slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
CHAPTER 2 Supply Chain Management PowerPoint Presentation
Download Presentation
CHAPTER 2 Supply Chain Management

Loading in 2 Seconds...

play fullscreen
1 / 19

CHAPTER 2 Supply Chain Management - PowerPoint PPT Presentation


  • 227 Views
  • Uploaded on

CHAPTER 2 Supply Chain Management. SCM vs Logistics. Logistics deals with the management of material , service and information flow across the SC SCM formerly, integrating logistics across the SC integrating and managing key business processes across the SC. SCM vs Logistics.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'CHAPTER 2 Supply Chain Management' - noreen


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

CHAPTER 2

Supply Chain Management

slide2

SCM vs Logistics

  • Logistics
    • deals with the management of material, service and information flow across the SC
  • SCM
    • formerly, integrating logistics across the SC
    • integrating and managing key business processes across the SC
scm vs logistics
SCM vs Logistics
  • The integration of key business processes from end user through original suppliers, that provides products, services, and information that add value for customers and other stakeholders.
  • Logistics is a part of supply chain process that plans, implements and controls the efficient, cost-effective flow and storage of goods, services, and related information from point of origin to point of consumption in order to meet customers’ requirements.
slide4

SUPPLY CHAIN MANAGEMENT

CUSTOMER RELATIONSHIP MANAGEMENT

CUSTOMER SERVICE MANAGEMENT

DEMAND MANAGEMENT

ORDER FULFILLMENT

MANUFACTURING FLOW MANAGEMENT

PROCUREMENT

PRODUCT DEVELOPMENT AND COMMERCIALIZATION

RETURNS

Integrating and Managing Processes Across the Supply Chain

Information Flow

Manufacturer

Tier 2

Supplier

Tier 1

Supplier

Consumer/End-user

Logistics

Customer

Marketing & Sales

Purchasing

PRODUCT FLOW

Production

Finance

R&D

Supply Chain Business Processes

Source: Douglas M. Lambert, Martha C. Cooper, Janus D. Pagh, “Supply Chain Management: Implementation Issues and Research Opportunities”, The International Journal of Logistics Management, Vol. 9, No. 2, 1998, p. 2.

Figure 2-1

implementation of supply chain management

Typical

Functions

Silos

Business

Processes

Sales &

Manufac-

Finance &

Technical

Logistics

Purchasing

Marketing

turing

Accounting

C

S

Customer

Account

Requirements

Requirements

Manufacturing

Sourcing

Customer

Relationship

Management

Definition

Definition

Strategy

Strategy

Profitability

Management

U

U

Account

Technical

Performance

Coordinated

Priority

Cost

Customer Service

Management

Administration

Service

Specifications

Execution

Assessment

To Serve

S

P

Demand

Process

Network

Capability

Tradeoff

Demand

T

P

Sourcing

Management

Planning

Requirements

Planning

Planning

Analysis

O

L

Special

Environmental

Distribution

Plant

Selected

Distribution

Fulfillment

Orders

Requirements

Management

Direct

Supplier(s)

Cost

M

I

Packaging

Process

Prioritization

Production

Integrated

Manufacturing

Manufacturing Flow

Management

Specifications

Stability

Criteria

Planning

Supply

Cost

E

E

Order

Material

Inbound

Integrated

Supplier

Materials

Procurement

Booking

Specifications

Flow

Planning

Management

Cost

R

R

Product

Business

Product

Movement

Process

Material

S

S

Development and

R & D Cost

Plan

Design

Requirements

Specifications

Specifications

Commercialization

Information Architecture, Data Base Strategy, Information Visibility

Note: Process sponsorship and ownership must be established to drive the attainment of the supply chain vision and eliminate the functional barriers that artificially separate the process flows.

IMPLEMENTATION OF SUPPLY CHAIN MANAGEMENT
customer relationship management
Customer Relationship Management
  • Customer service teams develop and implement customer partnering programs.
  • New customer interfaces lead to improved communication and better predictions of customer demand and improve the way customers are serviced.
  • Teams identify and eliminate sources of production variability.
  • Key performance evaluation criteria (both level of service and customer profitability) are used to measure results.
customer service management
Customer Service Management
  • Provides a single source of customer information, a point of contact for administration of the product/service agreement.
  • Conveys real-time information through interface with product and distribution operations.
  • Requires an on-line/real-time product and pricing information to assist customers with inquiries, order placement, and after-sales service.
  • Includes front line technical service that assists customers with product applications and recommendations.
slide8

Supply Chain Network Structure

Tier 3 to

Initial

suppliers

Tier 3 to

Consumers/

End-Customers

Tier 2

Suppliers

Tier 1

Suppliers

Tier 1

Customers

Tier 2

Customers

1

1

2

2

n

n

1

1

1

Tier 3 to n suppliers

1

2

2

n

n

1

Consumers / End-Customers

Initial Suppliers

3

2

n

1

Tier 3 to n customers

3

2

n

n

n

1

n

Focal Company

Members of the Focal Company’s Supply Chain

Figure 2-2

the scm framework elements and key decisions

2. What processes should be linked

with each of these key

supply chain members?

Supply chain

business

processes

Supply chain

management

components

Supply chain

network

structure

3. What level of integration

and management should be

applied or each process link?

1. Who are the key supply

chain members with whom

to link processes?

The SCM FrameworkElements and Key Decisions

Figure 2-3

supply chain network structure
Members of SC

Primary members: retailers,…

Supporting members: banks,…

Distinction may not be obvious

Supply Chain Network Structure
supply chain network structure1
Three structural dimensions

Horizontal structure: number of tiers across the SC

Long with many tiers (or short...)

Vertical structure: number of firms in a tier

Narrow if there are only a few firms

Horizontal position: Position of focal company-can be positioned at or near initial source of supply or the end users

Supply Chain Network Structure
issues affecting channel structure
Issues Affecting Channel Structure
  • Make versus buy: outsourcing
  • Postponement: shifting the risk
  • Postponing changes in the form and identity of the product to the last possible point in the marketing process
  • Postponing inventory location to the last possible point in time
issues affecting channel structure1
Issues Affecting Channel Structure
  • Risk

-economies of large scale production

-reduction in logistics costs

-reduction of stockouts

-reduction of uncertainty

  • Local laws
  • Social and behavioral variables
  • Physical factors: geography, size of market, concentration of markets
  • Technological factors
issues affecting channel structure2
Issues Affecting Channel Structure
  • Type of distribution

-Intensive distribution: chewing gum…

-Selective distribution

-Exclusive distribution

  • Seasonality
product characteristics
Product characteristics

Issues Affecting Channel Structure

  • Value
  • Technicality
  • Market acceptance
  • Substitutability
  • Bulk
  • Perishability
customer service objectives
Customer service objectives
  • Availability
  • Order cycle
  • Communication
types of business process links
Types of business process links

Managed Process Links

Monitored Process Links

Not-Managed Process Links

Nonmember Process Links

Types of Business Process Links
slide18

Tier 3 to

Initial

suppliers

Tier 3 to

Consumers/

End-Customers

Tier 2

Suppliers

Tier 1

Suppliers

Tier 1

Customers

Tier 2

Customers

1

1

2

2

n

n

1

1

1

Tier 3 to n suppliers

1

2

2

n

Consumers / End-Customers

n

1

Initial Suppliers

3

2

Tier 3 to n customers

1

n

1

3

2

n

n

n

n

1

1

n

n

Focal Company

Managed Process Links

Monitor Process Links

Members of the Focal Company’s Supply Chain

Not-Managed Process Links

Non-Members of the Focal Company’s Supply Chain

Non-Member Process Links

Types of Inter-company Business Process Links

Source: Douglas M. Lambert, Martha C. Cooper and Janus D. Pagh, "Supply Chain Management: Implementation

Issues and Research Opportunities,” The International Journal of Logistics Management, Vol. 9, No. 2 (1998), p.7.

underlying process vision

Customer Relationship

Management

Customer Service Management

Fulfillment

Customer

Demand

Management

Procurement

Manufacturing Flow

Management

Underlying Process Vision

Supply Chain Management Vision

The key to achieving an integrated flow of product and information throughout the supply chain is to create a focused customer interface, a focused supplier interface, and an integrated, process-oriented, supply chain which is driven by the customer.

Source: 3M