Management SCM Procurement Operations
Logistics Reverse Logistics Global SCM
Upstream Downstream Flow Materials Money
Information ROI Profitability Productivity Value
Competitive Priorities Cost Quality Speed
Flexibility Core Competencies Business Models
B2B B2C Click & Mortar Vertical Integration
Supplier Management Supplier Evaluation
Strategic Partnerships Focal Firm 1st-tier 2nd-
tier JIT MRP Inventory Visibility Demand
Management Bullwhip Effect Waste Reduction
Supplier Certification Purchasing Orders Exam
Questions Verified and Provided with Complete
A+ Graded Rationales Latest Updated 2026
Supply chain management
extracting materials from the ground, selling them to raw material manufacturers, turn raw materials
into materials that are usable by component manufacturers, then final manufacturers make and sell
intermediate components, the final manufacturers assemble finished products and sell them to
wholesalers or distributors, resell them to retailers who sell to end customers
Thus, the series of companies that eventually make products and services available to consumers,
including all of the functions enabling the production, delivery, and recycling of materials, components,
end products, and services, is called a supply chain
Primary goals of SCM
sustainable long term profits and maximize ROI
Value
customer perspective-what do I get?/what is the price?
,Productivity
organizational perspective-outputs/inputs
Shigeo Shingo's-7 Types of Waste
1. Defects
2. Overproduction- production used to mask shortcomings
3. Transportation- no added value
4. Motion- movement of employees and machines
5. Waiting- wasted resources during waiting
6. Inventory (not providing a return)- excess inventory is not providing a return
7. Over processing- more work than required is done in creating a service/good
Competitive Priorities
cost, quality, speed/time, and flexibility
Business models
a mechanism by which a business intends to generate revenue and profits. Summary of how a company
plans to serve its customers at a strategic level
B2C
business to consumer- Amazon, Best Buy, Dillards
,B2B
business to business- DHL, Boeing, Consulting/marketing agencies
Both B2B and B2C
Apple, Dell, Ford, and Verizon
Brick and Mortar- land based commerce only
Internet retailer only- Amazon
Click and Mortar
both land based and internet (Best Buy, Barnes and Noble)
P&G Example
3 priorities= reliable service, agile, demand driven supply, and affordable differentiation
Vertically integrated firm
a firm whose business boundaries include one-time suppliers and/or customers
What is occurring at many of these firms today is an effort to par down the organization to focus more
on core capabilities while trying to create alliances or strategic partnerships with suppliers,
transportation and warehousing companies, distributors, and other customers who are good at what
they do. This team approach to making and distributing products and services to customers is becoming
the most effective and efficient way for businesses to stay successful -and is central to the practice of
SCM.
, Supplier Management
this means getting your firm's suppliers to do what you want, and there are a number of ways to do this.
This involves assessing your suppliers' current capabilities and then figuring out how to improve them
Supplier Evaluation
determining the capabilities of suppliers. This occurs both when potential suppliers are being evaluated
for a future purchase and when existing suppliers are periodically evaluated for performance purposes
Strategic partnerships
organizations creating alliances, one of the foundations of SCM
Reverse logistics activities
along the supply chain, intermediate and end customers may need to return products, obtain warranty
repairs, or may just throw products away or recycle them
Focal firm
end product manufacturer, Ex. Coca-Cola, Boeing, General Motors
1st tier suppliers/customers
- First tier supplier supplies a business directly. (EA Sports distributes Madden to Best Buy; EA is a 1st tier
supplier to Best Buy).
2nd tier suppliers/customers