Logistics & Supply Chain Management ( all inclusive)

FHNW BIT Logistic & supply chain management

FHNW BIT Logistic & supply chain management


C. M.
This flashcard set delves into the intricate world of logistics and supply chain management, tailored for university-level learners. It explores key concepts like sustainability, recycling management, and the strategic scope of waste management, emphasizing the importance of customer, supplier, and business relationships. The flashcards cover methods and instruments of sustainable supply chain management, including risk management techniques and the evaluation of product carbon footprints. Ideal for students and professionals aiming to optimize supply chains and reduce environmental impact, this set provides a comprehensive overview of the processes and networks that drive efficient production and service delivery.
Flashcards
461
Students
5
Language
English
Category
Micro-Economics
Level
University
Created / Updated
17.11.2020 / 03.04.2025

Flashcards

What is a Supply Chain

Supply Chain is a complex system of people, processes, and technologies engineered to deliver value to a customer

 

Supply Chain suggests that it covers all processes throughout the product lifecycle, including the physical, informational, financial and knowledge-based processes for moving products and services (from suppliers through to end users).

 

Includes all components that flow through the supply chain.

Goods and services, mainly to customers

Payments, mainly to suppliers

Data and information in both directions

What is the goal of Supply Chain?

The goal of every supply chain is to deliver the right product or service, to the right customer, at the right place, at the right time, to the right conditions for the lowest total cost

What is Supply Chain Management (SCM)

SCM represents an integrative functional area which is primarily responsible for the connection of the main business functions and processes within an organization, as well as those of other businesses that are involved in the supply chain, in oder to form a concept in the shape of a consisten and high-performing business model

 

In order to increase the efficiency of a supply chain, and thus added value, the entire flow of materials, services, information and financial resources must be monitored, measured and steered → Supply Chain Management

 

Give a few examples for digitalization within Supply Chain Management

  • 3D printing
    with 3D printing, production processes can be simplified and accelerated. It can also be used to produce personalized products for customer at lower cost. Complex shapes can be produced that could hardly be produced using conventional methods in the past.
    • Medical, printed titanium implants
    • Mechanical engineering, printed castings
  • Robotics automation
    in production, robots on the assembly line have already greatly replaced humans. Now robots are beginning to take on more complex tasks and also also making decistion. Be it finding the fasttest route or reacting to human expressions.
    • Warehousing
    • Care of elderly people
  • Industry 4.0
    the central aspect is the complete networking between the machines, the products manufactured or services offered and the environment and people
    • Completely flexible and networked manufacturing at FESTO
    • Fully-networked railway infrastucture belonging to SBB, BLS, RHB
  • Wokring and Fighting Machines
    UAVs exand the possibities. Drones can be used as meaqns of transport, bus also as decision support. UAVs are particularly suitable for transporting short distances and time-critical goods. But they also can help in decision making by collectiong data from the air.
    • Transport drones employed by the Swiss Post
    • Agricultural drones for soil analysis

 

What are the typical element of the supply chain?

Define Supply chain
from the supplier- & customer centric approach

Supplier-centric approach: Supply chain as a network of suppliers producing goods.

Customer-centric approach: a supply chain consists of all the levels required (direct or indirect) to fulfil a customer request.

Combining these approaches leads to more comprehensive approach: Systematic coordination between all required parties.

  • to balance supply and demand
  • to supply the market with products and services
  • Operational goal: lowest possible costs and highest possible speed
  • Ultimate goal: Satisfying customer needs

Define supply chain from the demand-side approach

Category management

Usually heavy on inventory

Demand chain focused on the marked demand towards suppliers, the supply chain is steered by demand pull from the customer. Translates a customer goal into instructions for the suppliers.
Decision-making process in four steps.


1. definition of the purpose of the demand chain

  1. Planning, e.g. in the form of a category plan
  2. Control of consumption and requirements (e.g. inventory management)
  3. Purchasing transactions, e.g. a call-off from a frame agreement

What is a frame agreement

You make a frame contract and put everything in it.
e.g. (Rahmenvertrag)
you order a machine and then call off or change something. You make a deal for packages instead so you pay not for the service or parts but for the packages send.

Define supply chain from the organization-related consideration.

Syloorganisations
Organization-related consideration of the supply chain: Supply chain as a series of organizational units both within a company as well as in other companies (intra- and interorganizational) that produce and deliver goods for and provide services to customers.

 

 

Define supply chain from the single-side and the multi-stage approach

How far into depth can I go?
how far into depth do I actually need to go?

 

Single-stage supply chain: Reflects only direct relationships between suppliers and customers.

 

Multi-stage supply chain: In extreme cases, it maps all stages, from raw materials through to the disposal or recycling of end-of-life products:

– complexity increases disproportionately with an increasing number of stages

– companies have neither the means nor the resources to monitor all stages.

– companies usually limit themselves to one or two levels

 

 

Define supply chain from the market-driven approach

Market decisions determine the nature of the supply chain. Within a supply chain with many supply chain partners, a large number of decisions are made:

– Decisions on investments, strategies for coordination and cooperation with partners, customer service, profit maximization strategies, etc.

– Many market decisions increase complexity and dynamics.

 – Market dynamics increase uncertainty about the impact of decisions (numerous variables have to be taken into account).

Define supply chain from the functional approach

Functional Supply Chain: Analysis according to the main activity of the operational functional areas

  •  Purchasing activities: raw materials, components, resources and services
  • Manufacturing activities: creation of products and services, repair and maintenance
  • Movement activities: transport of material and persons
  • Warehousing activities: raw materials, intermediates ("Work in Process", WIP), finished products
  • Sales activities: market-oriented activities such as marketing and distribution

 

Alternative now upcomming is process oriented approach. Cause if you loose a function this function is gone, if you loose a process you can fix it..

What are different supply chain approaches?

  • Supplier-centric
  • Customer-centric
  • Demand-side
  • Organization-related
  • Single-stage
  • Multi-stage
  • Market-driven
  • Functional-side

Centric supply chain

You have the product and the disposal in one

What are drivers of change for supply chain strategies in the digital age

Material, payment and information flows along the supply chain used to be considered linear and coupled. The use of networked digital technologies such as the Internet has sustainably changed this:

  • acceleration of information flows,
  • decoupling of information flows from material and payment flows,
  • development of traditional supply chains into networked, dynamic supply chains,
  • dynamic integration (or exclusion) of partners according to e.g. customer preferences, technological advantages or product life cycle

What are the interactions between supply chain strategy, supply chain processes and information technology?

Information technology enables integrated supply chain processes and new supply chain strategies.

It is always the question as a leader how much freedom you will give your team in the process. The golden line lies in the middle of Top-down and Bottom-up.

Top-down:

 1. Required processes are derived from the strategy and implemented.

2. Information systems are designed according to the requirements of the processes.

Bottom-up:

3. Networked information systems enable innovative integrated processes.

4. New integrated processes lead to innovative networked business models

 

 

 

What are dynamic supply chains

Dynamic supply chains are a network of organizations that:

–are linked together in both forward and backward directions

–create value within different processes and activities Dynamic supply chains or a network of organizations must place value creation in the center.

–Value creation must be seen both in internal and cross-company terms.

 –Values are ultimately reflected in the products and services delivered to customers.

What is value co-creation?

You have all the different stages and when one part falls out all of the other suffer. So they exchange services.
 

 

 

Compare the traditional value creation (goods-dominant) vs. Value Co-Creation (Service-Dominant)

Goods-Dominant Logic (GDL):

  • Value is generated in manufacturing.
  • Value is provided to customers in transactions (Value-in-Exchange).
  • Value is consumed by customers (Consumption).
  • Goal: Standardize Products, Services and Processes in order to reduce cost.
     
  •  

Service-Dominant Logic (SDL)

  • Providers generate value offers with products.
  •  Value is provided to customers in use (Value-in-Use).
  • Value is continuously generated by customers (Service).
  •  Goal: Establish processes to integrate the resources from providers and customers to create value.

 

 

Draw a GDL

Draw a SDL

What is a value network?

You always need to ask - What is the value proposition?
what is my value proposition?
Information technology is transforming the operational supply chain into a “value network”. A value network describes a business design that uses digital supply chain concepts to ensure both high customer satisfaction and maximum profitability.

  • Is oriented towards the competitive factors of time and flexibility.
  • The main goal is to be able to react quickly and flexibly to customer requirements.

Characteristics of a value network are:

  • Oriented to the customer,
  • Based upon cooperation and entirety (i.e. it’s holistic).
  • Nimble and scalable.
  • Possesses fast material, information and cash flows.
  • relies upon information technology (IT).

What does Information technology enable in the supply chains?

Enables virtual enterprises (virtual networks)

  • virtual value network: a series of market partners working together as a virtual unit
  • Real-time exchange of information, interaction and continuous optimization, complete transparency
  • temporary merger of core competencies of the participating companies
  • no legal or interlocking of the organizational structures

The winners in these virtual value networks will be those who have faster access to information and resources and at the same time can derive the appropriate competitive strategies and supply chain strategies from them.

Do you know a “vertically integrated company”? A company that is a “supply chain integrator”? One that can be viewed as a “virtual enterprise”?

. = companies that own the supply chain. Some cheese makers for example.

There are hardly any vertically integrated companies: most likely are service companies such as banks and insurance companies, education facilities such as the FHNW. Companies that do not have a large procurement, a directly deliver to the customer.

 

Supply chain integrator: typical are all companies with their own productions of goods

Nikey is a supply chain integrator. It creates temporary integrated supply chains to create a products and put it on the market.

 

Virtual enterprise, apple, Nikey(they are everywhere and no one knows where the products are produced.

What does vertically integrated mean?

It means when the whole supply chain is owned by the company. E.g.  Some small cheese/beer making factory. Producing and selling their own product

 

There are hardly any vertically integrated companies: most likely are service companies such as banks and insurance companies, education facilities such as the FHNW. Companies that do not have a large procurement, a directly deliver to the customer. Supply chain integrator: typical are all companies with their own productions of goods.

What is a virtual enterprise

Virtual enterprise, apple, Nikey(they are everywhere and no one knows where the products are produced.

 

A virtual enterprise is a temporary alliance of businesses that come together to share skills or core competencies and resources in order to better respond to business opportunities, and whose cooperation is supported by computer networks. It is a manifestation of distributed collaborative networks.

Which criteria, resp. key performance indicators, would you use to measure the results of the business processes, e.g. the market success of manufactured products and service offerings? How could measures to improve these indicators affect the enabling factors and the company's strategy?

  1. process effectiveness. measures the process performance to specified customer requirements
  2. process alignment measures the level of the matchup between customer demand, process outputs, and supplier inputs
  3. process reliability measures the capability of supply to meet demand requirements
  4. process cycle time measures the time required for inputs supply to outputs delivery
  5. product cost measures the total cost to produce and deliver an output, including inputs, processing, and resource costs
  6. process efficiency measures the input and resources consumed by the process versus established standards
  7. resource productivity measures the ratio of outputs produced by the process versus resources consumed by the process, including facility, equipment, people, and information technology
  8. supplier effectiveness measures supplier performance to the specified process requirements
  9. process compliance measures the extent to which a process adheres to third-party standards, such as maturity, ISO, industry, federal, or SOX
  10.  

What are important questions to ask and answer when finalize a supply chain strategy

In order to finalize the supply chain strategy one must first define the level of desired value generation. The aim is to answer questions like:

  • With which products and service offerings is the business entering the competition?
  • Does it offer a standardized product with a single model for all customers, or an individually customized serial product?
  • What quantity is envisaged (few, many)?
  • Does it offer only a single product, or, for example, also the performance of additional services such as the replenishment of the customer’s stock?
  • To what extent is the level vertical integration sufficient?

What are characteristics and categorizations of supply chains?

Derived from the described properties of the executed definitions, concepts and strategies: Three overriding categories can be described:

  • primarily by product or target group
  • primarily by business strategy or business requirement
  • primarily from a distribution, material flow, workflow and information flow perspective
     
  •  

Another thins is looking at categorization by product or target group. What is a product used for?

  • Product-centric supply chain. Focus on individual products.
    • Tend to satisfy physiological needs.
  • Customer-centric supply chain. Focus on special target groups
    • Tend to satisfy individual needs (esteem)
  • Direct, open competition. Focus on competitive offers and tenders, intensive trading
  • Trade of bulk goods. Focus on independent trade, control fluctation ranges of bulk goods
  • Lean supply chains and system integration. Focus on cost minimization and cooperation, avoidance of resource bottlenecks
  • Competing constellations of interlinked companies. Focus of market leaders to connect with the best market partners
  • Interlinked network supply between competitors

FHNW: product& target = give you a degree and target future leaders (target students young adults): business requirement: collaboration and partnerships to the benefit of the customer(students) flow = work flow

 

SBB: product

Google: prod = Target advertising information, offers good free services and collect information to sell and show targeted advertising. Business strat =  Virtual offerings.flow= Information flow

What is the difference between supply chain management and the business model? What do these topics have in common?
 

Business model describes what we are doing and
supply chain management describes how we are doing. Supply chain management is part of the business model.

Where do you currently see challenges regarding the aspects of "digital business" for SMEs in Switzerland?

Tradesmen's are not up to speed.

 

Many SMEs in Switzerland have only just arrived at e-organizations. Larger players determine how the digital business operated e.g. in retail coop an Migros : suppliers have to meet strict requirements.
in mobile business and advertising: Google, apple and Facebook

Compliance with data protection when exchanging data . Protection against hacker. Many standards for standard exchange d

 

What share of added value, in percent of sales, does the procurement of products and services (also called administrative expenses) have, according to the 2018 Annual Reports of the Coop Group, the UBS Group, the Schindler Group? How do you explain the size of the share?

Coop:

  • Under <value added calculation>
  • Must be calculated! Share "goods and other intermediate consumption CHF 22561 k" / "Net sales from goods and services CHF 29565k" + "other operating services CHF 1139"
  • 22561 / (29565 + 1139) = 0.7348 73.5%

UBS:

  • Under "consolidated Financial Statements / income Statement"
  • Must be calculated and is somewhat hidden / up for debate: share of "general and administrative expenses CHF 6797 k" /"Total income from operations CHF 30213 k"
  • 6797/30213=0.225 22.5%

Schindler:

  • "consolidated Income statement"
  • Summarization of "material expenditure 29.3%" and "other operating expenses 20.5%"
  • Total 49.8%

What are the goals of procurement management?

  • Security of supply
  • Cost reduction
  • Improve profitability
  • Reduce complexity
  • Improve product quality

 

There is a trade-off between supply security and cost efficiency!

What is the definition of procurement management?

Procurement management (also simply referred to as "purchasing") can be divided into strategic and operational areas, whereby the boundaries are fluid

  • The strategic area pursues an optimization of purchasing effectiveness. As a result, the activities of strategic procurement are primarily long-term.
  • The operational area is predominantly of an executional nature (processes) and primarily aimed at increasing purchasing efficiency.

 

 

Draw a process model of procurement management

What is strategic procurement? What specific parts of the general procurement are ment by that?

Strategic procurement is the

  • Long-term optimization of the supplier relationship
  • Ensure security of supply for the company
  • Balancing between cooperation and independence
  • Increase competitiveness throguh procurement efficiency

Strategic procurement has three parts:

  1. Demand specification
  2. Supplier selection
  3. contracting

What is the goal of operational procurement?

Operational procurement also called purchasing is ment to

  • Improve procurement efficiency
  • Reduce procurement costs by increasing the transparency of purchasing processes
  • Compare alternative suppliers

Operational procurement contains three parts:

  1. Order trigger
  2. Order monitoring
  3. Settlement and evaluation

What different kind of sourcing differentiators are there?

  1. Number of suppliers
  2. Object complexity
  3. Organizational form
  4. Manufacturing location
  5. Geography

Describe the different sourcing cocepts of number of suppliers

Number of Suppliers has 4 sourcing concepts.

  1. Single sourcing: voluntary concentration on one procurement source per procurement object
  2. Sole sourcing: involuntary restriction to one supplier per procurement object
  3. Dual sourcing: voluntary two-source procurement per procurement object
  4. Multiple sourcing: voluntary multiple source procurement per procurement object

Generic advantages and disadvantages:

  • Fewer suppliers: deeper cooperation possible/ useful (innovation), lower supplier management costs, but also higher dependency
  • More suppliers: lower dependency, higher costs of supplier management, but also higher potential to benefit from the different competencies

Study