LOGISTICS (REVIEWER)
CH1: Supply Chains
1.1 Supply Chain Management
Six-sigma performance: managerial commitment to zero defects.
Perfect order: delivering desired assortment and quantity to the right location and time (correctly invoiced).
Supply chain management allows multiple firms to collaborate, promote strategic positioning and improve operational efficiency. Its strategy is a
channel and business organizational arrangement to acknowledge dependency and collaboration.
Customers have 3 perspectives of value:
a) Economic value – high quality/low price consisting of economies of scale, service creation, lowest total cost
(procurement/manufacturing)
b) Market value – convenient product/service assortment consisting of attractive product assortment at the right place and time, economy of
scope, overall presentation (market/distribution)
c) Relevancy value – unique product/service bundle consisting of customization value added services, segmental diversity, positioning
(supply chain strategy)
CH1: Supply Chains
1.1 Supply Chain Management
Six-sigma performance: managerial commitment to zero defects.
Perfect order: delivering desired assortment and quantity to the right location and time (correctly invoiced).
Supply chain management allows multiple firms to collaborate, promote strategic positioning and improve operational efficiency. Its strategy is a
channel and business organizational arrangement to acknowledge dependency and collaboration.
Customers have 3 perspectives of value:
a) Economic value – high quality/low price consisting of economies of scale, service creation, lowest total cost
(procurement/manufacturing)
b) Market value – convenient product/service assortment consisting of attractive product assortment at the right place and time, economy of
scope, overall presentation (market/distribution)
c) Relevancy value – unique product/service bundle consisting of customization value added services, segmental diversity, positioning
(supply chain strategy)
