Operations Management - Chapter 6 Lecture - Supply Chain Design

Flashcards about Supply Chain Design.

Global Supply Chain

A network connecting raw material sourcing, component manufacturers, assembly plants, warehouses, distributors, and customers across continents.

Multinational Enterprise

Sourcing goods and services across geopolitical boundaries to exploit supply chain efficiencies and develop new markets.

Supply Chain Efficiencies

Lower labor and raw material costs, lower tariffs, tax breaks, infrastructure subsidies, economies of scale, developing new suppliers, and selling in new markets.

Decisions in Supply Chain Design

Decisions that are strategic and support an organization’s strategy, mission, and competitive priorities.

Strategy in Supply Chain Design

An organization's strategy, mission, and competitive priorities.

Operational Structure of a Supply Chain

Configuration of resources like suppliers, factories, warehouses, distributors, tech support, engineering design, sales offices, and communication links.

Control Decisions in Supply Chain Design

Whether to centralize or decentralize control of the supply chain.

Location of Facilities

Has a significant impact on cost, customer service, and data reliability.

Sustainability Decisions in Supply Chain Design

How to champion economic, environmental, and social sustainability goals and practices in global supply chains.

Intellectual Property

An important issue for multinational enterprises.

Digital Content

Increasingly important in goods and services.

Key Sourcing Decision

Whether to use single or multiple sources.

Transportation

More complex in global supply chains, often requiring multiple modes of transportation.

Outsourcing

Supply chain activities to keep in-house or outsource.

Managing Risk

How to address and mitigate supply chain risks and disruptions.

Measuring Performance

What performance metrics to use in managing supply chains.

Blockchain

A distributed database network that holds records of digital data and events in a way that makes them tamper-resistant.

Goal of a Blockchain-Enriched Supply Chain

Maximize customer service at minimum costs while being intelligent, collaborative, transparent, and secure.

Inditex

A global fashion retailer based in La Coruna, Spain.

Efficient Supply Chains

Designed for efficiency and low cost by minimizing inventory and maximizing efficiencies in the process flow.

Responsive Supply Chains

Focus on flexibility and responsive service and can react quickly to changing market demand and requirements.

Push System

Produces goods in advance of customer demand using a sales forecast.

Pull System

Produces only what is needed at upstream stages in the supply chain in response to customer demand signals from downstream stages.

Push–Pull Boundary

Point in the supply chain that separates the push system from the pull system.

Postponement

Process of delaying product customization until the product is closer to the customer at the end of the supply chain.

Vertical Integration

The process of acquiring and consolidating elements of a value chain to achieve more control.

Backward Integration

Refers to acquiring capabilities toward suppliers.

Forward Integration

Refers to acquiring capabilities toward distribution or customers.

Outsourcing

Process of having suppliers provide goods and services that were previously provided internally.

Contract Manufacturer

A firm that specializes in certain types of goods-producing activities, such as customized design, manufacturing, assembly, and packaging.

Third-Party Logistics (3PL) Providers

Businesses providing integrated services that might include packaging, warehousing, inventory management, and transportation.

Offshoring

Building, acquiring, or moving of process capabilities from a domestic location to another country’s location while maintaining ownership and control.

Reshoring

Process of moving operations back to a company’s domestic location.

Multisite Management

Managing geographically dispersed service-providing facilities.

EPIC Framework

Assess supply chain readiness through perspectives of economic (E), political (P), infrastructural (I), and competence (C).

Center-of-Gravity Method

Determines the x and y coordinates (location) for a single facility.

Supply Chain Optimization

Ensuring that a supply chain operates at the highest levels of efficiency and effectiveness.

Transportation Problem

A linear optimization model that helps plan the distribution of goods and services from supply points to demand locations.