SCM imrpoved ch 1

Supply Chain Management (SCM)

The action part of a business that involves planning, getting materials, making products, and delivering them to customers.

SCOR Model

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

Customer Value

The maximum value provided to customers through effective management of supply chain activities.

Sustainable Competitive Advantage

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

Agility in SCM

The ability to quickly change plans in response to demand or supply changes.

Reverse Logistics

The process of moving returned products backward through the supply chain.

Focal Firm

The company being discussed or analyzed in terms of its supply chain.

Tier 1 Supplier

A supplier that directly supplies the focal firm.

Suboptimization

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

Operations Management

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

Physical Flows

The movement of products and materials within the supply chain.

Information Flows

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

Monetary Flows

The movement of money and payments through the supply chain.

SCM Networking

The coordination of manufacturers and service providers to create products or services for the final customer.

Downstream

Activities or companies located after the focal firm, typically related to the customer side.

Upstream

Activities or companies located before the focal firm, typically related to the supplier side.

Global Supply Chain

A supply chain that involves different countries in purchasing, manufacturing, and selling products.

Environmental Awareness in SCM

The need for companies to operate sustainably and consider their environmental impact.

Shorter Product Life Cycles

The trend where products become obsolete more quickly, requiring faster supply chain responses.

Corporate Ethics in SCM

The consideration of responsible and ethical behaviors in sourcing and supply chain operations.

SCM Career Paths

Various job types and opportunities within supply chain management, including procurement, logistics, and strategy roles.