Session 2 Flashcards
(18 cards)
What are the main external drivers for supply chain transformation?
Customer preferences, emerging markets, disruptions, environmental concerns, sustainability, technology
External drivers refer to factors outside a company that influence its supply chain strategies.
What are the main internal drivers for supply chain transformation?
Asset utilization, productivity, safety, cost minimization, waste reduction
Internal drivers are factors within a company that impact its supply chain management.
How did companies like Ford and BMW adapt their global supply chains for growth?
Expanded to global locations, managed complexity, used outsourcing and collaboration with LSPs
LSPs refers to Logistics Service Providers.
What is Foreign Direct Investment (FDI)?
When a company invests in physical assets in another country to gain market access and advantages.
What are key factors in selecting a manufacturing site?
Labor costs, political stability, regulations, skills, taxation, logistics links, government support, market access
These factors can significantly impact operational efficiency and cost.
What is the Logistics Performance Index (LPI)?
A World Bank index ranking countries based on their logistics infrastructure and performance.
What are directional imbalances in supply chains?
When import/export volumes are uneven between two directions, affecting freight rates, service availability, and lead times.
What are common reasons for outsourcing manufacturing?
Cost reduction, talent access, risk sharing, logistics optimization, pre-empting competitors, FX risk spreading, CSR alignment.
What are frequent causes of outsourcing failure?
Lack of clear contracts, poor communication, unrealistic expectations, lack of cultural alignment, inadequate governance.
What are key outsourcing management tools?
SLAs, Contracts with clear KPIs, Supplier development, Continuous monitoring.
What’s the difference between outsourcing and offshoring?
Outsourcing: Process given to a third party; Offshoring: Moved abroad but still owned/controlled by the company.
What’s nearshoring, and why is it trending?
Relocating production closer to the home market for resilience and reduced lead time.
What are the time horizons of supply chain management activities?
Long-term: SC Design; Mid-term: SC Planning; Short-term: SC Execution.
Give an example of supply chain strategy variation.
Dell: Direct-to-customer model; Walmart: Bulk retail model.
What is CPFR in supply chain planning?
Collaborative Planning, Forecasting, and Replenishment—a model for partner alignment and data sharing.
What’s the difference between integration and collaboration in SCM?
Integration: Alignment of processes and systems; Collaboration: Long-term relationship development.
What does the SCOR Model stand for?
Plan – Source – Make – Deliver – Return.
Why is the SCOR model useful?
It standardizes SC activities and offers a framework for evaluating and improving performance.
