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Flashcards in 5: Supply Chain Management Deck (22)
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1

Supply chain management

Management of upstream and downstream organisation.
Management of 3 flows of materials, info and resources.
Creates value for customers and improves efficiency.

2

Logistics management

Transportation and storage from point of origin to the point of consumption.

3

Supply chain

Network of organisations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumers.

4

Logistics involves getting 5 things right ('on time in full'):

The right product
in the right way
in the right quantity and right quality
in the right place at the right time
for the right customer at the right cost.

5

Capital flows...

...upstream.

6

Information flows...

...both ways.

7

Materials flow...

...downstream.

8

Supply Chain Operations Reference (SCOR) model

Describes the business activities associated with satisfying a customer's demand.
Can be used to analyse the current state of the company w.r.t its goals etc.
Provides best practices information that companies can use to elevate their supply chain models.

9

Proper Purchasing Organisational (PO) design

Assessing and selecting structure and a formal system of communication.
Authority - who makes the decisions?
Division of labour - what should everyone be doing? etc.
Coordination.
Control.
Responsibility.

10

Benefits of supply chain planning software

Aim is to capture and share real-time or near real-time data across the supply chain.
Improve forecast accuracy.
Optimise production schedule.
Reduce working capital costs.
Shorten cycle times.
Cut transportation costs.
Improve customer service.

11

Supply chain process includes:

Purchasing function,
Production function,
Demand planning function,
Logistics function.

12

Value chain

Concerns the primary and secondary support activities that can lead to competitive advantage.

13

Purchasing: strategic items

HIGH complexity of supply market,
HIGH importance of purchasing.

14

Purchasing: bottleneck items

HIGH complexity of supply market,
LOW importance of purchasing.

15

Purchasing: leverage items

LOW complexity of supply market,
HIGH importance of purchasing.

16

Purchasing: noncritical items

LOW complexity of supply market,
LOW importance of purchasing.

17

'Market based' / 'transactional' supply arrangements

Emphasis on contracting.

18

'Partnership' supply arrangements

Emphasis on relationships.

19

An efficient, smooth-running supply chain can give a company a ______

Competitive advantage.

20

SCM should focus on 4 things (4 Rs):

Responsiveness, reliability, relationships, resilience.

21

Bullwhip effect

Slight changes in actual demand create problems.
Partners build 'just in case' inventories.
Lack of trust among partners.
Stockpiling result in huge costs.
Manufacturers cannot plan production.
Cannot order material from suppliers.

22

Solution to the bullwhip effect?

Information sharing.