SCM300 Exam 1

a firm whose business boundaries include one-time suppliers and/or customers

strategic partnerships

• 1. firms extracting raw materials from the ground (iron ore, wood, oil)
• 2. selling these to suppliers (lumber companies, raw food distributors)
• 3. turn raw materials into materials useable by manufacturers (sheet steel, aluminum, lumber)
• 4. component manufacturers make and sell intermediate components (electrical wire, fabrics)
• 5. final-products manufacturers (coca-cola, boeing) assemble finished goods and sell to wholesalers

returned product, warranty repairs, recycled product.

end-product manufacturer (boeing, general motors, coca-cola)

keeping the customer in mind

idea of coordinating or integrating a number of product-related activities among supply chain participants to improve operating efficiencies, quality, and customer service in order to gain a sustainable competitive advantage for all of the collaborating organizations.

firms with large system inventories, many suppliers, complex product assemblies, and large purchasing budgets.

supply chain safety stock, forecasting, and production problems. Caused by forecasts not being met.

radical rethinking and redesigning of business processes to reduce waste and increase performance.

used to ensure a continuous, uninterrupted supply of goods.

quick response (QR) service response logistics, or integrated logistics

encouraging or helping the firm's suppliers to perform.

determining the current capabilities of suppliers.

firms to selectively screen out poor-performing suppliers and build successful, trusting relationships with the remaining top-performing suppliers.

larger market for products, lower labor costs

fluctuating exchange rates, tariffs, taxes

use a number of suppliers, manufacturing, and storage facilities in various foreign locations

participants realize that supply chain management must become part of the firms' strategic planning processes, where objectives are based on the end-customers' needs.

increasing the breadth of the supply chain to include foreign manufacturing, and increasing the depth of the supply chain to include second- and third-tier suppliers and customers.

suppliers' suppliers and the customers' customers

value, productivity, growth

process of obtaining services, supplies, and equipment in conformance with corporate regulations

design, operation, and improvement of production systems that efficiently transform inputs into finished good and services, while maximizing productivity.

coordinated planning and execution of product distribution, transport, warehousing

• 1. research and planning
• 2. design
• 3. business models
• 4. managing the supply chain
• 5. selling the product
• 6. service, support, repairs, maintenance, returns

items for which demand is influenced by market conditions. Demand is not related to demand for other items in stock or produced.

items that are required as components or inputs to other products or services.

time elapsed between customer placing order and order being received by customer

typically refers to the order size

stock keeping unit. Unique identifying number used to track each unique product customers can purchase.

readily available on the shelf

protects against uncertainty: it is not intended to be used.

used to absorb uneven rates of demand or supply

inventory "on its way" to the customer

taking over the role of your supplier

taking over the role of companies closer to the customer

free flowing, stored loose (coal, grain, rice, oil)

general or packaged cargo, typically containerized.

characteristics of both bulk and breakbulk cargo (cars, logs, steel)

use of more than one mode of transport during a single shipment

seamless multimodal shipment - no need to unload container or repackage products

used to fill empty space inside boxes, tubes, etc (packing peanuts, styrofoam)

in contact with the end item (plastic bag, can, bottle, shrink wrap)

contains end item and primary packaging (box, case, drum)

contains several items which are in secondary packaging (crate, pallet, metal straps)

third party logistics company

travel agents for exports

help items clear foreign customs