Chapter 1 SCM

SCM Exam 1 Material

supply chain management

the effective and efficient integration of the suppliers, manufacturers and transportation organizations.

procurement (purchasing)

the branch of the supply chain responsible for acquiring materials, equipment, products and services.

operations

the branch responsible for making business processes effective and efficient.

logistics

the branch responsible for developing the transportation itinerary and finding the appropriate transportation and storage partners to successfully navigate the flow of material from the point of origin to the final destination.

reverse logistics

the branch responsible for the movement of products and packaging that flow backward in the supply chain, away from the consumer and back in the direction of the manufacturers.

global supply chain management

when suppliers, manufacturers, transportation companies, warehouse and distribution center, retailers and other supply chain parties span across multiple countries and/or continents, those are considered global supply chains.

1st tier supplier

a companys direct suppliers

2nd tier suppliers

a firm that provides good and/or services to a company first tier supplier

downstream supply chain

in supply chain, the direction that point tweeds the end consumer

upstream supply chain

in supply chain the direction that points toward the suppliers

SCM flows

in order for supply chains to function and develop, three things must continuously flow:
-materials
-money
-information

business model

a company's plan for how it will purchase items, transform them, deliver them and sell them in an effort to produce a profit.

inventory viability (supply chain visibility)

the ability to see what is happening with inventory upstream and downstream in a supply chain

profit equation

profit= revenue - cost

ROI (Return on Investment)

an economic measure that helps evaluate the return of an investment.

ROI equation

ROI = total profit / total investment

core competencies

the primary advantage a company has over its competitors. (typically hard for others to replicate)

value

is the ratio of output purchases/ inputs used to purchase the product or service.

productivity

the ration of outputs to inputs

primary supply chain goals

-effectiveness
-efficiency
-adaptability

what are the 7 types of waste?

-defects
-overproduction
-transportation
-motion
-waiting
-inventory
-over processing

what are the keys to being a successful supply chain manager ?

-satisfy the customer
-satisfy the needs of the company
-be prepared for the future

Supply chain strategy

1. Understanding the product/service and the market's desires (who is the customer? what do they want?)
2. develop a business model (does the customer want this online or in store?)
3. organizing the right group of supply chain partners (you understand the market)

Supply chain tools

1. supply chain metric
2. information technology tools
3. Relationship management skills
4. Financial resources
5. organizational integration

supply chain metrics

what defines a successful supply chain for your company? a company needs to report success and dialer and when to provide help to their employees.

information technology tools

knowing what is happening in the global supply chain at any given moment required information technology tools

relationship management skills

the supply chain is a team of companies working together to satisfy an end consumer. having the ability to work with executives and employees at other companies

financial resources

morticing employees and suppliers, investing in technology to help the company track information and produce better products

organizational integration

sutlers are identifiable, products ate designed, financial plans developed, products are advertised etc...