BUAD 331 Exam 1
Setting Customer Value Levels - ✔️✔️The key is to identify which customers fit into
which category and then design the supply chain to provide that value appropriately,
balancing the value required with the cost of providing it.
Tailored Customer Value Strategy - ✔️✔️Customer and/or product segments get
different levels of value.
How Does Supply Chain Impact Cost of Sales? - ✔️✔️source for lower cost materials,
reduce cycle time, reduce logistics costs, invest in new technologies, leverage
economies of scale, etc.
How Does Supply Chain Impact SG&A Costs? - ✔️✔️produce closer to the market,
pursue high-value promotions, incentivize customers to pay faster, package and ship
effectively, etc.
the supply chain value proposition framework for operational value includes... -
✔️✔️revenue generation, total cost management, asset utilization
How does SCM affect a company's balance sheet - ✔️✔️reduce fixed capital and
reduce working capital (current assets)
How does SCM affect a company's P&L statement? - ✔️✔️increase customer sales
(sales) and reduce total costs (COGS & total operating expense)
the supply chain levers on - ✔️✔️CF
how does SCM impact the ROA - ✔️✔️ROA goes up b/c NPM and TAT both increase
(NPM goes up more)
traditional strategic alignment - ✔️✔️The Goal: Total Value Optimization = Total Cost
of Ownership + Customer Value: The strategic foundation that focuses the organization
on creating optimal value for customers of choice and optimal profit for the firm. Source,
make, and deliver all work independently of each other
What is a supply chain - ✔️✔️Organizations and activities involved with the flow of
products from raw materials to the customer
components of a supply chain - ✔️✔️- Procurement
- Inbound logistics
, - Manufacturing/Service operations
- Order Fulfillment
- Outbound logistics
- Post sales support
What are the four ways organizations can create value? - ✔️✔️plan, source, make,
deliver
Supply chains support an organizational strategy by delivering on the promise of
exchange through bundles of _________, __________, and ___________ value -
✔️✔️form, time, and place
How can organizations gain competitive advantage through SCM? - ✔️✔️increasing
value advantage (tailored service, reliability, responsiveness) and increasing
productivity advantage (capacity utilization, asset turns, integration)
SCOR Model - ✔️✔️a framework that focuses on a basic supply chain of plan, source,
make, deliver, and return processes, repeated again and again along the supply chain
(includes suppliers' supplier, supplier, your company, customer, customer's customer)
customer categories of supply chain value - ✔️✔️efficiency, effective, customized
How does Supply Chain Impact Other Expense/Interest? - ✔️✔️By increasing the
working capital of the organization through the efficient management of inventory,
production, and customer accounts, the supply chain ensures that the firm does not
need to borrow money for everyday operations.
How does Supply Chain Impact Income Taxes? - ✔️✔️To minimize tax burdens,
companies pursue operational and financial strategies that keep their taxes as low as
possible (locate operations in low-tax areas, reinvest earnings in low tax areas)
importance of cash flow in the supply chain - ✔️✔️When a firm does not have enough
cash to meet its everyday needs, it must borrow money from lenders or raise money
from shareholders.
importance of cash for day-to-day operations - ✔️✔️Cash is needed to pay employees
and contractors for their work, invoices to vendors, taxes to government entities, interest
owed to lenders, and dividends to shareholders. Not having enough cash for daily
business purposes endangers the operational well-being of the firm.
importance of cash for precautionary balances - ✔️✔️Firms tend to keep extra cash on
hand in times of financial uncertainties. Think of this as the "piggy bank" effect, putting
money away for future needs. When there is economic uncertainty about the availability
of cash or the possibility that interest rates to borrow might be rising, firms tend to hold
on longer to the cash they do have.
Setting Customer Value Levels - ✔️✔️The key is to identify which customers fit into
which category and then design the supply chain to provide that value appropriately,
balancing the value required with the cost of providing it.
Tailored Customer Value Strategy - ✔️✔️Customer and/or product segments get
different levels of value.
How Does Supply Chain Impact Cost of Sales? - ✔️✔️source for lower cost materials,
reduce cycle time, reduce logistics costs, invest in new technologies, leverage
economies of scale, etc.
How Does Supply Chain Impact SG&A Costs? - ✔️✔️produce closer to the market,
pursue high-value promotions, incentivize customers to pay faster, package and ship
effectively, etc.
the supply chain value proposition framework for operational value includes... -
✔️✔️revenue generation, total cost management, asset utilization
How does SCM affect a company's balance sheet - ✔️✔️reduce fixed capital and
reduce working capital (current assets)
How does SCM affect a company's P&L statement? - ✔️✔️increase customer sales
(sales) and reduce total costs (COGS & total operating expense)
the supply chain levers on - ✔️✔️CF
how does SCM impact the ROA - ✔️✔️ROA goes up b/c NPM and TAT both increase
(NPM goes up more)
traditional strategic alignment - ✔️✔️The Goal: Total Value Optimization = Total Cost
of Ownership + Customer Value: The strategic foundation that focuses the organization
on creating optimal value for customers of choice and optimal profit for the firm. Source,
make, and deliver all work independently of each other
What is a supply chain - ✔️✔️Organizations and activities involved with the flow of
products from raw materials to the customer
components of a supply chain - ✔️✔️- Procurement
- Inbound logistics
, - Manufacturing/Service operations
- Order Fulfillment
- Outbound logistics
- Post sales support
What are the four ways organizations can create value? - ✔️✔️plan, source, make,
deliver
Supply chains support an organizational strategy by delivering on the promise of
exchange through bundles of _________, __________, and ___________ value -
✔️✔️form, time, and place
How can organizations gain competitive advantage through SCM? - ✔️✔️increasing
value advantage (tailored service, reliability, responsiveness) and increasing
productivity advantage (capacity utilization, asset turns, integration)
SCOR Model - ✔️✔️a framework that focuses on a basic supply chain of plan, source,
make, deliver, and return processes, repeated again and again along the supply chain
(includes suppliers' supplier, supplier, your company, customer, customer's customer)
customer categories of supply chain value - ✔️✔️efficiency, effective, customized
How does Supply Chain Impact Other Expense/Interest? - ✔️✔️By increasing the
working capital of the organization through the efficient management of inventory,
production, and customer accounts, the supply chain ensures that the firm does not
need to borrow money for everyday operations.
How does Supply Chain Impact Income Taxes? - ✔️✔️To minimize tax burdens,
companies pursue operational and financial strategies that keep their taxes as low as
possible (locate operations in low-tax areas, reinvest earnings in low tax areas)
importance of cash flow in the supply chain - ✔️✔️When a firm does not have enough
cash to meet its everyday needs, it must borrow money from lenders or raise money
from shareholders.
importance of cash for day-to-day operations - ✔️✔️Cash is needed to pay employees
and contractors for their work, invoices to vendors, taxes to government entities, interest
owed to lenders, and dividends to shareholders. Not having enough cash for daily
business purposes endangers the operational well-being of the firm.
importance of cash for precautionary balances - ✔️✔️Firms tend to keep extra cash on
hand in times of financial uncertainties. Think of this as the "piggy bank" effect, putting
money away for future needs. When there is economic uncertainty about the availability
of cash or the possibility that interest rates to borrow might be rising, firms tend to hold
on longer to the cash they do have.
