Supply Chain and Customer Values

A set of vocabulary flashcards covering the definitions, history, and core concepts of supply chain management and customer value integration.

Customer Satisfaction

Defined as how happy customers are with the company’s product and services and capabilities.

Under Promises

When a supplier does not make too many guarantees and assurances to the customer.

Over Delivers

Means that a supplier is going beyond customer expectations to turn satisfaction into loyalty.

Supply Chain Management (SCM)

A key variable to business administration that pertains to individual coordinates linked together where the output of one coordinate is the input of the other.

Supply Chain

A system of organization, people, technology, activities, information, and resources involved in moving product and services from supplier to customer.

The Silk Road

An international trade network active from $130\,BC$ to $1453\,AD$ connecting China, Central Asia, the Middle East, and Europe.

Industrial Revolution

Occurred between $1760$ and $1840$ where factories replaced manual production and steam engines/railways improved transportation.

Assembly Line Production

Introduced by Henry Ford in $1913$ to make manufacturing faster, more standardized, and more efficient.

Traditional Mass Manufacturing

A period in the $1950s$ and $1960s$ where companies focused on producing large quantities of standardized products and maintained large inventories.

Material Requirement Planning (MRP)

Software applications developed in the $1960s$ and $1970s$ that allowed companies to quantify the impact of high inventory levels on manufacturing and transportation cost.

Just-in-Time (JIT)

Production and lean manufacturing principles adopted in the $1990s$ during the era of globalization and strategic partnerships.

Digital Supply Chains

A $2000s$ trend involving the adoption of ERP systems, barcode technology, RFID, GPS, and cloud computing for real-time tracking.

Smarter Supply Chains

The current era since the $2010s$ utilizing AI, Internet of Things, Blockchain, Robotics, and Predictive Analysis.

Cost

The sum involved including all the expenditures associated with ownership and use of products and services.

Customer Driven Supply Chain

Also called Demand Driven Supply Chain Management, where the SCM responds to changes in Customer’s demand and creates suited solutions.

Risk-based thinking

The identifying of possible bottlenecks that can be encountered within a process to address problems prior to their occurrence.

Root cause analysis

A process conducted in the event of problems within the operating SCM to identify the originating source of the issue.