SCHM first exam study guide
Chapter !,
What is “operations”?
Production and delivery of goods and services
What is “management”?
Plan
Implement
Control
Essential business functions
Marketing
Finance
Operations
Important terminology
Tier, echelon
Customer versus consumer
Upstream versus downstream
Inbound versus outbound
Consumer demand versus derived demand All demand is derived from consumers
Demand originates from consumers (individual wants and needs)
It propagates as derived demand along the supply chain through retailers, wholesalers, manufacturers, raw materials suppliers.
If your customers can’t sell you can’t sell!
Why care about customers’ customers, etc?
2. Quality of distribution channel
Who has bought a product from Coca Cola?
The quality of a firm’s distribution channel can significantly impact its sales performance (revenue, profits, etc.)
Sales agreements, business relationships, competitors
Geographical coverage
3. Market orientation
Gathering, analyzing and disseminating customer information
Channel members provide important information about customers, markets, trends, changes, opportunities and challenges
4. Reverse logistics
Returns, repairs, unsold merchandize, etc.
Important for customer satisfaction, major concern for customers
Improve customer satisfaction, reduce unnecessary costs
5. Supply chain evolution
Supply chains are in constant evolution
New customers, markets, suppliers
Identify, evaluate, implement opportunities
Why their suppliers’ suppliers, etc?
1. Your suppliers’ costs are your costs
Suppliers pass on their costs to their customers
Customers MUST pay for their suppliers costs
Buyers and sellers collaborate to eliminate unnecessary costs
2. Quality of input materials
GIGO: Garbage in, garbage out!
Raw material quality is a major component of the quality of finished goods
A firm’s finished goods is another firm’s raw materials
Monitor quality of materials from your suppliers, their suppliers, etc.
What is “operations”?
Production and delivery of goods and services
What is “management”?
Plan
Implement
Control
Essential business functions
Marketing
Finance
Operations
Important terminology
Tier, echelon
Customer versus consumer
Upstream versus downstream
Inbound versus outbound
Consumer demand versus derived demand All demand is derived from consumers
Demand originates from consumers (individual wants and needs)
It propagates as derived demand along the supply chain through retailers, wholesalers, manufacturers, raw materials suppliers.
If your customers can’t sell you can’t sell!
Why care about customers’ customers, etc?
2. Quality of distribution channel
Who has bought a product from Coca Cola?
The quality of a firm’s distribution channel can significantly impact its sales performance (revenue, profits, etc.)
Sales agreements, business relationships, competitors
Geographical coverage
3. Market orientation
Gathering, analyzing and disseminating customer information
Channel members provide important information about customers, markets, trends, changes, opportunities and challenges
4. Reverse logistics
Returns, repairs, unsold merchandize, etc.
Important for customer satisfaction, major concern for customers
Improve customer satisfaction, reduce unnecessary costs
5. Supply chain evolution
Supply chains are in constant evolution
New customers, markets, suppliers
Identify, evaluate, implement opportunities
Why their suppliers’ suppliers, etc?
1. Your suppliers’ costs are your costs
Suppliers pass on their costs to their customers
Customers MUST pay for their suppliers costs
Buyers and sellers collaborate to eliminate unnecessary costs
2. Quality of input materials
GIGO: Garbage in, garbage out!
Raw material quality is a major component of the quality of finished goods
A firm’s finished goods is another firm’s raw materials
Monitor quality of materials from your suppliers, their suppliers, etc.