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Flashcards in Apuntes Deck (24)
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1

Delivery Time

amount of time firm takes to get goods ready to delivery
only transportation period

2

Lead Time

time between receiving order and delivering it to Customer
include process of prepare material, produce and transport

3

Inventory
Disadvantages

Storage Cost
Perishability
Space

4

Aggregate demand
Trade-Off

Amazon - Warehouse
Easier to control
mostly in things which are very costly
or you don´t care about delivery time and fastness
but if not it´s important to be close to C. so as to fulfil demand

5

Example-
Europe Pallet Size

min. order Quantity or fix O.Q you need to replenish
constrain is the size of y box (how many products fit in there)
move or hire WH so as to b flexible --> move Customer

6

SCM
Tier of Suppliers

more suppliers - more complex network
but good to have at least 2 different suppliers in case ones default (keep C. satisfy if they have more choices - example supermarket)
vertical integration vs. outsource
example - Zara very intense but high control)

7

Quantity to Order

right Q. is key to avoid stock out

8

Anker Effect

enter new country with new product
fix price whatever you want (C. don´t know how to value it)
no comparison
and later educe it in case

9

Catalogue
= range of products

wide (more categories)
deep (each category how many products/brand to offer)

10

Catalogue
Trade- Offer

Marketing -->the wider the better
Operation --> the wider the worst ( more variation)
six sigma effect
more chaos - harder to predict demand

11

Project Management

idea is good - but make action
strategy is good --> but making is the hard thing
no overall guidelines for all projects possible
a) understand takeaway
b) not just apply theory

12

Project Management
Skills

good sense of management projects
critical point
any body in the firms actually makes and should be doing projects (hire people, new implementation etc)
Depending on Project - you can break down in smaller activities and assign responsibility to each department etc.

13

KEY TAKE-AWAY
Success

Generate positive impact of CF
Manage People &Customer
Manage/reduce Uncertainty
Minimise Cost Impact
Transform Idea --> Profit

14

Cost Management

Change between In-Out of the scope is --> COST
loss aversion
change in scope by paying extra or play with cost (reduce)

15

Order Point System

highest Risk Moment in time - interval on delivery period
close to be stock out
riskier - since you are expose to demand rising and you being stock out

16

Replenishment plan

a) Order every period
--> higher transportation cost, but lower inventory cost
b) Order once (but big bulk)
--> low transport cost, product, but higher storage cost

17

Inventory Management
Constraints

Demand is unpredictable
Leave time is not immediate
forecast orders

18

Bottleneck
Capacity of Process

capacity of process depends on availability of inputs &sequence of tasks
If you change the capacity of one stage and those are linked you will create bottle-neck
--> you need to increase capacity of stages in equal proportion or at least of bottleneck which is the on constraining whole process

19

best way to reduce cost in procurement

why are you buying?
reduction in cost/unit
reduction in consumption/volume
cost avoidance (loss aversion)

20

demand consolidation

aggregate demand

21

5 Key Value Drivers for Success

1. Price&Value optimisation
--> right Price, effective leveraging demand
2. Strategic Contracting &Risk Management
--> efficient supplier selection process, management risk procurement, suppliers meeting performance we demand
3. complexity of structure
4. organisational empowerment

22

Why is Procurements important?

35-80% of income
Examples: PWC vs McKinsey

23

Porter´s 5 Forces
Industry Rivals

3 horizontal competitions:
threat of substitution, new entrants, established rivals
2 vertical competitions:
bargain power of suppliers
bargain power of Customers

24

levers to play with
Sales &Margin (UP)
Cost (Down)

Process:
PLM - Product Life Cycle Management
SRM - Supplier RS Management
SCM - Supply Chain Management
FI - Finance &Accounting