Supply Chain Management and Logistics Practice Flashcards

A set of vocabulary flashcards covering the core concepts, drivers, and sustainable goals of supply chain management and logistics as presented in Chapter 1.

Supply chain management (SCM)

The oversight and co-ordination of all activities involved in producing and delivering a product or service, from sourcing raw materials to the final delivery to the customer.

Logistics management

The part of supply chain management that plans, implements, and controls the efficient and effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer requirements.

Profit

The difference between Revenue ($\text{price} \times \text{quantity sold}$) and Cost.

Efficiency

A key goal of logistics and supply chain management focused on cost reduction.

Effectiveness

A key goal of logistics and supply chain management focused on satisfying customers.

Sustainable Supply Chain Management (SSCM)

An approach that promotes sustainable practices across all stages of the supply chain, aligning with key SDGs.

SDG 8

Decent Work and Economic Growth.

SDG 12

Responsible Consumption and Production.

SDG 13

Climate Action.

Inbound flow

The phase of the logistics process involving customer orders and the purchasing of inputs or supplies.

Outbound flow

The process of delivering products to customers, either directly or via a distribution centre (DC) or warehouse.

Logistical drivers

A category of supply chain performance drivers that includes facilities, inventory, and transportation.

Cross-functional drivers

A category of supply chain performance drivers that includes information, sourcing, and pricing.

Facilities

Production and storage locations where strategic decisions are made regarding proximity to markets, capacity, and profitability.

Inventory

All raw materials, work-in-progress (unfinished) goods, and finished goods within a supply chain.

Transportation

The movement of inventory from point A to point B using various modes such as rail, road, sea, and air.

Information

The backbone of decision-making in supply chains, involving accurate and timely data about customer demand, inventory levels, and supplier performance.

Sourcing

The determination of which suppliers will provide raw materials or finished goods and who will carry out specific supply chain activities.

Pricing

Strategies, influenced by the forces of demand and supply, that affect customer demand patterns and revenue generation.

Supply chain network design

The configuration of a supply chain that involves identifying core products, target markets, supply sources, and optimising facility locations and capacities.