Supply Chain

What is supply chain management?

It is the coordination of the network of otherwise independent trading partners who create a desired product or service and then move it through the supply chain to customers when and where the customer wants it.

(It’s the way business gets done)

There are two goals of supply chain management:

1. Increase customer service

2. Reducing inventory or operating expenses

Supply chains in the service industry:

1. Customers are more directly involved

2. Service is not tangible, but it centers around tangible work around a product that the customer provides

3. Service products generally cannot be produced in advance or inventoried

4. Services are typically produced and consumed instantly

Fascilitating goods examples

Food in restaurants, kitchen equipment, cash and coins, office supplies

Supply chain - SCOR model

Plan, source, make, deliver!

Supply chains span:

From end-to-end

SCOR Model: planning!

Establishes the parameters within which the supply chain will operate

SCOR model: sourcing!

Identifying the suppliers that provide the materials and services needed for the supply chain

(involves building relationships with said suppliers)

SCOR Model: making!

The series of operations that convert materials into finished products 

SCOR Model: deliver!

Also known as the logistics phase - this part of the process focuses on the forward flow of goods

SCOR Model: return!

Also known as reverse logistics, this deals with bringing products back to the point of origin for repair, recycling, etc

SCOR Model: enable!

This is the ability for a company to manage the supply chain 

Material requirements planning:

A time-phased method of determining what materials are needed and when to support the production plan

Manufacturing resources planning:

The effective planning of resources of a manufacturing company

Collaborative planning, forecasting, and replenishment (CPFR):

A process that helps trading partners jointly plan key supply chain activities

Sales and operations planning:

A process that integrates customer-focused marketing plans with the management of the supply chain

Just in time (JIT)

A philosophy of manufacturing based on the elimination of waste and continuous improvement

Total quality management:

A management apporach where all members of an organization take ownership of quality

Logistics:

focuses on moving products or materials most efficiently to arrive at the right place and time

Supply chain management extends beyon a company, here’s the key details:

1. It fascilitates the coordination of their actions to deliver products to consumers for the betterment of all companies in the networking

2. It includes all logistics, but involves a more expansive range of activities

Operations management:

Managing internal rscources related to planning and production

Supply management:

Managing all the supplies and suppliers that are needed to run the business

Logistics management:

Managing all the storage and movement of materials and products within the supply chain

Integration:

Managing all of the enabling systems necessary to fascilitate the complete integration of the operations, supply, and logistics functions outlined

Forecasting & Demand Planning –

forecasting the demand for a

product or service so it can be produced and delivered more

efficiently and satisfy customer needssatisfy customer needs.

Planning Systems –

the process and tools used to manage a

company’s resourcescompany’s resources to achieve the company’s goals

Inventory Management –

the activities and techniques used to

plan and control the desired levels of itemsdesired levels of items needed to support

production.

Process Management –

using LEAN ManufacturingLEAN Manufacturing

to improve the flow of materials and eliminate

waste in the process, and using Six SigmaSix Sigma to

improve quality compliance across all suppliers

(internal and external)

Purchasing Management –

responsibility for acquiring theacquiring the

materials, supplies, and servicesmaterials, supplies, and services the company needs to provide

their products and services to the market.

Strategic Sourcing-

a comprehensive approach for locating and

sourcing key material and service supplierskey material and service suppliers. This includes a focus

on developing long-term relationships.

Supplier Relationship Management

is a

comprehensive approach to managing amanaging a

company’s long-term interactionscompany’s long-term interactions with

the key organizations that supply the

materials and services that the company

needs.

Warehousing –

the activities related to receivingreceiving, storingstoring, and shippingshipping

materials to and from production or distribution locations.

Transportation –

planning, scheduling, and controlling activities related to

mode, carrier, and movementmovement of inventories into and out of a company.

Distribution –

the activities associated with moving finished goodsfinished goods from

the manufacturer to the customer.

International Trade Management –

exchanging goods and services across

international bordersinternational borders or territories

Customer Relationship Management –

strategies to ensure deliveries,

resolve complaints, improve communicationscommunications, and determine service

requirements

Service Response Logistics –

the management and coordination of the

company’s activities while the serviceservice is being performed

Project Management –

the use of skills and knowledge in coordinating,

organizing, planning, scheduling, directing, controlling, monitoring, and

evaluating prescribed activities to ensure that the stated objectivesobjectives of a

project are achievedachieved

There are two basic supply chain compatibilities models:

1. Efficient model

2. Responsive model

Efficient Model:

An efficient supply chain is configured

to maximize output with a minimum

input level at the lowest possible cost

Responsive Model

A responsive supply chain is configured

to be fast and flexible to respond

quickly to dynamic market demand and

new product launches.

Make-to-Stock:

Producing finished products based on anticipated demand before

receipt of an actual customer order

Make-to-Order:

Producing finished products in response to actual demand, i.e.,

only after an actual customer order is received.

A central principle of supply chain management is

using a

standardizedstandardized and stepwisestepwise approach to managing the supply chain