Pearson CSCP New Attempt

The key benefit of using technology in supply chain management is the ability to handle invoicing and payment processes online, which significantly improves the cash-to-cash cycle time. This enhancement brings several advantages:

Faster Transactions: Online invoicing and payment processing speed up financial transactions, reducing the time between paying for raw materials and receiving payment for finished goods.

Improved Cash Flow: Quicker cash flow improves liquidity and provides better working capital management.

Reduced Errors: Automated processes reduce the risk of human errors associated with manual invoicing and payments.

Enhanced Visibility: Real-time tracking and reporting of financial transactions provide better visibility and control over the supply chain finances.

Life Cycle Assessment (LCA) is a methodology used to assess the environmental impacts associated with all the stages of a product's life, from raw material extraction through to processing, manufacturing, distribution, use, and disposal or recycling. When a manufacturing process replaces a raw material with an alternative that reduces emissions, it is applying principles of LCA. This approach helps in understanding the overall environmental footprint of a product and finding opportunities to reduce negative impacts, such as emissions, by evaluating alternative materials and processes.

The product life cycle consists of four stages: Introduction, Growth, Maturity, and Decline. Total annual profit typically is highest at the maturity stage due to several factors:

Market Penetration: By the maturity stage, the product has achieved significant market penetration and established a stable customer base.

Economies of Scale: Production and operational efficiencies are maximized, reducing costs and increasing profit margins.

Stable Demand: Demand tends to stabilize during maturity, leading to consistent revenue streams.

Reduced Marketing Costs: Marketing expenses may decrease compared to the growth stage, as the product is already well-known.

In contrast, the introduction and growth stages involve higher costs for development and marketing, while the decline stage sees reduced sales and profitability.

References

Kotler, Philip, and Kevin Lane Keller. "Marketing Management." Pearson.

Anderson, Carl R., and Julian W. Vincze. "Strategic Management: An Integrated Approach." Cengage Learning.