Cross-Functional Drivers & Responsible Supply Chains

Vocabulary flashcards covering cross-functional drivers, information systems, sourcing approaches, and responsible supply chain management based on the lecture transcript.

Supply Chain

Consists of all parties involved, directly or indirectly, in fulfilling a customer request.

Material Flow

The supply chain flow comprising goods moving from suppliers to production and ultimately to customers.

Information Flow

The supply chain flow involving forecasts, orders, tracking, and visibility.

Financial Flow

The supply chain flow involving payments, credit terms, and working capital.

OTIF (On Time In Full)

A key performance indicator (KPI) that measures service reliability.

ERP Systems (Enterprise Resource Planning)

Software that integrates information across different functions—including purchasing, production, logistics, finance, and sales—into one single system to provide integration and visibility.

MRP (Material Requirements Planning)

A capability within ERP systems that aligns suppliers, production, and inventory to ensure raw materials arrive on time for production.

Blockchain

A distributed ledger technology that provides secure, transparent, and tamper-proof records that cannot be modified without detection.

Walmart + IBM Food Trust

A supply chain blockchain application that reduced mango tracking time from 7 days to 2.2 seconds.

Artificial Intelligence (AI)

Algorithms that learn from data to make predictions, optimize processes, or detect anomalies, continuously adapting as more data is processed.

Amazon Anticipatory Shipping

A patented practice using AI to predict customer purchases based on browsing history, wish lists, and buying behavior to pre-position products in nearby warehouses before an order is confirmed.

Traditional Sourcing

A purchasing approach focused primarily on lowest cost, using price, quality, and delivery time as key criteria through short-term transactional contracts.

Responsible Sourcing

A purchasing approach evaluating broader social, ethical, and environmental impact criteria through audits, certifications, and supplier development to align with company CSR strategy.

Supplier Relationship Management (SRM)

The systematic management of supplier relationships to transition from transactional interactions to strategic long-term partnerships.

ISO 20400

An international standard published in 2017 providing practical guidance on embedding sustainability into procurement policies and processes.

SDG 12

The United Nations Sustainable Development Goal aimed at ensuring sustainable consumption and production patterns.

ESG Criteria

Standards encompassing Environmental (carbon footprint, pollution), Social (labor rights, working conditions), and Governance (ethics, anti-corruption) aspects used to evaluate suppliers.