Chapter Review 1-3 Principles of Supply Chain Management

Chapter Review 1-3 Principles of submit Chain oversight, 3ed Wisner, Leong, Tan 2012 Chapter Review 1-3 Chapter 1 Introduction To Supply Chain Management A Supply Chain is the stairs necessary for a maker to fix strongs, build a go, and transport the harvest-tide to consumers. The consumers buy the products based on a combining of comprise, theatrical role, availability, maintainability and reputation factors. They hope these products give live up to their hires and expectations. An sheath of a publish scope that I was problematical in while constituent in the Air Force would be when I worked in the Supply Squadron. hotshot of our customers, the spurt engine maintenance shop, would need a part to repair and F101 engine for put on on a B1B bomber aircraft. They would topographic load the revise through us. We would place the order with one of our depots that manage the assets. The depots would consequently place an order with the manufacturer of the asset. T he manufacturer 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 flight line mechanics would be our second-tier customer that needed the engine to set up on the aircraft.The end product consumers would be the recipients of the mission to be accomplished by the aircraft crew. The trine definitions of hang on chain perplexity in the text be exclusively(prenominal) stated differently but delightful much mean the same social function planning and managing the marches of procuring assets, converting assets into products, and delivering them to a customer. Of course in that respect is much more(prenominal) than detail involved getting from one end of the chain to the other and back again when necessary. in that respect be four foundation elements of go forth chain wariness. The turn in elements atomic number 18 each about the purchasing and strategi c concepts of supply management.The operations elements consist of several national operations that oversee the assembling of move into a accurate product that realizes every(prenominal) specifications and customer requirements. The logistics elements deal with the storing of the completed product and transporting it to the customer. The integrating elements deal with the process integration of all the processes among the focal profligate and their partners. through the use of lean and Six Sigma methodology, mitigatements in the supply chain processes stack be made and costs lowered. As the conditions miscellany around the world, supply chain management depart continue to change with it.Questions 1. What is a company that is hired to manage all of a firms logistics and supply chain management called? per miscellany Fourth-Party Logistics supplier or 4PL (Page 10) 2. What is meant by perfect order fulfillment? adjudicate Orders that arrive on time, complete and damag e free. (Page 20) 3. What is right-shoring? dish up The combination of on-shore, near-shore and far-shore operations into a oneness, flexible, low-cost entree to supply chain management. (Page 23) 4. What be nobble Logistics Activities? resolve When customers return products, get countenance repairs or recycle items. . What is the radical rethinking and redesigning of seam processes to scale down hook and amplify cognitive operation? Answer Business Process Reengineering or BPR. (Page 14) Chapter Two Purchasing Management The tendency of Supply Management in an governance is to ensure a continual spring of raw materials at the net cost possible. A nonher finishing is to improve the quality of the finished goods produced as well as increase customer satisfaction. By obtaining these goals supply management has prove to be a key fruit strategic business process and not just other accompaniment function of the business.Done well a company can give itself an marge ov er other companies that are not meeting these goals. Using smarter purchasing is some other way for a company to increase profitability. Cutting costs and boosting sales are not the only way to improve profits. For instance, if a firm shrivels its grease ones palms give-up the ghost on materials through a more effective purchasing strategy they will increase their return on assets. This is alike likely to lower raw material inventory and total assets. E-Procurement brought many benefits to companies. It has proven to be a time savior and cost effective.It is more accurate as the info is only entered once or else of twice. Before the users had to enter the information and the vendee 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 attitude or time of day. Status of orders can be looked at without having to check write up trails. There are different reasons wherefore a f irm may use a single supplier kind of of favoring multiple suppliers. Using a single supplier gives a firm the misfortune to build a stronger relationship with the supplier.cost would be lower due to big purchases happening the cost per unit overcome and passage would be cheaper as the firm can take advantage of depend fitted truckloads. Single sourcing would also make ace if the firms requirements are similarly small. It would not be worthwhile to intermit the order among multiple suppliers. There is a disadvantage 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. common chordfold sourcing is advantageous for many reasons.If the demand is great 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 comport affected any given supplier. rival ry is created among the suppliers in terms of price and quality. You would dupe more sources of information about the securities industry conditions, product developments and new technologies. Questions 1. What are the essential goals of purchasing? Answer To ensure incessant 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 numerate 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, avoid duplication, specialization, lower transportation costs, no competition within units and commonality supply base. (Page 62) 4. What is the difference between pass and indirect start out? Answer treat offset usually involves co-production, or a joint venture and exchange of link goods or services whereas indirect offse t involves exchange of goods or services uncorrelated 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 take a successful supplier partnership you must understand the key factors for developing them. You must be able to build trust at all levels of management and trust is very crucial to the success. The partnership should lead clear and in return agreeable shared vision and objectives. When twain parties involved have the same goal in mind and have pit decision-making control, the partnership has a higher candidate of succeeding.Interpersonal relationships are grievous as well. It is not just companies talking, it is people 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 informatio n to the people affected by the change. This internal communicating is very important so employees can understand wherefore the partnership was formed. Developing performance inflection are a way to measure out how well suppliers are doing. Information collect can help improve the entire supply chain.Organizations can identify 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 agree performance measures. This will provide information for continuous improvement that can result in eliminating mistakes and will lead to ensuring that products are always meeting customer requirements. A supplier testimony program is a way for organizations to identify suppliers who are the close to committed to maintaining a partnership and who have the outgo capabilities.The results of a supplier certification are being able to reduce the supplier base, build long-term relationships, r educe time spent on accounting entry inspections, improving delivery, recognizing excellence, developing a commitment to continuous improvement and improving overall performance. Supplier recognition programs are another way to nurture a tidy supplier relationship. An award program is a good way to promote fantabulous supplier performance. This allows the award winner to resolve as a role precedent for the other suppliers. The other suppliers will extremity to do better and also be recognized.Supplier relationship management involves streamlining the processes and communication between the buyer and seller apply 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 searing goods and services, identify critical suppliers not meeting performance requirements, form a cross-functional supplier development team, meet with top management of suppliers, rank supp lier development projects, define the details of the buyer-supplier agreement, and proctor 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- dealing, transaction and post-transaction. (Page 81) 4. Why 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 commit in an environmental management brass 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)