Process-oriented order response time interchange globalization franchise superior value top priority What is Supply Chain Management?

Supply Chain Management (SCM) is a process-oriented, integrated approach to procuring, producing and delivering products and services to the customers, interlinking manufacturers, retailers, customers and suppliers in the form of a chain to develop and deliver products as one virtual organization of pooled skills and resources.

___ (1). At an earlier stage of its development, SCM was limited to a physical distribution management, integrating warehousing and transportation to reduce inventory and shorten order response time. The next stage in the SCM evolution was marked by adding manufacturing, procurement and order management functions, which was made possible through electronic data interchange, communication and information technology developments on a large scale. ___(2)

Prognosticating about the developments and predicting the role of SCM in the future is not very easy, but it is certain that SCM will play the most critical part in providing competitive edge to any organization.___(3). Most logistics analysts point out such factors as consumer demands, globalization, competition, communication and information technology developments.

The three key strategies of growth i.e., customer franchise management, new product development and channel management can be a success only if the company has the ability to consistently and reliably execute supply chain processes that provide value, many times superior,

to the customers.

After experimenting with downsizing and re-engineering over the last decade, most of the companies have realized that cost reduction as long-term strategy is not very viable as long-lived prosperity lies in revenue growth. ___ (4). It happens because it can help achieve growth and benefit through superior value proposition, superior economics across the value chain and consistent superior execution.

(edited from http://.wordiq.com)

5. In the text you can see words highlighted yellow and green. Green words are synonyms to yellow ones. Do the matching. (Do not forget about the sentences removed from the text).

6. Read the text and point out the stages of SCM development. Give their characteristics.

Stage	Characteristics

7. Write a summary of the information contained in the text. Use the key-patterns given in Module 2.

Language Focus: Vocabulary

1. In the words in bold, rearrange the letters to make a meaningful sentence.

• Permission to sell company’s goods and services that is given to a business person is called a chifranse. a)_______________

• We made a complete tovenryin of everything in the shop. b)_______________

• During last ten years the range of imported tobacco has

increased dlofinam. c)_______________

• When the companies sidozewn their operations, it means that they reduce the number of people they employ in order to reduce costs. d)______________

• The final goal of every businessman is to have everything needed for ytirepsorp of his organization. e)_______________

• Most large companies are lersahwoles and they sell their products in large quantities, usually at low prices. f)______________

• The company had a lot of vacancies, there was

great egatrohs of skilled labour. g)______________

2. Make up all possible collocations with the following words. Put the bubbles into the right bottles.

3. Do the following puzzle.

Across:

^2

^1

^2

^3

^4

^4

^5

^6

^5

^6

1. to combine sth (money, ideas, skills) with those of other people, so that you can all use them

2. someone who sells things in a shop (shopkeeper)

3. no longer having sth you used to have

4. a particular product, the shop keeps a supply of to be sold

5. the range of things

6. to live or to develop is to be _____

Down:

1. the process of making or growing things to be sold

2. the act of delivering goods to companies, shops, etc

3. the state of not having sth or of not having enough of it

4. a company that provides a partiсular product

5. strong, determined

6. money that a business receives over a period of time, especially from selling goods or services.

4

operations warehouse supplier scale order supply chain purchase raw materials tracking finished manufacturer planning stocks costs

. a) Read the text and fill in the gaps with the words given in the box.