Supply Topic 1 (Intro to Supply Chain Management)

Question 1

Who is involved in a supply chain

Answer 1

• all parties = stakeholders
• directly or indirectly
• fulfil customer request

Question 2

What functions are involved in supply chains?

Answer 2

• receiving and fulfilling a customer request (customer service)
• new product development,
• marketing,
• operations,
• distribution,
• finance,

Question 3

product flow

Answer 3

physical product in form of raw materials not only tangible, can be service

Question 4

info and data flow

Answer 4

customers need product info (ALWAYS 2 WAY)
Need to build infrastructures in order to generate and receive these information and make them work seamlessly = does generate costs

Question 5

reverse logistics

Answer 5

returns

Question 6

automotive supply chain

Answer 6

accurate supply chain network
* Each stakeholder on each level can have multiple parts
* Multiple participants under each of the stakeholders

Question 7

goal/objective of supply chain

Answer 7

structure the product, financial, and info flows in a way that meets customer needs in cost effective manner -> maximising net value generated

Question 8

how is supply chain success measured

Answer 8

measured by total supply chain surplus

Question 9

supply chain surplus

Answer 9

value of final product to customer - supply chain cost

Question 10

consumer surplus

Answer 10

value - revenue

Question 11

supply chain profitability

Answer 11

revenue - cost

Question 12

value

Answer 12

max willing to pay
* Depends on functionality and feature and service offered
Only customer says whether they received the value or not

Question 13

revenue

Answer 13

price paid
Customer = only source that provides positive cash flow

Question 14

costs

Answer 14

overall cost to supply chain
All info flows generate costs

Question 15

effective supply chain management

Answer 15

managing assets and flows to grow the total supply chain surplus
Increase value and decrease costs

Question 16

3 decision phases in supply chain

Answer 16

• Each decision should be made to raise supply chain surplus
• Results efficient/effective?
  1. Supply chain strategy or decision (structure chain over years)
  2. Supply chain planning (tactical decisions over next quarter/yr)
  3. Supply chain operation (Daily/weekly operational decisions)

Question 17

supply chain strategy or design

Answer 17

• configuration of supply chain
• allocation of resources
• what processes each stage will perform
• Decisions are LT & expensive to reverse - account for uncertainty

Question 18

Processes performed in supply chain strategy or design of the supply chain?

Answer 18

○ Outsourcing
○ Locations/capacities
○ Products storage
○ Transportation
○ Info systems

Question 19

supply chain planning

Answer 19

• Tactical decisions over the next quarter or year
• configuration determined in strategic phase is fixed and establishes constraints within which planning must be done
• planning: markets and locations, subcontracting/manufacturing, Inventory policies, Timing and size of marketing or price promotions

Question 20

4 things to consider when planning

Answer 20

• Demand uncertainty
• Competition
• Flexibility over time horizon
• Output is set of operating policies that govern ST operations

Question 21

supply chain operation

Answer 21

• Less uncertainty about demand in the short term
• Handle incoming customer orders as effectively as possible given constraints in previous 2 phases
• Allocate inventory or production to individual order
• Set order due dates
• Picklist in warehouses
• Allocating order shipping mode & shipment
• Set delivery schedules of trucks
• Place replenishment order

Question 22

supply chain operations reference digital standard

Answer 22

SCOR DS
1. Plan
2. Order
3. Source
4. Transform
5. Fulfil
Return

Question 23

supply chain challenges

Answer 23

1. Costs
2. Complexity
3. Continuity
4. Consequences

The big 8 supply chains are responsible for >50% of global emissions

Question 24

Costs

Answer 24

dominate challenge
value/performance, right price/product

Question 25

complexity

Answer 25

understanding the system
complex network
info flow

Question 26

continuity

Answer 26

given design
volatility
system breaks/congests

Question 27

consequences

Answer 27

especially carbon
reducing our footprint
carbon influence

Question 28

how to address supply chain challenges

Answer 28

1. responsiveness
2. reliability
3. resilience
4. relationships

Question 29

responsiveness

Answer 29

• shorter lead time, flexibility, customised solutions
• More demand driven - close to customer
• Rather than forecast driver - agility across the chain
• Mapping network, supply chain of future

Question 30

reliability

Answer 30

• Improvements can only be achieved through re-engineering processes that impact performance
  Quality control, sourcing

Question 31

resilience

Answer 31

• Resilient supply not lowest cost but most capable of coping with uncertainty and disruptions
• Sustainability, quality control, supply chain of future

Question 32

relationships

Answer 32

• Managing complex networks of companies, legally independent - reality interdependent
• Success = constant search for win-win solutions - trust/mutuality
• Negotiation, contract, mapping network