what are the four primary drivers of supply chain management course hero

The four drivers of SCM are facilities, which affect how quickly a product or service can be sent out for delivery, inventory, which determines what can be delivered (as well as how fast, by it being in or out of stock), transportation, which determines the time in transit for a product or service, and information, which allows analysis of the other three drivers, enabling greater efficiencies to be designed.

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What are the four drivers of the supply chain?

Facilities, inventory, transportation and information are the four major drivers of the supply chain. The performance of any supply chain can be measured on the basis of the drivers that run it.

What are drivers and obstacles in supply chain management?

Let us now learn more about drivers and obstacles in supply chain management Facilities, inventory, transportation and information are the four major drivers of the supply chain. The performance of any supply chain can be measured on the basis of the drivers that run it.

What is the role of information as a driver of supply chain?

The information as a driver of the supply chain plays a very important role in the proper functioning of the supply chain and this can be explained with the help of the following reasons:

What are the four elements of Supply Chain Management?

What are the Four Elements of Supply Chain Management? 1 Element One: Integration. “Integration is at the heart of the supply chain and is considered as the brains and heart of the supply chain process.” ... 2 Element Two: Operations. 3 Element Three: Purchasing. 4 Element Four: Distribution. 5 How the four elements work together? More items

What are the four primary drivers of supply chain management?

Facilities, inventory, transportation and information are the four major drivers of the supply chain.

What are the drivers of supply chain management?

Five supply chain drivers, Production, Inventory, Location, Transportation, and Information, influence the performance of the supply chain. Companies can develop and manage these drivers to emphasize the ideal balance between responsiveness and efficiency, depending on your business and financial requirements.

What are the 4 supply chain functions?

The five functions of supply chain management include the following:Purchasing. The first function of supply chain management is purchasing. ... Operations. ... Logistics. ... Resource Management. ... Information Workflow.

What are the 4 stages of supply chain?

There are four customary stages in a product's life cycle: the introductory phase, the growth phase, the maturity phase and the decline phase. Each phase is markedly different and often requires different value chains. Supply managers need to craft supply strategies that reflect the unique needs of each phase.

What are the 6 drivers of supply chain management?

These six drivers are as facilities, inventory, transportation, information, sourcing and pricing.

What are the six drivers of the supply chain?

These drivers of the supply chain are discussed in the following paragraphs:Production. ... Inventory. ... Transportation. ... Facility Location. ... Information. ... Sourcing. ... Pricing.

What are the 4 components of supply chain management Mcq?

The major decision areas in supply chain management arelocation, production, distribution, inventory.planning, production, distribution, inventory.location, production, scheduling, inventory.location, production, distribution, marketing.

What are 4 functional areas of logistics?

There are five elements of logistics:Storage, warehousing and materials handling.Packaging and unitisation.Inventory.Transport.Information and control.

What is the fourth stage of supply chain management?

Stage 4: Demand-Supply Network Collaboration. Cooperative interaction and proactive behavior based on critical information that flows freely and simultaneously throughout the supply network. It is sometimes referred to as the glass pipe.

What are the 4 types of risks in the supply chain?

Supply Chain Risks Continue Mounting Most of the risks that could disrupt your operations fall into four broad categories: economic, environmental, political and ethical.

What are the four enablers of supply chain management implementation?

The four key enablers of supply chain management implementation are ; managerial understanding of the implications of increased customer power , establishing appropriate relationship structures , leveraging technology for enhanced visibility and communication , and the use of supply chain facilitators .

What are logistical drivers?

The logistical drivers are facilities, inventory, and transportation. The two main facilities are storage and production sites. Inventory denotes all raw materials, WIP, and finished goods in a supply chain. On the other hand, transportation involves moving inventory from point to point.

Why are logistical drivers important?

The use of logistical drivers is used to increase supply chain profits. Logistical drivers are of great importance. On the other hand, cross-functional drivers are getting more and more importance in raising supply chain surplus. But the drivers do not act themselves. They interact with each other to determine supply chain performance.

What is sourcing in supply chain?

Sourcing is the particular supply chain activity should be done inside a firm or procures from other entities. Pricing drivers determine the price of goods and services which the supply chain produces. Early orders are less likely if with lead time price does not vary.

What is the difference between inventory and transportation?

Inventory denotes all raw materials, WIP, and finished goods in a supply chain. On the other hand, transportation involves moving inventory from point to point. Information is data about facilities, inventory, transportation, costs, prices and customers throughout the supply chain, also gives shipping option to managers.

What is information sourcing?

Information is data about facilities, inventory, transportation, costs, prices and customers throughout the supply chain, also gives shipping option to managers. Sourcing is the particular supply chain activity should be ...

What are the elements of SCM?

What are the elements and benefits of SCM integration? SCM integration can be broken down into four dimensions, each having its own elements and benefits. 1.Information integration deals with information sharing and transparency, as well as direct and real-time accessibility of information. Some of its benefits include reducing ...

Why is SCM important in e-business?

SCM is an important part of that flexibility, as it allows far more automation to common tasks, removing some of the barriers between them and their partners and customers.

What is the implementation of SCM?

implementation of an SCM system is mainly about two things: integration and cooperation. 1. The information-sha ring level. which deals with giving each party direct access to relevant information, to help alleviate the manual processes normally associated with such information sharing.

What is delivery in supply chain?

Delivery is a process happened during every part of supply chain and also it is where the cost happened. Through the entire supply chain, products, services or information that delivers to the final consumer is the core element that connects supply chain to an integral. As the result of that, no matter raw materials, WIP materials or finished products, except storage of inventory, delivery of inventory is another remarkable point to improve supply chain. Smoothly moving inventory between each links works to reduce storage cost and strengthen process efficiency.

When an organization can survive in the market is like a staff can survive in a company?

When an organization can survive in the market is like a staff can survive in a company, and you have to have the core competent in the market place. The management of supply chain is to integrate the whole supply chain in order to reach the entire chain profit.

What is storage and delivery?

Storage & delivery are two actions to deal with inventory, and information system & facility are two Medias to coordinate every process of inventory movement. According to information system, we are seeking accurate and in time demand & supply information from forecasting, point of sales, inventory level and so on. To achieve highly required information, it is essential to do better warehouse design, using bar-coding system, RFID, and other technology in order to secure satisfying product to customer with satisfying cost.

What are the major drivers of supply chain?

Facilities, inventory, transportation and information are the four major drivers of the supply chain. The performance of any supply chain can be measured on the basis of the drivers that run it.

Why is it important for managers to play a role in tackling supply chain obstacles?

Thus, managers have to play a very important role in tackling these obstacles in order to turn it to an advantage and in turn increase the profitability of their supply chain.

How does transportation affect supply chain?

Transportation moves a product between different stages in a supply chain, and has a great impact on the efficiency and responsiveness of a supply chain. Quick transportation of goods through various modes or different quantities increases the responsiveness however lowers the efficiency.

How does inventory play a role in a supply chain?

The inventory plays a significant role in a supply chain’s ability to perform well. It helps a company to be responsive or efficient. If a company possesses a competitive strategy to be more responsive then it can locate its inventories close to its customers.

What is the framework of decision making in supply chain?

This framework can be called ‘the supply chain decision making framework’.

Why is there inventory?

Existence of inventory is because of the mismatch between the supply and demand. Such a mismatch exists in industries where it is economical for them to produce in lots or where companies need to stock goods in anticipation of future demand.

How does transportation play a role in a company's competitive strategy?

The role played by transportation in a company’s competitive strategy comes into effect prominently when the company considers the targeted customer’s demands. If a company’s competitive strategy is to be more responsive to its customer’s and if the customer’s are willing to pay for it, then the company needs to be highly responsive.

What is the performance of a supply chain?

1. Production. The performance of the supply chain is very much dependent on a production like, what is produced, how it is produced (the manufacturing process used), and when it has to be produced. 2. Inventory. All raw material, work in progress and finished goods within a supply chain are referred to as inventory.

How has inventory been moved from point to point in the supply chain?

Inventory has been moved from point to point in the supply chain using transportation facilities taking the form of many combinations of modes (multimodal) and routes, each having its own performance characteristics.

How does pricing affect supply chains?

Therefore pricing affects the supply chains n terms of the level of responsiveness required and the demand profile that the supply chain attempts to serve.

How does inventory policy affect supply chain?

Any change in inventory policies can greatly affect the efficiency and responsiveness of the supply chain. Decision such as how much to store and where to store (in the firm’s premises or warehouses or at the retailer’s premises).

What is a facility in supply chain?

Facilities are the places in the supply chain network where inventory is stored, parts are fabricated and assembled into finished goods. The decision regarding the location of the facilities (plant), their capacity, and the flexibility of the facilities have a major impact on the performance of the supply chain.

Why do international sources increase the complexity of logistics and supply chain function?

International sources increase the complexity of logistics and supply chain function because of enhanced costs of transportation, inventory, warehousing, etc. which may offset the cost advantages gained because of low prices for materials, components, etc., which are bought from global suppliers. 7. Pricing.

Why is information important in supply chain?

Information is helpful in making the supply more efficient and responsive at the same time.

How does a supply chain manager work?

Supply Chain Managers monitor the processes being performed and ensure everything remains on track. Many of today’s manufacturers operate using lean manufacturing strategies and techniques, which means processes are constantly evaluated to achieve maximum performance and efficiency. Whether it’s monitoring processes or equipment to achieve maximum performance or reducing work or shift patterns during production slows down, the operations team can bring major improvements to the supply chain.

Who owned the supply chain for the automobile industry?

In the earliest days of the automobile industry, Henry Ford made a decision to own and control the complete supply chain—from the mines which provided the ore, to the factories which made the glass. Raw materials—iron ore, coal, and rubber, all from Ford-owned mines and plantations—came in through one set of gates at the plant while finished cars ...

What is supply chain integration?

Overseeing supply chain integration means coordinating communications between the rest of the supply chain to produce effective and timely results in the manufacturing process. Often this means exploring new software or other technological means to foster communications among departments, which in turn reduces errors which cost time and money.”.

Why is supply chain necessary?

Now the question arises, why is it necessary? The supply chain is a sequence of processes that must be completed to produce and distribute a product or commodity. This commodity may be goods or services, but either way, there needs to be a clear manufacturing path for the goods or services to be produced. Manufacturing businesses have long referred ...

Why is supply chain management important?

A supply chain management system is required not just for the timely manufacture of goods; it is also a very critical system for ensuring that customers’ requirements are effectively met. ”.

What is the heart of the supply chain?

Element One: Integration . “Integration is at the heart of the supply chain and is considered as the brains and heart of the supply chain process.” says Rachael. “As with any project, planning is essential to long-term success. Integration is the process of technology which closely coordinates with supply chain functions and elements.

What is the process of finding, evaluating, and engaging suppliers to provide goods and services to business?

Element Three: Purchasing. You can’t make something from nothing. Sourcing is the process of finding, evaluating, and engaging suppliers to provide goods and services to business. Procurement is the process of purchasing goods and services.