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Week 1: Introduction. MIS 3537: Internet & Supply Chains Prof. Sunil Wattal. Introductions. Write on the index cards Name Major / Minor Recent Internships / Industry Experience What brings you here? Read introductions aloud. Have you ever wondered ….

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week 1 introduction

Week 1:Introduction

MIS 3537: Internet & Supply Chains

Prof. Sunil Wattal


Write on the index cards

  • Name
  • Major / Minor
  • Recent Internships / Industry Experience
  • What brings you here?

Read introductions aloud

have you ever wondered
Have you ever wondered …
  • How successful companies differentiate
    • Why makes Walmart one of the largest companies in the world?
    • How Team Obama achieved a record turnout in the elections?
  • Digital Products
    • How did Netflix become a dominant player in the DVD rental market?
    • Are you an Apple supplier?
have you ever wondered4
Have you ever wondered …
  • Is outsourcing always good?
    • Why did the employee at one of Apple’s suppliers commit suicide?
    • How did Mattel toys get contaminated with lead paint?
  • How to globalize?
    • How to compete in a global world?
    • Is your innovation process global

….. and many more!

what this course is about
What this course is about?
  • Everything about supply chains
    • Basics
    • Impact of IT
    • New models of competition
    • Competing as a network
    • Innovations in supply chains
    • Ethics and ‘green’ supply chains
practical relevance of the course
Practical Relevance of the Course
  • MIS Majors
    • IT in supply chain
    • Career Opportunities
  • Non MIS majors
    • Cost cutting
    • Innovation
    • New markets
course formalities
Course formalities


Office Hours

Lecture slides


Group Work

Preparing for class

learning objectives
Learning Objectives

Key concepts in supply chains

Trends in supply chain

what is a supply chain
What is a Supply Chain?


P&G or other


WalMart or

3rd party DC



Customer wants

detergent and goes

to Walmart







(e.g. Oil Company)



(e.g. Oil Company)





Source: Sunil Chopra and Peter Meindl ‘Supply Chain Management’ Prentice Hall, 2006

what is a supply chain10
What is a supply chain?
  • Also known as a “logistics network”
  • Consists of
    • Suppliers
    • Manufacturing centers
    • Raw materials
    • Work-in-process inventory
    • Finished products
    • Warehouses
    • Distribution centers
    • Retail Outlets
what constitutes a supply chain
What constitutes a supply chain?
  • Flow of materials
  • Financial Flow
  • Flow of information
    • That’s where IT fits in
  • Technology in a supply chain
    • Hardware
    • Software
    • Networking
    • Communications / Extranets / VPN
    • Processes
supply chain management
Supply chain management
  • A set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses and stores
  • Goals
    • To produce and distribute merchandise at right quantities, to the right locations at the right time
    • Minimize system-wide costs while satisfying system-level requirements
supply chain management13
Supply chain management
  • Decisions about the structure of the supply chain and what processes each stage will perform
  • Strategic supply chain decisions
    • Locations and capacities of facilities
    • Products to be made or stored at various locations
    • Modes of transportation
    • Information systems
  • Supply chain design must support strategic objectives
  • Supply chain design decisions are long-term and expensive to reverse – must take into account market uncertainty

Source: Sunil Chopra and Peter Meindl ‘Supply Chain Management’ Prentice Hall, 2006

knowledge check
Knowledge Check
  • Form groups of 4-5 students and explain the following terms
    • Cycle Time
    • Process & Capacity Planning
    • Sourcing
    • Contract manufacturing
    • Inventory Policies
    • Vendor Managed Inventory
    • Distribution Network
    • Transportation
    • Lead Time
    • Lot Sizing
    • Incentive Alignment
    • Revenue Management
    • Demand Forecasting
    • Customization
    • Push/Pull Supply Chains
why supply chains are important
Why supply chains are important
  • Cost Efficiency
    • (Walmart)
  • Complexity
    • (Walmart)
  • Agility
    • (Gap)
  • Need for innovation
    • (iPhone APIs)
  • Blurred organizational boundaries
    • (Cisco)
learning objectives16
Learning Objectives

Key concepts in supply chains

Trends in supply chain

factors driving supply chain
Factors driving supply chain
  • Information technology
  • Global suppliers / customers / competition
    • Companies are born global
  • Shorter product cycles / Clockspeed
  • Customized products
  • Need for collaboration
trends in supply chains
Trends in Supply Chains
  • Virtualization
  • Share the Supply Chain
  • Collaboration
  • Virtual sourcing
    • Materials and manpower
  • Global Information Technology Standards
  • Increased Awareness
    • Sustainability
    • Product safety
shifts in supply chain management
Shifts in Supply Chain Management
  • Shift 1: From Cross-Functional Integration to Cross-Enterprise
    • Old question: how do we get the various functional areas of our company to work together to supply product to immediate customers?
    • New question: how to record and activities across companies, as well as across internal functions, to supply product to the market?
  • Shift 2: From Physical Efficiency to Market Mediation.
    • Old question: how do we minimize the costs our company incurs in production and distribution of our products?
    • New question: how do we minimize the cost of matching supply and demand while continuing to reduce the costs of production and distribution?
  • Shift 3: From Supply Focus to Demand Focus.
    • Old question: how can we improve the way we supply product in order to match supply and demand better, given the demand pattern?
    • New question: how can we get earlier demand information or affect the demand pattern to match supply and demand?
shifts in supply chain management20
Shifts in Supply Chain Management
  • Shift 4: From single company, product design to collaborative, concurrent product, process and supply chain design
    • Old question: how should our company design products to minimize product cost (our cost of materials, production, and distribution)?
    • New question: how should collaborators designed the product, process, and supply chain to minimize cost?
  • Shift 5: From cost reduction to breakthrough business models.
    • Old question: how can we reduce our company's production and distribution costs?
    • New question: what new supply chain and marketing approach would lead to a breakthrough in customer value?
  • Shift 6: From mass-market supply to tailored offerings.
    • Old question: how should we organize our company's operations to serve the mass-market efficiently while offering customized product?
    • New question: how should we organize a supply chain to serve each customer or segment uniquely and provide a tailored customer experience?
areas of supply chain focus
Areas of Supply Chain Focus

In-Store Logistics: includes in-store visibility, shelf-ready products, shopper interaction

Collaborative Physical Logistics: shared transport, shared warehouse, shared infrastructure

Reverse Logistics: product recycling, packaging recycling, returnable assets

Demand Fluctuation Management: joint planning, execution and monitoring

next week
Next week…

The impact of the Internet on supply-chain strategies

From the “first click” to the “last mile”