Supply Chain Management Test Notes
*1) SCM Core Processes
Supply chain management (SCM) – Planning and control of all activities across the supply chain—a network of companies that buy, produce, move, store and transform materials into finished products and services for eventual consumption by the end-user (customer).
**Supply Chain Core Processes** Five Core processes
Plan – The strategic design (production process selection, location, staffing).
Source – Select suppliers (quantity, quality, cost, and delivery).
Make – Transformation process optimization (resources, throughput, and schedule).
Deliver – Logistics optimization (transportation, distribution, and customer service).
Return – Reverse logistics/closed-loop supply chains (3R’s – recycle, remanufacture, & retire)
*2) Competitive Strategies
Differentiation – business focuses on achieving superior performance in one of the dimensions listed in previous section. // it can try to be the service leader, the quality leader or the leader in other dimensions such as reliability or performance, but it is not possible to be all of these things.// Many companies believe in concentrating on only one central benefit. Increasing number of claims for a brand may result in disbelief in the marketplace. Positioning – is defining a point in the consumers’ mind about what you do and who you are. Positioning is a very important tool in determining competitive strategies. Every aspect of product, price, place, & promotion must support the chosen positioning strategy. Examples, Mercedes promotes great engineering, Crest toothpaste constantly promotes its anti-cavity protection. – If two or more companies position themselves as the best o the same benefit, then double benefit positioning may be necessary.
Supply Chain Strategy – Consists of developing a long-term plan for determining how to best utilize the resources of the organization to implement and support the firm’s long-term business or corporate strategy.
Should be consistent with
Supply chain management (SCM) – Planning and control of all activities across the supply chain—a network of companies that buy, produce, move, store and transform materials into finished products and services for eventual consumption by the end-user (customer).
**Supply Chain Core Processes** Five Core processes
Plan – The strategic design (production process selection, location, staffing).
Source – Select suppliers (quantity, quality, cost, and delivery).
Make – Transformation process optimization (resources, throughput, and schedule).
Deliver – Logistics optimization (transportation, distribution, and customer service).
Return – Reverse logistics/closed-loop supply chains (3R’s – recycle, remanufacture, & retire)
*2) Competitive Strategies
Differentiation – business focuses on achieving superior performance in one of the dimensions listed in previous section. // it can try to be the service leader, the quality leader or the leader in other dimensions such as reliability or performance, but it is not possible to be all of these things.// Many companies believe in concentrating on only one central benefit. Increasing number of claims for a brand may result in disbelief in the marketplace. Positioning – is defining a point in the consumers’ mind about what you do and who you are. Positioning is a very important tool in determining competitive strategies. Every aspect of product, price, place, & promotion must support the chosen positioning strategy. Examples, Mercedes promotes great engineering, Crest toothpaste constantly promotes its anti-cavity protection. – If two or more companies position themselves as the best o the same benefit, then double benefit positioning may be necessary.
Supply Chain Strategy – Consists of developing a long-term plan for determining how to best utilize the resources of the organization to implement and support the firm’s long-term business or corporate strategy.
Should be consistent with