Supply Chain Chapter 1

Operations

Production and delivery of goods and services.

Management

Plan, Implement, Control.

Essential business functions

Marketing, Finance, Operations.

Operations generate ___?

Cash

Product flows which direction?

Downstream

Cash flows which direction?

Upstream

Information flows which direction?

Both up and downstream.

Tiers

Structure of the supply chain from focal firm to consumer.

Logistics Management

Plans, implements, and controls the efficient effective flow and storage of goods/services

Supply Chain Orientation

The importance of your customers customers.

Quality of Distribution channel

Impacts sales performance.

Market Orientation

Gathering, analyzing, and communicating customer information.

Reverse Logistics

Returns, repairs, and unsold merchandise.

Supply Chain evolution

Identify, evaluate, and implement opportunities

Synonyms for Supply Chain Management

Value Chain Management and Demand Chain Management

Supply

Defines the supply chain and its structure.

Demand

Drives the supply chain activities.

Value

Added by each member of the supply chain.

Process

Sequence of activities transforming inputs into valuable outputs.

Strategic Planning

Long-term decisions defining objectives and capabilities.

Tactical Planning

Deciding how capacity should be used to meet demand.

Operational Planning

Short-term priorities for resource allocation.

Modeling

Simplified representation of the world for decision-making.

Trade-off

Compromises made in managerial decisions, e.g., cost vs quality.

Systems approach

Big picture approach of working towards a goal

Synergy

The whole is greater than the sum of its parts.

System

A set of interrelated parts that work together to achieve a goal