Supply Chain Management Chap. 1

List the five major external forces that seem to drive the rate of change and shape our economic and political landscapes.
– Globalization
– Technology
– Organizational & Power Shift
– Empowered Customer
– Government Policy & Regulation
Globalization
The integration among the people, companies, and governments of different nations.

A process driven by:
-international trade
– investment
– information technology.

This process has effects on
-environment
-culture
-political systems
-economic development and prosperity
-human physical well-being

in societies around the world.

Technology
the collection of:
– techniques
– skills
– methods and processes

used in the production of goods or services or in the accomplishment of objectives.

Organizational Consolidation & Power Shift
Social media and other factors are fueling rapid changes that are creating power shifts within and around organizations. The dynamics of these shifts reflect a move from power structure to structures of influence.
Empowered Customer
The behavioral shift of individuals concerning their expectations of their interactions with their suppliers and partners.
Government Policy & Regulation
Heavy government-imposed regulations are enforced by federal and state agencies that oversee the operations, service offerings, performance, and expansion of most financial-service firms.
Supply Chain
a grouping of firms or activities inside and outside an organization that are directly or indirectly associated with fulfilling customer’s requests.
This ranges from product design, raw material production, supply of materials and services, conversion of raw materials into products, and all other activities necessary to bring the finished product to the ultimate customer.
Supply Chain Management
The management of the flows between and among supply chain stages to maximize total supply chain surplus.

It integrates the activities that acquire materials and services, transform them into intermediate and final products, an deliver them to customers

Supply Chain Management Activities
– Operations
– Logistics & Transportation
– Procurement
– Suppliers/ Distributers
– Accounts Payable & Receivable
– Warehousing & Inventory
– Order Fulfillment
– Sharing Customer Forecasting & Product Information
Goals of Supply Chain Management
– Great quality
– On-time delivery
– Improved Customer Service
– Low Transaction Costs
– Improved Profit Performance
– Efficient Use of Resources
– Increased Market Share
– Faster Speed to market new products
State four types of flows that take place in Supply Chain Networks.
– Material & Service
– Information
– Financial
– Demand
Material & Service Flow
Involves the movement of goods from a supplier to a customer, as well as any customer returns and service needs.

This is important because it satisfies customers when their orders are delivered in a timely, reliable, damage-free manner

Information Flow
Involves transmitting orders, updating the status delivery, historical or sales data, as well as strategic information about future activities in order to facilitate joint planning.

This is important for supply chains to meet customers’ demands faster and more efficiently.

Financial Flow
Consists of credit terms, payments, consignment and title ownership arrangements.

This flow is especially important to the businesses so they can properly, and safely record and make financial transactions.

Demand Flow
Involves the synchronization of supply and demand by detecting and understanding demand signals and making appropriate adjustments to demand changes more effectively.
Why are consumers empowered?
the rise in technology, specifically social media, the abundance of choice within any given market, and the ability to get what they want, when they want, where they want it.
Issues within the Supply Chain
– organizations becoming more complex
– collecting & storing vast amounts of data
– inventory deployment
– organizational relationships
– measuring performance
– supply chain security