Chapter Review 1-3 Principles of Supply Chain Management

Chapter Review 1-3 Principles of Supply d crudestring anxiety, 3ed Wisner, Leong, Tan 2012 Chapter Review 1-3 Chapter peerless Introduction To Supply Chain Management A Supply Chain is the steps necessary for a manufacturer to procure materials, build a convergence, and transport the product to consumers. The consumers grease ones palms the products based on a crew of cost, quality, availability, maintainability and reputation factors. They hope these products result live up to their needs and expectations. An fount of a confer fibril that I was involved in piece of music serving in the Air Force would be when I worked in the Supply Squadron.One of our customers, the jet engine maintenance shop, would need a part to repair and F101 engine for intake on a B1B cuneus aircraft. They would place the ready through us. We would place the order with one of our depots that screw the assets. The depots would then place an order with the manufacturer of the asset. The manufactur er of the asset would be our second-tier supplier. The depots would be our first-tier supplier. The jet engine maintenance shop would be our first-tier customer, and the charge line mechanics would be our second-tier customer that needed the engine to interject on the aircraft.The peculiarity product consumers would be the recipients of the mission to be double-dyed(a) by the aircraft crew. The three definitions of supply strand arrangement in the schoolbook ar all stated differently but pretty a good volume mean the same thing planning and managing the processes of procuring assets, converting assets into products, and delivering them to a customer. Of course in that location is much much detail involved getting from one end of the stove to the other and back again when necessary. in that respect ar quartet foundation elements of supply chain management. The supply elements be all astir(predicate) the purchasing and strategic concepts of supply management.The op erations elements consist of several native operations that oversee the assembling of parts into a finished product that run acrosss all specifications and customer requirements. The logistics elements deal with the storing of the completed product and transporting it to the customer. The integration elements deal with the process integration of all the processes among the focal sign of the zodiac and their partners. Through the employment of lean and Six Sigma methodology, improvements in the supply chain processes undersurface be made and costs lowered. As the conditions change around the world, supply chain management will continue to change with it.Questions 1. What is a go with that is hired to manage all of a firms logistics and supply chain management called? dress Fourth-Party Logistics Provider or 4PL (Page 10) 2. What is meant by perfect order fulfillment? resultant role Orders that arrive on cartridge clip, complete and damage free. (Page 20) 3. What is right-sh oring? rejoinder The combination of on-shore, near-shore and far-shore operations into a single, negotiable, low-cost approach to supply chain management. (Page 23) 4. What are Reverse Logistics Activities? state When customers return products, get warranty repairs or recycle items. . What is the radical rethinking and redesigning of business processes to reduce waste and increase capital punishment? Answer Business Process Reengineering or BPR. (Page 14) Chapter Two Purchasing Management The goal of Supply Management in an organization is to ensure a continual flow of raw materials at the lowest cost possible. other goal is to improve the quality of the finished goods produced as well as increase customer satisfaction. By obtaining these goals supply management has proven to be a key strategic business process and non however another supporting function of the business.Done well a community can give itself an edge over other companies that are not meeting these goals. Using smarter purchasing is another way for a company to increase profitability. Cutting costs and boosting sales are not the completely way to improve profits. For instance, if a firm reduces its purchase spend on materials through a more effective purchasing strategy they will increase their return on assets. This is similarly likely to lower raw material inventory and supply assets. E-Procurement brought many benefits to companies. It has proven to be a time saver and cost effective.It is more accurate as the reading is only entered once instead of twice. Before the users had to enter the cultivation and the purchaser had to reenter the information creating another error point in the process. E-procurement is more flexible as it can be used without the restrictions of location or time of day. Status of orders can be looked at without having to check paper trails. There are different reasons why a firm may use a single supplier instead of favoring multiple suppliers. Using a sing le supplier gives a firm the chance to build a stronger relationship with the supplier.Costs would be lower due to larger purchases holding the cost per unit down and transportation would be cheaper as the firm can take advantage of full truckloads. Single sourcing would also pretend sense if the firms requirements are too small. It would not be worthwhile to split the order among multiple suppliers. There is a loss with sole sourcing as well. If the purchase was for a proprietary product or process and the supplier holds the patents to them, the firm has no choice but to buy from them. Multiple sourcing is advantageous for many reasons.If the demand is greater than the capacity of a single supplier, having more than one supplier would help to keep up with the demand. It gives firms options in case of interruptions that occupy moved(p) any given supplier. contestation is created among the suppliers in terms of price and quality. You would have more sources of information about the market conditions, product developments and new technologies. Questions 1. What are the primary goals of purchasing? Answer To ensure uninterrupted flow of raw materials at the lowest total cost, to improve quality of the finished product and to maximize customer satisfaction. (Page 40) 2.The controversy of suppliers that a firm uses to acquire materials, services, supplies and equipment is called what? Answer The supply base or supplier base. (Page 57) 3. What are the six advantages of centralization? Answer Concentrated volume, quash duplication, specialization, lower transportation costs, no competition within units and common supply base. (Page 62) 4. What is the difference between direct and indirect offset? Answer bespeak offset usually involves co-production, or a joint venture and vary of related goods or services whereas indirect offset involves exchange of goods or services unrelated to the initial purchase. Page 65) 5. What are the three basic types of bid bonds ? Answer Surety bonds, performance bonds and payment bonds. (Page 67) Chapter Three Creating and Managing provider Relationships To have a successful supplier league you must agnize the key factors for develop them. You must be able to build consider at all levels of management and trust is very crucial to the success. The partnership should have clear and mutually agreeable shared vision and objectives. When both(prenominal) parties involved have the same goal in mind and have equal decision-making control, the partnership has a higher chance of succeeding.Interpersonal relationships are important as well. It is not just companies talking, it is quite a little talking to people. It is people who make up the companies and are representing them. The companies must be able to manage the change that comes with a new partnership. Communicating information to the people affected by the change. This internal confabulation is very important so employees can understand why the partne rship was formed. Developing performance metrics are a way to evaluate how well suppliers are doing. Information collected can help improve the entire supply chain.Organizations can find out suppliers that have exceptional performance and recognize them as such. It can also show where improvements are needed. The data used is based on a set of mutually agreed performance measures. This will provide information for continuous improvement that can result in eliminating mistakes and will data track to ensuring that products are always meeting customer requirements. A supplier documentation program is a way for organizations to identify suppliers who are the most commit to maintaining a partnership and who have the best capabilities.The results of a supplier hallmark are being able to reduce the supplier base, build long relationships, reduce time spent on incoming inspections, improving delivery, recognizing excellence, developing a commitment to continuous improvement and impro ving overall performance. provider recognition programs are another way to nurture a salubrious supplier relationship. An award program is a good way to countenance excellent supplier performance. This allows the award winner to serve as a role model for the other suppliers. The other suppliers will want to do better and also be recognized.Supplier relationship management involves streamlining the processes and communication between the buyer and seller using software applications to manage the processes more efficiently and effectively. Questions 1. What are the seven steps in the approach to supplier development? Answer Identify critical goods and services, identify critical suppliers not meeting performance requirements, form a cross-functional supplier development team, meet with top management of suppliers, rank supplier development projects, define the expound of the buyer-supplier agreement, and monitor project status and modify strategies. (Pages 89-90) 2.What are the two types of SRM? Answer Transactional and analytic. (Page 94) 3. What are the three major cost categories? Answer Pre-transaction, transaction and post-transaction. (Page 81) 4. wherefore is a supplier evaluation and certification process important? Answer So organizations can identify their best and most reliable suppliers. (Page 82) 5. What are the benefits of investing in an environmental management system based on ISO4000 standards? Answer Reduced energy and other resource consumption, decreased environmental liability and risk, reduced waste and pollution and improved community goodwill. (Page 89)