Term
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Definition
| The connected chain of all the business entities, both internal and external, that perform or support the logistics function. |
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Term
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Definition
| Mgmt system that coordinates and integrates all the activities performed by the supply chain members into a seamless process, from source to point of consumption, resulting in enhanced customer and economic value. |
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Term
| Benefits of Supply Chain Management |
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Definition
| Lower inventory, transportation, warehousing, and packaging costs; greater chain flexibility, inproved customer service, and higher revenues. |
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Term
| Supply Chain System Approach |
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Definition
| Key principle of SCM requiring multiple firms work together to perform tasks as a single, unified system, rather than separate isolated ones. |
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Term
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Definition
| When multiple firms in a supply chain coordinate their activities and processes so they are seemlessly linked to each other in an effort to satisfy the customer. |
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Definition
| Ability of two or more companies to develop social connections that serve to guide their interactions when working together. |
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Definition
| When each firm in a supply chain has clarity in terms of knowing which firm is the leaders and which are followers, and who is responsible for what. |
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Definition
| The performance assessment of the supply chain as a whole that also holds individual firms accountable for meeting its own goals. |
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Term
| Activity Based Costing (ABC) |
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Definition
| Accounting method used in measurement integration to assess the costs associated with each supply chain activity. |
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Term
| Technology and Planning Integration |
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Definition
| The creation and maintenance of information technology systems that connect managers across and through the firms in the supply chain. |
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Term
| Material and Service Supplier Integration |
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Definition
| Strategic alignment between a firm and their supply chain materials and services providers that enables the firm to streamline work processes and provide smooth, high quality customer experiences. |
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| Internal Operations Integration |
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Definition
| Links internal work into a seamless process across departments and functional boundaries in order to satisfy customer requirements. |
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Term
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Definition
| Standards set by measuring the best, quickest, and most efficient work practices. |
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Term
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Definition
| Competency that enables firms to offer long lasting, distinctive, value added offering to those customers who represent the greatest value to the firm or supply chain. |
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Term
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Definition
| Supply chain processes where customers are placed in groups of A, B, or C according to their overall long term value to the firm and to the extent to which the firm can serve their desires. |
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Term
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Definition
| Bundles of interconnected activities that stretch across firms in the supply chain. |
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Term
| Customer Relationship Management Process |
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Definition
| Prioritization of the firm's marketing focus on different customer groups according to each group's long term value to the company or supply chain; designed to identify and build relationships with good customers. |
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Term
| Customer Service Management Process |
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Definition
| A multi company, unified response system to the customer whenever complaints, concerns, questions or comments are voiced; designed to ensure that customer relationships remain strong. |
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Term
| Demand Management Process |
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Definition
| Alignment of supply and deman throughout the supply chain to anticipate customer requirements at each level & create demand related plans of action prior to actual customer purchasing behavior. |
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Term
| Order Fulfillment Process |
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Definition
| A supply chain management process that involves generating, filling, delivering, and providing on the spot service for customer orders. |
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Term
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Definition
| Amount of time between order placement, receipt of the customer's payment, and order shipment. |
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Term
| Third Party Logistics firm (3PL) |
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Definition
| A firm that is contracted to manager part or all of another firm's order fulfillment process. |
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Term
| Manufacturing Flow Management Process |
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Definition
| A process that ensures that firms in the supply chain have the resources they need. |
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Term
| Supplier Relationship Management Process |
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Definition
| A SCM process that supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers. |
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Term
| Product Development and Commercialization Process |
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Definition
| The group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms. |
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Term
| Returns Management Process |
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Definition
| A process that enables firms to manage volumes of returned product efficiently, while minimizing costs and maximizing the vlaue of the returned assets to the firms in the supply chain. |
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Term
| Lean Supply Chain Management |
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Definition
| SCM strategy that focuses primarily on the removal of waste from the SC to achieve the lowest total cost to the members of the supply chain system. |
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Term
| Agile Supply Chain Management |
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Definition
| SCM strategy that focuses primarily on the ability to fulfill customer demand, even if it means higher costs. |
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Term
| Leagile Supply Chain Strategy |
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Definition
| SCM strategy that combines the best elements of lean and agiels strategies for a particulr product/market combination. |
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Term
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Definition
| The delay in final production in the Leagile SCM strategy thta enables the company to take advantage of many of the benefits of lean SCM while still providing the agility that improves customer experiences. Exple: mostly manuf in Japan and final customization done at dealer at local dealership location. |
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Term
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Definition
| 1 of 3 dimensions of SC network design; the number of tiers int eh sc, representing the total number of levels through which goods must pass from the earliest to end stages of the chain. |
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Term
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Definition
| 1 of 3 dimensions of SC network design; where the number of suppliers or customers are included within each individual tier. |
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Term
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Definition
| 1 of 3 dimensions of SC network design; the position of a firm, relative to other firms, along the supply chain. firm can be near the beginning, end, or anywhere near the suppliers or cust in an individual tier. |
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Term
| Logistics Information System |
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Definition
| Link thta connects all of the logistics components of the supply chain. |
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Term
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Definition
| An entire group of individuals who orchestrate the movement of goods, services, and information from the source to the consumer. |
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Term
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Definition
| A system where orders are entered into the SC and filled. |
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Term
| Electronic Data Interchange (EDI) |
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Definition
| IT that replaces paper documents that usually accompany business transactions, such as purchase orders & invoices with electronic transmissions of the needed information to reduce inventory levels, improve cash flow, streamline operations, and increase the speed & accuracy of information transmission. |
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Term
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Definition
| A method of developing and maintaining an adequate assortment of materials/products to meet manufacturer's or customer's needs. |
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Term
| Materials Requirement Planning (MRP)(materials management) |
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Definition
| An inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer. |
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Term
| Distribution Resourc Planning (DRP) |
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Definition
| An inventory control system that managers the replenishment of goods from the supplier to the manufacturer. |
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Term
| Automatic Replenishment Program |
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Definition
| An inventory management system that triggers shipments only once a good is sold to the customer. Uses a real time inventory system via EDI so the supplier can view the inventory being held at the next level in the SC. |
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Term
| Materials-Handling System |
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Definition
| Method of moving inventory into, within, and out of the warehouse. |
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Term
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Definition
| Accounts for 5-10% of the price of goods. Five modes: railroad, motor carrier, pipelines, water transportation, and airways. Selection factors: cost, transit time, reliability, capability, accessibility, traceability. |
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Term
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Definition
| Standard measures that can be used repeatedly to assess performance on a SC related process. |
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Term
| Balanced Scorecard Approach |
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Definition
| A measurement system used to evaluate overall supply chain performance. |
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Term
| Radio Frequency Identification (RFID) |
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Definition
| Automatic identification method that uses radio signals that work with scanned bar codes to identify products where data is stored on the RFID tag attached to the product. |
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