session 1 scm

Supply Chain Management (SCM)

The action part of a business involving planning, sourcing, making, and delivering products or services.

SCOR Model

Supply Chain Operations Reference Model that organizes SCM into five major activities: Plan, Source, Make, Deliver, and Return.

Sustainable Competitive Advantage

An advantage over competitors that a company can maintain for a long time.

Operations Management

Planning, scheduling, and controlling activities that transform inputs into finished goods or services.

Tier 1 Supplier

Directly supplies the focal firm.

Upstream

Companies or activities located before the focal firm; usually the supplier side.

Downstream

Companies or activities located after the focal firm; usually the customer side.

Reverse Logistics

Moving returned products backward through the supply chain.

Suboptimization

Improving one company or department while making the overall supply chain worse.

Focal Firm

The company currently being discussed or analyzed in the context of the supply chain.

Flexibility in SCM

The ability for supply chains to quickly adapt to changes in technology, customer needs, and market demands.

Global Supply Chain

A supply chain that involves resources, production, or sales across multiple countries.

Agility in SCM

The capability to quickly adapt plans based on changing demand or supply.

Supply Chain Activities

Include the management of relationships and activities such as planning, sourcing, making, delivering, and returning.

Potential Benefits of SCM

Lower costs, better quality, faster delivery, increased reliability, and higher organizational profits.

Environmental Awareness in SCM

The pressure on companies to operate sustainably and ethically.

Importance of SCM

Every company must manage its operations and supply chains to survive and succeed in the marketplace.

SCM Career Paths

Various jobs available in procurement, production, logistics, and planning within the field of supply chain management.

Supply Chain Network

A network of manufacturers and service providers working together to create products or services for final customers.

Information Flows in SCM

The movement of orders, forecasts, and inventory information within the supply chain.

Physical Flows in SCM

The movement of products and materials throughout the supply chain.