Chapter !,

What is “operations”? * Production and delivery of goods and services * What is “management”? * Plan * Implement * Control * Essential business functions * Marketing * Finance
Operations
* Important terminology * Tier, echelon * Customer versus consumer * Upstream versus downstream * Inbound versus outbound * Consumer demand versus derived demand All demand is derived from consumers * Demand originates from consumers (individual wants and needs) * It propagates as derived demand along the supply chain through retailers, wholesalers, manufacturers, raw materials suppliers. * If your customers can’t sell you can’t sell! * Why care about customers’ customers, etc?
2. Quality of distribution channel * Who has bought a product from Coca Cola? * The quality of a firm’s distribution channel can significantly impact its sales performance (revenue, profits, etc.) * Sales agreements, business relationships, competitors * Geographical coverage
3. Market orientation * Gathering, analyzing and disseminating customer information * Channel members provide important information about customers, markets, trends, changes, opportunities and challenges
4. Reverse logistics * Returns, repairs, unsold merchandize, etc. * Important for customer satisfaction, major concern for customers * Improve customer satisfaction, reduce unnecessary costs
5. Supply chain evolution * Supply chains are in constant evolution * New customers, markets, suppliers * Identify, evaluate, implement opportunities * Why their suppliers’ suppliers, etc?
1. Your suppliers’ costs are your costs * Suppliers pass on their costs to their