Introduction to Supply Chain Management Flashcards

Historical and conceptual vocabulary related to Supply Chain Management and its application in the hospitality industry.

Supply Chain Management (SCM)

The management of the flow of products and services, beginning from the origin of products and ending at the product's consumption, including movement and storage of raw materials, work in progress, inventory, and fully furnished goods.

Main Objective of SCM

To monitor and relate production, distribution, and shipment of products and services by maintaining control over internal inventories, production, and sales.

Efficiency

A goal of supply chain management referring to the minimization of waste, including wasted materials, money, man hours, and delivery time.

Quality Goal

The objective of ensuring that the product and the customer experience are as positive and effective as they can be, often incorporating customer feedback to improve products or supplier issues.

Stability

The goal of improving and maintaining the overall supply chain by forging strong relationships with suppliers and distributors and managing potential risks.

Just-in-time supply chain

A system where manufacturers can automatically restock retail shelves as products are sold, based on tightly linked retail sales and replenishment orders.

Dynamic Price Optimization

A technique where airlines, hotels, and companies with limited, perishable products adjust prices dynamically to meet demand.

Available to promise inventory

Resources and work schedules that are dynamically allocated based on sales forecasts, actual orders, and promised delivery of raw materials to confirm delivery dates.

Planning

The component of SCM where enterprises manage resources to meet customer demand, design the supply chain, and determine metrics for efficiency and effectiveness.

Sourcing

The process of identifying and choosing vendors to provide goods and services needed to create a product in the most economical and efficient way.

Making

The component where managers coordinate activities to accept raw materials, manufacture the product, test for quality, package for shipping, and schedule delivery.

Delivering

Often called logistics, this component involves coordinating customer orders, scheduling delivery, dispatching loads, invoicing, and receiving payments.

Returning

Also known as 'Reverse Logistics', this is a post-delivery customer support process associated with taking back defective, excess, or unwanted products.

Enabling

Support processes such as finance, HR, IT, facilities, and quality assurance that monitor information across the supply chain and assure compliance with regulations.

Competitive strategy

Defines the set of customer needs a firm seeks to satisfy through its products and services.

Product development strategy

Specifies the portfolio of new products that a company will try to develop.

Marketing and sales strategy

Specifies how the market will be segmented and how products will be positioned, priced, and promoted.

Supply chain strategy

Determines the nature of material procurement, transportation, manufacturing of products or creation of services, and distribution.

Spend intelligence tools

Tools used by hospitality chains to gather, rationalize, and analyze historic and real-time purchasing information beyond standard inventory control.