Chapter 13
Supply chain planning and control
Source: Tibbett and Britten
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
What is supply chain management?
‘Supply chain management is the management of the
interconnection of organizations that relate to each other
through upstream and downstream linkages between the
processes that produce value to the ultimate consumer in
the form of products and services.’
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Supply chain management is concerned with the flow of
information as well as the flow of products and services
•Long-term plans and requirements
•Market research information
•Individual orders
•Payment
•Potential new products and services
‘Upstream’ flow
of customer
requirements
Flow between
processes
Flow between
processes
Flow between
processes
Consumer
•Products and services
•New products and services
•Delivery information
•Payment request / Credit
‘Downstream’ flow
of products and services
for customer
fulfilment
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Second-tier
supplier
First-tier
supplier
First-tier
customer
Supply side
Information
flow
Physical
flow
Purchasing and
supply
management
Second-tier
customer
End
customer
Demand
side
Physical distribution
management
Logistics
Materials management
Supply chain management
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007