What is Supply Chain Management?. According to the text, supply chain management is defined as
1. Supply Chain Management By: Kyle Kurtenbach
2. What is Supply Chain Management? According to the text, supply chain management is defined as “the design of a firm’s customer relationship, order fulfillment, and supplier relationship processes and the synchronization of these processes with the key processes of its suppliers and customers in order to match the flow of services, materials, and information with customer demand.”
3. Can you say….mouthful? Wow, what does that definition mean? It sounds pretty complex, right? Well, sometimes it helps if you just break it down.
The following slides will help break down and explain what supply chain management is and all the processes involved in the chain.
4. Key Characteristics of the Supply Chain Customer Relationship
This component of the supply chain addresses the relationship a firm has with its customers.
In a healthy customer relationship, a firm will use processes that will attract customers and build relationships with customers. This will promote brand/product loyalty and more potential customers for the firm.
5. Key Characteristics of the Supply Chain Order Fulfillment
This component of the supply chain deals with the firm providing a product/service for the customer.
The internet has provided the opportunity for virtual supply chains, allowing for another options that firms can use as opposed to the traditional supply chain approach. The use of one or the other is dependent on the firm.
The concept of inventory placement is also an issue that firms face, especially those that are part of international companies.
6. Key Characteristics of the Supply Chain Supplier Relationship Processes
This component of the supply chain addresses the relationship between the firm and the suppliers of the raw materials the firm uses in its products.
Selection of the suppliers, the type of relationship (competitive or cooperative), location of the suppliers, and how essential the suppliers are all play into effect in determining the overall relationship that a firm has with its suppliers.
7. Management of the Chain With the potential for a number of independent firms to be involved in the supply chain, management of the supply chain can be difficult.
A firm attempts to synchronize the processes in the supply chain in a way that it can best suit its customers.
8. So what are we looking at here? An important aspect of understanding a supply chain is knowing what it looks like and how it works.
The supply chain a firm uses will depend upon a number of factors, such as the industry it is in or the products/services it is trying to produce.
The next slide shows what a typical supply chain may look like.
9. Basic Supply Chain Raw Mat. Supplier
10. Basics of the Chain The previous slide showed four sections to the supply chain: Raw Materials Supplier, Manufacturer (the Firm), Distributor, and the Customer.
As the diagram shows, the raw materials supplier supplies the materials to the firm. The firm then makes the product and sends it to its distributors. The distributors then deliver the end products to the customers.
11. Linking The Chain How does all of this information connect with each other?
The design of the supply chain influences how the firm manages its operations in order to foster customer relationships (including fulfilling orders by the customers) and foster supplier relationships.
A bad link between a supplier and the firm, or the firm and a distributor, can affect the processes further down the line, which ultimately affects the satisfaction that the customers receive from the firm.
12. Chain Reaction Inventory measures, process measures, and financial measures all play a significant part in managing the supply chain.
The firm will look at these measures and the effects that any changes to the supply chain may have in these areas, to determine if there are more efficient ways to run the chain.
13. Chain-Link Fence How big is supply chain management?
Supply chain management is used in many industries, especially those with different levels of processing and distributing goods (raw material suppliers, distributors, etc.)
Software programs exist that are specifically designed for supply chain management.
In fact, there are even organizations and publications out there dedicated to supply chain management!
14. Connecting The Chain Supply chain management is a critical process for a firm in terms of its success.
Maintaining good relationships with suppliers and customers are essential for the process to run smoothly.
Monitoring processes affected by the supply chain and the use of software can help make the chain more efficient and profitable for the firm to maintain.
15. Presentation Supply Chain Brains
16. Sources Operations Management: Processes and Value Chains, 7th Edition (Krajewski and Ritzman)
Yahoo! (www.yahoo.com) search, keyword “supply chain management”