Supply Chain Management For Dummies Quotes

“disruption is how the threat would affect your business and that of your supply chain partners.”
― Daniel Stanton, Supply Chain Management For Dummies

“A risk is an event that may or may not occur, such as a hurricane. Risk is just another word for uncertainty. A threat is the impact the risk would have on your supply chain; in the case of a hurricane, one threat could be that your factory would be flooded.”
― Daniel Stanton, Supply Chain Management For Dummies

“If you want to be able to fill eight of every ten orders you get, you’d say that you have an 80 percent service level target. If you want to be able to fill nine of every ten orders, you’d be shooting for a 90 percent service level.”
― Daniel Stanton, Supply Chain Management For Dummies

“Segment A: $500,000 total sales (16-ounce bottles sold in a 4-pack) Segment B: $150,000 total sales (12-ounce bottles sold in a 4-pack) Segment C: $100,000 total sales (16-ounce bottles sold in a 10-pack) Segment D: $25,000 total sales (12-ounce bottles sold in a 20-pack) Segment D contributes very little to total sales and probably should be eliminated.”
― Daniel Stanton, Supply Chain Management For Dummies

“The company implemented postponement by adding the power supply to the printers just before final packaging rather than during manufacturing. This change gave the company more flexibility in deciding where to sell each printer it manufactured.”
― Daniel Stanton, Supply Chain Management For Dummies

“The company could keep undyed sweaters in inventory and dye them based on which colors their customers were buying.”
― Daniel Stanton, Supply Chain Management For Dummies

“Demand shaping gives you more control of the delicate balance between supply and demand.”
― Daniel Stanton, Supply Chain Management For Dummies

“The three options to keep in mind when looking at manufacturing waste are reduce, reuse, and recycle.”
― Daniel Stanton, Supply Chain Management For Dummies

“Make-to-order eliminates inventory and warehousing costs, thereby freeing cash, which translates directly into increased profits.”
― Daniel Stanton, Supply Chain Management For Dummies

“You’ll often hear supply chain professionals talk about the amount of money lost due to shrinkage. This jargon term describes products that are stolen, damaged, or wasted. They’re called shrinkage because they lead to a reduction of inventory.”
― Daniel Stanton, Supply Chain Management For Dummies

“The total lead time for a product (also called customer response time) is the time between when a customer places an order and when you deliver the product to them.”
― Daniel Stanton, Supply Chain Management For Dummies

“Operating a continuous manufacturing process Lots of manufacturing processes don’t involve individual items. Breweries, chemical manufacturers, gasoline refineries, food-processing plants, and even electrical power plants that burn coal or natural gas are examples of businesses that use continuous processes. With a continuous process, you essentially feed material into one end and get a steady stream of product out the other end.”
― Daniel Stanton, Supply Chain Management For Dummies

“Discrete: Some products are manufactured as separate items or in batches. In other words, they’re made by a discrete process. Continuous: Other products can’t be easily separated into individual units or batches, so they’re made by a continuous process.”
― Daniel Stanton, Supply Chain Management For Dummies

“mitigate”
― Daniel Stanton, Supply Chain Management For Dummies

“Process Description Plan You need to estimate how many hamburgers you are going to make, decide where you are going to make them, and determine what your supply chain priorities are. You may need to choose whether to focus on quality and freshness, customer service and convenience, or low cost. These choices will influence the other decisions and trade-offs that you make throughout the supply chain. Source You need to decide where you will buy your ingredients and supplies. You need to negotiate with your suppliers to get the best prices, along with the best quality and service. It might be better to have suppliers that are close by, so that transporting products is fast and cheap. Or it might make sense to choose suppliers that are farther away but can provide the products at a lower cost or in larger quantities. Make You need to manage the process of making your hamburgers. It will help if you can define the stages of your manufacturing process and how long each stage will take. You may also need to decide whether you should make the hamburgers by hand or buy a machine that can make them better, faster, and cheaper than a person can. Deliver You need to manage the logistics of getting your hamburgers into your customers’ hands. That means you’ll need to decide whether you want customers to pick up their hamburgers at a counter or employ a server to carry the hamburgers to the table. Or perhaps you need to have a drive-through window, or deliver your hamburgers to your customers’ homes or offices. Return For many products, it’s important to think about what will happen to them after your customer is finished using them. In the case of hamburgers, you may need to think about washing the plates and recycling napkins. Enable Last but not least, you need to decide what else you need to make the supply chain work. You may need to hire people with specific skills, which means you need to think about how you will find them and how you will measure their performance. And there may be other processes that you need to have in place for your supply chain to achieve its goals, such as marketing programs or accounting policies.”
― Daniel Stanton, Supply Chain Management For Dummies

“that a customer is willing to pay for — is a supply chain process.”
― Daniel Stanton, Supply Chain Management For Dummies

“Anything that adds value — anything that moves or changes a product or service in some way”
― Daniel Stanton, Supply Chain Management For Dummies

“Supply Chain Operations Reference (SCOR) Model.”
― Daniel Stanton, Supply Chain Management For Dummies

“The important thing to understand about Six Sigma is that the goal is to have a very small number of defects — that is, improved quality — as a result of decreased process variation. You get there by measuring processes and using mathematical tools to improve consistency.”
― Daniel Stanton, Supply Chain Management For Dummies

“rhyme with “Hi Ben.”) During a kaizen, the stakeholders form a team and look at how the process is working, come up with ideas for how to make it better, and then implement changes. That sounds simple, and it should be. But business cultures often make it hard for people to speak up or be heard, so a formal approach like Lean helps get everyone involved.”
― Daniel Stanton, Supply Chain Management For Dummies

“When someone identifies a need to innovate or improve a process, the key stakeholders are brought together for a kaizen event. (Kaizen is pronounced”
― Daniel Stanton, Supply Chain Management For Dummies

“Fundamentally, S&OP is about sharing information and getting people to agree on a plan.”
― Daniel Stanton, Supply Chain Management For Dummies

“A common solution for this problem is a process called Sales and Operations Planning (S&OP), which forces the sales and operations teams to coordinate and agree on their goals and targets.”
― Daniel Stanton, Supply Chain Management For Dummies

“Most supply chain managers spend a lot of their time looking for ways to reduce costs.”
― Daniel Stanton, Supply Chain Management For Dummies

“No matter what forecasting method you use, the truth is that your forecast is still a guess. A common joke among supply chain professionals is that the first law of forecasting is that the forecast is always wrong.”
― Daniel Stanton, Supply Chain Management For Dummies

“Inventory optimization is a process of reducing inventories to the minimum level necessary to maintain the desired service level. Inventory optimization starts with forecasting, the process in which you try to guess how much product you’re going to sell and when you’re going to sell it.”
― Daniel Stanton, Supply Chain Management For Dummies

“Supply chains are systems in which the people, processes, and technologies interact in complex ways. Managing a supply chain as a system may require taking a different approach to measuring success than what functional teams normally use.”
― Daniel Stanton, Supply Chain Management For Dummies

“Managing these functions independently leads to poor overall performance for your company. To meet top-level goals, supply chain managers need to make sure that the objectives of these groups are aligned.”
― Daniel Stanton, Supply Chain Management For Dummies

“The purchasing, logistics, and operations teams often have conflicting goals —often without realizing it.”
― Daniel Stanton, Supply Chain Management For Dummies

“Supply chain management can also be described as integrating three of the functions inside an organization: purchasing, logistics, and operations.”
― Daniel Stanton, Supply Chain Management For Dummies