Key concepts
What is supply chain?
The system that manages the flow of goods, information, and money from origin to consumer.
What is transportation?
The process of moving goods from one location to another.
What is production?
The process of creating goods from raw materials.
What is cash flow?
The movement of money into and out of a business.
What is out of stock?
When products are not available for customers.
What are the “5 rights”?
The principle of delivering the correct product, at the correct time, in the correct place, and at the correct cost.
What is distribution?
The system used to deliver products to customers.
What is assembly?
The stage where parts are put together to form a final product.
What is competitive advantage?
An advantage that allows a company to perform better than competitors.
What is disruption?
An unexpected interruption in the supply chain.
What is inventory?
The term for goods stored for future sale or use.
What is outbound logistics?
The movement of finished goods to the final customer.
What is packaging?
The process of placing products into containers for transport.
What is diversification?
Using multiple suppliers to reduce risk.
What is quality failure?
Damage to products during transportation or storage.
What is supply chain management?
The coordination of activities between suppliers, manufacturers, and retailers.
What is inbound logistics?
The movement of raw materials into a company.
What is just-in-time production?
A method where goods are produced only when needed.
What is a trade-off?
The balance between cost, speed, and quality in decision-making.
What is supplier dependency?
Depending on only one supplier for materials.
What is information flow?
The flow of information between all parts of a supply chain.
What is a warehouse?
A central place where goods are stored before being distributed.
What is automation?
The use of machines and technology to perform tasks with minimal human input.
What is cost optimization?
Reducing costs while maintaining quality and efficiency.
What is shortage?
When demand is higher than supply.