Supply Chain Managment

Supply Chain

flow of products and services from supplier to customer via manufacturer, distributor and retailer

Cycle View

processes between each stage of supply chain

Push Process

initiated in anticipation, strategic, made to stock

Pull Process

initiated in response, operational, made to order

Coordination Contract

Contract in which the sum of profits of the decision makers is equal to the profit of one decision maker

Buyback Contract

contract in which a retailer can return unsold inventory at an agreed price

Revenue Sharing Contract

contract in which product is sold to the retailer at a low cost in exchange for a set percentage of revenue being shared with the supplier

Quality Flexibility Contract

contract that allows for modification of the order close to the point of sale

Direct Materials

components used to make finished goods

Indirect Materials

goods to support operation of firm

Global Optimisation

aim to maximise profit of supplier and retailer by removing transfer fees

Centralized Supply Chain

supplier and retailer act as one

Decentralised Supply Chain

retailer and supplier act separatly

Distribution

physical transportation of goods from manufacturer to consumer

3rd party logistics

holistic service provision from collection to delivery

4th party logistics

information services to facilitate supply chain

Multimodal Transport

goods transported by more than one transport method

Intermodal Transport

movement of goods in the same loading unit

Cross Docking

direct transfer of inbound to outbound goods without intermediate storage

Material Flows

uni-directional flow of raw materials from supplier into the the product and delivered to customer

Information Flows

bi-directional information exchange across supply chain e.g. order details and delivery status

Cash Flows

uni-directional flow of money from customer to supplier