Supply Chain Management I (Topic 6)

Question-and-answer flashcards covering definitions, objectives, value-chain activities, uncertainty, the Bullwhip Effect, IT enablers, benefits, duties & tariffs, and ESG considerations in Supply Chain Management I.

What is a Supply Chain (SC) in the context of fulfilling a customer request?

All stages involved directly or indirectly in fulfilling a customer request, including manufacturers, suppliers, transporters, warehouses, retailers, and customers.

Which internal company functions are part of the supply chain?

Product development, marketing, operations, distribution, finance, and customer service.

What alternative terms are often used instead of “supply chain,” and why?

“Supply network” or “supply web,” because relationships are network-like rather than linear.

What are the three core process groups of a supply chain?

Source, Make, and Deliver.

What is the primary objective of a supply chain regarding customers?

Achieving customer satisfaction—the customer is the only source of revenue.

How is overall success in a supply chain measured?

By total supply chain profitability, not by the profit of individual stages.

Name the five primary activities in Porter’s value chain as applied to supply chain management.

Inbound logistics, Operations (manufacturing & testing), Outbound logistics, Marketing & Sales, and Service (after-sales).

What are the four main support activities that enable primary supply-chain activities?

Firm infrastructure (accounting, finance, IT, management), Human Resources, Technology development (R&D), and Procurement.

Define Supply Chain Management (SCM).

Managing the flow of information through the supply chain to synchronize it, making it more responsive to customer needs while lowering costs.

What is the main goal of SCM in relation to demand uncertainty?

To respond to uncertain customer demand without creating costly excess inventory.

Identify the four keys to effective supply chain management.

Information, Communication, Cooperation, and Trust.

List three common uncertainty factors in a supply chain.

Inaccurate demand forecasting, long variable lead times, and late deliveries (also incomplete shipments, price fluctuations and discounts).

What is the Bullwhip Effect?

A phenomenon where fluctuations in orders increase as they move up the supply chain, distorting demand information because of lack of coordination.

Give a real-world example of the Bullwhip Effect mentioned in the lecture.

Pampers experienced unpredictable distributor orders that created production and inventory problems.

How can companies mitigate the Bullwhip Effect?

By sharing information along the supply chain via tools such as extranets and groupware (e.g., Kimberly-Clark & Walmart sharing inventory updates).

Name two cost-related impacts of the Bullwhip Effect.

Increases in manufacturing cost and inventory cost (also higher transportation, shipping/receiving costs, longer replenishment lead times).

Which technology enables computer-to-computer exchange of standard business documents?

Electronic Data Interchange (EDI).

What is RFID and how is it used in supply chains?

Radio Frequency Identification; electronic tags that track objects by radio waves for real-time inventory visibility and logistics control.

What supply-chain benefit results from eliminating intermediaries?

Cost savings and price reductions.

How does instant access to services and accurate data improve customer experience?

It leads to improved service levels.

How do electronic payment systems contribute to supply-chain benefits?

They provide fraud and theft loss protection because digital transactions are easier to audit and monitor.

What is a tariff in international trade?

A tax (customs duty) levied on products as they enter a country.

Name two types of trade specialists involved in duties and tariffs.

Freight forwarders and customs house brokers (also export packers, export management and trading companies).

Why do member nations of trade agreements often enjoy a competitive advantage?

Because group members charge uniform tariffs, reducing trade barriers among themselves.

Under ESG, what two environmental metrics should companies assess in their supply chains?

Carbon footprint (greenhouse-gas emissions) and resource use (water, energy, raw materials).

What governance factor is essential for ESG-compliant supply chains?

Ethical business practices, including anti-corruption measures and compliance with laws and regulations.

What is the overarching purpose of integrating ESG factors into supply chain management?

To enhance sustainability performance, mitigate risks, and create long-term value for stakeholders.