Final Exam Study FlashcardsFinal Exam Study FlashcardsOld Paradigm-Assumed problems of Scarcity, Limitied Technology, and Adversarial relationships-Resulted in uncertainty and inaccuracies in processes leading to poor service and high inventory-Focused on Strong Brands, Large advertising budgets, and agressive selling-Examples: Ford, Procter and GambleNew Paradigm-Sought to gain Competitive Advantage by providing better service and availability to picky customers-Resulted in the integration of demand and supply facing processes, internally through Logisitcs and externally through Supply Chain Management (SCM)-Focused on winning business through capabilities and competencies, managing core processes better than competition, and moving product faster through commoditization of products and industriesEX: WalMart, Toyota, McDonalds, DellLogistics Management, Supply chain management, value chain, and inbound and outbound logisticsWhat does Logistics deal with?Competitive AdvantageProduct Excellence X Process ExcellenceSupply Chain Managementdelivering maximum to the end-customer while simultaneously increasing quality, productivity, and Operational excellencecreate competitive advantage by differentiating from the competition through better service and do it at a lower costSupply Chain Management is used to?To increase you Value Advantage, Productivity advantage, or if capable bothWhat is your goal in gaining competitive advantage through supply chain management?commodity marketLow value and productivityService LeaderHigh customer value for a superior service but at a higher cost due to lower productivity advantageVerizon Offering many cell phones and better coverage but at a higher cost than competitorsWhat is an example of a service leader?Cost LeaderUtilizes capacity well and thus can offer products at a lower cost at the expense of customer serviceWal Mart with everyday low prices but near impossible to find an employee to help youWhat is an example of a cost leader?Cost and Service LeaderExcelling in both areas and delivering a Superior Customer ValuenullEvolution of supply chain managementThe Great DivideConflicting between Manufacturing and Market Integration.. ( bridging this gap makes businesses ultimately more successful)Manufacturing IntegrationFocuses on products, efficiency measured, economies of scale and scopeMarketing IntegrationFocuses on customer, satisfaction measured, and relevancecommunicationCompanies often have too much inventory because they can't coordinate the __________ across the SC to get the customers wants when they want them.Logistics ManagementProcess of strategically managing the procurement, movement and storage of materials, parts and finished inventory and related information flows through the organization and its marketing channels in such a way that current and future profitability are maximized through the cost-efficient fulfillment of ordersTo maximize profits through cutting costWhat is the goal of Logistics Management?Supply Chain ManagementGoal to deliver superior customer satisfaction at the least possible cost to the supply chainSCMmany players within the supply chain with one firm not expected to do everythingInbound Logisitcscoordination of puchases, inbound transactions, raw materials, component parts, WIP inventory, and production schedulingOutbound LogisticsDistribution function, outbound transactions, coordinate forecasting, finished goods inventory, customer servicePorter's Value Chain-Primary Activites-Support Activities-Actions, sources, and service are what creates the value that gives you competitive advantagePrimary ActivitiesInbound logistics, operations, outbound logistics, Marketing and sales, serviceSupport ActivitiesFirm Infrastructure, Human Resource Management, Technology Development, procurementResponsiveness, Reliability, Resilience, and RelationshipsWhat are the four R's that help you gain competitive advantage?Responsiveness_____________ to customer wants.ReliabilityDoing it the same every timeResilienceAbility to solve problemsRelationships___________ with customers.Responsiveness and Reliability_______ and ______ are affected by decisions you make in the supply chain.demandNeed to develop operations that can respond to customer ______ quickly.Order decoupling pointPoint that customer order penetrates in the supply chain processDell Supply Chain Planning Steps-Supply chain management coordinates info, materials, and logistics to support customer requirements-Supply constraints are continuously communicated to sales and managed at point of sale-Focus on continuity of supply and direct vendor relationships ensure material availability-aimed to create visibility in the SC to show where they need 2 spend time on relationshipsnullChapter 2..Logisitcs and Customer Valuecustomer valueLogistics affects _____ _______ through customer service and availibility of productprovide customers with products they want, when they want them, in right condition and placeWhat is SCM's role in marketing mix?Focuses on attracting new customers instead of keeping existing onesWhat is the problem with marketing?Logisitcs ; Supply Chain________ and _______ _______ are what keeps customers.Customer ValuePerception of benefits/ Total cost of OwnershiplostEverything is ______ if you do not have the product on the shelf when the customer comesCustomer Serviceprocess for providing significant value-added benefits to the supply chain in a cost-effective way. (or how you provide value)The customer experiencewhen you buy a product you buy what comes with it example package, servicePerfect Order Conceptgetting everything right in respect to the customer experienceCompany ZARAexample about not making anything till you know its popular and being responsive, flexible, built on relationships with customersShrinking service Windowcustomers demanding higher level of serviceTraditional Marketingfocuses on revenue at any costSCMfocuses on oriented organization is profit or lifetime value of customer to the organizationMarket Driven_________ _________ supply chains segment customers based upon service requirements and profitability to the firmRelationship between Revenue and Serviceproviding no or low service will cause you to have low revenue cause no one will buy your product, providing too high of a service will cause you to be unprofitable because you have too many service expenses3 levels of Customer Service-Basic service- achieve internal