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Exam Pack Summary of all the Chapters covered in OBS 210 Semester 1
This is a detailed summary including all the chapters covered during the semester and being tested in the exam.
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OBSChapter 1: Intro to Supply Chain Management
1.2. Forces of Change
-The movement towards an integrated global economy,
Globalisation which led to a more intense economic & geopolitical
environment.
-It has also led to compression of time & distance +
disappearance of traditional political boundaries.
Empowered -Consumers can compare prices, service & quality
consumer accurately, therefore demand competitive prices, customized
offerings, convenience & flexibility.
Technology -access to info at any time (Google)
1.3. Defining Logistics
Military logistics (popular in military environment) focuses on getting right
support to the right place at the right time (e.g., rations, ammo,
equipment, vehicles)
Engineering -Concepts such as integrated logistics support, life cycle
logistics analyses, systems operation & support etc.
-depends on typical production, consumers or marketing
-part of the supply chain management that plans, implements,
& control the effective, efficient forward & reverse flow +
Business logistics storage of goods, services & related info between point of
(management) origin & consumption.
-activities include inbound & outbound transport management,
fleet management, warehousing, materials handling, order
fulfilment, demand/supply planning etc.
Production -occur in the production environment (phase between raw
logistics materials & finished products. )
Reverse logistics -need for activities such as handling return loads, disposal of
packaging, obsolete products, recycling of appliances.
,1.4. Defining Supply Chain Management
SCM: the set of inter- & intra-firm processes, which produces & delivers goods +
services to customers. SCM looks at interrelationships w/ upstream & downstream
entities. SCM involves integration, coordination & collaboration across firms. Used to
enhance vale provided to customer.
1.4.1 SCM Process
- customer relationship management
- customer service management
- demand management
- order fulfilment
- manufacturing flow management
- supplier relationship management
- product development & commercialisation
- returns management
Logistics: planning orientation & framework that seeks to create a single plan for flow
of products & info through a business
1.5. 3rd Party Logistics (Outsourcing)
3PL: management structure where a 3rd part fulfils certain roles & responsibilities
regarding the provision of logistics services between the supplier (1st party) & customer
(2nd party).
1.6. 4th Party Logistics
4PL: an integrator that assembles the resources, capabilities & technology of its own
organisation & other organisations to design, build & run comprehensive supply chain
solutions. 4PL presents a solution that incorporates the advantages + disadvantages of
both outsourcing & insourcing to provide maximum overall benefit.
Differences between 4PL & 3PL:
- 4PL is a separate entity established as joint venture.
- 4PL acts as single interface between client & multiple logistics service providers.
- All aspects of clients supply chain are managed by 4PL
, (benefits of 4PL on PG 9)
1.7. Historical development (Pg 10)
1.8. Porters Value Chain & Competitive advantage
Inbound L: receiving, storing,
listing & grouping inputs into
product.
Operations: machining,
packaging, assembly,
maintenance of equipment,
testing
Outbound L: order processing,
warehousing, scheduling,
transportation & distribution
management.
Marketing & sales: activities that convince buyers to purchase company’s product.
Service: maintaining the product after sale (guaranteeing quality & adding value
through training, servicing, upgrading)
Secondary Activities:
Procurement: purchasing raw materials, servicing, supplies, developing new services.
Tech development: design, developing new services etc.
HR Management: recruitment & education, compensation, employee retention etc.
Infrastructure: general management, planning procedures, finance, accounting, public
affairs
1.9. Linking VCM w/ logistics & SCM
Logistics & SCM are the facilitators through which value creation takes place from origin
to destination.
Objective: achieve competitive advantage while reducing logistical costs + improving
customer service.
1.10. Role of Logistics & SCM in competitive advantage
Provides the means whereby the needs of the customer are satisfied through the
coordination of materials & info flow from origin to destination.
, Chapter 2: Sourcing
Sourcing: (or procurement) is the power supply of the supply chain. Procurement is a
determinant of revenues, costs & supply chain relationships, & it supplies the goods &
services that are either transformed or reshaped into saleable goods & services.
2.2. Basic Objectives of Procurement
Objectives from a Successful procurement is regarded as buying the right
general managerial requirements in the right quantities at the right time at the
level right price from the right source and delivered at the right
place. (The 5 Rights of Procurement)
- Align with the vision, mission and values of the
organisation
- Ensure the smooth functioning of business activities
by way of an adequate & uninterrupted flow of
goods and services
Objectives from an - Buy goods & services of the required quality
competitively at the lowest possible price to ensure
operational or
max value for money
functional perspective - Keep inventory losses & investment in inventory at
a minimum
- Continually find & develop alternative sources of
supply
- Ensure sound & lasting relations w/ reliable
suppliers
Objectives from a This is developed when precise plans are made for each
buying plan category of materials or services that the firm uses in its
perspective operations.
2.3. The Procurement Process
Procurement process: when an organisation procures goods, materials or services, it
needs to go through a number of consecutive steps or activities normally.
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