PLY-CHAIN MANAGEMENT

Lect. Dr. Anca Irina Cecal

Lect. Dr. Sorina Chiper
LEARNING OBJECTIVES:

 To understand the stages and actors involved

in a supply chain
 To practice the use of collocations, nouns and

verbs connected with supply-chain

management and logistics
 To practice zero, first and second

conditionals
 To become familiar with the stages of

negotiations and develop negotiation skills

Theory of SCM and logistics
Definitions:
1. Logistics = practical arrangements necessary to organise something
successfully, especially when a lot of people or equipment are involved
2. Supply chain = suppliers, storage facilities, retailers and modes
of transport involved in getting a product from its source to the
end user.
e.g. The supply chain of coffee:
 Actors involved: farmers, coffee buyers, storage companies,

coffee manufacturers, buyers for cafés, café employees, café

customers
 Chain Stages: farmers sell coffee; coffee is stored, packed and

transported to manufacturers of finished goods (coffee beans are

ground and repackaged); finished goods are sold to cafés; hot
coffee is sold to customers
Functions of a supply chain
 Receiving and filling customer requests
 New product development

 Marketing

 Production operation

 Distribution

 Finance

 Customer services

Each stage in the supply chain is connected through

the flow of materials, products, information and
funds. These flows often occur in both directions.
Supply chain goal
The primary purpose of the supply chain is to
maximise the overall value generated.

Supply chain value=supply chain surplus=supply

chain profitability

S C Value = the difference between what the final

product is worth to the customer and the cost
incurred in fulfilling the customer request.
S C Surplus = the difference between the revenue
generated from the customers and the overall cost
across the supply chain
Decision-making phases of SCM
1. Supply-chain Strategy/design decision – long term, expensive
 How to structure the supply chain

 What the configuration of the supply chain will be

 How to allocate resources

 What processes each stage will involve

2. Supply-chain planning
- Time frame: 3 months to a year
 Goal: to maximise the supply chain surplus

Result: the development of a set of operating policies for short-term

operations.
3. Supply-chain operations
 Time frame: weekly or daily

 Decisions about an individual customer’s order

- Goals: dealing with incoming orders; allocating production resources

to meet individual orders; setting a date by which an order is to be
filled; setting the mode and schedule of delivery
Focus on vocabulary – nouns and noun phrases
Storage facility = a specially designed location where materials/goods/products are
kept/stored/deposited for a while
End user/consumer = customer, person who buys finished products
Supplier = a company offering raw materials or partly finished goods to other
companies
Manufacturer = producer of finished products (similar terms: production facility,
production unit, factory)
Wholesaler = company which sells finished products to shops
Retailer = shop selling finished products to consumers
E-tailer = organisations selling finished products via the Internet
Time frame = period of time

e.g. Enjoying a cup of coffee makes you the end user in a complicated supply chain
that you are probably unaware of.
Amazon and eMag are famous e-tailers today.
Which other local clothing manufacturers do you know besides Deltaplan and Be you?
Focus on vocabulary – verb-noun
collocations 1
To make the most of/maximise the overall value
e.g. Cutting a few unnecessary intermediaries could maximise
the overall value of our supply chain… Don’t you think so?
To increase/ raise the supply chain surplus
e.g. We need to call in an expert who will teach us how to raise
the supply chain surplus.
To create/generate revenue
e.g. How do you generate revenue in a time of crisis?
To cause/incur costs
e.g. Finding ecological supplies incurs additional costs.
To assign/allocate resources
e.g. Minimal resources were allocated to this project. Its
success is improbable.
Focus on vocabulary – verb-noun collocations 2

To deal with/handle orders

e.g. Please, handle orders more quickly; there’s a long line of
customers in front of your desk!
To fix/set the mode and schedule of delivery
e.g. The purpose of our meeting today is to set the mode and
schedule of delivery within a time frame that is convenient for
both our companies.
To coordinate/configure the supply chain
e.g. Let’s configure the supply chain! Who’s in charge of
transportation?
To spend time processing/filling customer requests/orders
e.g. In order to prioritise my tasks, I should know how you prefer
that I mainly spend my working time today: filling customer
requests or updating the data base?
Focus on grammar: Conditionals (1)
 Conditional sentences usually consist of two clauses: a main
clause and a conditional clause.
 The conditional clause may be located first in a sentence, or it

can come second in the sentence, after the main clause.

e.g. If it rains, we stay inside.
We’ve decided to stay inside, in case it rains.
(conditional clauses in red coloured text)

 The conditional clause expresses a condition for the

action/event in the main clause to happen, or the probability
of this action/event to occur.
 Conditional clauses are introduced by: if, in case, provided,
provided that, unless, when.
Focus on grammar: Conditionals (2)
 Zero conditional: if + present simple tense (conditional clause) +
present simple tense (main clause)
e.g. If an employee wants to cycle to work, we provide them with a
bicycle. (The sentence expresses something generally true.)

 First conditional: if + present simple tense (conditional clause) + will

future (main clause)
e.g. If you cannot collect the furniture yourself, we will deliver it for you
for an extra charge. (The sentence expresses a probable event).

 Second conditional: if + past simple tense (conditional clause) +

conditional form would + infinitive of vb. (main clause)
e.g. If one of our suppliers used child labour, we would not work with
them again. (The sentence expresses an improbable/ unlikely
situation.
Conditional words and phrases
 When – used when certain that something will happen.
e.g. When the meeting starts, everyone becomes quiet.
 If – used when uncertain that something will happen, because

a condition must be fulfilled for that thing to happen.

e.g. We might finish by lunchtime if the meeting starts on time.
 In case – used when one does something so that he/she is

ready for a situation in the future.

e.g. We should save some money to survive for a while in case
our company ever goes bankrupt.
 Unless – except if

e.g. I’m afraid we won’t find a replacement for Sally unless we

collaborate with a headhunting agency.
 Provided that – only if

e.g. We will sign the contract provided that you include a

suitable clause on product return policy.
Negotiating - stages

1. Decide what you want to achieve

2. Decide how much you are prepared to
compromise
Stages 1 and 2 occur before the negotiation
meeting(s)
3. Establish a relationship
4. Exchange information
5. Make proposals and bargain
6. Come to an agreement
The language of negotiations
Questions are a very important tool which can help to improve
communication in negotiations. Mastering questions helps you build
negotiation skills. Questions can be used:
1. To check/clarify information, starting with phrases such as: You
mean…, You mean to say that…?, Do you mean that… ?, If I understand
correctly, you’re saying that…?, etc.
e.g. You mean at the moment you’ve probably got three packing orders?

2. To find out new information, starting with: The question is…? Or with
any wh-word like who, where, when, how, which, why
e.g. What is your opinion on that?
I was wondering what your team thinks about our proposal?
When shall we meet next?
Who is your main supplier?
Why do you disagree?