Supply Chain Management Final (Summary lectures, book, and articles)

Explain why SCM has a cross-functional nature.

Antwoord: Because all aspects of an organization (finance, marketing, sales, manufacturen, R&D etc.) are in some way involved or influencing the demand/supply for a specific product, and thus the management across and within a network of organization and its flow of material, information an resources.

Explain why SCM is also known as demand chain management or seamless demand pipelines.

Antwoord: These names are aimed to be more descriptive than \'supply chain management\'. These terms both shall emphasize the importance/criticality of end user/customers at all points in the chain.

Explain the difference between supply chains and supply networks.

Antwoord: Supply CHAIN is a set of 3 or more entities directly involved in the up- and downstream flows of products, services, finances and/or information of a customer. A supply NETWORK emphasizes that these are not just chains, but a made up of several networks. Our second-tier supplier can also be first-tier supplier of our customers-customer.

What are the 5 main perspectives on SCM?

Antwoord: 1. Process 2. Discipline 3. Governance 4. Philosophy 5. Functional (See p.3 in summary for explanation per perspective)

Historical milestones in the development of SCM.

Antwoord: 1. Traditional mass production 2. Introduction of computer technologies → MRP 3. Global competition let to low cost, higher quality → SCM, JIT, TQM etc. 4. Relationships, sustainability → SRM, integration

Importance of logistics (i.e. name the 6 main consequences of poor distribution logistic processes).

Antwoord: 1. Delayed delivery of goods 2. Need for extensive safety stocks 3. Interruptions in production 4. Expensive transportation cost 5. Expensive storage systems 6. High cost for order picking

Two utilities of logistics.

Antwoord: - Time utility - Place utility (See p.12 in summary for explanation).

Name 4 objectives of transportation.

Antwoord: 1. Maximize value against reasonable prices 2. Make sure service is provided effectively 3. Satisfy customer needs 4. Finding right combination of modes

Describe characteristics of MOTOR CARRIERS (i.e. as part of: Compare and contrast various modes of transport).

Antwoord: - Low fixed cost, medium variable cost - Compete favorable with rail and air for short/medium hauls - PRO: Most flexible mode - CON: Weather and traffic problems (See p.12+13 in summary for explanation).

Describe characteristics of RAIL CARRIERS (i.e. as part of: Compare and contrast various modes of transport).

Antwoord: - High fixed cost, low variable cost - Slow and inflexible - Compete favorable when the distance is long and shipment heavy or bulky - CON; railroad infrastructure, aging equipment, service quality (See p.12+13 in summary for explanation).

Explain the role of demand forecasting in a SC.

Antwoord: = The basis for all planning decisions in a SC - Production schedueling, inentory, transportation planning - Sales force allocation, promotions, new product introduction - Workforce planning - Plan/equip inventory, budgetary planning (See p.58 in summary for details)

Name the 7 characteristics of forecasting (i.e. the turth about forecasts).

Antwoord: 1. Forcast is always wrong 2. Aggregate forecasts are more accurate 3. Forecast over short horizon are more accurate 4. Long history helps 5. Information disortion is amplified as we move the SC 6. Trading partners have information 7. Risk sharing can mitigate the consequencese (See p.59 in summary for explanation)

Name the 2 generic forecasting methods

Antwoord: 1. Qualiative forecasting 2. Quantiative forecasting → Mostly recommended to use combination (See p.59 in summary for explanation)

Name the 4 qualitative forecasting models.

Antwoord: 1. Jury of executive opinion 2. Delphi method 3. Sales Force somposite 4. Consumer Survey (See p.59 in summary for explanation)

Name the different types of quantitative forecasting methods.

Antwoord: A. TIME SERIES FORECASTING 1. Cumulative 2. Naïve 3. Simple moving average 4. Weighted moving average 5. Simple exponential smoothing 6. Corrected exponential smoothing 7. Linear trend analyses B. CAUSAL FORECASTS 1. Simple regression 2. Multiple regression (See p.60-64 in summary for explanation)

Definition of Supply management.

Antwoord: - The identification, acquisition, access, positioning, management of resources and related capabilities the organization needs or potentially needs in the attainment of its strategic objectives - Includes negotiations, logistics, contract development, administration, inventory control and management, supplier management etc.

Why is Supply management important?

Antwoord: 1. Purchases of raw materials exceed value added though manufacturing 2. Purchase spend as percent of goods sold are very high (See p.88-90 in summary for detailed explanation)

Name the 3 main goals of supply management/purchasing

Antwoord: 1. Ensure uninterrupted flows of materials at lowest costs 2. Improve quality of finished good produced 3. Maximize customer satisfaction

Name the 3 methods to achieve these goals.

Antwoord: 1. Seeking better materials and reliable suppliers 2. Developing strategic suppliers, globally 3. Involving suppliers and purchasing personnel in product design and development efforts. (See p.90 in summary for detailed explanation)

Definition of the Profit-leverage effect

Antwoord: = What is the effect of a change in the purchase spend, on the profit before taxes (See p.90 in summary for detailed explanation)

Definition supply chain integration

Antwoord: When firms in a supply chain integrate their processes internally and externally; sharing information and coordinating resources jointly to manage processes.

Name the 6 main difficulties of external integration:

Antwoord: Because it requires; 1. Power training and preparedness 2. Willing and competent trading partners 3. Trust 4. Compatible information systems 5. Potentially a change in organizational cultures 6. Succesful integration process

Name the 6 main benefits of external integration

Antwoord: 1. Reduced SC costs 2. Greater flexibility to respond to market changes 3. Fewer process problems and hence less Safety stock 4. Higher quality levels 5. Reduced time to market 6. Better utilization of resources

Name the 9 steps of the SC Integration model

Antwoord: 1. Identify critical SC trading partners 2. Establish and review SC strategies 3. Align SC strategies with key SC proces objectives 4. Develop INTERNAL performance measures for key processes 5. Asses and improve internal integration of key SC processes 6. Develop SC performance measures of key processes 7. Assess and improve EXTERNAL process integration and performance 8. Extend process integration to 2nd tier partners 9. Reevaluate the integration model annually (See p. 123-128 in summary for description per step)

Name the 8 key SC processes of Lambert et al.

Antwoord: 1. Customer relationship management (pre sales) 2. Customer service management (post sales) 3. Demand management 4. Order fulfillment 5. Manufacturing flow management 6. Supplier relationship management 7. Product development and commercialization 8. Returns management (See p. 124-128 in summary for description per step)