Vocabulary

Supply Chain Management (SCM) (Textbook, Ch. 5): The coordination of activities and relationships across firms to deliver value efficiently. Example: A car company coordinating with parts suppliers.

Vertical integration (Textbook, Ch. 5): Owning and controlling multiple stages of the supply chain. Example: Zara managing design, manufacturing, and distribution.

Just‑in‑time (JIT) manufacturing (Textbook, Ch. 5): Producing goods only as needed to reduce inventory costs. Example: A bakery baking items only after orders are placed.

Disintermediation (Textbook, Ch. 5): Eliminating intermediaries by selling directly to consumers. Example: Buying a laptop directly from Dell.

Bullwhip effect (Textbook, Ch. 5): Increasing demand distortion as orders move up the supply chain. Example: A small retail spike causing factory overproduction.

RFID (Radio Frequency Identification) (Textbook, Ch. 5): Wireless tags used to track inventory accurately and automatically. Example: Scanning an entire clothing rack instantly.

Contract manufacturing (Textbook, Ch. 5): Outsourcing production to third‑party firms instead of owning factories. Example: Clothing brands using overseas factories.

Core competency (Textbook, Ch. 5): The activity a firm does best that provides competitive advantage. Example: Apple focusing on design and marketing.

Distributor (Textbook, Ch. 5): An intermediary that connects manufacturers and retailers. Example: Food distributors serving restaurants.

Logistics (Textbook, Ch. 5): The coordination and movement of goods throughout the supply chain. Example: Using GPS software to optimize deliveries.

Omnichannel (Textbook, Ch. 5): Providing a seamless shopping experience across physical and digital channels. Example: Buying online and picking up in store.

Point‑of‑sale (POS) system (Textbook, Ch. 5): Checkout systems that process transactions and collect sales data. Example: Touchscreen registers at coffee shops.