Supply Chain Chapter 2

corporate strategy

Determines the overall mission of the firm and the types of businesses that the firm wants to be in.

strategic business units (SBUs)

Determines the overall mission of the firm and the types of businesses that the firm wants to be in.

business unit strategy

Determines how a strategic business unit will compete.

business model

The combination of the choices determining the customers an SBU will target, the value propositions it will offer, and the supply chain/operations management capabilities it will employ.

functional strategy

Determines how the function will support the overall business unit strategy.

key customer

A customer that the firm has targeted as being important to its future success.

value proposition

A collection of product and service features that is both attractive to customers and different than competitors’ offerings.

capabilities

A collection of product and service features that is both attractive to customers and different than competitors’ offerings.

customers

Parties that use or consume the products of operations management processes.

order winners

Product traits that cause a customer to select one product over its competitors.

order qualifiers

Product traits that must be met at a certain level for the product to be considered by the customer.

order losers

Product traits that must be met at a certain level for the product to be considered by the customer.

analytics

The application of sophisticated operations research techniques to big data with the goal of identifying, interpreting, and communicating meaningful patterns in the data.

big data

Large data sets generated by technologies such as social media and the Internet of Things (IoT). Big data are often paired with predictive analytics or other similar analytical procedures.

business model

The combination of the choices determining the customers an SBU will target, the value propositions it will offer, and the supply chain/operations management capabilities it will employ.

business unit strategy

Determines how a strategic business unit will compete.

capabilities

Unique and superior operational abilities that stem from the routines, skills, and processes that the firm develops and uses.

core capabilities

The skills, processes, and systems that are unique to the firm and that enable it to deliver products that are both valued by the customer and difficult for competitors to imitate.

corporate strategy

Determines the overall mission of the firm and the types of businesses that the firm wants to be in.

cost

The expenses incurred in acquiring and using a product.

customers

Parties that use or consume the products of operations management processes.

cyber security

The protection of firms and their systems from the following three threats: (1) theft of data and intellectual property; (2) alteration of data; and (3) impairment or denial of process control (causing damage or breakdown of operations).

ESG (Environmental, Social, and Governance)

A set of criteria for an organization's operations that socially conscious investors can apply to assess how well the organization is performing on various socially important dimensions.

fit

The extent to which there is alignment between the firm’s operational capabilities, its value proposition, and the desires of its critical customers.

flexibility

An operation’s ability to respond efficiently to changes in products, processes (including supply chain relationships), and competitive environments.

functional strategy

Determines how the function will support the overall business unit strategy.

innovation

Both radical and incremental changes in processes and products.

Internet of Things (IoT)

The network of physical devices (such as phones, vehicles, machines, and appliances) that are embedded with sensors, software, and connectivity that enable data exchange and analysis.

key customer

A customer that the firm has targeted as being important to its future success.

lead time

The amount of time that passes between the beginning and end of a set of activities.

operations strategy

A set of competitive priorities coupled with supply chain structural and infrastructural design choices intended to create capabilities that support a set of value propositions targeted to address the needs of critical customers

order losers

Product traits that, if not satisfied, cause the loss of either the current order or future orders.

order qualifiers

Product traits that must be met at a certain level for the product to be considered by the customer.

order-to-delivery lead time

The time that passes from the instant the customer places an order for a product until the instant that the customer receives the product.

order winners

Product traits that cause a customer to select one product over its competitors.

quality

A product’s fitness for consumption in terms of meeting customers’ needs and desires.

ransomware attack

A product’s fitness for consumption in terms of meeting customers’ needs and desires.

Responsible Investing (RI)

Targeting and investing in companies that positively embody the goals of ESG.

risk management

Developing operations that anticipate and deal with problems resulting from natural events, social factors, economic issues, or technological issues.

strategic business units (SBUs)

The semi-independent organizations used to manage different product and market segments.

strategic profit model (SPM)

A model that shows how operational changes affect the overall performance of a business unit.

supply chain operational reference model (SCOR)

A model for assessing, charting, and describing supply chain processes and their performance.

sustainability

Maintaining operations that are both profitable and nondamaging to society or the environment.

market of one

A marketing strategy where the firm, through actions of its marketing, engineering, and operations areas, offers a level of customization and customer service that makes the consumer feel that they are exclusive or preferred customers of the firm.

SWOT

A strategic planning technique to help firms identify opportunities where they can develop a sustainable competitive advantage and areas where the firm is significantly at risk.

timeliness

The degree to which a product is delivered or available when the customer wants it.

time to market

The total time that a firm takes to conceive, design, test, produce, and deliver a new or revised product for the marketplace.

triple bottom line

An approach to corporate performance measurement that addresses a firm’s total impact, measured in terms of profit, people (social responsibility), and the planet (environmental responsibility). Also referred to the as the TBL, the 3BL, or the 3Ps.

triple bottom line

An approach to corporate performance measurement that focuses on a company’s total impact measured in terms of profit, people (social responsibility), and the planet (environmental responsibility). Also referred to the asTBL, the 3BL, or the 3Ps.

value proposition

A collection of product and service features that is both attractive to customers and different than competitors’ offerings.