UNIT 11. Supply Chain Management

Lead in: supply chains

Vocabulary: key terms

Reading: inventory management, procurement, quick response, inventory costs

Speaking: supply chain management quiz

Grammar: active/passive participles and adjectives

Case Study: quick response

Translation: key terms

Writing: SCM cycle, essay

Culture: mobile phone etiquette

Lead in

Read the following statements and answer the questions.

1. If your company makes a product from parts purchased from suppliers, and those products are sold to customers, then you have a supply chain.

· What is a supply chain?

· What does the complexity of the supply chain depend on?

2. A simple supply chain is made up of several elements that are linked by the movement of products along it. The elements of the Supply Chain include customer, planning, purchasing, inventory, production and transportation.

· What is the essence of each element?

· How are these elements interconnected?

· Why does supply chain start and end with customers?

3. To ensure that the supply chain is operating as efficient as possible and generating the highest level of customer satisfaction at the lowest cost, companies have adopted Supply Chain Management.

· What is SCM?

Vocabulary

These are the terms for you to learn.

A. Make sentences with them.

B. Translate them.

1. buffer stock 2. order processing 3. DSD – direct store delivery 4. finished goods
5. factory gate price 6. outlet 7. СM – category management 8. in-process inventory
9. tender 10. cash register 11. VMI- vendor-managed inventory 12. commodity
13. lead time 14. retailer 15. CRP – continuous replenishment 16. logistician
17. wholesalers 18. point of sale 19. QR – quick response 20. strategic sourcing
21. ultimate consumer 22. operational costs 23. order fulfillment 24. transport charges
25. replenishment 26. obsolete technology 27. to grant a (cash) discount of 5% 28. encompass some problem
29. merchandise at the market 30. entail expense 31. to diminish pressure 32. inbound product
33. handling 34. stockout 35. tailored logistics 36. cross-functional teams

2. Match definitions 1- 10 with terms a- j:

1. A supply of inputs held as a reserve to safeguard against unforeseen shortages or demands a. Category management
2. Materials or products which have received the final increments of value through manufacturing or processing operations, and which are being held in inventory for delivery, sale, or use. b. Strategic sourcing
3. A retailing and purchasing concept in which the range of products purchased by a business organization or sold by a retailer is broken down into discrete groups of similar or related products. c. Operational costs
4. Vendor managed inventory arrangement in which either the vendor continuously monitors a customer's inventory or customer supplies current inventory data. d. Vendor-managed inventory
5. Individual or a group which actually consumes or uses a good or service, as distinct from the buyer or shopper who may only be a purchasing agent. e. Oder processing
6. An institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company. f. Buffer Stock
7. The expenses, which are related to the operation of a business, or to the operation of a device, component, piece of equipment or facility. g. Direct Store Delivery
8. A family of business models in which the buyer of a product (business) provides certain information to a vendor (supply chain) supplier of that product. h. Ultimate consumer
9. The term is generally used to describe the process or the workflow associated with the picking, packing and delivery of the packed item(s) to a shipping carrier. i. Continuous replenishment
10. A business process that manufacturers use to both sell and distribute goods directly to point of sales or point of consumption. j. Finished goods

Match the words from two columns to form a phrase.

1. strategic a) consumer
2. order b) register
3. ultimate c) charges
4. in-process d) logistics
5. cash e) sourcing
6. transport f) replenishment
7. tailored g) inventory
8. continuous h) fulfillment

Fill in the gaps.



  1. D__ S__ D__ - is a key method of selling and distributing products for a large variety of industries, like food, beverage, home personal care products, and like wholesale and distribution, oil & gas, service industries to name industries beyond consumer products.
  2. As a symbiotic relationship, V__M__I__ makes it less likely that a business will unintentionally become out of stock of a good and reduces inventory in the supply chain.
  3. The main role of a l__ remains the same regardless of where they are stationed; to ensure that the force is supplied with enough food, water, fuel, ammunition and other goods and services to complete the task at hand.
  4. C__ r__ is a mechanical or electronic device for calculating and recording sales transactions, and an attached drawer for storing cash. It also usually prints a receipt for the customer.
  5. The Government does maintain a b__ s__ of certain essential medicines that can be released in emergencies.
  6. Activities involved in managing the details of preparing and receiving a customer order are called o__ p__. It is a key element of Order fulfillment. These operations or facilities are commonly called "distribution centers"
  7. A l__ t__ is the latency (delay) between the initiation and execution of a process. For example, between the placement of an order and delivery of a new car from a manufacturer may be anywhere from 2 weeks to 6 months.
  8. A r__ purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit.

Find the odd word.

1. Outlet shop depot store

2. Obsolete aged out-of-date old-fashioned

3. Impact entail involve imply

4. Accomplish bring about encompass come up with

5. Diminish discharge decrease lessen

6. Handling processing draining dealing

7. Commodity article product garment

8. Stockout scrutiny shortage scarcity

Reading 1

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