Supply Chain Management Study Guide

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Chapter 1: Supply Chain Management: An OverviewI. Forces of Change-Multiple forces of change are requiring organizations to be (a) nimble, & (b) responsive to their customers’ needs. 5 major forces are 1) Globalization. (Major issues to deal with include) More competition, More volatility/unpredictability in demand & supply, Shorter life cycles, Systems approach to “sourcing-to-delivery”, Potential “terrorism”/security. 2) Technology (primarily computing/info technology, Internet). Helped-Organizations transform their operations to a “lean” enterprise. 24/7 operations, Compress time & distance to improve overall supply chain efficiency., “Collaboration” through wide availability of information.(Examples: RFID, Kiosks, Product ID & tracking) 3) Organizational Consolidation/Power Shift (from supplier to retailer). Due to- Political/business transformation, Competition/customers gaining power, (Sharing of POS data, to help reduce “bullwhip” effect - characterized by higher inventories held by the “upstream” SC players/partners. Degree of uncertainty (in demand fluctuation) & long order intervals lead to higher levels of inventory) 4) Stronger Consumer (enlightened, more knowledgeable - reviews, access to info/internet, competition for customers) Internet offers 24/7 product access & comparison/variety shopping, Want variety availability all seasons, Want value (quality – very low tolerance for bad quality, price) 5) Government Policy/Regulation. Much deregulation (with some tightening-up) in-Transportation, Communications, Finance. II. The Supply Chain Concept- Started with the “physical distribution” /outbound logistics focus in the ‘60s. The ‘80s brought inbound logistics into the scope. >’90s, supply/value chain (3rd phase of development). Focus is on “integration” (systems approach - from suppliers’ supplier(s), to customers’ customer(s). Supply/value chain management is the creation, sustainment, and improvement of an efficient/effective pipeline (forward/backward flow) for products/materials, services, information, and finances (pay for inputs, collect payments) between sources and consumption points through intermediate channels. Multiple other terms are used for this concept by different organizations (demand flow management, value network, synchronized flow, etc.). GMA (grocery manufacturer’s association) – Early 1990s study to reduce cost and “days of inventory”(104 days to 61 days). III. Leading Organizations- Supply Chain Council (SCC – //supply-chain.org): A global non-profit consortium of members ranging from global corporations to academic institutions. SCC developed and now maintains/improves SCOR (Supply Chain Operations Reference – v. 10 now) which aims at modeling SC activities at 4 levels. Certifications – SCOR-P (Professional – min 5 years of SC experience). SCOR-S (Scholar – for students at SC educational programs)., Certifications available through several other organizations (APICS, etc.). Marketing

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Marketing
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Logistics
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Time utility
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Logistics
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Production
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Production
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Chapter 2: Role of Logistics in supply Chain I. Logistics – General: The heart & soul of supply chains.. Includes multiples of activities to bring products/services from suppliers to customers. Satisfying customers’ needs efficiently/effectively is the main focus. The term “logistics” was popularized by organizations/companies uniquely focusing on such activities. Ex.(UPS, DHL, Fedex, USPS). Has roots in the military. CSCMP-that part of the supply chain process that plans, implements, & controls the efficient, effective flow & storage of goods, services, & related info. From point of origin to point of consumption in order to meet customer objectives. 4 Subdivisions- military, event, business & service logistics. General...
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