sclm checklist

7/30/2019 SCLM checklist

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Please Note:

This is a checksheet of SCLM and does not consist of notes .It isuseful only to check whether you know the mentioned concepts.

Draw Diagrams wherever it is necessary .Refer the Book SCLM -Donald Bowersox.

Almost all concepts are explained with Diagrams

Drawings help to remember the concept as well as it helps toimpress the examiner.

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1. TWENTY FIRST CENTURY SUPPLY CHAINS

The Supply Chain Revolution

Generalized Supply Chain Model

Supply chain and networks Extended organization

Features of Integrative ManagementResponsivenessFinancial sophisticationGlobalizationDigital Business Transformation

Page 6

The Supply Chain Revolution

Two massive shifts which are highly interrelated 1.The Supply chainrevolution 2.Logistical Renaissance

The supply chain consists of firms collaborating to improve strategic

positioning and operational efficiency. Supply chain links trading partners and customers across organizational

boundaries.

In contrast to supply chain LOGISTICS is the work required to move andposition inventory throughout the supply chain.


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It is a subset of supply chain and occurs within the broader framework of asupply chain

Logistics process creates value by timing and positioning inventory

Logistics is the combination of a firms order processing inventory,transportation, warehousing, material handling and packaging as integratedthroughout the facility network.

INTEGRATED LOGISTICS links and serves overall supply chain as a continuoussupply chain process. It is essential for effective supply chain connectivity.

The purpose of logistics has remained the same but the way of performancehas changed radically

Supply chain decisions establish the operating framework within whichlogistics is performed

To overcome the challenges of commercial trading, firms developed businessrelationships with other product and service companies to jointly performessential activities.

Mangers started strategic planning core competancy, specilaization andeconomy of scale.

It was realized that working closely with other businesses was essential forcontinuous success.

Acknowledged dependence between business firms created the study nowknown everywhere as Distribution or Marketing Channel.

Wholesalers started giving better service and compensation to firms.

The firms realized the importance of leadership, cooperation and resolvingconflict.

Scholars developed typologies to classify single transaction and continuousbusiness relationships.

The firms started focusing on individual goals

The channel dynamics was more characterized by dog eat dog environment.

There was rapid advancement in computer and IT and digital businesstransformation.

The firms took great advantage of high connectivity potential of Internet.


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Generalized supply chain model ----Figure

It comprise of multifirm collaboration within a framework of key resourceflows and constraints.

Within this the strategy and structure forms by aligning with customers aswell as distribution and supply networks to gain competitive advantage.

Business operations are integrated from initial material purchase to deliveryand services to customers.

Value in this model results from five critical flows i.e. Information, product,service, financial and knowledge.

This generalized model links distributors and supply networks to customers.

The figure conveys the message that integrated value creation must be

aligned from material procurement to end customer. The reason being this model gained importance is many firms simultaneously

participate in multiple and competitive supply chains. So the supply chainitself becomes basic unit of competition. The firms then confront loyaltyissues such as confidentiality and conflict of interest

The reason being this model gained importance is many firms simultaneouslyparticipate in multiple and competitive supply chains. So the supply chainitself becomes basic unit of competition. The firms then confront loyaltyissues such as confidentiality and conflict of interest

Integrative Management

This results from practice of performing and measuring work on functionalbasis(each task ).

Accounting practices to measure departmental performance.

Individual performance

Cost per unit to produce

Cost per unit to hundredweight to transport.

These do not necessarily achieve the desired result of lowest cost or highlyeffective process.

On the other hand Integrated management


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Seeks to identify lowest total cost and captures tradeoffs between functions.

For example the firm might use faster, dependable premium transportationeven if its cost is high .Because its cost is much affordable than the costincurred in handling and maintaining an inventory.

The main focus of integrated management is lowest total process cost.

Integrative Management-Collaboration

Integrative Management comprise of

Collaboration

Enterprise Extension Integrated Service providers

The fundamental belief behind the Enterprise Extension is that the firmsintegrate process will maximize customer impact, reduce overall risk andgreatly improve efficiency.

Enterprise extension builds on two basics

Information sharing

Process specialization

Integrative Management -Enterprise Extension

The fundamental belief behind the Enterprise Extension is that the firmsintegrate process will maximize customer impact ,reduce overall risk andgreatly improve efficiency.

Enterprise extension builds on two basics

Information sharing

Process specialization

Jointly form strategies and share information

Plans promotion ,new product introduction and day to day operation and notonly current or historical sales data.


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Joint operation with goal to eliminate non value added ,non productivefunctions.

Uses specific firms competency along with responsibility and accountability

Integrative Management-Responsiveness

Instead of anticipatory business practice to the time based responsivebusiness model is more important .

This model seeks to reduce or eliminate forecast dependence by jointlyplanning and rapid exchange of information between partners.

Integrative Management-Responsiveness------ Figure

Responsive business Model----Figure

Integrative Management-Financial Sophistication

This can be achieved by faster, flexible and

more precise ways of serving with

competitive price.

Three ways

Cash to cash conversion

Dwell time minimization

Cash spin

Integrative Management-Globalization

Import and Export

Local presence in foreign nations

Through franchisee ,licensing , manufacturing and distribution

Full fledge conduct of business operations

This is most advance phase , referred to as Globalization

Important factors

Distance


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Diversity

Documentation

Demand

Terrorism Security

Complex and costly

The cost of logistics is estimated to exceed 6 Trillion dollars.

Still it is beneficial because of Market potential expansion and operatingefficiencies.

The risk can be controlled and minimized through Integrative Management.

Integrative Management-Digital Business Transformation

IT is use of Information technology to reinvent and position businessoperations, processes and relationships and facilitate supply chaincollaboration to achieve unprecedented level of excellence.

DBT seeks to meet challenges and identify opportunities of responsiveness,financial sophistication and globalization

Expands Internet capabilities from one to one, one to many and many tomany through web based solutions.

The participating firms have same strategic as well as operationalinformation.

Synchronized distribution of information across supply chain.

Transition from Industrial age to Information age


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2. LOGISTICS: The Logistics Of Business - The Logistical Value Proposition-TheWork Of Logistics-Logistical Operating Arrangements - FlexibleStructure Supply Chain Synchronization.

The logistics of Business

Logistical operations of global commerce has become large and complex

Logistics adds value to the supply chain by strategically positioning goods toachieve sales. But creating this value is costly

But it is important to achieve competitive edge through logistical competency

Companies provide in advance the problems those may occur thus eliminate

customers future loss By following the above logistically sophisticated forms achieve availability of

inventory, speed and consistency, operational efficiency

It is meant by service and cost minimization

In todays environment economics and not technology is a limiting factor

Logistical value proposition consists of;

1. Service benefits

2. Avalilability

3. Operational performance;

Flexibility, Recovery time, malfunction


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4. Service reliability

5. Quality

Cost minimization: The logistics value proposition

US Logistics cost----

The work of logistics

1. Order processing

2. Invenory management

Pareto pricipleCore customer segmentation

Product profitability

Transportation Integration

Time based performance

Competitive performance

3. Transportation

4. Warehousing Material handling and Packaging

5. Facility network design

Logistical operations

pg.31

1.Inventory Flow

2.Customer accommodation

3.Manufacturing support

4.Procusrement

5.Information flow


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Logistical operating arrangements ----page 32,34,35,

1. Echelon Structure

2. Direct Structure

3. Combined Structure

Supply chain synchronization-page 40

Performance cycle structure

Performance cycle uncertainty-page 41


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The Perfect order and Basic service platforms

Customer satisfaction Expectancy disconfirmation

Customer Expectation

Customer satisfaction

Expectancy disconfirmation

Customer Expectation

Customer satisfaction and quality model

Gaps

1.Knowledge

2.Standards

3.Performance

4.Communication

5.Perception

6.Satisfaction/Quality

Increasing customer expectations

Limitations of customer satisfaction

Page 59

Customer success

Page 60

Achieving customer success

Page 61,63


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4. PROCUREMENT AND MANUFACTURING: The Quality Imperative-Procurement Manufacturing-Logistical Interfaces.

The quality Imperative

Dimensions of Quality

Performance

Reliability

Durability

Conformance

Aesthetics

Serviceability

Perceived quality

Total Quality Management

Quality Standards: ISO

Procurement

Procurement perspectives

Continuous supply

Minimize Inventory investment

Quality improvement

Supplier development

Lowest total cost of ownership

Procurement strategies

page 85

Volume consolidation

Supplier operational integration

Value management

Page 87


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Purchase requirement segmentation

E commerce and procurement

Manufacturing

Manufacturing perspectives

Brand Power

Volume

Variety

Constraints;-Capacity,equipment,setup

ScalabilityLeadtime; Operational and inoperational

Manufacturing strategies

Matching manufacturing strategies to market requirements

Alternative manufacturing strategies

Make to plan MTP

Make to Order MTO

Assemble to order

Make to stock MTS

Total cost of manufacturing

page 94

Logistical interfaces

JIT

Requirement Planning

Design for logistics

page--96

5. INFORMATION TECHNOLOGY FRAMEWORK: Information SystemFunctionality-Comprehensive Information System Integration-


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Communication Technology-Rationale For ERP Implementation-ERPSystem Design-Supply Chain Information System Design.

Information System functionality

Supply chain information system

Transaction system

Management control

Decision analysis

Strategic planning

Information functionality page 100,101

Comprehensive information system integration

ERP or legacy systems

Page 102

Communication system

Executive system

Planning system

Communication technology

Bar coding

Page 104

Global data synchronization

EDI Transaction sets

Fig--page106

Electronic product code

Radio frequency exchange

Internet


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Warehouse operations

Transportation and shipping

Procurement

Supply chain information system design Page 118

Planning / coordination

Sales and operations plan

Capacity constraints

Logistics requirements

DRP Manufacturing requirements

Procurement requirement

Inventory Deployment and Management

Operations system functionality

Page 123

6. INVENTORY: Inventory Functionality and Definitions-Inventory CarryingCost-Planning Inventory-Managing Uncertainty-Inventory ManagementPolicies-Inventory Management Practices.

Inventory functionality and definitions

1.Geographical specilization


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2.Decoupling

3.Balancing

4.Balancing Supply and Demand

5.Buffering Uncertainity

Inventory Definitions

1.Inventory ploicy

2.Service level

Case fill rate

Order fillLine fill

3.Average inventory

Order quantity

Safety stock

Inventory carrying cost

Inventory carrying cost

Capital

Taxes

Insurance

Obsolescence

Storage

Planning inventory

When to order

How much to order

Volume transportation rates


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Quantity discounts

Other EOQ adjustments

Managing uncertainty Demand uncertainty

Page 142

Page143

Performance cycle uncertainty

Safety stock with combined uncertainty

Page147 Estimating fill rate

Dependent demand replenishment

Inventory Management policies

Inventory control

Perpetual review

Reactive methods of Inventory control

Page155

Planning methods

Fair share allocation

Requirement planning

Collaborative Inventory Replenishment

Quick response

Vendor managed Inventory


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Profile Replenishment

Page161

Inventory Management practices Product market Classification

Page 162

Segment strategy definition

Page163

Policies and parameters

7. TRANSPORTATION: Transport Functionality, Principles and Participants-Transportation Service - Transportation Economic and Pricing- TransportAdministration Documentation.

Transport Functionality

Product movement

Product storage

Transport principles

Economy of scale


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Economy of distance

Transport participants

Shipper and consignee

Carrier agents

Government , Internet and Public

Page 169

Transportation structure

Page177

Types

Rail

Truck

Water

Pipeline

Air

Parameters

Modal capability

Availability

Dependability

Capability

Transportation service

Traditional carriers

Package service-minimum charge

Page 185


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Air package service

Piggyback/TOFC/COFC

Container ships

Short sea shipping

Land bridge

Coordinated Air truck

Non Operating Intermediaries

Freight forwarders

Shipper association

Cooperative and agentsBrokers

Transportation economics and pricing

Economic drivers

Distance

Weight

Density

Stowability

Handling

Liability

Market

Page 192

Costing

Variable

Fixed

Joint

Common


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8. WAREHOUSING: Strategic Warehousing-Warehousing Operations-Warehousing Ownership Arrangements- Warehouse Decisions

Strategic warehousing

Distribution centre

local presence

Economic benefits

Consolidation and Break Bulk

Page 215

Sorting

Cross docking

Mixing

Assembly


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Lead suppliers

Tier one

ISP

Seasonal storage Reverse logistics process

Page 217

Service benfits

Spot stocking

Full line stocking

Value added services

Brights

Warehouse operations

1. Receiving

2.IN storage handling

3.Shiping

4.Storage

Page 221

Storage

1.Active storage-Flow through or cross dock distribution

2.Extended Storage

Warehouse Ownership Arrangements

1.Private

2.Public


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3.Contract Warehousing

Network Deployment

Warehouse Decisions

1.Site selection

2.Design

3.Product mix analysis

4.Expansion

5.Materials Handling

6.Layout-Slotting,selection,picking area7.Sizing

Page 227

Warehouse Management Systems(WMS)

1.Descrete selection

2.Wave Selection

3.Batch Selection

Page 231

Warehouse considerations

Accuracy and Audits

Security

Pilferage

Damage

Safety and Maintenance


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Rigid Containers

Page 239

Flexible Containers

Pallets or Slipsheets

Fig page 240,241

Communication

Master Handling

Basic handling considrations

Mechanized

SemiautomatedAutomated

Information Directed

Mechanized Systems

Lift Trucks

Rider Trucks

Towlines

Tractor Trailers

Conveyers

Carousels

Semiautomated Systems

Automated Guided Vehicles

Sortation

Robotics

Live Racks


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Automated Systems

Potential to automate

Order Selection

Automated Storage / Retrieval

Page 247

Information Directed Systems

RF Wireless Wi Fi

Task interleaving

Pick to light

Special Handling considerationsE-fulfillment

Environmental concerns

Regulatory Environment

Returns processing

Page 231


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10. OPERATIONAL INTEGRATION: Why Integration Creates Value-SystemsConcept And Analysis-Logistical Integration Objectives-EnterpriseIntegration-Supply Chain Processes-Sales And Operations Planning(S &OP)-Supply Chain Planning Considerations-Pricing.

Why integration creates value?

Economic value

Market value

Convenient product service assortment and

choice

System concept and Analysis

Logistical Integration objectives

Responsiveness

Variance reduction

Inventory Reduction

Shipment consolidation

Quality

Life cycle support

Enterprise Integration


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Internal integration barriers

Organization-Sandox or silo

Measurement and Reward system Inventory Leverage

Infocratic structure

Knowledge Hoarding

The Great Divide

How much integration is enough? Supply chain process

Page 261

Supply chain visibility

Simultaneous Resource considerations

Resource utilization

Sales and Operations Planing(S&OP)

Page 263,264

Supply chain planning applications

Demand Management

Production planning

Requirement planning

Transportation planning

APS System overview

Page 267

Supply chain Planning considerations

Bolts on


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11. GLOBAL STRATEGIC POSITIONING: Global Supply Chain Integration-Supply Chain Security-International Sourcing.

Global supply chain integration

Logistics in global economy

Page 283

Stages of International development

Export / Import-A National perspective

Local presence-International operations

Globalization-The stateless enterpirse

Managing the Global Supply chain

Performance cycle structure

Transportation

Operational considerations

Information system Integration

Alliances

Supply Chain Security

Business continuity planning

Siliency

Mad cow disease


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International Sourcing

Rationale for low cost country Sourcing

Challenges for low cost country sourcing

Guidelines for sourcing

12. NETWORK INTEGRATION: Enterprise Facility Network- WarehouseRequirements-Total Cost Integration-Formulating Logistical Strategy

Enterprise facility network

Localized or ubiquitous

Material index

Locational weight

Spectrum of location decision

Local presence an absolute paradigm

Warehouse Requirements

Supply facing warhouse

Demand facing warhosue

Procurement drivers

Manufacturing drivers

Customer accomodatin Drivers

Rapid replenishment

Market based ATO

Warehouse justification

Total cost integration

Transportation economics

Quantity priciple

Tapering priciple


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Warehouse Justification

Cost based warehouse justification

Page 304 ,305

Inventory economics

service based warehouse justification

Base, transit and Safety stock

Page 307

Network inventory cost minimization

Page 310

Total cost networkPage 310

Trade off relationship

Assumption and limitation-Envelop curve

Fig page 312

Formulating logistical strategy

Cost minimization

Threshold service-availability ,capability

Page 314

Service sensitivity analysis

Locational modification

Fig page 315

Performance cycle modification

Safety stock modification

Finalizing strategy

Page 318


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13. RELATIONSHIP DEVELOPMENT AND MANAGEMENT: Development AndManagement Of Internal Logistics Relationships-Development And Management of Supply Chain Relationships

Page 355

Functional aggregation

A shift in emphasis from function to process

Page 359 Virtuality and organization Transparency

Leading organization change

Development and management of Supply chain relationship

Risk, Power and leadership

Core competency

Disproportionate risk Leadership

The range of extended Supply chain relationship

Page 365

Supply chain integrative framework

Page 366,367

Framework Constructs

Page 368

Developing Trust

Reliability and character based trust

Distributive trust


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Procedural justice

Building trust in relationships

14. E COMMERCE AND SCM: E commerce advantages and disadvantagesfor SCM e-commerce as an enabler evolution of world class supply chains EDI Exchanges, hubs and marketplaces ERP.

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