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Supply Chain Management PowerPoint PPT Presentation


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DAVIS AQUILANO CHASE PowerPoint Presentation by Charlie Cook. Supply Chain Management. F O U R T H E D I T I O N. chapter 13. © The McGraw-Hill Companies, Inc., 2003. Chapter Objectives.

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Supply Chain Management

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Supply chain management l.jpg

DAVIS

AQUILANO

CHASE

PowerPointPresentation

by

Charlie

Cook

Supply Chain Management

F O U R T H E D I T I O N

chapter 13

© The McGraw-Hill Companies, Inc., 2003


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Chapter Objectives

  • Introduce the concept of a firm’s supply chain and show how it has evolved over time to its present status.

  • Identify current trends that are affecting the characteristics of a supply chain.

  • Present the requirements necessary for a successful supply chain.

  • Discuss the impact of technology on a firm’s supply chain.

  • Define in-transit inventory costs and show how they impact the purchasing decision.

Fundamentals of Operations Management 4e


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Managerial Issues

  • Concentration of resources on the firm’s core competencies such as supply chain management.

  • Increasing proportion of purchased goods and services as inputs into products.

  • Increased pressure to reduce inventories.

  • Applying advances in information technology to strategically manage supplier relationships and the supply chain itself.

Fundamentals of Operations Management 4e


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Definition of Supply Chain Management

  • Supply Chain

    • The steps and the firms that perform these steps in the transformation of raw inputs into finished products bought by customers.

  • Inbound Logistics

    • The delivery of goods and services that are purchased from suppliers and/or their distributors.

  • Outbound Logistics

    • The delivery of goods and services that are sold to a firm’s customers and/or distributors.

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A Company’s Supply Chain

Exhibit 13.1

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The Evolution of Supply Chain Management

Exhibit 13.2a

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The Evolution of Supply Chain Management

Exhibit 13.2b

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The Trend Toward Reducing the Number of Suppliers

Exhibit 13.3

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Key Terms

  • Supplier-Managed Inventories

    • Inventories in a firm’s facility that are the responsibility of the supplier to maintain and to replenish as necessary.

  • Consignment Inventories

    • Inventories that are physically present in a firm’s facility but that are still owned by the supplier.

  • EDI (electronic data exchange)

    • Direct link between a manufacturer’s database and that of the vendor.

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Key Terms (cont’d)

  • Quick Response (QR) Programs

    • Just-in-time replenishment system using bar-code scanning and EDI.

  • Efficient Customer Response (ECR)

    • Strategy for bringing distributors, suppliers, and grocers together using bar-code scanning and EDI.

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ReducedNumber ofSuppliers

Supplier-ManagedInventories

IncreasedCompetition

ContingentInventories

Supply

Chain

ShorterProductLife Cycles

Shared orReducedRisk

Advances InTechnology

Factors Impacting the Supply Chain

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Trust

Long-TermRelationships

Individual Strengths

InformationSharing

Requirements for Successful Supply Chain

SuccessfulSupply ChainManagement

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The Role of Logistics in The Supply Chain

  • Partnering

    • Establishing a strategic alliance or partnership with a firm that specializes in transportation or logistics.

    • Using a logistics partner to store finished goods at the logistics partner’s hub or distribution center.

Fundamentals of Operations Management 4e


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The Role of Logistics in The Supply Chain

  • In-Transit Inventory Costs

    • Combination of transportation and carrying costs associated with delivery of raw materials and components that are inbound to the plant.

Total annual (inbound) costs =Transportation costs + In-transit inventory carrying costs + Purchase costsTC=DM + (X/365)iDC + DCD=Annual demandM=Transportation cost per unitX=Transportation time in daysi=Annual cost of capitalC=Unit cost per item

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The Trade-Off between Transportation Costsand the Cost of Capital with Respect to the Shipment of Products

Exhibit 13.4

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Disintermediation

  • Disintermediation

    • The trend to reduce many of the steps in the supply chain by reducing the number of intermediaries in the chain.

      • Cross-docking

      • Direct-to-store shipments

    • JIT II®: vendor and customer work closely together, eliminating many of the intermediate steps that now exist.

      • Vendor representative located at facility

      • Direct database linkage with vendor’s manufacturing facility.

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Major SCM Software Packages

Exhibit 13.5

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