer
distribution resource planning (DRP)
an inventory control system that manages the replenishment of goods from the manufacturer to the final consumer
automatic replenishment program
a real time inventory sysem that triggers shipments only when a good is sold to the end user
order processing system
a system whereby orders are entered into the supply chain and filled
electronic data interchange
information technology that replaces the paper documents that usually accompany business trasactions, such as purchase orders and invoices, with electronic transmission of the needed information to reduct inventory levels, improve cash flow, streamline operations, and increase the speed and accuracy of information transmission
smart RFID (radio frequency identification)
an inventory handling and tracking ststem that employs radio frequency electromagnetic fields to transfer and read product data via an electronic tag
build to stock
a production method whereby products are made in advance of demand based on forecasts and are stored until customer orders arrive
mass customization (build to order)
a production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications
postponement
a hybrid production method whereby basic units of a finished good are manufactured in advance of actual demand and held in strategic form or location until demand occurs, when final customization takes place
materials handling system
a method of moving inventory into, within, and out of a warehouse
logistics information system
the link that connects all the logistics functions of the supply chain
sustainable supply chain management
a supply chain management philosophy that embraces the need to optimizing social and environmental costs in addition to financial costs
supply chain security
efforts made by companies to protect their in transit inventory or value transforming assets from external or internal threats
supply chain resiliency
the ability of a supply chain to return to its ideal operational state after being disrupted
electronic distribution
a distribution technique that includes any kind of product or servie that can be distributed electronically, whether over traditional forms such as fiber-optic cable or through satellite transmission of electronic signals
three dimensional printing
the creation the three dimensional objects via and additive manufacuring technology that layers raw matierials into desired shapes