An Overview Flashcards
(105 cards)
1
Q
When the rate of change outside of the organization is faster than the inside
A
the end is near
2
Q
What are the five major external forces that are driving the rate of change
A
Globalizations, Technology,Organizational consolidation, the empowered consumer and government policy
3
Q
Globalization as a driver of rate
A
The increasing interconnectedness and interdependence of nations, economies, and cultures around the world.
4
Q
Technology as a driver of rate
A
The rapid development and adoption of new technologies that are changing the way we live, work, and interact with each other.
5
Q
Organizations Consolidation as a driver of rate
A
The trend towards mergers, acquisitions, and partnerships that is leading to larger and more powerful organizations.
6
Q
Empowered consumer as the driver of rate
A
The increasing power and influence of individual consumers, who have more information and choice than ever before.
7
Q
Government policy as the driver of rate
A
The regulations and policies set by governments that can shape the way businesses operate and impact society as a whole.
8
Q
What was the most frequently cited change factor by business leaders?
A
Globalization
9
Q
What did globalization replace as the dominant driving force in world economics?
A
The post-World War II Cold War
10
Q
What does the concept of the global marketplace or the global economy refer to?
A
A special meaning for all enterprises (profit and nonprofit; small, medium, and large; products or services) and for individual consumers in the 1990s and the first decade of the twenty-first century.
11
Q
What are some questions that companies seeking to rationalize their global networks ask?
A
(1) Where in the world should we source our materials and/or services? (2) Where in the world should we manufacture or produce our products or services? (3) Where in the world should we market and sell our products or services? (4) Where in the world should we warehouse and distribute our products? (5) What global transportation and related service alternatives should we consider?
12
Q
What are some challenges for supply chains in the global economy?
A
More economic and political risk; shorter product life cycles; and the blurring of traditional organizational boundaries.
13
Q
What is the risk of interruption or disruption to a supply chain?
A
It is analogous to a “heart attack” that cuts off the flow of blood to the heart and can have lasting effects.
14
Q
Why do shorter product life cycles present a challenge for inventory management?
A
Products that are duplicated will most likely face a faster reduction in demand and require new pricing policies, both of which present challenges to effective inventory management.
15
Q
What is the blurring of traditional organizational boundaries?
A
The result of companies having to adjust or transform their business model or the way that they do business in the more competitive global economy.
16
Q
What is outsourcing?
A
Companies outsourcing activities and processes to another company that can provide what they need more efficiently and hopefully more effectively.
17
Q
What has been a strong compliment to the growth in the global economy?
A
: The growth and development in the technology related to supply chains.
18
Q
How has technology impacted supply chains?
A
Technology has had a major impact on supply chains as it has facilitated change and transformed processes. It has also changed the dynamics of the marketplace by making individuals and organizations “connected” 24/7 and providing access to information on the same basis via the internet.
19
Q
What role do search engines play in gathering information?
A
earch engines, such as Google and others, have made it possible to gather timely information quickly. We no longer have to wait for information to be “pushed out” to us; we can “pull” information as we need it. Vast stores of data and information are virtually at our fingertips.
20
Q
How have social networks influenced supply chains?
A
Social networks such as Facebook or Twitter are playing an ever-increasing role in business organizations and influencing supply chains because of their impact on customer demand and the speed of information transfers. Many companies see opportunities to “data mine” the social media to uncover demand-related information for improved forecasting and marketing.
21
Q
What opportunities has technology created for collaboration in supply chains?
A
Technology has allowed individuals and smaller organizations to connect to the world’s “knowledge pools” to create and establish opportunities for collaboration in supply chains. Collaboration opportunities with individuals and companies throughout the globe have increased, which has created market opportunities as employment opportunities increased.
22
Q
What organizations have been developed as a result of technology, and how have they disrupted their respective marketplaces?
A
Answer: Technology has spawned the development of Uber, Airbnb, and other such organizations, which have disrupted their respective marketplaces.
23
Q
What was the driving force in supply chains after World War II?
A
Product manufacturers.
24
Q
What were the different ways in which product manufacturers exerted their influence throughout the supply chain?
A
They developed, designed, produced, promoted, and distributed their products.
25
What were the services accorded to large retailers by product manufacturers?
Services such as scheduled deliveries, “rainbow” pallets (mixed arrays of products or stock-keeping units [SKUs]), advance shipments notices (ASNs) shrink-wrapped pallets, etc.
26
What were the services accorded to large retailers by product manufacturers?
Services such as scheduled deliveries, “rainbow” pallets (mixed arrays of products or stock-keeping units [SKUs]), advance shipments notices (ASNs) shrink-wrapped pallets, etc.
27
What are the benefits of collaboration among organizations in the supply chain?
Shared cost savings and improved customer service.
28
What is a powerful collaborative tool for mitigating the "bullwhip effect" of inventory in the supply chain?
Sharing point-of-sale data.
29
Where do companies that report innovative best practices usually obtain about half of their innovative insights from?
Collaboration with suppliers and customers.
30
What is the power of information sharing and collaboration in supply chains?
Answer: It cannot be overstated.
31
What is the impact of the consumer on supply chains today?
consumers demand an expanded variety of products and services, competitive prices, high quality, tailored or customized products, convenience, flexibility, and responsiveness.
32
How are consumers empowered in terms of information?
: Consumers are empowered by the information that they have at their disposal from the Internet and other sources. Their access to product sources and related information has expanded exponentially.
33
What challenges do the demographics of our society pose to supply chains?
The demographics of our society, with the increase in two-career families and single-parent households, have made time and convenience critical factors for many households. The expectation for service is frequently 24/7 availability with a minimum of wait time.
34
What has caused much change in how supply chains function?
The power of the consumer has caused much change in how supply chains function. Supply chains have felt the pressure to keep prices stable even during inflationary periods. Collaboration has frequently been the basis for efficiencies to mitigate increased costs.
35
What is the fifth external change factor mentioned in the text?
What is the fifth external change factor mentioned in the text?
The fifth external change factor mentioned in the text is the various levels of government (federal, state, and local) that establish and administer policies, regulations, taxes, etc., which impact businesses and their supply chains.
36
What is an example of deregulation in the US economy that occurred in the 1980s and 1990s?
An example of deregulation in the US economy that occurred in the 1980s and 1990s is the deregulation of several important sectors, including transportation, communications, and financial institutions.
37
What was the net effect of the deregulation of the transportation industry at the federal level?
The net effect of the deregulation of the transportation industry at the federal level was that it became possible for transportation services to be purchased and sold in a more competitive environment. Transportation companies were also allowed to offer more than just transportation services, with many becoming logistics services companies and offering services such as order fulfillment, inventory management, and warehousing.
38
What changes in the financial sector resulted from deregulation of financial institutions at the federal level?
The deregulation of financial institutions at the federal level fostered changes in how businesses can operate with respect to cash flow, purchase cards, and short-term investment. These changes made organizations more cognizant of the role that supply chain management could play with asset efficiency and cash flow.
39
What are some examples of improvements and opportunities in logistics and supply chains resulting from communications efficiency and effectiveness?
Examples of improvements and opportunities in logistics and supply chains resulting from communications efficiency and effectiveness include asset visibility, quick response replenishment, improved transportation scheduling, rapid order entry, and same-day delivery. The omni-channel option discussed in Chapter 4 is also a major change in meeting customer needs at the retail level. Supply chain practices have been improved, leading to lower cost and better customer service, and the supply chain technology continues to improve
40
What is supply chain management?
Supply chain management is the coordination and integration of all activities involved in the production and delivery of products or services, from the acquisition of raw materials to the delivery of the finished product to the end customer.
41
When did the development of physical distribution concept begin?
The development of physical distribution concept began in the 1960s.
42
: What is the physical distribution concept?
The physical distribution concept focuses on the outbound side of a firm's logistics system, including transportation, inventory requirements, warehousing, exterior packaging, materials handling, and other activities or cost centers.
43
Question: What is the underlying logic of logistics management?
Answer: The underlying logic of logistics management is the systems or total cost concept, which emphasizes the importance of considering all costs associated with the movement of goods in order to make transportation decisions based on the lowest total system cost.
44
Question: What is the value chain concept?
Answer: The value chain concept is a tool for competitive analysis and strategy that identifies primary components of the value chain, including inbound and outbound logistics, and emphasizes the importance of integrating marketing, sales, and manufacturing with logistics.
45
Question: What is a supply chain?
Answer: A supply chain is an extended enterprise that coordinates the related flows of goods and services, information, cash, and demand across multiple firms to deliver products or services to the end customer.
46
Question: What are the four important supply flows in a supply chain?
Answer: The four important supply flows in a supply chain are the physical flow of products or services, the information flow, the cash flow, and the demand flow.
47
What is supply chain management?
A: Supply chain management involves the management of supply chains from forecasting to distribution.
48
Why is supply chain management considered an "art"?
: Supply chain management is considered an "art" because of its dynamic and complex environment, which requires collaboration along the supply chain and continuing analysis and planning.
49
What is the key to innovation and successful management in supply chain management?
The direct management involved in short- and long-run decisions is the key to innovation and successful management in supply chain management.
50
What is the top flow in the supply chain, and why is it important?
he top flow in the supply chain is products and related services, which has traditionally been an important focus of logisticians and can be considered the "life blood" of the supply chain.
51
What is the second flow in the supply chain, and why is it important?
A: The second flow in the supply chain is the information flow, which has become an extremely important factor for success in supply chain management and can be considered the fuel for the supply chain.
52
: How can timely, accurate information about demand impact the supply chain?
A: Timely, accurate information about demand can lead to less uncertainty and, therefore, less safety stock, which can eliminate inventory from the supply chain.
53
What is the third flow in the supply chain, and why is it important?
: The third flow in the supply chain is financials, or more specifically, cash, which has traditionally been viewed as one-directional in the supply chain as payment for goods, services, and orders received.
54
Q: What is the impact of faster order cycle times on cash flow in the supply chain?
A: The impact of faster order cycle times on cash flow in the supply chain is faster cash flow, which reduces working capital and can result in "free" cash flow for companies.
55
What is the fourth and final flow in the supply chain, and why has it received increased attention from supply chain managers?
The fourth and final flow in the supply chain is demand flow, which has received increased attention from supply chain managers with demand-driven systems, as it reflects the growth in technology which provides organizations the ability to better synchronize supply and demand by detecting and understanding demand "signals" and making appropriate adjustments.
56
Why is the network system in a dynamic, global environment critical?
A: T
The network system in a dynamic, global environment is critical because companies and organizations need a system that is capable and flexible to respond and change with the dynamics of the marketplace.
57
What is one of the challenges associated with the network system in a dynamic, global environment?
One of the challenges is the rapid changes that can take place.
58
Why do companies and organizations need a network system that is flexible?
Companies and organizations need a network system that is flexible to respond and change with the dynamics of the marketplace, whether in the short run or the long run.
59
What are some examples of situations where flexibility may be required for a shorter duration?
: Examples of situations where flexibility may be required for a shorter duration include responding to port strikes, floods, hurricanes, political uprisings, terroristic attacks, and other disruptions.
60
Q: What is a critical strategy in today's global networks?
A: Mitigating the risk from disruptions is a critical strategy in today's global networks.
61
What are private sector companies placing increased emphasis on?
A: Private sector companies are placing increased emphasis on strategies to deal with the risk of disruptions, whether they be natural disasters or other disruptive forces.
62
Q: What is required for a high level of responsiveness in a network system?
A high level of responsiveness in a network system requires information systems to provide as much warning as possible and plans in place on how to respond.
63
What is the impact of globalization and consolidation in supply chains on organizations?
Globalization and consolidation in supply chains have caused increased complexity for organizations in terms of SKUs, customer and supplier locations, transportation requirements, trade regulations, taxes, and so forth.
64
What steps do companies need to take to simplify their supply chains?
Companies need to take steps to simplify, as much as possible, the various aspects of their supply chains. For example, they may rationalize SKUs to eliminate slow movers and items that do not contribute to profitability, analyze locations to eliminate high-cost or duplicative operations, and rationalize customer service levels and vendor or supplier alternatives.
65
Why is inventory deployment an important issue for supply chains?
A: Inventory deployment is an important issue for supply chains because of the associated cost and related opportunities for increased efficiency.
66
: What are some strategies that can have a positive impact on inventory levels in the supply chain?
A: Strategies such as compression and postponement can have a positive impact on inventory levels in the supply chain.
67
: Why is it important to manage inventory levels carefully?
It is important to manage inventory levels carefully to reduce working capital.
68
What is the role of information technology in the efficiency of inventory management?
A: Information technology is a key ingredient for the efficiency of inventory management, as discussed in the next section and subsequent chapters.
69
What is the impact of technology and communication systems on the collection and storage of data in organizations?
The technology and communication systems available to organizations today lead to the collection and storage of vast amounts of data. However, organizations may not be taking advantage of the abundant data to develop information systems to improve decision-making.
70
Why is the accumulation and storage of data useless without sharing it along the supply chain to make better decisions about inventory, customer service, transportation, etc.?
The accumulation and storage of data unless it is shared horizontally and vertically in the supply chain and used to make better decisions about inventory, customer service, transportation, etc., is almost useless. Information can be a powerful tool if it is timely, accurate, managed, and shared. It can be a substitute for inventory because it can reduce uncertainty.
Question: Why is it important to manage information along the supply chain
71
Question: Why is it important to manage information along the supply chain carefully?
Answer: It is important to manage information along the supply chain carefully to reduce uncertainty, which is one of the major causes of higher inventory levels leading to the accumulation of safety stock.
72
Question: What is the challenge in sharing information along the supply chain and ensuring the integrity of the collected data?
Answer: The challenge in sharing information along the supply chain is the discipline to ensure the integrity of the collected data, which is a big challenge but has much potential.
73
Question: What is the prevention of sub-optimization, and why is it a challenge for supply chains?
Answer: The prevention of sub-optimization refers to the balance between efficiency (cost) and effectiveness (value) in the supply chain. The challenge for supply chains is to prevent sub-optimization in the face of global competition, where the cost and value at the end of the supply chain are critical. Supply chain collaboration is important in this regard, as all members of the supply chain need to appreciate and understand the challenges and issues along the supply chain.
74
: What does supply chain management emphasize in terms of organizational relationships?
Supply chain management emphasizes a horizontal process orientation that cuts across traditional functional silos within organizations and necessitates collaboration with external vendors, customers, transportation companies, 3PLs, and other service providers in the supply chain.
75
Why is communication critical in supply chain management?
hat will make the supply chain more competitive. Looking at manufacturing cost in isolation could lead to higher overall system costs.
76
: What are performance measures or metrics in organizations used for?
A: Performance measures or metrics in organizations are used to analyze and evaluate efficiency and progress over different time periods and to set baseline performance objectives or expected outcomes.
77
Why is it important for lower-level metrics in an organization to connect directly to the high-level performance measures of the organization and the supply chain? Why is it important for lower-level metrics in an organization to connect directly to the high-level performance measures of the organization and the supply chain?
A: It is important for lower-level metrics in an organization to connect directly to the high-level performance measures of the organization and the supply chain, which are usually net profit, return on investment, or assets and cash flow, to ensure optimal performance for the overall organization or supply chain.
78
What does supply chain management emphasize in terms of organizational relationships?
Supply chain management emphasizes a horizontal process orientation that cuts across traditional functional silos within organizations and necessitates collaboration with external vendors, customers, transportation companies, 3PLs, and other service providers in the supply chain.
79
Why is internal collaboration or cooperation with different departments in an organization important?
: Internal collaboration or cooperation with marketing, sales, operations or manufacturing, and accounting or finance are very important in supply chain management.
80
Why is communication critical in supply chain management?
: Communication is critical to explain the opportunities for system tradeoffs that will make the supply chain more competitive.
81
Why do most organizations have measures of performance or metrics in place?
Most organizations have measures of performance or metrics in place to analyze and evaluate their efficiency and progress over different time periods.
82
Why is it important for lower-level metrics in an organization to connect directly to high-level performance measures?
Lower-level metrics in an organization must connect directly to the high-level performance measures of the organization and the supply chain, which are usually net profit, return on investment, or assets and cash flow.
83
Why might metrics set for a subunit of an organization be suboptimal for the overall organization or supply chain?
Metrics set that appear logical for the subunit of the organization, but are suboptimal for the overall organization or supply chain.
84
How can technology be viewed in supply chain management?
How can technology be viewed in supply chain management?
85
What is the challenge when implementing technology in supply chain management?
The challenge is to evaluate and successfully implement the technology to make the improvements desired.
86
What is the approach necessary when implementing technology in supply chain management?
The approach necessary is to analyze and then adjust or change processes, educate the people involved, and then select and implement the technology to facilitate the changes in the processes.
87
How can transportation be viewed in supply chain management?
A: Transportation can be viewed as the glue that helps the supply chain system function.
88
: What are the critical outcomes of the supply chain?
: The critical outcomes of the supply chain are “to deliver the right product at the right time, in the right quantity and quality, at the right cost, and to the right destination.”
89
What are some challenges and changes among transportation providers?
Some challenges and changes among transportation providers include shortages of drivers, fuel costs, and changes in driver hour regulations, which have led to what some individuals have called a transportation crisis or the “perfect storm.”
90
: What is expected of the supply chain in terms of product delivery?
A: Safe and reliable delivery of products to customers is expected of the supply chain.
91
Q: Why has globalization increased the risk of supply chain disruptions?
A: Globalization has increased the risk of supply chain disruptions.
92
Q: How do organizations prepare for potential supply chain disruptions?
A: Organizations prepare for potential disruption by conducting scenario analysis that can consider possible threats, assess probabilities, and plan for alternatives.
93
hat is the importance of having educated and talented managers in supply chains?
Answer: The criticality of having educated and talented managers involved in supply chains has attracted much more attention in many organizations, as supply chains have become more complex and comprehensive. The effort to attract, develop, and maintain the appropriate pool of talent from entry level to executive level is attracting much more attention. At one time, it was assumed that anyone with experience in another functional area of the organization could easily transition to a position in logistics and/or supply chain management. However, most organizations recognize that the complex and special challenge of twenty-first century supply chains require experience and expertise in this area. Consequently, active recruiting at universities with supply chain and logistics programs is taking place, and educational programs offered for logistics and supply chain managers are increasing in number and popularity.
94
Question: What impact have globalization and technology developments had on the global economy and supply chains? How important are these changes to the United States?
Answer: Globalization and technology developments have led to significant changes in the global economy, including increased competition, faster communication, and more complex supply chains. These changes are important to the United States because they have affected the country's trade relations, economic growth, and job market. In terms of supply chains, these changes have increased the need for efficient and effective supply chain management to keep up with the demands of a more interconnected world.
95
Question: How has retail consolidation affected supply chain management? What changes have occurred because of the power shift?
Answer: Retail consolidation has had a significant impact on supply chain management, as retailers have become more powerful in the supply chain and are able to demand more from suppliers. This has led to changes in inventory management, transportation, and overall supply chain strategy, as companies try to adapt to the new power dynamics.
96
Question: Why have consumers become more influential in the marketplace? How has this affected supply chains in the last 10 years? Will consumer influence continue, and what will be the impact on supply chains?
Answer: Consumers have become more influential in the marketplace due to factors such as increased access to information, greater awareness of social and environmental issues, and more choices in products and services. This has affected supply chains in the last 10 years by increasing the need for transparency, sustainability, and responsiveness to consumer demands. Consumer influence is likely to continue and will require companies to prioritize these factors in their supply chain strategies.
97
Question: What are the three phases of the evolution of the supply chain concept?
nswer: The three phases of the evolution of the supply chain concept are the physical distribution phase, the integration phase, and the strategic phase. The physical distribution phase focused on logistics and transportation, the integration phase emphasized coordination and collaboration, and the strategic phase involves using the supply chain as a competitive advantage and as a means to achieve business objectives.
98
Question: What are the three phases of the evolution of the supply chain concept?
nswer: The three phases of the evolution of the supply chain concept are the physical distribution phase, the integration phase, and the strategic phase. The physical distribution phase focused on logistics and transportation, the integration phase emphasized coordination and collaboration, and the strategic phase involves using the supply chain as a competitive advantage and as a means to achieve business objectives.
99
Question: Why should senior executives be concerned about supply chain management in their organizations? How can effective supply chain management improve the financial viability of their companies?
Answer: Senior executives should be concerned about supply chain management in their organizations because it can affect the financial viability of their companies through cost savings, increased efficiency, and improved customer satisfaction. Effective supply chain management can also provide a competitive advantage and help companies achieve their business objectives.
100
Question: What are the four flows in supply chains, and why are they important? How are they related to each other?
Answer: The four flows in supply chains are the product flow, information flow, financial flow, and risk flow. These flows are important because they represent the key aspects of supply chain management, including the physical movement of goods, the exchange of information, the flow of money, and the management of risks. These flows are interrelated and impact each other, with changes in one flow affecting the others.
101
Question: Has the importance of managing transportation in supply chains changed over time? What special challenges does transportation face in the future?
Answer: The importance of managing transportation in supply chains has increased over time, as transportation costs and efficiency have become critical factors in supply chain performance. Transportation faces special challenges in the future, such as the need to address sustainability and environmental concerns, the use of new technologies and modes of transportation, and the increasing complexity of supply chains.
102
Question: Why is collaboration important for successful supply chains? What types of collaboration are important, and what are some of the challenges and issues that need to be addressed?
Answer: Collaboration is important for successful supply chains because it promotes coordination, communication, and mutual benefit between partners in the supply chain. Types
103
Why is information so important in supply chains? What are the challenges to the successful development and implementation of effective information? What is the role of technology and information management?
nswer: Information is important in supply chains because it allows all parties involved to make informed decisions about production, inventory, transportation, and other aspects of the supply chain. Challenges to effective information include issues with data quality, data sharing, and data security. Technology plays a key role in managing and sharing information in supply chains, with tools such as enterprise resource planning (ERP) systems, radio frequency identification (RFID) tags, and electronic data interchange (EDI).
103
Why is information so important in supply chains? What are the challenges to the successful development and implementation of effective information? What is the role of technology and information management?
nswer: Information is important in supply chains because it allows all parties involved to make informed decisions about production, inventory, transportation, and other aspects of the supply chain. Challenges to effective information include issues with data quality, data sharing, and data security. Technology plays a key role in managing and sharing information in supply chains, with tools such as enterprise resource planning (ERP) systems, radio frequency identification (RFID) tags, and electronic data interchange (EDI).
104
Describe the major challenges and issues facing supply chains in the future.
Answer: The major challenges and issues facing supply chains in the future include:
Globalization and geopolitical risks
Cybersecurity threats
Sustainability and environmental concerns
Demographic shifts and changing labor markets
Disruptive technologies, such as blockchain and artificial intelligence
The need for increased agility and flexibility
The continued growth of e-commerce and changing consumer expectations.
