SUBJECT
GROUP MEMBERS
CHAPTER NO 10
CONTENTS
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SUPPLY CHAIN
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SUPPLY CHAIN MANAGEMENT
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AN ASPECT OF SUPPLY CHAIN MANAGEMENT
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SUPPLY CHAIN MANAGERS
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TRENDS IN SUPPLY CHAIN MANAGEMENT
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GLOBAL SUPPLY CHAINS
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MANAGEMENT RESPONSIBILITIES
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INVENTORY MANAGEMENT
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LOGISTICS
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ORDER FULFILLMENT
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APPROCHES OF FULFILLMENT
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CREATING AN EFFECTING SUPPLY CHAIN
SUPPLY CHAIN
A SEQUENCE OF ORGANIZATION—THEIR
FACILITIES, FUNCTIONS AND ACTIVITESTHAT ARE INVOLVED IN PRODUCING AND
DELIVERING A PRODUCT OR SERVICES.
SUPPLY CHAIN MANAGERS
 SUPPLY CHAIN MANAGERS ARE
PEOPLE AT VARIOUS LEVELS OF THE
ORGANIZATION WHO ARE
RESPONSIBLE FOR MANAGING
SUPPLY AND DEMAND BOTH
WITHIN AND ACROSS BUSINESS
ORGANIZATIONS.
SUPPLY CHAIN MANAGEMENT
THE STRATEGIC COORDINATION OF
THE SUPPLY CHAIN FOR THE
PURPOSE OF INTEGRATING SUPPLY
AND DEMAND MANAGEMENT.
AN ASPECT OF SUPPLY CHAIN MANAGEMENT
AN IMPORTANT ASPECT OF SUPPLY CHAIN
MANAGEMENT IS FLOW MANAGEMENT.THE THREE
TYPES OF FLOW THAT NEED TO BE MANAGED ARE
PRODUCT AND SERVICE FLOW, INFORMATION FLOW
AND FINANCIAL FLOW.
TRENDS OF SUPPLY CHAIN MANAGEMENT
SEVERAL TRENDS ARE HAVING AN IMPACT ON THE WAY SUPPLY CHAINS ARE
DESIGNED AND MANAGED.
 REEVALUATION OF OUT SOURCING: COMPANIES ARE TAKING A SECOND
LOOK AT OUTSOURCING, ESPECIALLY GLOBAL SUPPLIERS.
 LEAN SUPPLY CHAINS: MANY BUSINESSES ARE TURNING TO LEAN
PRINCIPLES TO IMPROVE THE PERFORMANCE OF THEIR SUPPLY CHAINS.
 SUSTAINABILITY: ENVIRONMENT ISSUES ARE NOT A PRIMARY CONCERN AT
THIS POINT, ALTHOUGH ENVIROMENTAL GROUPS MAY SUPPLY PRESSURE IN
THE NEAR FUTURE AS GLOBAL WARMING AND THE CARBON FOOTPRINT OF
SUPPLY CHAINS COMES INTO PLAY.
GLOBAL SUPPLY CHAINS
AS BUSINESS INCRESINGLY MAKE
USE OF OUTSOURCING AND
PURSUE OPPORTUNITIES BEYOND
THEIR DOMESTIC MARKETS, THEIR
SUPPLY CHAINS ARE BECOMING
INCREASINGLY GLOBAL
MANAGEMENT RESPONSBILITIES
GENERALLY SPEAKING, CORPORATE MANAGEMENT RESPONSIBILITIES HAVE
LEGAL, ECONOMIC, AND ETHICAL ASPECTS.
 LEGAL RESPONSIBILTIES: INCLUDE BEING KNOWLEDGEABLE ABOUT LAWS
AND REGULATION OF THE COUNTRIES WHERE SUPPLY CHAINS EXIST,
OBEYING THE LAWS, AND OPERATING TO CONFORM TO REGULATIONS.
 ECONOMIC RESPONSIBILTIES: INCLUDE SUPPLING PRODUCTS AND SERVICES
TO MEET DEMAND AS EFFICIENTLY AS POSSIBLE.
 ETHICAL RESPONSIBILTIES:INCLUDE CONDUCTING BUSINESS IN WAYS THAT
ARE CONSISTENT WITH THE MORAL STANDARDS OF SOCIETY.
INVENTORY MANAMGEMENT
INVENTORIES ARE KEY
COMPONENT OF SUPPLY CHAINS.
INVENTORY MANAGEMENT ARE
PARTICULARLY IMPORTANT FOR
SUPPLY CHAIN MANAGEMENT.
THEY RELATE TO THE LOCATION OF
INVENTORIES IN THE SUPPLY
CHAIN, THE SPEED AT WHICH
INVENTORY MOVES THROUGH THE
SUPPLY CHAIN, AND DEALING WITH
THE EFFECT OF DEMAND
VARIABILITY ON INVENTORIES.
 THE MOVEMENT OF MATERIALS,
SERVICES, CASH, AND
INFORMATION IN A SUPPLY CHAIN.
 LOGISTICS INCLUDES MOVEMENT
WITHIN A FACILITY AND
OVERSEEING INCOMING AND
OUTGOING SHIPMENTS OF GOODS
AND MATERIALS THROUGH THE
SUPPLY CHAIN.
ORDER FULFILLMENT
ORDER FULFILLMENT REFERS TO THE PROCESS
INVOLVED IN RESPONDING TO CUSTOMER ORDERS.
APPROCHES OF FULFILLMENT
ENGINEER-TO-ORDER (ETO)
MAKE-TO-ORDER (MTO)
ASSEMBLE-TO-ORDER (ATO)
MAKE-TO-STOCK (MTS)
CREATING AN EFFECTING SUPPLY CHAIN
ACHIEVING AN EFFECTING SUPPLY CHAIN REQUIRES INTEGRATION OF ALL
ASPECTS OF THE SUPPLY CHAIN. TO ACCOMPLISH THIS, THERE MUST BE
 TRUST
 EFFECTIVE COMMUNICTION
 INFORMATION VELOCITY
 SUPPLY CHAIN VISIBILTY
 EVENT MANAGEMENT CAPABILITY
 PERFORMANCE METRICS