Mgmt 339 Ch 15

supply chain
the sequence of organizations – their facilities, functions, and activities – that are involved in producing and delivering a product or service
demand chain
is the sales and distribution portion of the value chain
supply chain management
The strategic coordination of business functions within a business organization and throughout its supply chain for the purpose of integrating supply and demand management
value chains
Sometimes referred to as Supply chain, concept that value is added as goods and services progress through the chain
flow management
three that need to be managed
1)Product and service flow
2)Information flow
3)Financial flow
supply chain managers
People at various levels of the organization who are responsible for managing supply and demand both within and across business organizations.
Supple chain management
goal is to match supply to demand as effectively and efficiently as possible
SCM issues
key issues:
-Determining appropriate levels of outsourcing
-Managing procurement
-Managing suppliers
-Coordination with production and quality
-Managing customer relationships
-Being able to quickly identify problems and respond to them
-Managing risk
Trends in SMC
Trends affecting supply chain design and management:
-Measuring supply chain ROI
-“Greening” the supply chain
-Re-evaluating outsourcing (+/-)
-Integrating IT
-Managing risks
-Adopt lean principles (reduce waste, lead time & cost)
Refers to the movement of materials, services, cash, and information in a supply chain
the sequence of the supply chain begins with basic suppliers and extends all the way to the final customer
every business organization is part of atleast one supple chain. true/false
supply chain functions and activities
forecasting, purchasing, inventory management, information management, quality assurance,
scheduling, production and delivery, customer service
The purchasing department is responsible for obtaining the materials, parts, and supplies and services needed to produce a product or provide a service.
Importance of purchasing – X% of product cost is from components, materials, etc.
product and service flow
involves movement of goods and services from suppliers to customers as well as handling customer needs and product returns.
information flow
involves sharing forecast and sales data, transmitting orders, tracking shipments, and updating order status.
financial flow
involves credit terms, payments, and consignment and title ownership arrangements.
Measuring supply chain ROI
enables managers to incorporate economics into outsourcing and other decisions , giving them a rational basis for managing their supply chains
lowest possible transportation costs
which of the following is NOT a goal of supply chain?
-fewer suppliers and long term relationships
-small lot sizes
-on time deliveries
-lowest possible transportation costs
-delivery often to the place of use
Using third-party logistics involves using organization’s logistics function to ship to customers that aren’t officially part of the supply chain. true/false
greening the supply chain
is generating interest for a variety of reasons, including corporate responsibility, regulations, and public pressure.