Common Learning Block 1: Supply Chain Principles

Supply Chain

a network of individual functions within an organization that begins with the development of a strategic plan and ends with the delivery of a product or service

Inventory

Components, raw materials, work in process, finished goods, and supplies required for the creation of goods and services; can also refer to the number of units or the value of a stock of goods held by a company.

Procurement

The activities associated with acquiring products or services

Tiers

The levels of the supply chain

End Customers

The final consumer who purchases a product or service

Reverse Logistics

When a customer sends the product back to the manufacturer

Logistics

The process of planning, implementing, and controlling procedures for the transportation and storage of goods and services

Supplier Development

Any activity undertaken by buyers to improve suppliers’ performance to meet the buyers’ short and long term supply needs

Supplier Design Involvement

The process of involving the supplier in the product design process

Strategic Cost Management

Managing costs from a strategic or long term rather than a tactical perspective

Long-Term Supplier Relationships

Relations with suppliers that last for several years at a minimum

Enterprise Resource Planning (ERP) Systems

A system that integrates financial, planning, and control systems into a single architecture that disseminates real time information throughout an organization (EX. Secure Access, Oracle)