Study Guide Module 1

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Clear understanding of what a Supply Chain is, its objectives, and the elements

that it´s made up of (manufacturer, supplier, transportation, warehouses,


vendors/retailers, clients, etc.)
A supply chain is the network of individuals, companies, resources, activities, and
technologies used to make and sell a product or service. A supply chain starts with
the delivery of raw materials from a supplier to a manufacturer and ends with the
delivery of the finished product or service to the end consumer.
Manufacturer-This is the process of converting the raw materials into products
that are ready to sell
Supplier- is a person or a company who provides goods or services to another
person or entity
Transportation-The movement of products from one location to another
Warehouses- The process of storing goods in a safe and secure environment
before they are made ready for distribution
Vendors- a party in the supply chain that makes goods and services available to
companies or consumers
Clients- are individuals or organizations that purchase and use a product or
service…….and their values and opinions will affect the supplier decisions buyers
make.

What are the Supply Chain decision phases?


(1) supply chain design (Strategy) phase, (2) decision in supply chain management
(Planning) phase, and (3) operational level (Operation) phase.

Decision areas that we have to take into consideration when making Supply
Chain Decisions
The major decision areas in supply chain management are 1) location, 2)
production, 3) inventory, and 4) transportation (distribution).

Number, size and location of warehouses, plants, distribution centers are:


- Strategy, Planning, Operational, Functional
The level of security is:
- Strategy, Planning, Operational, Functional
Customer Service standards decisions are:
- Strategy, Planning, Operational, Functional

Define Push
The product is manufactured in advance. Therefore, this model is directly related
to demand forecasting.
Define Pull
Adapts production to effective demand, which means that the product is
produced only when a purchase is generated.

Define Macro processes within the Supply Chain


CRM – Customer Relationship management- the combination of practices,
strategies and technologies that companies use to manage and analyze customer
interactions and data throughout the customer lifecycle.
ISCM – Internal Supply Chain Management- the practice of coordinating the
various activities necessary to produce and deliver goods and services to a
business's customers.
SRM – Supplier Relationship Management: is a business initiative that many
companies undertake to build mutually beneficial relationships with suppliers.
Well-designed SRM programs help companies to increase collaboration by
identifying the right suppliers with whom to partner.

Define logistics and its objectives


The process of planning and executing the efficient transportation and storage of
goods from the point of origin to the point of consumption. The goal of logistics is
to meet customer requirements in a timely, cost-effective manner.

Flows (product and information)


information flow refers to a two-step process for creating a shared understanding
of product strategy. In the first step, the product leader gathers various
stakeholders to discuss the goals and plans for the product. The second step is for
these stakeholders to share this information with their teams.

The importance of clients


Your clients are your biggest asset. Without a strong customer base, a business
will fall apart. Although acquiring new customers is necessary for business
growth, maintaining good relationships with your current customers is just as
important.

The interdependent flow


The activities that are parts of a supply chain are interdependent with other
supply chains in that they share various common resources. The individual firms
involved need to match and adjust activities and resources in order to be efficient.

Inventories, facilities and transportation


Inventories- Tracking of inventory from manufacturers to warehouses and from
these facilities to a point of sale.

Facilities- Places where products are made, stored, consumed or sold. A facility
can be a factory, warehouse, store, harbor, airport…………..

Transportation- the movement of products from one location to another, which


begins at the start of the supply chain as materials make their way to the
warehouse and continues all the way to the end user with the customer's order
delivered

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