Strategic Supply Chain Management

Chapter 1: Managerial Principles

• Managerial activities include planning, leading, organizing, and controlling resources to achieve organizational vision.
• Effective management requires specific skills at different organizational levels.
• Conceptual skills: Cognitive ability to understand the organization and its interrelationships. Top-level managers require the most conceptual skills.
• Interpersonal skills: Ability to listen and collaborate with people inside and outside the organization.
• Technical skills: Ability to understand and correct errors in organizational procedures and systems; more important for middle and lower-level managers.
• Manager Roles:
  • Interpersonal: Acting as a representative, leading, and building relationships.
  • Informational: Gathering, analyzing, and disseminating information.
  • Decisional: Making strategic decisions based on internal and external information.
• Planning:
  • Sets direction and provides a roadmap for the organization.
  • Requires a future-oriented approach from all levels.
  • Enables achievement of milestones and organizational vision.
• Leadership:
  • Involves influencing employees to achieve organizational goals.
  • Requires building relationships and providing direction through motivation.
• Departmentalisation:
  • Functional: Grouping activities by function (e.g., marketing, finance).
  • Product: Organizing by product brands.
  • Location: Decentralized approach with offices across regions.
  • Customer: Categorizing departments by client.
  • Matrix: Used in complex businesses requiring specialist insight.
• Authority Lines:
  • Line: Direct authority between employee and manager.
  • Staff: Functional managers advising other departments.
  • Line and Staff: Collaboration between line and staff authority.
  • Functional: Specialist responsibilities with the ability to give orders.
  • Project: Horizontal authority across departments.
• Control Processes:
  • Tracking plans and ensuring performance standards are met.
  • Requires continuous review and delegation of tasks.

Chapter 2: Strategic Management

• Standardized understanding of strategy is necessary for clear communication among scholars and practitioners.
• Strategic management helps resolve strategic problems in a complex world.
• Strategy is essential; operational effectiveness is not a substitute.
• Corporate Strategy: Focuses on overall purpose and management of diverse business units.
• Business Strategy: Focuses on attaining and maintaining a competitive advantage in a specific market.
• Sustainability: Aims for long-run above-average performance through sustainable competitive advantage.
• Market-Based View: Exploits market opportunities by constructing a value chain.
• Resource-Based View: Determines a price point based on internal capabilities and limitations.
• Mintzberg’s Design-Versus-Emergence Argument:
  • Intended Strategy: Planned strategy.
  • Unrealized Strategy: Parts of the strategy that do not manifest.
  • Deliberate Strategy: Parts of the intended strategy that do manifest.
  • Emergent Strategy: Strategy that reveals itself during implementation.
  • Realized Strategy: Sum of deliberate and emergent strategies.
• Porter’s Generic Strategies for Competition:
  • Cost Leadership: Low-cost, low-priced standardized products.
  • Differentiation: Unique products or services with a higher price point.
  • Cost Focus: Targeting a narrow customer group with a cost advantage.
  • Differentiation Focus: Targeting a narrow customer group with unique needs.
• Value Chain:
  • Contributes to competitive advantage when the cost of value-adding activities is less than the price customers pay.
  • Overlaps with supply chain management concepts.
• Shared Value:
  • Widening an organization’s commitment to include social and environmental well-being.
  • Differs from corporate social responsibility (CSR), which addresses social ills retrospectively.
• Lee, Bates, and Venter Model:
  • Factors to the right of culture have the largest impact on organizational culture.
  • Internal and external stakeholders represent the industry and employees/customers, respectively.
• Strategic Management and Supply Chain Management Gap:
  • A need for a stronger link between supply chain and strategy.
  • Supply chain managers exposed to business-level strategy issues.

Chapter 3: Principles of Supply Chain Management

• SCM defined: Overseeing the entire supply chain to ensure it is effective and efficient by minimizing costs, increasing productivity, selecting suppliers, and exceeding customer expectations.
• Evolution of SCM: From producing products based on consumer needs to having a balanced, integrated network that adds a competitive advantage.
• Basic principles of the production function:
  • Innovative developments are important improvements in products and services. Organizations must foster a creative environment for employees to facilitate product development.
• Value-added production activities:
  • Consumers want value. Value-add can be throughout the supply chain and improve quality of life or environment, or offer convenience.
  • Adapt supply chain to economic, political, and social changes.
  • Ensure efficient and effective production to deliver quality products on time.
  • Consider customer expectations and feedback is throughout the supply chain.
• Strategy and operations:
  • Maintain relationships with all stakeholders.
  • Align overall supply chain strategy to operational tasks.
• Operations team key activities:
  • Transform raw materials into quality products.
  • Design and improve supply chain processes and systems.
  • Control operational costs across the supply chain.
  • Manage reverse logistics.
  • Procure, use, and dispose of resources in an environmentally and socially responsible manner.
• Procurement management:
  • Identify right suppliers and ensure order quality, and payments are processed promptly.
  • Automating the procurement process enhances competitiveness and meets consumer expectations.
• Transportation management:
  • Involves the movement of products within the supply chain in a cost-effective way.
  • Consider the method of transportation, quantity, quality, or time.
• Warehouse and inventory management:
  • Warehouses act as facilities "in transit" before goods reach final destination.
  • Inventory involves physical goods (raw materials, work in progress, finished goods).
  • Success depends on effective of technologically enhanced inventory systems.
• Customer relationship:
  • Delivery is critical for value creation. Build and maintain good relationships on both sides of the supply chain.
• Major supply chain concerns:
  • Economy: Economic instability impacts business success, including currency fluctuations that affect import costs.
  • Government and legislation: Urbanization stresses infrastructure for delivering products and policy restrictions affect vehicle movements.
  • Environmental: Increase occurrence of natural disasters and supply chain must improve its sustainability in local communities.
  • Technological: Technology use increases supply chain competitiveness by accurately tracking data and inventory along the supply chain.
  • Employees: Growth demands qualified individuals and the rapid evolution of technology requires constant skills development.
  • Labor Relations: Unstable labor relations can easily disrupt products and operations of industries.

Chapter 4: Spatial Perspectives on Strategic Warehouse Development

• Warehouses act as physical linkages in supply chains, influencing inventory management and effectiveness.
• Warehouse development influences competitiveness of regional supply chains.
• Warehouse location is influenced by infrastructure, land use, and access to resources.
• Warehouse-related costs are a considerable contributor to total production costs in developing regions.
• Warehouse development is linked to supply chain adaptability and flexibility, and decreased lead times.
• Warehouse regional location factors:
  • Infrastructure availability includes transport, bulk service, and telecommunication infrastructure.
  • Government decisions on taxes, legal protections, and incentives influence location choice.
  • Market dynamics consider the current and potential size of the market.
• Warehouse urban context factors:
  • Accessibility to local/regional road networks and international markets near airports, logistics hubs, railways, and ports.
  • Engineering services requirement such as sewerage, water and electricity. These factors have challenges in developing countries.
  • Physical suitability consider topography, soil, geological factors, climate impact and environmental impact of a development.
• Urban Structure and Warehouse Placement:
  • Concentric Zone Model: 5 land use zones radiating from the CBD - does not account for industrial or warehouse land use.
  • Sector Model: Adds industry zone linked to transport corridors.
  • Multiple Nuclei: Multiple CBD development and also warehouses are included, with wholesale and light manufacturing zones.
• Land use and zoning regulations can include: to create safe environments, promote convenience, and promote conservation.
• Warehouse within business or light industrial parks:
  • Best to consider geometric design of access and internal roads.
  • Site planning: integrated design relating to buildings, parking and access.
  • Buildings: façade appearance and functional relations as other uses.

Chapter 5: Forecasting and Demand Planning

• Demand forecasting is important: It helps manufacturing and service organizations prepare for consumer needs.
• Demand planning is defined as practice future need for specific goods. If done right helps deliver excellent consumer service, while meeting set financial goals.
• Quantitative forecasting techniques time series:
  • Moving average.
  • Weighted moving average.
  • Exponential smoothing.
  • Linear regression.
  • Multiple regression
• Qualitative forecasting includes:
  • Customer Surveys.
  • Jury of executive opinion.
  • Delphi method.
• Steps in the forecasting process include:
  • Determine the purpose of the forecast.
  • Correct time horizon must be chose.
  • Technique to be used.
  • What data should be used.
  • Using chosen methods do a forecast.
  • Keep track of forecast.
• Forecasting adapting into cloud:
  • Have access to best technology.
  • Decrease costs.
  • Minimal technology required.
• demand planning:
  • Reliable information through software.
  • Smooth communications.
  • Data analysis.
  • Decrease shortages.
  • Reduce total cost.

Chapter 6: Procurement of Inventory

• Procurement includes purchasing and supply chain activities related to receiving orders.
• It is strategically key to organization regardless of size.
• Key purchasing cycle steps:
  • Placing the order.
  • Selecting a supplier.
  • Analyzing the invoice.
  • Making payment.
  • Receiving and distributing.
• Procurement structures can categorized into:
  • Centralized.
  • Decentralized.
  • Combination.

Chapter 7: Operations Management

• Operations management defined with MIT describing it as planning, organization, controlling, and supervision.
• Evolution of operations management from Adam Smith's division of labor to modern integration of technology.
• Principles of operations management consists of:
  • Unified purpose and continuous rapid improvement.
  • Competitor analysis and collaboration with customers.
  • Organizing resources and maintaining equipment.
  • Pull system and fixing any causes.
• The role and scope consists of operations management, and a few responsibilities:
  • Strategic decision and organizational management.
  • Tactical management responsibilities are transparency and communication throughout departments.
• Goods and service comparison:
  • Goods being touchable, and services been intangible.
  • Transfer of ownership from goods, compared to no transfer for services.
  • Evaluation easier with the goods category, compared to services.
• transformation management:
  • Inputs being the start to the transformation cycle.
  • Process then transforms cycle.
  • Outputs in line with what customer wants.
  • Feedback is from consumers needs, and will upgrade service.
• Effective operational measures is what all organizations strive for and what is always looked for.
• Increase visibility and make communication a requirement in the organization.
• Use health and safety management and improve staff's experince.

Chapter 8: Inventory Management

• Inventory management creates advantages, with good planning and organization.
• Five benefits of inventory management includes keeping stock, and also inventory costs.
• With accurate numbers, error should be expected to be low.
• Principles if management:
  • Forecasting and accurate recording keeping.
  • Limit average time period.
  • Watch out for possible errors in the supply department.
• Raw materials,packaging materials, works in progress materials and finally materials, are a few classifications.
• Safety or buffer stock reduces disruption during production stage.
• Inventors importance in satisfaction comes from balancing supply and demand.

Chapter 9: Warehouse Operations and Processes

• Four Operations:
  • Inbound.
  • Storage.
  • Outbound.
  • Value added Logistics.
• Warehouse role is having facilities with the value added logistics.
• Warehouse details:
  • Skill level.
  • Area of operations.
  • levels of Automation.
• Planning requirements from inbound and outbound management.
  • Scheduling delivery is the most essential part.
• Picking management. The process of taking orders and doing the orders.
• The limited time cross docking must operate in.
• Technology for E-commerce warehouse management is crucial.
• Safety is the basic requirements management.

Chapter 10: Managing the Logistics in the Supply Chain

• Distribution management: gaining competitive advantage.
• Aspects to consider before distribution includes:
  • volume.
  • value.
  • mass.
  • distance.
• Distribution tracking systems assists with real time tracking, from order out the stores, to the delivery details.
• Reverse logistics are effective for customer retention and longetivy.

Chapter 11: Sustainable Supply Chain Management

• Sustainability defined: The study of how natural systems function, remain diverse, and produce everything it needs for the future.
• Three primary dimension to be included:
  • Economic
  • Social.
  • Environmental.
• The PDCA cycle relative to environment regulation:
  • Plan.
  • Do.
  • Check.
  • Act.
• Green Supply Chain Management:
  • Reduction,Revaluing and Recycling products.
  • Effective Production.
• Follow steps for success strategy management process:
  • Assess stage one - identify and analyze problem.
  • In stage two Do - check test and then implement.

Chapter 12: Lean Supply Chain Management

• Competitiveness, and waste in an system is a few of the aspects.
• Lean and Agility are also the way to succeed. Using volume and cheap.
• Lean reduces, or drives out any kind of waste.
• Six is used, also lean six sigma, and six helps reduce what is not helping.
• Good planning and checking and or inspecting is highly valued.

Chapter 13: Supplier Relationship Management

• Supplier performance would be tested against such aspects as price, and also reliability.
• Three types of relationships:
  • Transactional - lowest risk.
  • Collaborative - buyer and seller works closely).
  • Strategic - shared risk and gains.
• Processes of importance such as evaluation, objectives management is crucial.

Chapter 14: Customer Relationship Management

• Customer relationship management focus is the goal for the 7 r's.
  • Right product.
  • Right Price.
• Lifecycle phases:
  • Acquire.
  • Reach.
  • converse.
  • retain,
  • loyalty.
• Effective use of CRM increase sale and retains customer.
• Effective process of implement with the cycle above and with:
  • Analytical use of CRM.
  • Operations use of CRM.
  • collaboration use with CRM.

Chapter 15: Ethics in Supply Chain Management

• Ethics can be defined as a systematic approach to understanding, and analyzing matters of right, and wrong.
• Meta ethics analyses and discusses moral debates.
• SCM ethics is high in trend, such as global markets. need goals.
  • Effective visions equals better management,
• Good finances make an effective organization.