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

• What is the source of competitive advantage

  1. Ability of an organisation to differentiate itself positively, in the eyes of the customer and from it's competition
  2. By operating at a lower cost and hence at greater profit

• 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. 

• 1.5 The supply chain and competitive performance

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• What are the 4 stages of supply chain integration? Achieving an integrated SC

  1. Baseline (each business function does their own thing)- purchasing, material control, production, sales and distribution
  2. Functional integration (companies recognize a need for limited degree of integration between adjacent functions)- materials management, manufacturing management and distribution
  3. Internal integration (establishment and implementation of an end to end planning framework) - materials management, manufacturing management and distribution
  4. External integration (represents true supply chain integration in that the concept of linkage & co-ordination in stage 3 is now extended upstream to suppliers and downstream to customers) - suppliers, internal supply chain and customers

• 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