Uop_Value_Chain_Management_Final

ANSWER SHEET STUDENT’S NAME: 1. Value chain management goes beyond supply chain management, because it adds value to every stakeholder involved. This is achieved by evaluating all processes of the supply chain to ensure effectiveness and efficiency. Global value chain management creates a universal flow of information that can be shared internally and also with suppliers and customers. The results of value chain management is to lower inventory levels, increased customer service and satisfaction, and to make processing times quicker. There are six components to global value chain management. They include: • Sourcing and procurement – This means locating, evaluating, and obtaining suppliers for inventory or raw materials. • International logistics – This supporting all international logistic functions between the home and host country. • Factory Operations – The manufacturing process that the company supports in a foreign country. • Owners of raw materials – This is the relationship and communication between the company and its suppliers. • Owners of transportation – This is the relationship and communication between the company and its distribution centers and transportation sources. • Information technology – This is how well the company uses technology, such as the Internet and GPS units, to add value to the company and customers. 2. As a global manager, I would be able to use the Internet to help manage the distribution function of my value chain. This would be possible if the supplying company used an electronics system to handle its distribution and shared this information with me using Electronic Data Interchange. I would be able to go to the supplier’s website and look up the status of my order. It would tell me what part of the process my order was in. Once the order was process, it would then be changed to shipped. I would be given a tracking number at this point and I would be able to enter that number into a page in the Internet to see where it is currently located and its expected arrival date. From this, I would be given updates as to delays, emergency situations, or anything that would change the arrival date. This should also tell me whether the order was shipped by truck, ship, or plane. This would add value to my company and my customers because I would know ahead of time if my inventory or raw materials would be late and I could plan accordingly and inform my customers. 3. B 4. A 5. As the CEO of a company, I believe that technology will continue to improve and will be the future of global value chain management. Moore’s Law states that technology doubles every 18 months. This provides my company with a huge opportunity to make business functions electronic and to avoid the inefficiencies that could come from human error. For example, in the grocery stores today there are self-checkout lanes. Typically there is one cashier assigned for roughly five to ten machines. I believe that technology will improve so that in the future, there are no lanes where an actual human checks you out. I also think that all communications between my company, its suppliers, transporters, and customers will all be electronic based. There will not be much need to schedule face-to-face meetings in order to make business deals. It will also cut costs, because workers will be able to communicate via the Internet, Email, and AIM and will no longer have to travel to the actual foreign country. 6. E 7. B 8. B 9. A 10. Benefits of Enterprise Resource Planning and Value Chain Management Systems • Reduction in operating costs, because there is no paper exchange and it requires less time to complete. • Decreases the processing time because the transaction can be processes immediately. • Allows the company to have access to every department and function and improves monitoring. • Provides the customer with faster processing and quicker delivery. • Alerts the company is delays in its supply chain management and allows it to plan accordingly. • Allows one system to order the inventory for every department and avoids duplicate orders. • Allows the company to keep lower inventory levels on hand and reduces the amount kept in warehouse facilities.