SCM 300 Exam 1 Davila asu
The effective and eflcient integration of the suppliers,
manufacturers, transportation organizations and the other
Supply Chain Management
parties responsible for collectively bringing final products
and services
· Branch responsible for obtaining materials, equipment,
products, and services with organizational regulations.
· Consists of finding suppliers, choosing the supplier that
procurement
offers the best value, negotiating terms of the purchase,
placing orders, and developing long-term relationships
with suppliers
· Branch responsible for developing the transportation
itinerary and finding the appropriate transportation and
storage partners to successfully navigate the flow of ma-
logistics terials from the point of origin to the final destination
· Logistics managers find trucking companies, package
the item, find distributors, organize documentation, rent
standardized containers
· Branch responsible for making business processes effec-
tive and eflcient. In essence, operations seek to help the
operations
organization create high quality products and/or services
using the fewest resources possible.
Oversee design, operations, and improvement of produc-
tion
· Companies want to make these items quickly, with as
operations-what they do
few workers and machines as possible, using the least
amount of energy, cheapest real estate, and right before
the customer needs them.
· Flow backward in the supply chain, away from the con-
reverse logistics sumer and back in the direction of manufacturers (up-
stream)
, · Important segment of the logistics branch. Reminder of
how important it is to be accurate.
· When suppliers, manufacturers, transportation compa-
nies, warehouse and distribution centers, retailers, and
Global Supply Chain other supply chain partners span across multiple coun-
tries and/or continents, those are considered global sup-
ply chains.
advantages of global SCM proximity, labor costs, etc.
challenges of global SCM distance, culture, laws, time zones, etc.
· A company's direct suppliers
1st Tier Supplier · A firm that directly provides goods and/or services to a
company (left)
· Firm that provides goods and/or services to a company's
first-tier supplier (right)
2nd tier suppliers
· Weak 2nd tier suppliers creates problems for 1st tier
supplier
downstream supply chain · Direction that points toward the end consumer (right)
include: delivering goods from a manufacturer to a dis-
tributer, suppliers working to get parts prepared in time
Downstream activities for manufacturers, distributors developing relationships
with retailers so they can better understand the retailer's
supply chain needs
Upstream Supply Chain · Direction that points toward the suppliers (left)
: ensuring that empty boxes at the retail level are returned
Executives that works in upstream supply chain manage- to the distributor for reuse, developing relationships with
ment might be responsible for a company's 1st tier suppliers in order to better commu-
nicate the needs of the present and the future
In order for supply chains to function and develop, three
things must continuously flow
, o Materials
o Money
o Information
§ If materials stop flowing, nothing will be made
§ If money stops flowing, companies can't buy things
§ If info stops flowing, poor decisions will be made
· Companies plan or purchasing items, transforming them,
delivering them, and selling them for profit
· EX: Amazon VS. Bookstore (Same company, different
business model...2 obvious differences are purchase and
delivery)
business model
· Things to think about are....
o Do we sell to companies or individuals?
o Online, in store, or both?
o Individual purchase or subscribe?
o Main parts or disposable parts? (Razor vs. blades)
· Ability to see what is happening with inventory upstream
and downstream
supply chain visibility · EX: knowing where shipment is, how many is in shipment,
and when it will arrive.
· Helpful in making good supply chain decisions
· Revenue - Cost
profit · Important supply chain costs: materials, labor, energy,
transportation, packaging, storage, defects, insurance
ROI = total profit / total investment
· Cost
· Quality
competitive priorities
· Speed
· Flexibility
core competencies
The effective and eflcient integration of the suppliers,
manufacturers, transportation organizations and the other
Supply Chain Management
parties responsible for collectively bringing final products
and services
· Branch responsible for obtaining materials, equipment,
products, and services with organizational regulations.
· Consists of finding suppliers, choosing the supplier that
procurement
offers the best value, negotiating terms of the purchase,
placing orders, and developing long-term relationships
with suppliers
· Branch responsible for developing the transportation
itinerary and finding the appropriate transportation and
storage partners to successfully navigate the flow of ma-
logistics terials from the point of origin to the final destination
· Logistics managers find trucking companies, package
the item, find distributors, organize documentation, rent
standardized containers
· Branch responsible for making business processes effec-
tive and eflcient. In essence, operations seek to help the
operations
organization create high quality products and/or services
using the fewest resources possible.
Oversee design, operations, and improvement of produc-
tion
· Companies want to make these items quickly, with as
operations-what they do
few workers and machines as possible, using the least
amount of energy, cheapest real estate, and right before
the customer needs them.
· Flow backward in the supply chain, away from the con-
reverse logistics sumer and back in the direction of manufacturers (up-
stream)
, · Important segment of the logistics branch. Reminder of
how important it is to be accurate.
· When suppliers, manufacturers, transportation compa-
nies, warehouse and distribution centers, retailers, and
Global Supply Chain other supply chain partners span across multiple coun-
tries and/or continents, those are considered global sup-
ply chains.
advantages of global SCM proximity, labor costs, etc.
challenges of global SCM distance, culture, laws, time zones, etc.
· A company's direct suppliers
1st Tier Supplier · A firm that directly provides goods and/or services to a
company (left)
· Firm that provides goods and/or services to a company's
first-tier supplier (right)
2nd tier suppliers
· Weak 2nd tier suppliers creates problems for 1st tier
supplier
downstream supply chain · Direction that points toward the end consumer (right)
include: delivering goods from a manufacturer to a dis-
tributer, suppliers working to get parts prepared in time
Downstream activities for manufacturers, distributors developing relationships
with retailers so they can better understand the retailer's
supply chain needs
Upstream Supply Chain · Direction that points toward the suppliers (left)
: ensuring that empty boxes at the retail level are returned
Executives that works in upstream supply chain manage- to the distributor for reuse, developing relationships with
ment might be responsible for a company's 1st tier suppliers in order to better commu-
nicate the needs of the present and the future
In order for supply chains to function and develop, three
things must continuously flow
, o Materials
o Money
o Information
§ If materials stop flowing, nothing will be made
§ If money stops flowing, companies can't buy things
§ If info stops flowing, poor decisions will be made
· Companies plan or purchasing items, transforming them,
delivering them, and selling them for profit
· EX: Amazon VS. Bookstore (Same company, different
business model...2 obvious differences are purchase and
delivery)
business model
· Things to think about are....
o Do we sell to companies or individuals?
o Online, in store, or both?
o Individual purchase or subscribe?
o Main parts or disposable parts? (Razor vs. blades)
· Ability to see what is happening with inventory upstream
and downstream
supply chain visibility · EX: knowing where shipment is, how many is in shipment,
and when it will arrive.
· Helpful in making good supply chain decisions
· Revenue - Cost
profit · Important supply chain costs: materials, labor, energy,
transportation, packaging, storage, defects, insurance
ROI = total profit / total investment
· Cost
· Quality
competitive priorities
· Speed
· Flexibility
core competencies
