M1ACh3 Flashcards
How is customer service measured, and what are three basic attributes?
Customer service is measured by the delivery of a product to a customer at the time a customer specified.
- Availability: SC allows high levels of this while keeping inventory and facility costs to a minimum
- Operational performance: time needed to deliver a product
- Customer satisfaction
What are six of the reasons misalignment gaps occur?
- Change in market conditions (.com bubble)
- Change in business direction (Prius)
- A disruptive technology (Netflix online only)
- Anticipated change in market (Zara styles)
- Business combination or merger
- Product life cycle changes
What is the process for aligning organizational strategies?
Market external environment analysis
Organizational strategy (overall mission and core competency)
Future direction Competitive priorities
Functional Area Strategies Capabilities (current, needed, planned)
(Finance, marketing, SC)
+ Continuous improvement loop to adjust company priorities of cost, quality, time, and price
When cutting costs to yield net gains at the bottom line, what is one thing to be mindful of?
Not to cut costs that cause greater spend in another area. View change holistically.
What four things are streamlined organizations adept at?
- Identifying each partner and step in the supply chain
- Identifying bottlenecks/problems in the supply chain
- Identifying non-value added steps
- Identifying processes that are interdependent
What are the three V’s of a supply chain strategy?
Visibility - all parties can see and react more quickly (automation)
Velocity - maximize speed of all transactions within a supply chain community
Variability - number of defects, time, yields, etc. Traditional offset is safety stock, demand variability caused by bullwhip
What are six metrics you can use to monitor supply chain performance?
- Past performance
- Future desired performance
- Competitior’s performance
- Industry average performance
- World class or best in class performance
- Oliver Wright supply chain excellence checklist
What are general supply chain capabilities based on? They are also the five elements of a supply chain.
- Organizational design
- Processes
- Systems and technology
- Human resources
- Metrics
Name eight ways to reduce risk of misalignment or gaps in the supply chain.
- Pursue cost efficiency and velocity but not at the expense of flexibility (TL + FCL only)
- Multiple supply chains to each product
- Watch trends at final consumer level
- Watch trends in global markets
- Design products for maximum flexibility
- Evaluate complexity
- Limit product and service offerings
- Use influence to collaborate with partners vs. controlling them
What are four methods to maximize velocity in a supply chain?
- More rapid mode of transport (if beneficial)
- Reduce inventory idle time
- Eliminate activities that don’t add value
- Speed up demand and cash flow
What are five elements of planning and implementing a supply chain strategy?
- Improving market knowledge
- The Three V implementation (velocity, visibility, reduced variability)
- Streamlining operations
- Improving management of risk
- Increasing sustainability
What five values should you manage for the customer?
- Quality of product and service
- Affordability (manage resources to create right price point)
- Availability
- Service (easy to repair)
- Sustainability
The creation of an organizational structure to support the strategic business plans and goals of an enterprise. Given the mission and business strategy, the organization structure design provides the framework within which the business operational and management activities will be performed.
Organizational Design
1) A form of business ownership that is not organized as a separate legal entity, but entailing ownership by two or more persons.
2) A relationship built on trust, shared risk, and rewards aimed toward achieving a competitive advantage
Partnership
A measurement (usually a percentage) of the actual output to the standard output expected. Measures how well something is performing relative to existing standards.
Efficiency
