Supply Chain Basics (YB6494 | 2023)
18 September 2023 10:58
Chapter 1: supply chain basics and introduction
- EPAL(europallet) 1m20 by 80cm
- CHEP (blue pallets)
- CMR : documents required for transportation in the eu by road, needed to be done by shipper
(convention merchandise route)
- Production vs distribution logistics
- Production
○ COMP(component)
○ WIP(work in progress)
○ FG(finished goods)
- Distribution
- Supplier management
○ Supplier relation management (SRM)
▪ Working together with supplier to establish relations
○ Customer relation management(CRM)
- RFID(radio frequency identification)
○ Label used for safety of goods like a label on a book or the thing on clothes in the stores
- EDI(electronic data interchange)
- Big data
- DC (Distribution center)
- EDC (European distribution center)
- RDC(Regional distribution center)
- LDC(Local distribution center)
- WDC(World distribution center)
- WC(Working capital)
- B2B(Business to Business)
- B2C(Business to Consumer)
- C2C(Consumer to Consumer)
- SUB ASS(Sub Assembly)
- VAS(value added service)
- VAL(value added logistics)
- LTL(Less truck load)
- FTL( Full truck load) 2m40 by 13 loading meter by 2m40 height (32 pallets)
- LCL(Less container load)
- FCL(full container load)
- WHS(warehouse)
- LSP(Logistics Service Providers)
- FF(Freight forwarder)
- 3PL( 3rd Party logistics) ex independent truck drivers
- There is also 1-5PL
- TT(Transit time)
- Push and Pull model is very important
- OEM(Original equipment manufacturer)
- SOP(sales and operation planning)
- SLA: service level agreement
Chapter 2
Quick Notes Page 1
- CEO: Chief executive officer
- CFO: Chief financial officer
○ AP: Accounts payable
○ AR: Accounts receivable
○ OTC: Order to cash
- COO: Chief operations officer
- CHRO: Chief human resources officer
- CIO: Chief information officer
- CSCO: Chief supply chain officer
- CCO: Chief commercial officer
- Incoterms
○ EXW: EXWORKS
○ FOB: free on board
○ CIP: cost insurance prepaid
○ DAP: delivered at place
- QBR: quarterly business review
- NDA: non-disclosure agreement
- WMS: warehouse management system
- TMS: transport management system
- FMCG: fast moving consumer goods
Chapter 3
- TCO: total cost of ownership
- Direct vs indirect procurement
- NPR: non product related buying
- BAF: bunker adjustment factor
- EFS: Electricity Fuel Surcharge
- RFP: request for proposal
- RFI: request for information
- RFQ: request for quotation
- QA: quality assurance
- KPI: key performance indicators
- WC: working capital
- SSC: shared service center
- ERP: enterprise resource planning
- OT: on time
- OTIF: on time in full
- KANBAN/2 bin system
- JIT: just in time
- FIFO: first in first out
- LIFO: last in first out
- LPP: last purchase price
- JIT: Just in time
- PO: purchase order
- SAP look this up
- ERP: enterprise resource planning
- MHE: material handling equipment(ex, forklift)
- EOQ: economicgqniy
- SKU: stock keeping units
- EAN: European article numbering
- FFF: Form, Fit, AND Function of each unique component
- BOM: Bill of Material
Quick Notes Page 2
- BOM: Bill of Material
- TAK TIME
- 36 chambers
- harakiri
Operational excellence and continuous improvement
- Process and performance :
○ Every result and organization gets is the outcome of certain processes
○ The performance of an organization is measured by its key performance indicators
○ Optimizing performance means optimizing processes, inputs, parameters
- Continuous improvement: on going effort to improve an organization's processes, products, or
services
○ Process improvement
▪ Sustain performance: a first step to take before starting improving processes id to
ensure that they are stable
- Operational excellence: mindset that embraces certain principles and tools to create a
substantial improvement within the organization
- Process improvement:
○ PDCA(Plan, do, check, act)
○ Lean 6 sigma
▪ Lean is the concept of streamlining
▪ In the 90's, general electric started combining lean with more data driven tools to
optimize company's performance
▪ A structured way to approach complex issues (DMAIC)
▪ A toolkit to assist with every phase
- Change management
○ Impact= Quality x Acceptance
Chapter 5 manufacturing
- S1R1: sell one replenish one
- MRP2: manufacturing resource planning
- CODP: CUSTOMER ORDER DECOUPLING POINT
- Assemble to order, and make to stock local and central, make to order, and engineer to order l
this is important for exam (MTS,ATO,MTO,ETO)
- CODP(customer order decoupling point)
Chapter 6 distribution and transport
- B2B
- B2C
- C2C
- FEU: forty foot equivalent
- TEU: twenty foot equivalent unit
Quick Notes Page 3
