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The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses.
It is predicted that social networks such as Facebook and Twitter will influence supply chains because of their impact on customer demand and the speed of information transfers.
Which of the following is not part of the Supply Chain network?
Arguably, globalization is the most frequently cited change factor by business leaders, and it has replaced the post-World War II Cold War as the dominant driving force in world economics. The concept of the global marketplace or global economy has taken on new meaning for all enterprises and for individual consumers during the last two decades.
Overall, globalization has led to a more competitively intense economic and geopolitical environment. Some individuals have implied that there is no “geography” in the current global environment, time and distance have been compressed.
What activity is described as the movement of goods into a warehouse, the placement of goods in a warehouse, and the movement of goods from storage to order picking areas and eventually to dock areas for transportation out of the warehouse?
The challenge is to manage the entire logistics system in such a way that order fulfillment meets and perhaps exceeds customer expectations. At the same time, the competitive marketplace demands efficiency.
Cost and service tradeoffs have to be considered when evaluating customer service levels and the associated total cost of logistics; but both goals--efficiency and effectiveness--are important to an organization in today's competitive environment.
While manufacturing and marketing are probably the two most important internal, functional interfaces for logistics in a product-oriented organization, there are other important interfaces. The finance area has become increasingly important during the last decade. The impact that logistics can have upon return on assets (ROA) or return on investment (ROI) is very significant. ROA is defined as follows:
ROA = Revenue − Expenses/Assets
A number of product-related factors affect the cost and importance of logistics. Among the more significant of these are dollar value, density, susceptibility to damage, and the need for special handling.
the location of fixed points in the logistics system with respect to demand and supply points. Spatial relationships are very important to transportation costs, since these costs tend to increase with distance.
Which is a major category of ocean shipping?
The second era of globalization (1800−2000) was driven by companies seeking goods and materials, labor, economies of scale, and markets. This era produced multinational companies with global reach and enormous economic market power. In the second phase of globalization, companies headquartered in developed countries like the United States, Western Europe, Japan, etc., had an advantage in terms of infrastructure, educational systems, capital markets, etc. It has been suggested that the world was, figuratively speaking, tilted in favor of the developed countries. The economic advantage was such that the citizenry of the less-developed countries tended to migrate to the more developed countries, especially the United States. The well-educated and skillful immigrants added to the advantages enjoyed by the developed countries.
China is now our second largest trading partner, supplanting Mexico, which historically has been number 2. The trade volume with China was 18.2 percent of the total of the top 10 for 2006, and it increased its trade volume by 20 percent between 2005 and 2006.
First, companies want to standardize to reduce complexity, but they recognize that global markets need some customization. Second, global competition reduces the product life cycle since products can be copied or reengineered quickly by competitors. Third, traditional organizational structures and related business models frequently change since companies get more involved in outsourcing manufacturing and some logistical activities such as transportation, warehousing, and order fulfillment. Fourth, globalization introduces more volatility. It is much more likely that supply chains will experience challenges with weather, terrorism, strikes, etc.
Companies are working more closely with
the traditional linkages between firms. For example, in Microsoft's supply chain, organizations that collaborate to ensure that the technology road map for Dell computers (in terms of memory, speed, etc.) will be aligned with Microsoft's software requirements have a vertical relationship with Microsoft. A vertical supplier-supplier alliance may involve multiple parties, such as trucking companies that must work with railroads and ocean freighters to ensure proper timing of deliveries for multimodal transshipments.
includes those business agreements between firms that have "parallel" or cooperating positions in the logistics process. To be precise, a horizontal relationship may be thought of as a service agreement between two or more independent logistics provider firms based on trust, cooperation, shared risk, and investments, and following mutually agreeable goals. Each firm is expected to contribute to the specific logistics services in which it specializes, and each exercises control of those tasks while striving to integrate its services with those of the other logistics providers.
While this form of relationship suggests a relatively low or nonexistent level of involvement between the parties, there are certain types of transactions for which this option is desirable. One-time or even multiple purchases of standard products and/or services, for example, may suggest that an "arm's length" relationship would be appropriate.
-Management philosophy and techniques
-Mutuality of commitment to relationship formation
-Symmetry on key factors such as relative size,
financial strength, and so on
when companies work together for mutual benefit. . Collaboration goes well beyond vague expressions of partnership and aligned interests. It means that companies leverage each other on an operational basis so that together they perform better than they did separately. It creates a synergistic business environment in which the sum is greater than the whole.
refers to a relationship that is buyer to buyer and/or seller to seller, and in some cases even between competitors. Essentially, this type of collaboration refers to business arrangements between firms that have parallel or cooperating positions in the logistics or supply chain process. Horizontal collaboration can help find and eliminate hidden costs in the supply chain that everyone pays for by allowing joint product design, sourcing, manufacturing, and logistics.
the dynamic combination of both vertical and horizontal collaboration. Only with full collaboration do dramatic efficiency gains begin to occur. With full collaboration, it is intended that benefits accrue to all members of the collaboration. The development of agreed-upon methods for sharing gains and losses is essential to the success of the collaboration.
an external supplier that performs all or part of a company's logistics functions. This definition is purposely broad and is intended to encompass suppliers of services such as transportation, warehousing, distribution, financial services, and so on. When multiple logistics activities are included, they are "integrated" or managed together, and they provide "solutions" to logistics/supply chain problems.
non-asset owners, independent, and deal with a wide range of suppliers and logistics services. Serve as the middleman as forwarder or brokers.
provide services such as freight payment and auditing; costaccounting and control; logistics management tools for monitoring, booking,tracking, tracing and managing inventory, and consulting and advisory services
Service-level commitments not realized
Time and effort spent on logistics not reduced
Cost reductions not realized
Cost "creep" once relationship starts
Unsatisfactory transition during implementation
Inability to form meaningful and trusting relat.
Lack of ongoing improvements and achievements in offerings
Lack of strategic managementconsultative/knowledge-based skill
Lack of global capabilities
Overall, it suggests a need to meet service-level and cost objectives and to avoid unnecessary increases in price to the customer once the relationship has commenced. Also, it appears that some 3PLs need to improve in the areas of strategic management, technology, and knowledge-based skills. These suggest expectations by the customers that currently are not being met. Finally, some users of 3PL services feel that the time and effort spent on logistics have not decreased, and that their control over the outsourced function may have lessened.
Define and discuss the term "4PL."
Another driving influence for supply chain reexamination has been the desire of organizations to change their supply chain focus from a ____ to an "investment" center.
Which of the following is NOT a supply chain decision area regarding ROA improvement?
Traditionally, the term measure was used to denote any quantitative output of an activity or process. Today, the term metric is being used more often in place of the term measure. A measure is easily defined with no calculations and with simple dimensions. Supply chain examples would include units of inventory and backorder dollars. A metric needs definition, involves a calculation, or is a combination of measurements, and is often a ratio. Supply chain examples would include inventory future days of supply, inventory turns, and sales dollars per stock-keeping unit.
2. Easy to understand
3. Drives behavior
4. Visible and readily available
6Encompass both outputs and inputs(cause and effect)
7. Focuses only on important data
9. Use economies of effort (generates enough benefit to
10. Facilitates trust
Discuss the metric classification scheme that has been developed by the Supply Chain Council and defined in the Supply Chain Operations and Reference (SCOR) model.
Reliability is the performance of the supply chain in delivering the correct product, to the correct place, at the correct time, in the correct condition and packaging, in the correct quantity, with the correct documentation, to the correct customer. Responsiveness is the speed at which the supply chain provides products to the customer. Flexibility is the agility of the supply chain in responding to marketplace changes to gain or maintain competitive advantage. Costs are the costs associated with operating the supply chain. Asset management is the effectiveness of an organization in managing assets to support demand satisfaction;
Profit = Revenue − (X%)(Sales) = Revenue(1 − X%)
Information must be real time, not just current.
Which of the below is not part of the 7 Rs?
Which of the following is NOT one of the drivers of supply chain excellence?
addresses virtually every function and task that occurs in the supply chain.
helps organizations plan, execute, and control supply chain activities in real time.
helps to optimize the delivery of goods and maintain visibility of inventory
all of these answers
-Internet based applications.
-all of these answers
What are the six drivers of supply chain excellence?
Information technology is the primary focus of this driver. Geographically dispersed supply chain partners and facilities are linked electronically via the Internet, extranets, and other means.
1:Org. willing to make data management a priority2:Strong business ownership of product data& aligned SCIS that enables access to timely, accurate data
Use SCM tools to solve problems before get too big
Who will lead our implementation effort?
How will technology support our business needs and processes?
What is the status of our existing data?
How well does our existing system integrate with suppliers and customers?
What external issues must our systems address?
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