SCM Cheatsheet - Supply Chain sequence of processes and...

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Supply Chain – sequence of processes and flows that take place within and between all stages involved, directly or indirectly, in fulfilling a customer request; Supplier > Manufacturer > Distributor > Retailer > Customer Objective – Maximise overall value created // SCV = Customer Value – SC Costs // SCP = Rev – SC Costs // Sources of Rev: The Customer // Sources of Cost: Flows of information, products, or funds between stages of SC // SCM is the management of flows and assets btw and among SC stages to max supply chain value, value may w/o price Decision Phases of SC – (1) SC strategy or design : how to structure the SC over next several years e.g. Network design, Facilities, Locations, Capacities, IS; (2) SC planning : decisions over the next qtr or yr e.g. Forecasts, Prod, Inv, Subcontracting; (3) SC operation : daily or weekly operational decisions e.g. Fulfillment of customer orders; Cycle View – Customer Order Cycle; Replenishment Cycle; Manufacturing Cycle; Procurement Cycle; Performed at the interfaces between two successive SC stages; useful when considering operational decisions Push/Pull View – Push (Procurement, Manu, Replenish): cost efficient; Pull (Customer): more flex/responsive Strategic Fit – consistency between customer priorities of competitive strategy and SC capabilities specified by the SC strategy; (1) Differentiation (2) Cost Leadership (3) Responsive ; [How to Achieve] (1) Understand the customer (demand) and SC (supply) uncertainty – Lot size, response time, service level, product variety, price, rate of innovation; Ss uncertainty; [Implied Uncertainty] Low : Predictable dd and Ss; Medium : Predictable Ss/dd and uncertain dd/ss or somewhat uncertain Ss + dd; High : highly uncertain Ss + dd // (2) Understanding the SC capabilities [SC Responsiveness] ability to respond to wide range of qty demanded, meet short LT, handle large variety of pdts, build highly innovative products, meet high svc lvl // Highly Eff, Somewhat Eff, Somewhat Resp, Highly Resp ; [SC Efficiency] cost of making and delivering product to customer, responsiveness results in costs that efficiency; [Cost-Responsiveness Efficient Frontier] Responsiveness vs Cost, Frontier – lowest possible cost for a given lvl of responsiveness: lowest cost based on existing technology of the best SC // (3) Achieving Strategic Fit [Responsiveness Spectrum] Highly efficient > somewhat efficient > somewhat responsive > highly responsive; ZOSF : [Responsiveness spectrum] vs [Implied uncertainty spectrum]; [Challenges] pdt variety and shrinking life cycles, Globalisation and uncertainty, Fragmentation of SC ownership,  ing tech and biz env, Env and sustainabil Key Financial Measures – ROE = Net Income / Avg Shareholder Equity // ROA = Earnings before Interest / Avg Tot. Assets // APT = COGS / Acct Payable // ART = Sales Rev / Acct Receivable // INVT = COGS / Inv // C2C = Weeks Receivable (1/ART) + Weeks of Inv (1/INVT) – Weeks Payable (1/APT) SC Drivers – [Logistical] Facilities, Inventory, Tptn; [Cross Functional] Information, Sourcing, Pricing SC Decision Making Framework – [Competitive Strategy]

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