Strategic Supply Chain Management

Flashcards for reviewing strategic supply chain management.

General Management Function

Ensures business environments are carefully analyzed to leverage relevance, competitiveness, and sustainability within the marketplace.

Conceptual Skills

Managers should possess the ability to have an overall perspective of the organization and think strategically.

Conceptual Skills

Enable managers to evaluate business environments and make sensible decisions influencing the organization.

Interpersonal Skills

A manager’s ability to listen to people, understand challenges, and collaborate on tasks.

Technical Skills

A manager’s ability to do the actual work and understand complexities employees might face.

Interpersonal Role

Requires managers to act as the organization’s representative and build relationships.

Informational Role

Involves gathering, analyzing, and disseminating information relevant to employees and managers.

Decisional Role

Requires managers to make strategic decisions based on information obtained from the business environments.

Planning

Sets a direction and provides stakeholders with a roadmap of where the organization is moving.

Leadership

About an individual’s ability to build relationships and give direction to employees to achieve organizational goals.

Functional Departmentalization

Grouping activities according to functional areas like marketing or finance.

Product Departmentalization

Organizing departments based on the various products offered by an organization.

Location Departmentalization

Having various offices across regions and following a decentralized approach.

Customer Departmentalization

Categorizing departments according to clients to focus on customer-specific needs.

Matrix Departmentalization

Applied in complex businesses requiring specialist insight for specific projects.

Line Authority

Direct authority between an employee and a manager.

Staff Authority

Functional managers assisting or advising employees from other departments.

Line and Staff Authority

Line and staff authority collaborate to ensure line departments are successful.

Functional Authority

Allows employees specialist responsibilities and to give orders within their responsibilities.

Project Authority

A horizontal line of authority that can stretch across various departments based on the project.

Control Processes

Enables managers to track plans and ensure performance standards are achieved.

Standardized Understanding of Strategy

To understand one another, in much the same way as accountants or medical personnel need to use the same language in order to avoid misunderstandings.

Utility of Strategic Management

Utility is useful because it helps us to resolve strategic problems that arise as organizations struggle to survive in a complex and fast-changing world.

Business strategy

When an organization aligns its products and services so as to attain and maintain a competitive advantage in a specific market.

Corporate strategy

Refers to the overall purpose of the organization, with special emphasis on the management of diverse business units, which in turn is called corporate parenting.

Sustainability

The fundamental basis of above-average performance in the long run is sustainable competitive advantage.

Market-based Perspective

There is an opportunity in the market, and the organization aims to exploit it as there is no competition and works backwards to construct a value chain.

Resource-based View

When an organization knows the capabilities and limitations and from there determines a price point.

Deliberate Strategy

The part of the intended strategy that did manifest in reality.

Emergent Strategy

Reveal itself (or rather, emerge) only once the strategy is being implemented or has already been implemented.

Cost leadership

Typically, low-cost, low-priced standardized products or services.

Differentiation

When an organization’s products or services have a uniqueness that is valued by the customers of that industry.

Cost focus

When an organization targets a narrow group of customers and thereby excludes all the other segments as a consequence. The advantage being sought is a cost advantage.

Shared value

This refers to a necessary, but also profitable, widening of an organization’s commitment, in the pursuit of profit.

Lee, Bates and Venter model

The factors to the right of culture influence the culture. The further to the right a factor is from culture, the larger the impact on the organization’s culture.

Gap between Strategic Management and Supply Chain Management

corporate executives do not always understand the ability of the supply chain to accomplish their vision, and supply chain managers seem to exhibit a deficit in strategic orientation.

Supply Chain Management

Overseeing the entire supply chain by ensuring that the supply chain has a strategy that is focused on becoming a more effective and efficient division.

Production Function

Innovative developments within organizations are important for continuous improvements in products and services offered.

Key Activities of the Operations Team

The transformation of raw material into quality products, which allows the production process either to continue or the final consumer to purchase the product.

Procurement management

Ensures that the right suppliers are identified, the quality of products used in their manufacture meets the requirements of consumers, payments are processed promptly for products or services used.

Transportation management

The movement of goods from point A to point B efficiently.

Warehousing

Regarded as a facility used for keeping goods in transit before the goods reach their final destination.

Inventory

The physical goods or products in the form of raw materials, work in progress or finished goods.

Customer relationship

Create and deliver value to consumers.

Economy

Economic stability of a country that influences the success of business.

Government and Legislation

Manage the development of land within their jurisdictions.

Environmental

Requires considering natural footprint in local communities and the environment.

Technological

Can only increase supply chain competitiveness.

Employees

A formal higher educational qualification is necessary to become a successful specialist.

Labor Relations

Unstable and vulnerable and can easily disrupt the products and operations of various industries.

Strategic warehouse development

Influence inventory management processes and the effectiveness of the supply chains that connect producers, consumers and intermediary stakeholders.

Regional location factor 1: Infrastructure availability

The availability of infrastructure, including transport structures, bulk service delivery, is an important determinant of whether a business chooses a location.

Regional location factor 2: Government decisions

Government decisions can determine whether a warehouse locates in one country or another.

Regional location factors 3: Market dynamics

The dynamics of the regional market influence warehouse location decisions within the region

Accessibility

The accessibility of the chosen site is of utmost importance due to the high volume of traffic.

Availability of engineering services

The development of light industrial and warehouses will require the availability of basic engineering services such as sewerage, water and electricity.

Physical suitability of the site

Refers to site-specific attributes and how it can influence the future of the development.

Urban expansion process

Influence all human and natural systems

Multiple Nuclei

Land-use pattern not centered around 1 CBD, but rather around various discrete centers.

Land use

Governments employ land-use planning to manage the development of land within their jurisdictions.

Street layout

The street layout and detailed design of such business and industrial parks will be done by a registered town planner as part of the land use application.

Integrated site planning

Similar to a sense of coherence in terms of all design aspects which assists in perserving natural features of the site through detailed design of buildings, parking, access and circulation.

Building design and orientation

Design and orientation should be done with careful consideration of the visual impact on drivers and pedestrians alike to create an impression of high quality.

Demand Planning

Assists with improving the ways that things are done in the operations for an organisation.

Customer surveys

This forecast is based on information derived from customers or potential consumers.

Jury of executive opinion

This forecast is based on decisions made by top-level management.

Sales-force Opinion

Valuable information and insight can be obtained and developed from those buying the organizations products.

Delphi Method

This method makes use of a group of individuals from people both inside and outside the organisation, and decision makers.

Continuous monitoring of the forecast

The purpose is to determine whether what is actually happening is aligned to what was forecasted. If it is not, then it is the responsibility of the organisation to investigate and take corrective action.

Greater efficiency

Ensures that the correct level of inventory is held, and capacity is managed.

Smooth collaboration

Software assists in communication and collaboration between all partners along a supply chain, which aids in visibility and real-time updates.

Cloud-based forecasting in inventory management.

The best technology, lower initial costs and more flexibility for Cloud based forecasting.

Procurement

A broad term that includes purchasing plus activities such as transportation, warehousing and packaging.

Operations Management

The organizational function that acquires and efficiently utilizes resources to achieve organizational goals.

Productivity

The ratio between the volume of outputs to the volume of inputs.

Demand planning

Organisations are at present increasing their use of online platforms to promote the efficiency, it is considered to be one of the most valuable activities enabling an organisation to deliver excellent consumer service, for a particular good or service

Supply chain management

Over looking the entire supply chain to come with new plan for better effectiveness.

Controlling activities

Ensuring all performance standard meet.

Inbound operations

It consists of planning the receipt of goods, unloading and inspection, put-away and processing customer returns.

Stocktake of goods in storage

Important sub- process for Storage operations.

Outbound operation

Consist of planning how customer orders are going to be consolidated, replenishment of the pick shelves, and picking customer orders, which is one of the most labour intensive processes in a warehouse.

Value-added logistics operation

Consist of additional service requirements placed on the warehouse which does not form part of inbound, storage or outbound operations. These can include customisation, kitting, unique packaging or labelling, among others.

Designing the sustainable supply chain strategy

It also important to have a complete and holistic understanding of not only the strategy but also the organisational goals and visions. This is because these would largely dictate the level of engineering that the supply chain would undergo

Analysing the entire working structure.

Understanding the need of customer when coming up with a plan for the entire supply chain management.

Feed back Model

It is the responsibility not only of customers, but also of those within the organisation that have a hand in the production of goods or rendering of services.

Cross- docking Definition

Cross-docking explains the flow of materials from the supplier to the customer with minimal handling and storage along the journey.

Efficient and effective inventory management system

A competitive advantage to an organization when it’s in a place where resources is scare.

Benefits of effective inventory management

Helps the organization to know which items the customer needs and to keep stock at an optimum level to allow smooth operations.

Accurate Demand Forecasting

Results in number of benefits

In Transit stock

Classified as cycle stock; however, it is not available for use, sale or subsequent reshipment.

A.B.C Analysis

An effective instrument in classifying importance of inventory for business functions.

Concept of sustainability

The study of how natural systems function, remain diverse and produce everything it needs for the ecology to remain in balance.