MGSC-487 EXAM 1 STUDY GUIDE
Evolution of Supply Chain - Answers - 1.) Clerical (railroads - Administrative)
2.) Market Unlimited (WWII Factories - Transportation)
3.) Supply Shortages (1970's - Negotiation)
4.) Low Cost Labor (1990's - Organizational Strategy)
5.) Ethics, Sustainability & Risk (Today - Business Leadership)
Spend in the Supply Chain - Answers - - Lead Time in Months
- Value Add Times as very small %
Profit Leverage Effect - Answers - The increase in corporate profit obtained by
decreasing purchase spend
Return on Assets - Answers - The efficiency of generating profit from your assets
Direct Benefit of Supply - Answers - - Tangible
- Profit Leverage
- Return on Assets
- Inventory Space
- Headcount
- The appeal of direct contribution of supply is that both inventory reduction and
purchasing savings are measurable and tangible evidence of supply contribution.
Indirect Benefit of Supply - Answers - - "Soft"
- Information Source
- Good Supplier Selection
- Customer Satisfaction
- Managing Risk
- Strategic Partner
- Indirect contributions come from supply's role as an information source; its effect on
efficiency, competitive position, risk, and company image; the management training
provided by assignments in the supply area; and its role in developing management
strategy and organizational policy.
- Benefits may outweigh direct contributions but are hard to calculate.
Operational Contribution of Supply - Answers - - Troubleshooter
- Transactional, Day to Day, Quality, Quantity, Delivery
, - Can be streamlined and organized in ways designed to routinize and automate many
of the transactions, thus freeing up time for the supply managers to on the strategic
contributions.
Strategic Contribution of Supply - Answers - - Opportunist
- Forward looking, better, faster, cheaper
- Focus on new and better solutions to organizational and supply challenges.
Supply Strategy - Answers - - Who
- What (make or buy)
- When
- Where
- Why
- How Much
- What Price
Supplier Involvement - Answers - Early supplier involvement can give you benefits like
cost avoidance, time to market, and competitive advantage
Types of Risk Management - Answers - - Operational
- Financial
- Reputation
9 Key Activities for Supply Process & Technology - Answers - 1.) Recognize the Need
2.) Describe the Need
3.) Identify Potential Sources
4.) Select Supplier / Establish Terms
5.) Prepare and Place PO
6.) Follow Up and Expedite
7.) Receive and Inspect
8.) Invoice Clearing and Payment
9.) Maintain Records and Relationships
Recognize the Need - Answers - What? How Much? When?
Describe the Need - Answers - Know exactly what the internal customer wants
Identify Potential Sources - Answers - - Qualified Sources
- Need to be able to deliver product on time, have satisfactory product, be appropriate
before and after sale
Select Supplier / Establish Terms - Answers - - Simple: comparing bids of multiple
suppliers
- Complex: negotiation
Evolution of Supply Chain - Answers - 1.) Clerical (railroads - Administrative)
2.) Market Unlimited (WWII Factories - Transportation)
3.) Supply Shortages (1970's - Negotiation)
4.) Low Cost Labor (1990's - Organizational Strategy)
5.) Ethics, Sustainability & Risk (Today - Business Leadership)
Spend in the Supply Chain - Answers - - Lead Time in Months
- Value Add Times as very small %
Profit Leverage Effect - Answers - The increase in corporate profit obtained by
decreasing purchase spend
Return on Assets - Answers - The efficiency of generating profit from your assets
Direct Benefit of Supply - Answers - - Tangible
- Profit Leverage
- Return on Assets
- Inventory Space
- Headcount
- The appeal of direct contribution of supply is that both inventory reduction and
purchasing savings are measurable and tangible evidence of supply contribution.
Indirect Benefit of Supply - Answers - - "Soft"
- Information Source
- Good Supplier Selection
- Customer Satisfaction
- Managing Risk
- Strategic Partner
- Indirect contributions come from supply's role as an information source; its effect on
efficiency, competitive position, risk, and company image; the management training
provided by assignments in the supply area; and its role in developing management
strategy and organizational policy.
- Benefits may outweigh direct contributions but are hard to calculate.
Operational Contribution of Supply - Answers - - Troubleshooter
- Transactional, Day to Day, Quality, Quantity, Delivery
, - Can be streamlined and organized in ways designed to routinize and automate many
of the transactions, thus freeing up time for the supply managers to on the strategic
contributions.
Strategic Contribution of Supply - Answers - - Opportunist
- Forward looking, better, faster, cheaper
- Focus on new and better solutions to organizational and supply challenges.
Supply Strategy - Answers - - Who
- What (make or buy)
- When
- Where
- Why
- How Much
- What Price
Supplier Involvement - Answers - Early supplier involvement can give you benefits like
cost avoidance, time to market, and competitive advantage
Types of Risk Management - Answers - - Operational
- Financial
- Reputation
9 Key Activities for Supply Process & Technology - Answers - 1.) Recognize the Need
2.) Describe the Need
3.) Identify Potential Sources
4.) Select Supplier / Establish Terms
5.) Prepare and Place PO
6.) Follow Up and Expedite
7.) Receive and Inspect
8.) Invoice Clearing and Payment
9.) Maintain Records and Relationships
Recognize the Need - Answers - What? How Much? When?
Describe the Need - Answers - Know exactly what the internal customer wants
Identify Potential Sources - Answers - - Qualified Sources
- Need to be able to deliver product on time, have satisfactory product, be appropriate
before and after sale
Select Supplier / Establish Terms - Answers - - Simple: comparing bids of multiple
suppliers
- Complex: negotiation
