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
?
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.
?
Decision Phases in a Supply chain
?
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
?
Supply Chain Planning
? Planning
for quarter year to a year ? Forecasting
?
Supply Chain Operation
? Weekly
or daily operation ? Individual customer orders
Process Views of Supply Chain
?
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
?
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
?
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
?
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
doc_310313792.ppt
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
?
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.
?
Decision Phases in a Supply chain
?
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
?
Supply Chain Planning
? Planning
for quarter year to a year ? Forecasting
?
Supply Chain Operation
? Weekly
or daily operation ? Individual customer orders
Process Views of Supply Chain
?
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
?
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
?
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
?
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
doc_310313792.ppt