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Chapter 1: 21st Century Supply Chains. “Making the Supply Chain Work.”. . Logistics. Moving information. Moving products and services. . . . $. Moving money. Supply Chain Management. Supplier. Supplier. Supplier. Supplier. Seller. Buyer. Supplier. Supplier. Flow of

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Chapter 1: 21st Century Supply Chains

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Chapter 1: 21st Century Supply Chains

“Making the Supply Chain Work.”

.


Logistics

Moving information

Moving products and services

.

.

.

$

Moving money


Supply Chain Management

Supplier

Supplier

Supplier

Supplier

Seller

Buyer

Supplier

Supplier

Flow of

goods, services

information,

money

Supplier

Supplier

An integrated supply chain


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)


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.

Key Logistics Activities


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…”

Customers

Suppliers

Organization

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…

Customers

Suppliers

Organization

Procurement.

Parts and service

Support. Traffic.

Transportation.

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)


Supply Chain Management

Supplier

Supplier

Supplier

Supplier

Seller

Buyer

Supplier

Supplier

Flow of

goods, services

information,

money

Supplier

Supplier

An integrated supply chain


Supply Chain Management

  • “Supply chain management consists of firms collaborating to leverage strategic positioning and to improve operating efficiency…A supply chain strategy is a channel arrangement based on acknowledged dependency and 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

Wholesaler

Retailer

Consumer

Consumer

Supplier

Supplier

Factory

Retailer

.


Supplier

Supplier

Factory

Retailer


Retailer

Factory

.

.

.


These are the retailer’s

second tier suppliers.

These are the

Factory’s first

tier suppliers

This is the

retailer’s

first tier

supplier.

Tube

Supplier

Taste

Supplier

Retailer

Factory

2

1

Abrasive

Supplier

.

.

.

.

.

.

.


Metals

Tube

Supplier

Plastic

Chemicals

Taste

Supplier

Chemicals

Retailer

Factory

Chemicals

Abrasive

Supplier

Chemicals

.


These are the retailer’s third tier suppliers

Metals

Tube

Supplier

Plastic

Chemicals

Taste

Supplier

Chemicals

Retailer

Factory

3

2

1

Chemicals

Abrasive

Supplier

Chemicals


These are the factory’s second tier suppliers

Metals

Tube

Supplier

Plastic

Chemicals

Taste

Supplier

Chemicals

Retailer

Factory

3

2

1

Chemicals

Abrasive

Supplier

Chemicals

.


These are the tube supplier’s, the

taste supplier and the abrasive supplier’s

first tier suppliers

Metals

Tube

Supplier

Plastic

Chemicals

Taste

Supplier

Chemicals

Retailer

Factory

2

1

Chemicals

Abrasive

Supplier

Chemicals


Metals

Tube

Supplier

Plastic

Chemicals

Taste

Supplier

Chemicals

Retailer

Factory

Chemicals

Abrasive

Supplier

Chemicals


Metals

Tube

Supplier

Plastic

Chemicals

Taste

Supplier

Chemicals

Retailer

Factory

Chemicals

Abrasive

Supplier

Chemicals


Metals

Tube

Supplier

Plastic

Chemicals

Taste

Supplier

Chemicals

Retailer

Factory

End of Program.

Chemicals

Abrasive

Supplier

Chemicals


End of Program.


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