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the planning and control of all activities across the supply chain; a network of companies thatt buy, produce, move, store, and transform materials into finished products for the end user (customer)
Supply Chain Management (SCM)
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Supply Chain Core Process
Plan, Source, Make, Deliver, Return
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Transformation Process optimization
Make
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Logistics Optimization
Deliver
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Reverse logistics/closed-loop supply chain
Return
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likelihood that something will occur
probability
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tells how much certain values differ from the mean
variance
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average number of a particular set of values
mean
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Customer value
Performance Attributes/ Cost
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provides vision, establishes future goals and keeps the organization moving in the right driection consistent with the company's mission
business/corporate strategy
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the degree of labor involved in the delivery of a service
degree of labor intensity
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criteria for comeptition
Cost, Quality, Dependability, Flexibility
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provides an organization with the ability to synchronize and automate the flows of material, processes, information and cash to the supply chain
Enterprise Resource Planning (ERP)
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expenses that a company incurs in making their product or providing their service and is captured bt the Cost of Good Sold
direct material spend
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miscellaneous (overhead) expenses a company incurs that are not associated with building the firm's core products ans is capture in the Sales, General, and Adminstravtive section
indirect material spend
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performing a function internally
vertical integration
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having an outside company perform a function
outsourcing
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whe a firm moves an operation (i.e. manufacturing, warehousing) to a foreign country
offshoring
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a firm that has outsourced most of their functions accross a supply chain network
virtual or hollow corporations
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methodology where a buying firm consolidates its requirements across the entire enterprise, in a particular commodity classification, or between realted classification groups, into a single purchasing request, so as to maximize their buying strength in the marketplace
demand aggregation
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when a buying firm determines the optimal number of suppliers in a particular supply network and who those suppliers will be
supplier rationalization
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demand aggregation plus supllier rationalization equals....
leveraged spend
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when purchasing personnel buy from outside of the supply contract, from suppliers who were not selected by the strategic sourcing analyst to supply the items. (non-contract spend)
maverick spend
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the failure of the supplier to adhere to the contract terms
spend leakage
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the competitive advantage that can be gained by getting a new product ot market first
first-mover advantage
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the need to get new products to the marketplace ahead of ones' competitors
time-based competition
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reduce the complexity of a new product and to eliminate potential production problem areas from the design
manufactuability
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eliminating or changing product features in the design that do not add value
value engineering
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the use of cross-functional, product development teams, at the very beginning of the design project
concurrent engineering
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where activities are shown on arrows
Activity-on-Arrow (AOA)
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activities are shown by nodes; arrows are used to show precedence only
Activity-on-Node
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