SCMN 2150 Brian Gibson test 1 Exam Review Questions & Answers

SCMN 2150 Brian Gibson test 1 Exam Review Questions & Answers What is Supply Chain Management? - ANS-the art of managing the flow of materials, products, information, and financial resources from source to user. Why is SCM important? (4) - ANS-It provides valuable opportunities to create competitive advantage: 1. develop collaborative, trusting relationships 2. rationalize product touch points 3. drive out costs and achieve tremendous efficiencies 4. improve customer satisfaction Competitive advantage: - ANS-requires delivering more value and satisfaction to target consumers than competitors Who participates in SCM? (5) - ANS-Suppliers, manufacturers, distributors, retailers, consumers Primary processes of SCM: - ANS-Plan, Buy, Make, Move (purchasing, production, distribution) What are the goals of SCM? - ANS-Customer care, competitiveness, efficiency, responsiveness and resilience; these goals focus on making BETTER, FASTER, AND CHEAPER, MORE RESPONSIVE supply chains than your competition. Lower Cost + Higher Sales = _________? - ANS-Greater Profits 7 Principles of SCM - ANS-1. Segment customers based on service needs 2. Customize the logistics network 3. Drive operations from demand 4. Differentiate product closer to the customer 5. Source strategically 6. Develop supply chain-wide technology strategy 7. Use supply chain spanning performance measures How can an organization build competitive advantage via SCM? (6)