L5 Flashcards
define supply chain
supply chain management is a set of activities and techniques firms emply to efficiently anf effectively manage these flows of merchansie from the vendors to the retailers customers
importance of efficient supply chain management (SIH)
- strategic advantage
- improved product availability
- higher return on assets
importance of efficient supply chain management
explain strategic advantage
difficult for competitors to duplicate
importance of efficient supply chain management
explain improved product availability
- fewer stockouts ensires desired products are available
- tailored assortments customises product offerings to local market needs
- these benefits leads to greater sales, higher inventory , lower markdowns
effects of stockouts :
-short term : immediate lost of sales
-lonh term : potential loss of customer loyalty and future profits
importance of efficient supply chain management
explain higher return on assets
ESCM improves ROA because it increases sales and. net profit margins without increasing inventory
importance of efficient supply chain management
ways to improve ROA
- effective forecasting through AI and technology reduces overstovk
- retailers can lower transportation expenses. by coordinating deliveries
- sophisticated inventory management systems allow the retailer to carry little backup inventory to stay in stock
- lower inventory investment –> total assets lower , thus asset and inventory turnover are both higher
supply chain design issue (CWD)
- customer store pickup
- warehouse design must accomondate omni channels
- dropshipping or consumer direct fulfilment
Retail supply chain trends (AHRSLEA)
- AI and machine learning
- Hybrid retail - omni channel retailing
- Rise of socially responsoble supply chain ( sustainability)
- supply chain agility
- localised supplied
- end to end real time data analytics
- automation and robots
