Lecture 1 - Supply Chain Basics

Question 1

What is the sourcing process?

Answer 1

1) Make/buy decision
2) Category management
3) Supplier selection
4) Contracting and negotiation
5) Supplier relationship management

Question 2

What is a supply chain?

Answer 2

“A supply chain consists of all parties involved directly or indirectly in fulfilling a customer request”

Chopra and Meindl, 2004

Question 3

What is the process of strategic alignment?

Answer 3

Corporate strategy level
Business strategy level
Fluctuation level

Question 4

Talk through Dell’s supply chain.

Why did dell change their supply chain approach?

Answer 4

CORPORATE LEVEL
Provides innovation and quality products

BUSINESS LEVEL (Direct model)
Cost efficiency

FUNCTIONAL LEVEL
No warehouses
Close supplier relationships
No middle man
Customisation
Modularity
Internet ordering opportunities

Changed their supply chain due to:
Threats from Apple
Price of laptops are continually falling
Reduced effect of economies of scale
Globalisation pressures

Question 5

How did Dell respond to facilitate survival in the market through supply chain processes?

Answer 5

Build to order computers ( low volume )
Build to plan (retail)
Build to stock (online/popular configurations)
Build to specification (corporate clients)

Question 6

What is supply chain management?

Answer 6

SOURCE - MAKE - DELIVER

Procurement - operations - logistics