LO4 Flashcards
Discuss 3 challenges which may be faced when collecting and reporting data to senior management
- Lack of coordination in technology-
Different suppliers are likely to use different systems to control and monitor data
Safety standards differ with countries
- Improper and competing perfomance metrics-
different measurements in countries
- Data integrity
Are they telling the truth
- Differentiating reports for the different senior management and stakeholder levels
Characteristics of timely reporting of data
- In depth analysis
Accurate and up to dateinformation - Decision making
- Benchmarking
Accurate comparisons against competitors - Control and monitoring
- Problem solving
- Stability
- Responsiveness
How can supply chain data help ensure the matching of supply and demand?
- Demand issues- how is the demand of the new product
- Supply issues- communicating of challenges in advance to the customers.
- Product life cycle
Inroduction, growth, maturity, decline
KPIs
Are performance standards that can be used to ensure that an organization is fulfilling requirements of their supply chain partners
KPIs which could be used
- Perfect order- number of orders shipped to customers without issues.
- Quality of products
- Ethical and environmental standards
Characteristics of perfomance measures
SMART
Supply chain systems integration strategies
- JIT
- MRP
- DRP (Distribution requirements planning)
- DPP ( Direct product profitability) total costs of the product
Factors to consider when determining the number and location of operating facilities
- Proximity to customers
- Proximity to suppliers
- Community/government access
- Competitive considerations
- Environmental factors
- Labour
- Taxes and financing
- Transportation
- Utilities services
Business process re-engineering
Helps organisations to reduce business costs and ensure that any redundancies within processs and systems are minimised through optimal utilisation of the processes
4 Key principles of Business processs reengineering
- Radical rethinking- innovative
- Dramatic improvement- sudden change
- Short fat processes- shortening the length of time from start to finish
- Control and action- ensuring that those who control and manage the work are not separated from it
Advantages of BPR
- Streamline decision making processes
- Reduce costs
- Create efficiencies
- Minimisation of inventory
- Increased output
Disadvantages
1. It may be difficult to get buy in from stake holders
- It can be used by large organizations to make people redundant
- BPR is a huge project to take and it may be difficult for small organisations to implement
Strategic fit
When the supply chain is designed to provide efficiently and effectively to the market, this is what is known as achieving strategic fit
Organization must match a product supply and demand to its supply chain characteristics
Four dimensions of demand uncertainty
- Functional product and stable process
e.g groceries, school uniform, food, oil
- Functional product and evolving process
e.g solar and wind power, rare minerals
- Innovative product and stable process
e.g fashion apparel, laptops, music streaming
- Innovative product and evolving process
e.g smartphones, emerging technology
4 issues that can affect responsive (agile) supply chain and efficient (lean) supply chain
- Poor supplier section
- Technology
- Visibility and information sharing
- Fluctuations in demand
Discuss 3 challenges facing global supply chain management today
- Supply chains now have a wider customer basis
- Increased uncertainty in globalised supply chain
- Challenge of dealing with hidden costs eg tariffs which can change overnight
4.