Drivers and Participants of Supply Chain Management

A set of vocabulary flashcards defining the key drivers and participants of supply chain management, as well as strategies for alignment and efficiency.

Supply Chain Administration

The transfer of various practices and procedures of products from one location to another, including planning, operation, and procurement of logistics, supply, and services.

Production

A supply chain driver referring to the ability and storage capability, involving master planning of plant resources, workload balance, quality control, and maintenance.

Inventory

A supply chain driver consisting of stock stored at each stage; it serves as an insecurity shield and is categorized into raw substances, process inventory, and finished products.

Location/Facility

The physical sites for stock storage, fabrication, or assembly, classified into processing plants and warehouse installations.

FIFO

First in, first out; a storage method used to minimize losses in facilities.

LIFO

Last in, first out; a storage method used to minimize losses in facilities.

Transportation

A supply chain driver involving the movement of stock using modes such as highways, aircraft, vehicles, trains, and pipelines.

Information

Knowledge gathered and shared to improve the efficiency of other drivers and assist in judgment and decision-making.

Responsiveness

A supply chain goal characterized by excess capacity, flexible manufacturing, high inventory levels, many locations close to customers, and frequent small shipments.

Efficiency

A supply chain goal characterized by no excess capacity, narrow product focus, low inventory levels, and fewer large shipments via slower, cheaper modes.

Producers

Companies that manufacture commodities, including raw material suppliers (minerals, oil, gas) and manufacturers of finished goods.

Distributors

Also known as wholesalers or dealers, these companies take stock in bulk and provide the "time and place" role for customers.

Retailers

Organizations that store products and distribute them in limited amounts to the general public while actively monitoring consumer needs and demands.

Customers

Any company or individual that buys and consumes a commodity, either to integrate it into another product or as the actual end consumer.

Service Providers

Organizations that offer advanced experience and specific expertise in tasks such as logistics, banking, communications, and information technology.

Distribution Suppliers

A specific type of service provider that includes trucking firms and municipal warehouses.

Standard Operating Procedure (SOP)

A method used to provide distribution and marketing departments with targets that are consistent with supply chain goals to prevent surplus inventory.

Extended Supply Chain

A group of participants including the source's supplier, the manufacturer, the distributor, the retailer, the buyer's customer, and service providers.