Supply Chain Management
Module One: Getting Started Before we begin with the main points of the course, however, we first need to complete some activities to help focus and maximize our learning experience. In Module One, we’re going to cover topics such as basic housekeeping, parking lot, workshop objectives and action plans and evaluation. So, let’s get started.
The secret of getting ahead is getting started. Agatha Christie
Workshop Objectives
Improve performance
Levels of supply chain management
Tracking and monitoring methods
Module Two: Why Supply Chain Management?
So then, what exactly is supply chain management? It is the management of interconnected businesses involved in providing goods or services to consumers. Supply chain management involves the finances, logistics, and delivery of products or services and requires integrated behavior and cooperation among the chain’s firms to be successful.
A satisfied customer is the best business strategy of all. Michael LeBoeuf
Customer Satisfaction Is a consequence
Indicator of success
Delivering what is perceived by the customer
Improving Performance
System of activities Ensure goals are met Processes or procedures
Lowering Costs Making some tasks routine Practicing economies of scale Trimming or reducing budgets
Product Development Idea generation Market research Product pricing Technical and legal requirements
Case Study A small publishing company initially experiences steady growth and success After 10 years, the company decides to enter into the eBook business
They do not sufficiently market this new product
Twelve months after the changes, the company is not making a profit
Module Two: Review Questions 1. What way does the supply chain improve customer satisfaction? a) b) c) d)
Creating value Increasing production times Increasing costs Delaying shipping
2. What is customer satisfaction an indicator of? e) f) g) h)
Decentralized operations Expensive technology Speedy production Collaborative success
3. What is Performance Improvement? a) b) c) d)
Measuring and ensuring goals are met Financing opportunities Providing customers products Predicting outcomes
4. What kind of approach is performance improvement? e) f) g) h)
Operational Production Management Research
Module Two: Review Questions What is a cost control strategy from this module? 5.
a)Trimming or reducing quality b)Producing specialized products c)Practicing economies of scale d)Implementing the latest technology 6. What is the most important factor in lowering costs? e)Value f)Accessibility g)Reproducibility h)Flexibility
7. Which activity is involved in developing a product? a) b) c) d)
Beta testing Shipping Invoicing Purchasing
8. What is an example of a non-tangible product in a supply chain? e) f) g) h)
Raw materials Consulting services In-progress goods Finished goods
Module Two: Review Questions 9. What type of how-to books does the company publish? a) b) c) d)
Books on investing Books on cooking Books on home repairs Books on sewing
10. After how many years of business does the company decide to explore EBooks? e) f) g) h)
5 years 3 years 15 years 10 years
Module Two: Review Questions 1. What way does the supply chain improve customer satisfaction? a) b) c) d)
Creating value Increasing production times Increasing costs Delaying shipping
2. What is customer satisfaction an indicator of? e) f) g) h)
Decentralized operations Expensive technology Speedy production Collaborative success
3. What is Performance Improvement? a) Measuring and ensuring goals are met b) Financing opportunities c) Providing customers products d) Predicting outcomes 4. What kind of approach is performance improvement? e) f) g) h)
Operational Production Management Research
Module Two: Review Questions 5. What is a cost control strategy from this module? a) b) c) d)
Trimming or reducing quality Producing specialized products Practicing economies of scale Implementing the latest technology
6. What is the most important factor in lowering costs? e) f) g) h)
Value Accessibility Reproducibility Flexibility
7. Which activity is involved in developing a product? a) b) c) d)
Beta testing Shipping Invoicing Purchasing
8. What is an example of a non-tangible product in a supply chain? e) f) g) h)
Raw materials Consulting services In-progress goods Finished goods
Module Two: Review Questions 9. What type of how-to books does the company publish? a) b) c) d)
Books on investing Books on cooking Books on home repairs Books on sewing
10. After how many years of business does the company decide to explore EBooks? e) f) g) h)
5 years 3 years 15 years 10 years
Module Three: Key Terms (I) For an organization to operate at optimum efficiency, supply management and procurement need to be clearly defined activities. This module will cover key terms related to supply chains.
Property may be destroyed and money may lose its purchasing power; but, character, health, knowledge and good judgment will always be in demand under all conditions. Roger Babson
Procurement
Quality
Technology
Cost
Time
Continuity of the supply
Upstream and Downstream Goods, services, and finances Dynamics of a supply chain Suppliers and customers
Raw Material
Basic goods or resources Used to manufacture products Iron is used to make steel
Forecasting
Use of historical data Predict future trends Sharing of information
Carrying Cost
Holding inventory Handling charges Labor Insurance
Case Study Select one product from Outback Camping to analyze and get to market Raw materials, procurement activities and how to add value to the customer for your product
Forecast a hypothetical customer demand
Determine carrying costs (hypothetical using a 25% inventory value)
Module Three: Review Questions 1. A difference between purchasing and procurement is: a) b) c) d)
Storage Shipping Invoicing Delivery
2. What is value adding output of procurement? e) f) g) h)
Monitoring Tracking Storage Continuity of supplies
3. Upstream goods flow in which direction? a)From the customer to the intermediate firm b)From the intermediate firm to the producers c)From the producers to the intermediate firm d)From the distributor to the customer 4. Who is at the end of the supply chain? e)Suppliers f)Customers g)Manufacturers h)Distributors
Module Three: Review Questions 5. What are raw materials? a) b) c) d)
Finished goods Seasonal goods In process goods Basic goods
6. A commodity is used for? e) f) g) h)
Trading for other goods Making raw goods Controlling inventory Returning goods
7. Why is forecasting necessary? a) b) c) d)
To determine the cost of an item To pay an invoice To understand how to manage personnel To predict customer demand
8. What is a type of forecasting used in supply chains? e) f) g) h)
Quantitative Technical Weather Environmental
Module Three: Review Questions 9. What is the carrying cost? a) b) c) d)
Purchase costs Holding costs Selling price Retail price
10. What is used to calculate carrying costs? e) f) g) h)
Maximum inventory Inventory mode Average inventory Minimum inventory
11. What is one product that Outback Camping produces? a) b) c) d)
Sleeping bags Boots Clothing Flashlights
12. What is one product that Outback Camping produces? e) f) g) h)
Compasses Camping stoves Tents Backpacks
Module Three: Review Questions 1. A difference between purchasing and procurement is: a) b) c) d)
Storage Shipping Invoicing Delivery
2. What is value adding output of procurement? e) f) g) h)
Monitoring Tracking Storage Continuity of supplies
3. Upstream goods flow in which direction? a)From the customer to the intermediate firm b)From the intermediate firm to the producers c)From the producers to the intermediate firm d)From the distributor to the customer 4. Who is at the end of the supply chain? e)Suppliers f)Customers g)Manufacturers h)Distributors
Module Three: Review Questions 5. What are raw materials? a) b) c) d)
Finished goods Seasonal goods In process goods Basic goods
6. A commodity is used for? e) f) g) h)
Trading for other goods Making raw goods Controlling inventory Returning goods
7. Why is forecasting necessary? a) b) c) d)
To determine the cost of an item To pay an invoice To understand how to manage personnel To predict customer demand
8. What is a type of forecasting used in supply chains? e) f) g) h)
Quantitative Technical Weather Environmental
Module Three: Review Questions 9. What is the carrying cost? a) b) c) d)
Purchase costs Holding costs Selling price Retail price
10. What is used to calculate carrying costs? e) f) g) h)
Maximum inventory Inventory mode Average inventory Minimum inventory
11. What is one product that Outback Camping produces? a) b) c) d)
Sleeping bags Boots Clothing Flashlights
12. What is one product that Outback Camping produces? e) f) g) h)
Compasses Camping stoves Tents Backpacks