Summary: Logistics & Supply Chain Management | 9781292083797 | Martin Christopher

Read the summary and the most important questions on Logistics & Supply Chain Management | 9781292083797 | Martin Christopher

• 1 Logistics, the supply chain and competitive strategy

• 1.1 Supply chain management is a wider concept than logistics

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• How should supply chain management be more accurately defined?

  A network of connected and interdependent or organisations mutually and co-operatively working together to control, manage and improve the flow of materials and information from suppliers to end users.

• 1.2 Competitive advantage

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• What are the two options of strategic direction in creating competitive advantage and what are its profiles? Also, give the third and ideal option.

  1. Cost advantage - low(est) cost profile
  2. Value advantage - gives the product or offering a differential 'plus'
  3. Combination of both - Ideal option

• 1.2.3 Seeking the high ground

• Explain the Logistics and competitive advantage matrix and how is the 'higher ground' achieved?

  Value - low / Cost - low = Commodity market
  Value - high / Cost - low = Service leader
  Value - Low / Cost - High = Cost leader
  Value - High / Cost - High = Cost and service leader (Higher ground)

• 1.3 The supply chain becomes the value chain

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• What is the value chain and who created it?

  Michael Porter

• What are the primary activities of the value chain?

  - Inbound logistics
  - Operations
  - Outbound logistics
  - Marketing and sales
  - Service

• What are the support activities of the value chain?

  - Firm infrastructure 
  - Human resource management
  - Technology development
  - Procurement

• When does the supply chain transform into a value chain?

  The effect of outsourcing is to extend the value chain beyond the boundaries of the business. The supply chain becomes the value chain. 
  Value is created by all the entities that connect to each other. This ‘extended enterprise’ becomes the vehicle through which competitive advantage is gained. 

• 1.6 The changing competitive environment

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• What are the most pressing issues in today’s competitive environment regarding supply chain management?

  • The new rules of competition
  • Turbulence and volatility
  • Globalisation of industry
  • Downward pressure on price

• Explain the new rules of competition in the competitive environment.

  • In today’s marketplace the order-winning criteria are more likely to be service-based than product-based.
  • Competitive advantage = product excellence * process excellence

• Explain turbulence and volatility in the competitive environment.

  • Increase of demand uncertainty 
    
  • Increase of supply uncertainty