Supply chain management
1 / 18

Supply Chain Management - PowerPoint PPT Presentation

  • Updated On :

Supply Chain Management. AG BM 460. Introduction. Hanover Foods – 95% of output is produced under contract Contract w/ store or industrial customer or food service company including important variables Then plan production

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

PowerPoint Slideshow about 'Supply Chain Management' - tarika

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

Introduction l.jpg

  • Hanover Foods – 95% of output is produced under contract

  • Contract w/ store or industrial customer or food service company including important variables

  • Then plan production

  • Then contract w/ farmers to get what you need – including all important variables

Slide3 l.jpg

Mission of the Supply Chain:

Enhancing the customer’s experience through excellence in delivering the right products, services, resources and information seamlessly to the right place at the right time!

“Nowadays, it’s supply chains that compete with supply chains!”

Price Waterhouse Coopers

Slide4 l.jpg

Supply Chain Management Introduction

  • Some definitions

    • Supply Chain – the core business processes in an organization that create and deliver a product or service, from concept through development and manufacturing or conversion, and into a market for consumption

    • Supply Chain Management – the methods, systems and leadership that continuously improve an organization’s integrated processes for product and service design, purchasing, inventory management, logistics, distribution and customer satisfaction

Slide5 l.jpg

Supply Chain Management

  • More definitions

    • Upstream – the processes which occur before manufacturing or production into a deliverable product or service, typically processes dedicated to getting raw materials from suppliers

    • Downstream – the processes which occur after manufacturing or production, typically those processes dedicated to getting goods and services to customers and consumers

Slide6 l.jpg

Definitions of Supply Chain Management

Supply Chain Management involves the flows between and among stages in a supply chain to maximize total profitability.

Chopra and Meindl, 2001

Slide7 l.jpg

Supply Chain Optimization

  • The traditional approach to supply chain management usually involves a collection of separate functional activities

  • Integrated approach views costs to anybody as costs to the chain – prevents actions that save money on trucking but cost more money on inventory

Slide8 l.jpg

Traditional versus Integrated SCM Approaches

  • Independent inventory management policies

  • Minimization of firm costs

  • Short-term focus

  • Information sharing limited to current transaction

  • Corporate philosophies not relevant

  • Each to their own success or failure

  • Independent actions and information systems

  • Joint reduction of channel inventories

  • Channel-wide cost savings

  • Long-term perspective

  • As required for planning and monitoring

  • Compatible corporate philosophies

  • Sharing of risks and rewards

  • Channel leadership and compatible information systems

Some examples l.jpg
Some examples

  • Inventory – independent or system-wide – supermarket buys 6 months of detergent on sale and stores it rather than work out a delivery schedule to get it as needed

  • Costs – minimize your costs or system-wide costs – sale in Denver region so buy detergent for whole country there and haul it back to where it is needed or work out a delivery schedule from plant to local warehouses

Some examples10 l.jpg
Some examples

  • Short or long term focus – are you making optimal decisions for today or for longer term – hog plant that underpays farmers today may find them out of business tomorrow and then no hog plant

  • Information sharing – current transaction or broadly – are you working together to both succeed or just for short term gain

Some examples11 l.jpg
Some examples

  • Corporate philosophies – working together requires recognition of other’s perspective, if not compatible philosophies – Hershey & WalMart

  • Each out for himself or sharing risks and rewards – Hershey managing candy section for WalMart

Information systems l.jpg
Information Systems

  • Non compatible systems once were the standard

  • Now, electronic ordering – sharing scanner data – electronic invoicing – need compatible systems

Slide13 l.jpg

SCM Activities: Industry Focus

  • Integrated Behaviour

  • Mutual Sharing of Information

  • Mutual Sharing of Risks and Rewards

  • Cooperation

  • Same Goal and Same Focus on Serving Customers

  • Integration of Processes

  • Partners to Build and Maintain Long-term Relationships

Slide14 l.jpg











Slide15 l.jpg

Setting the Stage

  • A supply chain is a linked set of value creating activities.

    • View chain as an integrated system.

    • Consumer driven … emphasis on quality.

    • Focus on improving system-wide performance … then on the distribution of gains from those improvements.

    • Transparency in inter-firm relationships.

    • Key role for chain leader.

Slide16 l.jpg

Setting the Stage

  • Key concerns in the design of supply chains in the food system include:

    • system-wide efficiency

    • distribution of returns

    • food safety and quality

    • adaptability and innovation

  • Structural change and the need to link into more highly integrated supply chains pose new challenges for farm managers.

Mike villa s produce activities l.jpg
Mike Villa’s Produce Activities

  • Contract with WalMart to supply produce over next 6 months

  • Cost targets

  • Quality targets

  • Delivery targets

  • Inventory targets

Consider a single product onions l.jpg
Consider a single product - onions

  • Different sources

  • Storable to a degree

  • Planning ahead

  • Managing logistics

  • Dealing with surprises