NOTES OF SUPPLY CHAIN MANAGEMENT

Description
NOTES OF SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT

What it Supply Chain?
A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. ? It includes Manufacturer and suppliers, transporters, warehouses, retailers and customers. ? Within each company, the supply chain includes all functions involved in fulfilling a customer request (product development, marketing, operations, distribution, finance, customer service)
?

What it Supply Chain?
Customer is an integral part of the supply chain ? Includes movement of products from suppliers to manufacturers to distributors, but also includes movement of information, funds, and products in both directions ? Probably more accurate to use the term “supply network” or “supply web” ? Typical supply chain stages: customers, retailers, distributors, manufacturers, suppliers
?

Supplier

Manufacturer

Distributor

Retailer

Customer

Supplier

Manufacturer

Distributor

Retailer

Customer

Supplier

Manufacturer

Distributor

Retailer

Customer

Supply Chain Stages

Supply Chain Stages
Each stages in a supply chain is connected through the flow of products, information and funds. ? These flows often occur in both directions ? Depends upon customer needs
?

Objectives of Supply Chain
Maximise the overall value of the product ? Maximise Supply Chain Profitability/supply chain surplus ? Flow of information and funds ? Effective Supply Chain Management – Management of supply chain assets, product, information and fund flow
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Importance of Supply Chain Decisions
Supply Chain Flow – product, information and funds ? Supply Chain design, planning and operation decisions play a significant role in the success or failure of a firm.
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Decision Phases in a Supply chain
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Supply Chain Strategy or Design
? Marketing

and pricing plans for a product ? Structuring the supply chain for several years ? In-House or Outsource ? Decides the SC Configuration
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Supply Chain Planning
? Planning

for quarter year to a year ? Forecasting
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Supply Chain Operation
? Weekly

or daily operation ? Individual customer orders

Process Views of Supply Chain
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Cycle View
? The

processes in a supply chain are divided into a series of cycles, each performed at the interface between two successive stages of a supply chain

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Push/Pull View
? Pull

processes are initiated by a customer order ? Push processes are initiated and performed in anticipation of customer orders.

Cycle View of Supply Chain Processes
Customer order cycle ? Replenishment Cycle ? Manufacturing Cycle ? Procurement Cycle
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Cycle View of Supply Chain Processes Customer
Customer Order Cycle

Retailer
Replenishment Cycle

Distributor
Manufacturing Cycle Manufacturer

Procurement Cycle
Supplier

Sub Process
Supplier Stage Market Product

Buyer returns reverse flows to supplier or third party

Buyer Stage Places Order

Buyer Stage receives supply

Supplier Stage receives order

Supplier Stage supplies order

Push /Pull view of supply chain processes
?

Pull Process
? With

Pull Process, execution is initiated in response to a customer order ? Also referred to as Reactive Processes ? This process operate in an environment in which customer demand is known

Push /Pull view of supply chain processes
?

Push Process
? Execution

is initiated in anticipation of customer

orders ? Demand is not known and must be forecast ? Also known as Speculative Processes

Push /Pull view of supply chain processes
Push/pull Boundary

Push Processes
Process 1 Process 2 Process 3 Process 4

Pull Processes
Process 5 Process 6 Process 7

Customer Order Arrives

Supply Chain Macro Processes in a Firm
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Customer Relationship Management (CRM)
? All

processes that focus on the interface between the firm and its customers

? ?

Internal supply chain management (ISCM)
? All
? All

processes that are internal to the firm

Supplier Relationship Management (SRM)
processes that focus on the interface between the firm and its suppliers

Supply Chain Macro Processes in a Firm
Supplier Firm Customer

SRM
Source Negotiate Buy Design Collaboration Supply Collaboration

ISCM
Strategic Planning Demand Planning Supply Planning Fulfillment Field Service

CRM
Market Price Sell Call Center Order Management



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