Supply Chain Management
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Chapter 1: 21st Century Supply Chains “Making the Supply Chain Work.” . Logistics Moving information Moving products and services . . . Moving money $ Supplier Supply Chain Management Supplier Supplier Supplier Seller Buyer Supplier Supplier Supplier Supplier An integrated supply chain Flow of goods, services information, money Supply Chain Management “The process for designing, developing, optimizing, and managing the internal and external components of the supply system, including material supply, transforming materials, and distributing finished products or services to customers, that is consistent with overall objectives and strategies.” --Spekman, Kaumauff and Myhr (1998) Supply Chain Management “The process for designing, developing, optimizing, and managing the internal and external components of the supply system, including material supply, transforming materials, and distributing finished products or services to customers, that is consistent with overall objectives and strategies.” --Spekman, Kaumauff and Myhr (1998) Supply Chain Management “The process for designing, developing, optimizing, and managing the internal and external components of the supply system, including material supply, transforming materials, and distributing finished products or services to customers, that is consistent with overall objectives and strategies.” --Spekman, Kaumauff and Myhr (1998) Key Logistics Activities • Customer service. • Demand forecasting. • Inventory management. • Logistics communication. • Materials handling. • Order processing. • Packaging. • Parts and service support. • Plant and warehouse site selection. • Procurement. • Reverse logistics. • Traffic, transportation • Warehousing, storage. Supply Chain Management “The process for designing, developing, optimizing, and managing the internal and external components of the supply system, including material supply, transforming materials, and distributing finished products or services to customers, that is consistent with overall objectives and strategies.” --Spekman, Kaumauff and Myhr (1998) Supply Chain Management: “…internal and external components of the supply system…” Organization Suppliers Customers Demand forecasting. Plant and warehouse site selection. Inventory management. Materials handling. Warehousing, storage. Packaging. Order processing. Supply Chain Management: …internal and external components of the supply system… Organization Suppliers Procurement. Parts and service Support. Traffic. Transportation. Customers Customer service Parts and service support Reverse logistics Traffic, transportation . . Supply Chain Management • “Supply chain management consists of firms collaborating to leverage strategic positioning and to improve operating efficiency… Bowersox, Closs, Cooper “Supply Chain Logistics Management” (2007) Supplier Supply Chain Management Supplier Supplier Supplier Seller Buyer Supplier Supplier Supplier Supplier An integrated supply chain Flow of goods, services information, money Manufacturer Supply Chain Management • “Supply chain management consists of Wholesaler firms collaborating to leverage strategic positioning and to improve operating Retailer efficiency…A supply chain strategy is a channel arrangement based on acknowledged dependency and Consumer collaboration” Bowersox, Closs, Cooper “Supply Chain Logistics Management” (2007) . . . Manufacturer . . C H A N N E L Wholesaler Retailer Consumer . Manufacturer Wholesaler Retailer . . . Consumer . . . . . Manufacturer Supplier Wholesaler Supplier Retailer Factory Consumer Retailer Consumer . Supplier Supplier Factory Retailer Factory Retailer . . . These are the retailer’s These are the second tier suppliers. Factory’s first tier suppliers Tube Supplier Taste Supplier 2 This is the retailer’s first tier supplier. Retailer Factory 1 . . Abrasive Supplier . . . . . Metals Plastic Tube Supplier Chemicals Chemicals Taste Supplier Retailer Factory Chemicals Chemicals Abrasive Supplier . These are the retailer’s third tier suppliers Metals Plastic Tube Supplier Chemicals Chemicals 3 Chemicals Chemicals Taste Supplier 2 Abrasive Supplier Factory 1 Retailer These are the factory’s second tier suppliers Metals Plastic Tube Supplier Chemicals Chemicals 3 Chemicals Chemicals Taste Supplier 2 Retailer Factory 1 Abrasive Supplier . Metals Plastic These are the tube supplier’s, the taste supplier and the abrasive supplier’s first tier suppliers Tube Supplier Chemicals Chemicals 2 Chemicals Chemicals Taste Supplier 1 Abrasive Supplier Factory Retailer Metals Plastic Tube Supplier Chemicals Chemicals Taste Supplier Chemicals Chemicals Abrasive Supplier Factory Retailer Metals Plastic Tube Supplier Chemicals Chemicals Taste Supplier Chemicals Chemicals Abrasive Supplier Factory Retailer Metals Plastic Tube Supplier Chemicals Chemicals Taste Supplier End of Program. Chemicals Chemicals Factory Abrasive Supplier Retailer End of Program.
