Chapter 1: Operations and Supply Chain Management
Quick Supply Chains Enable Retailers to Get Fashions to Market Quickly * Keep earning high, keep latest fashions on shelves
* Advances in technology allows stores to do this-> all can be done online, no flying designers and mailing * Thus, less price markdowns and order less but more often can’t afford to carry excess inventory * Minimize “concept to cash”
What is Operations and Supply Chain Management?
* Operations and Supply Chain Management (OSCM)- design, operation, and improvement of the systems that create and deliver the firm’s primary products and services * Manages the entire system that produces a good or delivers a service * Complex series of transaction process managed as effectively as possible- parka jackets; global dimensions * Sustainability strategy- meets needs of shareholders and environment * Operations- manufacturing, service, and health care processes that are used to transform the resources employed by a firm info products * Supply Chain- process that moves information and material to and from the manufacturing and service processes of the firm- logistics process, physically move * Supply and demand planning
* Technology has made gathering info fast
Operations and Supply Chain Processes
* Planning- process needed to operate existing supply chain; anticipate demand ; develop set of metrics to monitor supply chain * Sourcing- selection of suppliers to deliver goods and services; price, delivery, and payment processes * Making- major product is produced; requires scheduling process/ equipment; speed and quality measured * Delivering- “logistics process” move products to warehouse * Returning- receiving warn out, defective, and excess products Differences between Services and Goods
* 1. Service- intangible Good- tangible
* Services cannot be patented- expand rapidly
* Services problem- customers cannot try it out...
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