What is the utility that is created by moving goods from surplus points to point where demand exists?

What is the utility that is created by moving goods from surplus points to point where demand exists?

Logistics provides place utility by moving goods from production surplus points where demand exists. Logistics extends boundaries of the market area, thus adding economic value to the goods.

Which utility is created primarily by transportation and delivery?

Logistics creates place utility primarily through transportation and it extends the physical boundaries of the market area, thus adding economic value to the goods.

What is the supply chain concept?

A supply chain involves a series of steps involved to get a product or service to the customer. The steps include moving and transforming raw materials into finished products, transporting those products, and distributing them to the end-user.

What are the 7 principles of supply chain management?

The 7 Principles that Make Up Supply Chain Management

• Segment customers based on service needs.
• Customize the logistics network.
• Listen to signals of market demand and plan accordingly.
• Differentiate product closer to the customer.
• Source strategically.
• Develop a supply chain-wide technology strategy.
• Adopt channel-spanning performance measures.

What are the two major types of supply chains?

The 2 Types of Supply Chains

Reactive Supply Chain Strategy	Data-Driven Supply Chain Strategy
Operational improvements based on guesswork or imitating competitors	A data-driven approach helps even best-in-class manufacturing operations find new ways to improve efficiency[iii]

What are the six drivers of supply chain performance?

The whole study concluded that there are six drivers of supply chain performance that need to be managed to enhance organizational performance and output. These drivers are; Facilities, Inventory, Transportation, Information, Sourcing and pricing.

What is the biggest driver in supply chain?

SCM drivers

What are the five major supply chain drivers?

5 main drivers of supply chain costs

• 1) Investment Costs.
• 2) Transportation Costs.
• 3) Procurement Costs.
• 4) Production Costs.
• 5) Inventory Costs.
• The journey to cost efficiency.

What are the challenges of SCM?

What Are the Main Supply Chain Challenges?

• Increased Costs Throughout the Supply Chain.
• Supply Chain Complexity Due to Multiple Channels to Market.
• Consumer Demands Drive Need for Improved Speed, Quality and Service.
• Risk in the Supply Chain Creates Pressure.
• The Impact of Supply Chain Volatility.
• Other Demands on the Supply Chain.

What are the basic drivers of supply chain performance?

How many drivers of supply chain performance do we have?

five

What are the steps involved in SCM?

The Key Steps in a Supply Chain

• Original sourcing or extraction of raw materials.
• Refining or manufacturing materials into basic parts.
• Assembling basic parts into finished products.
• Selling finished products to end users.
• Delivering finished products to end users or consumers.

What is the most important stage in supply chain management?

post implementation support Phase

What is the key to a successful supply chain?

The primary commandment in supply chain management is to seek transparency across a company’s full range of sourcing, procurement, and logistics relationships. Transparency is essential to managing costs and to defining and meeting expectations. Transparency builds trust among supply chain partners.

What are the five critical steps in achieving best in class supply management?

Five Critical Qualities of a Best-in-Class Procurement Operation

1. Strategic Thinking. In an increasingly complex business landscape, strategy should remain at the center of every decision.
2. Great Talent. Seventy-seven percent of procurement teams credit their talent pool for improving supplier performance.
3. Operational Excellence.
4. Embrace Technology.
5. Focus on Results.

What are 5 critical functions of procurement?

The following 12 important functions are mandated to be executed by the procurement department:

• Sourcing.
• Negotiation.
• Contracting.
• Monitoring of suppliers’ performance.
• Compliance with business protocols.
• Leveraging technology to help in procurement functions.
• How DocuCollab can help.
• Collaboration with Other Departments.

What are the five steps in the basic procurement process?

The steps in the procurement process

1. Step 1: identify what’s needed.
2. Step 2: submit a purchase request.
3. Step 3: assess and select vendors.
4. Step 4: negotiate price and terms.
5. Step 5: create a purchase order.
6. Step 6: receive and inspect the delivered goods.
7. Step 7: conduct 3-way matching.