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
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