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OPMA 317 > Consumer/Citizen > Flashcards

Consumer/Citizen Flashcards

1
Q

What is Supply Chain?

A

it is a network of facilities that procure raw materials transform them into intermediate goods and then final products and deliver products through a distribution system. Spans procurement –> internal transformation, and distribution.

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2
Q

Vertical Integration (make or buy)

A

vertical integration refers to the proportion of the supply chain that the company owns

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3
Q

Reasons to outsource

A

financially driven reasons
- improve assets
- generate cash
-reduce cost
Improvement driven reasons
- improve quality and productivity
- shortens cycle time
- improve risk management
-improve credibility and image
organizationally driven reasons
- improve effectiveness
-increase flexibility
-increase product and service value by improving response time

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4
Q

Procurement

A

procurement involves buying services or materials we elect to not develop internally

  • as a % of sales purchasing costs are substantial
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5
Q

Activities in procurement

A

supplier identification and selection
buying
negotiation
contracting
supply market research
supplier measurement and improvement
purchasing systems development

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6
Q

5 rights of purchasing

A

right quality
right time
right quantity
right price
right source

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7
Q

Selection of Vendor

A

Criteria weightings are incorporated to showcase the importance
Criteria
- company
- service
- products
- sustainability

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8
Q

Development process

A

improving supplier relations, operations and efficiency will improve performance

Options: free consulting to their vendors to help accomplish cost reductions, improve quality, fast and consistent delivery

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9
Q

Centralized purchasing

A

positive –> purchasing power
negative –> reduced flexibility/ speed

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10
Q

Stockless purchasing

A

the supplier delivers material directly to the production area rather than the stockroom

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11
Q

Blanket Purchase Orders (POs)

A

long term purchase commitment to a supplier for items that are delivered upon receipt of a shipping requisition

Pro for retailer: unit cost savings, lower holding cost, lower order cost less supply uncertainty

Pros for manufacturer: known demand (efficient production planning)

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12
Q

Vendor Managed Inventory (VMI)

A

Vendors manage the customer’s inventory of the products they supply (Ordering, stocking shelves, etc.)
- relatively common in a retail company
- can be employed for supplies

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13
Q

Customer benefit VMI and implementation challenges

A

Benefit
Less admin for customer (order cost)
less chance of stock out

Implementation
trusting vendor. staff layoffs

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14
Q

Vendor benefits and implementation challenges

A

Benefit
- knowledge of end customer demand patterns
- potentially more sales (less stockouts)

Challenges
- staffing, vehicles, remote technology

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15
Q

Time Utility (when)

A

provides goods to customers when wanted not when produced (storage, warehousing)

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16
Q

Place utility (where)

A

provide goods where they are needed not where they are produced (transportation)

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17
Q

Form utility (what(

A

physical/chemical change in goods and or packaging. e.g., assembly, manufacturing

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18
Q

Logistics Costs

A

Transportation cost
inventory cost
packaging
damages

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19
Q

Cross-docking

A

remove the intermediate step of storage by distributing them immediately after they are received

reduces: product handling, inventory, facility costs
requires: tight scheduling, extensive information technology

20
Q

Drop Shipping

A

retailer does not have item you want in stock, and then must order it from their supplier for you

Retailer can tell supplier to dropship directly to you

21
Q

Postponement

A

Intentionally delay supply chain activities to improve flexibility and reduce inventory costs. Can reduce 30% to 40% of the cost

22
Q

Postponement to place utility

A

avoid committing (e.g., positioning inventory down the supply chain) for as long as possible

23
Q

Form Utility

A

Manufacturing Plan –> Distribution centre –> Serviced out depending on demand

24
Q

Labeling Postponment

A

products are completed with the exception of labelling

25
Q

Packaging postponement

A

products are completed but stored in bulk without packaging
- reduces space in the warehouse
-provides flexibility for demand fluctuations of different packages sizes (battery, toilet paper)

26
Q

Third Party Logistics (3PL)

A

Outsourcing allows each partner to concentrate on what they do best and assign who has expertise in that aspect of the business

  • transportation, warehousing, distribution, order fulfilment
27
Q

1PL

A

Conducting all logistics internally

28
Q

2PL

A

Using a carrier to transport freight

29
Q

3PL

A

Outsourcing some logistical activities (transportation + freight services). A 3PL provider usually owns physical logistics assets such as trucks or warehouses

30
Q

4PL

A

Completely outsourcing a supply chain (design, build, and operation). A 4PL provider usually does not own physical logistics assets (Deloitte, Accenture)

31
Q

Functional Demand

A

usually less than 2 year life cycle, 5-20% contribution margin, low product variety, and 1-2% stockout

The primary purpose is to supply predictable demand efficiently at the lowest cost and focus on low cost and quality

32
Q

Innovative Unpredictable Demand

A

the primary purpose of the life cycle is 3-12 months and the contribution margin is 20-30% and with a high product variety and 10-40% average stockout rate

The primary purpose is to respond quickly to unpredictable demand, minimize stockouts, and markdowns and focus on speed, flexibility and quality

33
Q

Humanitarian Supply Chains

A

process and system involved in mobilizing people, resources skills, and knowledge to help vulnerable people affected by disaster

  • distribution is the hardest part
  • pre-positioning resources (Red Cross)
34
Q

Differences between Humanitarian Supply Chain and Commercial Supply Chain

A
  • cost not as critical as speed
  • high inventory levels
  • perishable items expire - replaced
  • many stakeholders to coordinate with
  • high visibility of performance
  • job satisfaction
35
Q

Reverse Supply Chain

A

refers to the series of activities required to retrieve a product from a customer and either dispose or reuse it
- used products (recycling) goods
- new products (returns)

XEROX (only 2% goes to landfill)

36
Q

Design for Manufacturing

A

-use standard materials and parts of known quality
-design to the process capability and set tolerances and specifications that won’t strain the current system
- minimize the number of distinct components

37
Q

Handling

A

during production/assembly
openings for lifting

38
Q

Shipping

A

maximizing areas so more can fit like ikea cups and milk jugs

39
Q

Eco-design

A

low impact materials -0> material use –> production techniques –> distribution system –> impact during use –> inital lifetime –> end of life system

40
Q

Modular Design Flexibility

A

the creation of products (goods and services) from some combination of basic, pre-existing subsystems

Benefit: design, inventory, and production efficiencies

Benefit: customization at a reasonable price

41
Q

Old economics design to target cost

A

cost + desired margin = selling price

42
Q

new economics designed to target cost

A

selling price - desired margin = target cost

43
Q

Concurrent engineering

A

the team approach to design, rather than a sequential, functional approach

44
Q

Radio Frequency Identification (RFID)

A

an inexpensive chip tag attached to items that stores information
RFID impacts on supply chain management
- improved inventory visibility and accuracy (customer service)
- ability to stock a wider variety of products ( low admin per item)

45
Q

3D Printing

A

additive manufacturing to build 3d products layer after layer
- children’s prosthetics and NASA printing tools
- economic influence by 2025 could be $230-550 billion

reduces lead time
reduces transportation cost carbon footprint

46
Q

Blockchain

A

not owned by any single company or government
provides all partners in a transaction with a secure, distributed, ledger that allows them to see the same information at the same time e
can significantly increase transparency from product origin, through the shipping process and customer delivery

potential supply chain benefits
- proof of sustainability
- lower administrative costs
- food safety recalls

OPMA 317 (3 decks)

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