307 KM – Global Logistics

Week 1 Discussion Questions

1. Bill Gates of Microsoft describes the 2000s as “business @ the speed of thought”.
Discuss the importance of speed in the supply chain. How can speed be increased
within the supply chain?
Answer:
To achieve competitiveness in a supply chain, meeting end-customer demand
through supplying what is needed in the form it is needed, when is needed, at a
competitive cost. (Notes P.19)
Time denotes the speed of responsiveness to customer’s request. It is an absolute
measure. (Notes P.19)
Speed can be increased by providing information to upstream neighbors in a
timely manner such that the upstream neighbors can supply or replenish the
required stock on time. (Text explanation of diagram on P.14)

2. Suggest logistics performance priorities for the following, explaining why you
have come to the conclusions:
a. a low-fare airline such as OASIS
b. a fast food chain such as McDonald’s
c. an overnight parcels service as DHL

3. What is meant by the term alignment in relation to supply chain processes? Why
is alignment important in setting a strategy for a given supply chain?
Answer:
Supply chain is a group of partners collectively convert a basic commodity
(upstream) into a finished product (downstream) that is valued by end-customers.
Each partner transforms inputs (materials, info) into outputs (goods or services).
(Notes P.10)
Each partner has its own logistics strategy which is the set of guiding principles,
driving forces and ingrained attitudes that help to communicate goals, plans, and
policies to all employees that are reinforced through conscious and subconscious
behavior at all levels of the supply chain. (P. 25)
Alignment in supply chain processes means to align all partners’ strategies such
that links are directed by a common and consistent set of competitive criteria.
(P.30). It is important because the strategy is guideline for long term, consistent
over time, and all processes in the supply chain can be coordinated. (P.26)
 307 KM – Global Logistics

4. What does flow mean in a supply chain context? Explain how material flow
relates to information flow in a supply network.
Answer:
Logistics is the movement of materials or goods from upstream to downstream,
and the flow of information from downstream to upstream in a timely manner,
with accuracy, and quality.

Flow – measures the quantity of material that pass through a given network per
unit of time.

Material flow relates to information flow in a supply network:

• Material flows from primary manufacture through various stages to the end-
customers.
 It is a response to the demand from the next downstream partner.
 Material parts are moved through the supply chain synchronously (in
coordination)
• Information flow broadcasts demand from the end-customer to next upstream
organizations in the network.
 The information flow is to integrate supply and demand data to
increase accuracy about the nature of business processes, markets, and
end-customers.
 Increase competitive advantage
 E.g. meeting market demand with a maximum dependability (of
suppliers) and a minimum of inventory.
• The input/output of each organization is affected by the behavior of other
partners in the network.