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Module One—Introduction to Supply Chain Management
SHORT-ANSWER QUESTIONS (2–4 sentences)
Define supply chain management in your own words
Supply chain management is the process of integrating finance, materials, and information among suppliers,
retailers, wholesalers, manufactures and consumers. It should combine these in the most efficient
manner. Reduction in inventory while maintaing product flow and reducing costs are marks of
efficiency in SCM
Explain the concept of value-enhancing benefits by giving THREE examples of benefits that may
be realized by a firm that successfully manages its supply chain
. Examples are
, with long time partners, knowing product cycles and sharing information leads to lower
RD costs as well as reduced costs due to shared knowledge.
due to synergy amongst chain members
horizontal buying networks
across multiple markets
allow for expanded business with multiple
joint venture partners of chain partners.
Explain the difference between logistics and supply chain management
. Logistics is seen as the
integration and maintanence of movement of goods in and out of an organization while Supply chain
management involves logistics as well integration of several supply chain partners sharing knowledge
and information to achieve optimal efficiency in all aspects from product creation to sale and returns.
List three concepts used by supply chain managers in an attempt to make a firm more flexible
and responsive to customers' changing needs:
Agile manufacturing-the ability to respond quickly to customer needs and market changes while still
controlling costs and quality.
JIT -just in time manufacturing
Mass customization-combines the flexibility and personalization of custom order with the low unit
costs associated with
ESSAY QUESTIONS (8–10 sentences)
Discuss the differences between supply chain partnerships of the past and those that have
In the past supply chain partnerships were straight forward one company to another
for various parts no integration now todays supply chains seek to integrate all the various companies
into one efficient chain. Each responsible to the entire chain not just themselves.
List the four elements of supply chain management and provide a short description of each of the four
elements. What types of failures might each of those elements create within the supply chain? Why
might those results be linked to errors in a particular element?
the requisition of goods required for the manufacturing of products, managing inputs. As well as
choosing, qualifying and managing suppliers . If costs are too high the chain fails to be efficient, poor
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supplier choice could lead to delays which affects the bottom line. Production slow downs can occur as
well as cost overruns.
combines demand planning, forecasting and production..this sets the schedule for the movement
of supplies and products from raw materials to consumer. When, where and how. Commits resources
to attain forecated sales and production goals. Poor operational execution leads to out of stocks, high
inventory, cost overruns, poor quality products and delays to name a few.
The logistics of getting products from warehouse to end users this includes packaging,
inventory and warehousing. Mistakes can lead to out of stocks, bad deliveries, damaged product, high
costs and inventory as well as high shrink.
The sharing of informtion, goals and processes amogst members of the upply chain. This
ensures all aspects work towards the most efficient outcome. Problems her can cause
miscommunication amonst chain members leading to production issues, too much or not enough
inventory, wrong delivery schedules, long wait times, bad forecast models for sales and production as
well as excessive costs leading to distrust amongst chain partners.
Starbucks sells coffee and other items and consumables through their tens of thousands of worldwide
outlets. Starbucks must satisfy its worldwide clientele with premium-quality beverages, foods, and
products that are representative of the Starbucks name and image.
What approach does Starbucks use to distribute their premier, beverages, foods and products that are
representative of the Starbucks name and image?
A complex and erratic supply chain led to massive cost hikes despite stagnant sales leading the
company to review and alter it's approach. Late deliveries were a major major factor in the cost
ovverrruns. Fourbasic functions were chosen for this change P
lan, source, make, and deliver
various areas were grouped into departments responsible for that function, cost drivers were
recognized and optimized/ With over 16000 stores and 80000 shipments weekly efficiency
and cost containment are key to success. Creating a single logistics system that could handle
its global market was the key. With coffee coming from Latin America, Asia and Africa the
coffee arrives via ocean container to be transported to one of six roasting centers. After
packaging they are sent to one of 5 regional distribution centers. 2 owned by the company
and 3 owned by a third party. 2 DC's are also in Europe and Asia, these are operated by the
third party firm as well. Stores are serviced by the DC's dependent on locale or by smaller
central DC's of which there are 33 in the U.S with several in Asia, Canada and Europe all but
one of these CDC's are operated by third party firms who provide warehousing for all
Starbucks products and supplies and provide dedicated transportation as well.
From bean to cup: How Starbucks transformed its supply chain. (n.d.). Retrieved December 2,
2015, from http://www.supplychainquarterly.com/topics/Procurement/scq201004starbucks/
The Flavors in Your Cup. (n.d.). Retrieved December 3, 2015, from
What Are the Four Elements of Supply Chain Management? (n.d.). Retrieved December 3,
2015, from http://smallbusiness.chron.com/four-elements-supply-chain-management-
Supply Chain Management. (n.d.). Retrieved December 5, 2015, from