MGT 180 Lecture 1

What is Supply Chain?

A supply chain is the flow of products and services from raw materials to the final customer through multiple connected organizations and activities.

What activities connect the members of a supply chain?

Transportation and storage activities.

What activities integrate a supply chain?

Information, planning, and integration activities.

What is Supply Chain Management (SCM)?

The cost-effective organization of the flow and storage of materials and finished goods from origin to the point of consumption.

What is relationship development in supply chain management?

Incorporating relationships with other players in the supply chain.

What is integration in a supply chain?

Process of connecting different parts of the supply chain so they work together efficiently as one system.

What is logistics?

Management of the storage and flow of goods, services, and information within a company or supply chain to meet customer requirements

Which of the following are part of logistics?

Transportation and Warehousing

What is an element of logistics?

Material Management and Sourcing

What is Material Management in logistics?

Sourcing materials needed for production.

What is a Material Flow System?

Locating and scheduling materials through production.

What is Physical Distribution?

Delivery of products to customers.

What is forecasting in logistics?

Predicting future needs to help with planning.

What does forecasting help manage?

Demand, supplier ordering, production, inventory management

What do good supply chain relationships help achieve?

They help coordinate and integrate activities through joint work, meet customer requirements, operate as a single unit, and create a seamless flow of information, material, and finance.

What happens when companies have poor communication, and/or are having a difficult time planning activities?

Problems and inefficiencies in the supply chain

Why is strong coordination and Integration Important?

It helps with Forecasting, Capacity Utilization, Inventory, Obsolescence, Customer Service, Risk reduction

What is Forecasting?

Preventing inaccurate forecasts (orders)

What is Capacity Utilization?

Proper investment of equipment and its usage.

What is Inventory?

Proper stock of products to avoid inventory cost.

What is Obsolescence?

When inventory becomes outdated and people no longer want it.

Having good customer service results in?

Preventing lost sales and decreased market share.

What is Risk Reduction?

Managing security and supply management risks.

What is strategy?

Plan to win, positioning for sustainable competitive advantage.