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.