Supply Chain Chapter 1

What has a supply chain?

Any organization in the world offering a product or service has one.

What do products and Services create?

Materials, Equipment, Labor, Time, money, and other resources.

Producing and delivering products and services requires

suppliers, manufacturers, and customers.

What are links?

The links from suppliers to manufacturers to customers.

external sources of supply

raw materials, intermediate, and or finished material or service suppliers

Distrubtion Channels

Wholesaler and distributor customers, retail customers, and consumers.

Supply Chain Management

a bunch of separate companies that do not own each other to act like a synchronized team so the end customer gets what they ordered, right on time, without chaos or wasted money.

goals of scm

Increase customer service while simultaneously reducing inventory and operating expenses.

what are customers paying for the in the serive industry

labor and the intellectual property of the service provider.

 The service supply chain is more a

bout managing the relationships between the trading partners more than it is about managing the supply chain.

Many services require the use of

Facilitating goods are tangible elements that are used along with the service provided.

even though a service itself is intangible

it almost always relies on tangible things to function

SCOR Model

describing supply chain operations across the entire end-to-end network (from suppliers' suppliers to customers' customers) using Plan, Source, Make, Deliver, Return, and Enable

end to end supply chain

entire sequence of activities spanning from your suppliers’ suppliers on one side, through your internal operations, and all the way out to your customers’ customers on the other side.

SCOR : PLAN

Strategy for managing all of the resources necessary to address how a product or service will be created and delivered to meet the needs of their customers

SCOR SOURCE

The phase focused on identifying and contracting with reliable suppliers for raw materials and services, establishing supplier pricing, and monitoring supplier performance

SCOR: Make

The phase where materials are converted, assembled, tested, and packaged into finished products; it is the most metric-intensive portion of the supply chain.

SCOR: Deliver

Also known as outbound logistics; the phase that manages customer order intake, warehousing networks, transportation carrier selection, and final delivery to customers

scor return

reverse logistics; the phase that manages the flow of products from the point of consumption back to the point of origin for repair, reclamation, recycling, or disposal.

SCOR: Enable

Processes, technologies, and systems (such as ERP, EDI, IT infrastructure, contracts, and training) that support every stage of the supply chain; it does not occur sequentially after the other steps

Material Requirements Planning (MRP)

A computer-based, time-phased method of determining what materials are needed and when they are needed to support the production schedule.

Manufacturing Resource Planning (MRP II)

An advanced planning system that links business planning, production planning, master scheduling, capacity requirements planning, and execution systems together across a manufacturing firm.

Just-in-Time (JIT)

A manufacturing philosophy focused on the planned elimination of all waste and continuous productivity improvement.

Total Quality Management (TQM)

An organization-wide management approach to customer satisfaction where all members take direct ownership of process quality and operational improvement.

Business Process Reengineering (BPR)

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.

Collaborative Planning, Forecasting, and Replenishment (CPFR)

A business practice where supply chain trading partners jointly plan demand forecasts, production schedules, and inventory replenishment from raw materials to final delivery.

Sales and Operations Planning (S&OP)

Process linking tactical marketing plans directly to supply chain operations to manage demand.

Logistics

Focuses on activities occurring within the scope of a single organization to move and store goods efficiently (transportation, warehousing, material handling, distribution, inventory management).

scm

The coordination of an end-to-end network of independent trading partners collaborating to create and deliver products and services when and where the customer requires them.

FOUR foundations of SCM

Operations, Supply, Logistics, and Integration.

Operations Management (Internal Resources):

• Forecasting & demand planning.

• Planning systems and inventory control.

• Process management via Lean (eliminating waste, improving material flow) and Six Sigma (improving quality compliance across suppliers)

Supply Management (Upstream Supplies & Suppliers)

• Purchasing management (acquiring materials and services).

• Strategic sourcing (locating and evaluating key long-term suppliers).

• Supplier Relationship Management (SRM) (managing ongoing collaborative supplier ties).

Logistics Management (Flow & Storage)

is the process of planning, executing, and controlling the movement and storage of products and materials within a supply chain, whether the flow is moving forward to customers or in reverse

Integration (Enabling the System)

focused on managing all the enabling systems, tools, and processes required to seamlessly connect and coordinate the other three foundations

Efficient Model

Configured for high volume, high capacity utilization, and lowest possible cost; best for functional products with stable, predictable demand (commodities, everyday staples)

Responsive Model:

Configured for speed, flexibility, and minimal stockouts; best for innovative products with short lifecycles, rapid design shifts, and unpredictable demand (electronics, fast fashion).

Push Business Model (Make-to-Stock):

A production strategy used for roughly 95% of products where items are manufactured ahead of time based on demand forecasts before customer orders arrive.

Pull Business Model (Make-to-Order)

A production strategy used for roughly 5% of products where goods are manufactured only after an actual customer order is received.