Supply chain exam 2

Ofshoring

Manufacturing abroad and within the company

Outsourcing

Local manufacturing outside of the company

Offshoring and offsourcing

Manufacturing abroad and outside of the company

In-sourcing

Local manufacturing within the company

Near sourcing

Company moving its manufacturing, production, or business services to a nerby country or region.

Contract manufacturers

Having another company manufacture/ make your product

EMS industry

Electronic manufacturing services industry. Company that manufactures and (creates supply chains) electronics for different companies.

EMS Benefits

-Fast and strong start

-EMS figures out the entire supply chain instead of new company doing it themself and potentially messing up

-Cost advantages

Intellectual property

Creations of the mind; inventions, literary, and art, designs, symbols, names and images used in commerce (buinsess trades?)

longshorman

Port worker who loads and unloads cargo from ships

C-TPAT

Port security. Customs trade partnerships against terrorism.

-Voluntary for companies

3 tier system of C-PAT

1- must perform risk analysis

2- Validate tier 1 by us customs

3- Green lane → follow supply chain best practices

Duty drawback

Utilized when an item is exported and then re exported. Can get up to 90% return on tariff.

Bonded warehouse

Secure official storage facility where imported goods are kept without paying import taxes and duties right away

four common logistics documents

Bill of lading- Contract between the shipper and the carrier

Commercial invoice- Createde by the seller, shows the description of the items, payment terms, and value of goods

packing list- Details every item inside the package or container

certificate of origin- Confirms the country where the goods were made/ produced

FTZ

Free trade zones. Acceptable areas where items can enter the country duty free for storage, display, manufacturing etc

Freight forwarder

Helps get things out. Intermediary

Custom house broker

Helps get things in. Intermediary

3PL

Third party Logistics Company- Freight Forwarders and Custom House Brokers

3 shipping documents

Proof of ownership, carrier instructions, compliance records

Social responsibility

Creating a good impact on the community and acting good for the community

ESG

Enviornmental, social, governance. Means to apply enviornemtnal, social, and governance standards to how a company buys, makes, and moves its products

due diliegence

risk management process to help companies identify, prevent, and mitigate ESG risks

supplier code of conduct

Policy doceument that shows a company’s ethcial, enviornmental, and labor standards for its supply chain

manufacturing compliance

the process of ensuring that every vendor, matieral, and production step meets legal, ethcial, and quality standards

Manufacturing audit

Check of how a company gets raw matierlas, makes goods, and ships them

SA800

Social accountability/ labor supply chain standard

Whistelblower program

Lets workers, vendors, and partners report illegal or unethical acts

sustainability

Increasing customer value while eliminating waste

closed loop supply chain

system that combines regular forward movement od pdoructs with reverse logistics to recycle , repair, and reuse matierals

life cycle assessment

measures the enviornmental impact of a product from raw matierlas to disposal

The sustainability consortium

global nonprofit organization that builds science bsed tools and metrics to improve the sustainability of consumer goods

SASB

Sustainability accounting standards board

IS 14000

provides a framework for enviornmental management systems

3 parts of waiting line system

Arrival time, waiting time, time it takes to serve the customer

Channels vs phases

Channels dictate how and where the product goes. To cusomter directly

Phases dictate what happens to the product in the business behind the scenes

Balking

When a customer decides to not wait in a long line

Reneging

When a customer joins a service but then backs out before they get the service or product

Lamba

Arrival rate

Mu

Service rate

Rho

Service utilization factor= Lamba/ Mu

Wholesaler

Buys in bulk from manufactuers than sells the product to retail stores

Franchise

a business model where a parent company (the franchisor) licenses its brand name, operating systems, and trademarks to an independent owner

VMI

Vendor managed inventory. Vendor places orders and manages inventory instead of buyer

Scan based trading

Inventory method where the supplier owns the product until it is scanned at a pos in retail

Supply chain integration

Strategy between company, brand, firm etc and its supply chain partners

Pull system

Starts with customer requesting a product to be made. This makes the supply chain start making their product.

-Longer delivery

-Little to no inventory

-More customization

Push system

Suppl chain makes products → Sends them out to stores → Customers buy from stores.

-Ends with customer

-Faster delivery/ purchase

-More inventory

-No customization

Postponment

Push and pull system combined.

PUSH→ product’s standardized parts

PULL→ product’s customized parts

Bullwhip effect

Very high and low supply levels while demand is constant

4 causes of the bullwhip effect

Order batching, forward buying, shortage gaming and rationing

Last mile

Final stage of supply chain. Delvering goods to customers doorsstep or fufillment center

Omni channel retailing

Single, unfied system that coordihnates the production, trasnport, and delivery of goods across physical stores, online websites, and mobile apps

Chargeback

Penalty/ deduction that a retailer/ buyer takes from a suppier’s invoice when the supplier fails to meet estasblished operational, labeling, or delivery rules

4 managerial considerations in queues

Customers, waiting lines, emplyees, and service facilities

Order batching

Placing large, infrequent periodic orders to save on costs

Forward buying

Purchasing extra inventroy to take advantage of temporary price discounts, sales, or trade promotions

Rationing

Controlled distribution of scare products or matierlas when customer demand is greater than the available inventory

Shortage gaming

When buyers increase their product orders because they expect a supplier to ration scare goods or not deliver products timely.

5 methods for controlling bullwhip effect

Share real time data, vendor managed inventory (VMI), smaller more frequent orders, stabilize pricing, shorten lead times

EDLP

Every day low pricing → Operational model that focuses on steady predictable product movement, pairing consisten low consumer prices with everyday low cost

Lean manufacturing

Strategy aimed at maximiazing customer value while elimating waste across the supply chain

Poka yoke

Mistake proofing processes to stop errors before they turn into major defects or delays