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Definition
| the set of entities and relationships that cumulatively de- fine materials and information flows both downstream toward the customer and up- stream toward the very first supplier. |
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| the flow of materials from upstream nodes into Z |
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| The flow of materials from Z through downstream nodes toward the end customers |
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| a specific route from a producer (in this case, Z) forward through the various nodes (e.g., distributors and wholesalers) to the end customer and is therefore only part of the supply chain for Z. |
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Definition
| the design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer. |
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| decisions that are taken to affect the quantities demanded of one or more products that are served by a supply chain. |
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Definition
| The purchasing function sources inputs into the transformation process of the firm from other for-profit and nonprofit organizations. These inputs range from tangible products (e.g., raw materials, parts, and capital equipment) to services (e.g., employee travel, health care, and consulting). In sourcing inputs, the purchasing function has the responsibility for many tasks. |
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Definition
| the practice of procuring needed goods and services without being constrained to geographic regions |
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| the movement, storage, and disposal of goods that are returned by the cus- tomer. |
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Term
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Definition
| the percentage of orders delivered complete and on the date requested by the customer. |
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Definition
| the time it takes from when the order is taken to when it is delivered to the customer. |
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Definition
| the increasing variability in orders that are received by entities upstream in a supply chain, which in turn affects the amount of inventory that those entities hold. |
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Definition
| different departments managing different aspects of the supply chain |
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Term
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Definition
| when work that traditionally has been performed internally is delegated to another firm, whether that firm is in the same country or in another coun- try. |
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Definition
| when a firm moves work performed internally to another facility belonging to the same firm but in another country. |
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Term
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Definition
| Major product redesign is often another initiative needed to make improvements in the supply chain. Some companies have found that they have too many different product variations and types, some with extremely low sales. As a result, product lines are trimmed and redesigned to be more modular in nature. |
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Definition
| assign performance of inventory management, distribution, and logistics to firms |
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Term
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Definition
| an innovation in transportation. The basic idea is that a supplier’s shipments are taken from various docks at the warehouse when they arrive and transferred directly to a Walmart truck at another dock. The items do not spend time in the warehouse’s inventory; they simply are moved from one dock to another. This provides the benefit of full truckload shipments (i.e., economies of scale) while drastically reducing ware- house inventory. Cross-docking is being used wherever there is sufficient volume to make it possible. |
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Definition
| in forms such as e-procurement, order entry, and Internet auctions are facilitating interfirm exchanges of goods and services. |
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Definition
| allowing traditional brick-and-mortar firms to create an alternative distribution channel to offer merchandise and services for sale. |
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Term
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Definition
| orders taken by the producer to be shared seamlessly within a firm to schedule production of the order or replenishment of inventory. Such orders can also be transmitted seamlessly to control internal manufacturing of supporting parts and external procurement of materials as needed. These advanced planning technolo- gies even allow placement of procurement orders directly to suppliers, with sup- pliers having visibility of current as well as future planned orders. In this way the entire supply chain is linked electronically. |
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Term
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Definition
| It allows a company to interact electronically with its sup- pliers through B2B connections. |
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