UNIT 11. Supply Chain Management

Lead in: supply chains

Vocabulary: key terms

Reading: inventory management, procurement, quick response, inventory costs

Speaking: supply chain management quiz

Grammar: active/passive participles and adjectives

Case Study: quick response

Translation: key terms

Writing: SCM cycle, essay

Culture: mobile phone etiquette

Lead in

Read the following statements and answer the questions.

1. If your company makes a product from parts purchased from suppliers, and those products are sold to customers, then you have a supply chain.

· What is a supply chain?

· What does the complexity of the supply chain depend on?

2. A simple supply chain is made up of several elements that are linked by the movement of products along it. The elements of the Supply Chain include customer, planning, purchasing, inventory, production and transportation.

· What is the essence of each element?

· How are these elements interconnected?

· Why does supply chain start and end with customers?

3. To ensure that the supply chain is operating as efficient as possible and generating the highest level of customer satisfaction at the lowest cost, companies have adopted Supply Chain Management.

· What is SCM?

Vocabulary

These are the terms for you to learn.

A. Make sentences with them.

B. Translate them.

1. buffer stock	2. order processing	3. DSD – direct store delivery	4. finished goods
5. factory gate price	6. outlet	7. СM – category management	8. in-process inventory
9. tender	10. cash register	11. VMI- vendor-managed inventory	12. commodity
13. lead time	14. retailer	15. CRP – continuous replenishment	16. logistician
17. wholesalers	18. point of sale	19. QR – quick response	20. strategic sourcing
21. ultimate consumer	22. operational costs	23. order fulfillment	24. transport charges
25. replenishment	26. obsolete technology	27. to grant a (cash) discount of 5%	28. encompass some problem
29. merchandise at the market	30. entail expense	31. to diminish pressure	32. inbound product
33. handling	34. stockout	35. tailored logistics	36. cross-functional teams

2. Match definitions 1- 10 with terms a- j:

1. A supply of inputs held as a reserve to safeguard against unforeseen shortages or demands	a. Category management
2. Materials or products which have received the final increments of value through manufacturing or processing operations, and which are being held in inventory for delivery, sale, or use.	b. Strategic sourcing
3. A retailing and purchasing concept in which the range of products purchased by a business organization or sold by a retailer is broken down into discrete groups of similar or related products.	c. Operational costs
4. Vendor managed inventory arrangement in which either the vendor continuously monitors a customer's inventory or customer supplies current inventory data.	d. Vendor-managed inventory
5. Individual or a group which actually consumes or uses a good or service, as distinct from the buyer or shopper who may only be a purchasing agent.	e. Oder processing
6. An institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company.	f. Buffer Stock
7. The expenses, which are related to the operation of a business, or to the operation of a device, component, piece of equipment or facility.	g. Direct Store Delivery
8. A family of business models in which the buyer of a product (business) provides certain information to a vendor (supply chain) supplier of that product.	h. Ultimate consumer
9. The term is generally used to describe the process or the workflow associated with the picking, packing and delivery of the packed item(s) to a shipping carrier.	i. Continuous replenishment
10. A business process that manufacturers use to both sell and distribute goods directly to point of sales or point of consumption.	j. Finished goods