SPCM7321 Supply Chain Management: Strategic Concepts and Evolution

An introductory set of vocabulary flashcards covering the definitions of strategic management, supply chain management, Porter's models, Mintzberg's strategy types, and the evolution of SCM.

Strategic Management

The planned use of company resources to reach its goals and objectives.

Supply Chain Management (SCM)

The strategic coordination of all activities involved in the sourcing, procurement, conversion, and logistics management of goods and services, encompassing the flow of materials, information, and finances from procurement of raw materials to the final delivery.

Five Stages of Strategic Management

$1$. Assessing the business current direction; $2$. SWOT Analysis; $3$. Formulate action plans; $4$. Executing action plans; $5$. Evaluating to what degree action plans have been successful.

Porter's Strategies

A framework for competitive advantage consisting of Cost Leadership, Differentiation, Cost Focus, and Differentiation Focus based on scope and source of advantage.

Shared Value

A business model where companies create economic value while simultaneously addressing society needs and challenges.

Value Chain

The full range of activities that a company performs to bring a product or service from conception to delivery.

Design (Mintzberg)

A rational, deliberate, and top-down approach to developing a strategy where a plan is used to formulate strategy using resources.

Emergence (Mintzberg)

Strategies that evolve organically over time through resilience, agility, and learning.

Rumelt’s Approach: Diagnosis of Situation

The step in strategy development that asks 'What are the problems within the organisation?' and identifies the current state.

Rumelt’s Approach: Focus on Competitive Advantage

The leverage of company strengths to gain an edge in the market.

Rumelt’s Approach: Creation of Actions

The alignment of specific actions with the overall strategy, focusing on execution, adaptation, and the integration of activities to create synergy.

Early Development (SCM Evolution)

A stage characterized by simple and localised operations with limited communication along supply chain functions.

Integration & Expansion (SCM Evolution)

Occurring in the $20^{th}$ century, this stage allowed for increased complexity and interconnected supply chains through globalisation.

IT Revolution (SCM Evolution)

A phase in the early $21^{st}$ century that allowed for the implementation of ERP, EDI, and API.

Digital Transformation & Industry $4.0$

The evolution milestone defined by the use of AI and Autonomy.

Resilience & Risk (SCM Evolution)

A focus in supply chain evolution triggered by events such as COVID-$19$ and natural disasters.

SCM Functions

Procurement, Production Planning, Logistics & Transportation, Inventory Management, Demand Planning and Forecasting, and Distribution and Fulfilment.

Globalisation SC Disruptions

Concerns involving natural disasters, political issues, cyber attacks, and unnecessary tariffs.

Demand Volatility

A concern regarding customer demand, market trends, and shifting customer preferences.

Inventory Optimisation

A benefit of SCM that balances supply vs demand through effective inventory planning and demand forecasting.

Cost Reduction (SCM Benefit)

The process of cost optimisation, eliminating waste, streamlining operations, and achieving economies of scale.