Questions Supply Chain Management

7/27/2019 Questions Supply Chain Management

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14

Supply Chain Management

Professor Close


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LO 1 Define the terms supply chain and supply chainmanagement, and discuss the benefits of supply chain

management

LO 2 Discuss the concept of supply chain integration and explainwhy each of the six types of integration is important

LO 3 Identify the eight key processes of excellent supply chainmanagement and discuss how each of these processesimpacts the end customer

Learning Outcomes


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LO 4 Discuss the key strategic decisions supplychain managers must make when designingtheir companies supply chains

LO 5 Discuss new technology and emergingtrends in supply chain management

Learning Outcomes


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Supply Chains and


Define the terms supp ly chainand supp ly chain management,

and discuss the benefits

of supply chain management


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Supply Chains

Supply Chain

The connected chain of

all of the business

entities, both internaland external to the

company, that perform or

support the logistics

function


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Supply Chains

Supply Chain

Management

A management system thatcoordinates and integratesall of the activities

performed by supply chainmembers into a seamlessprocess, from the source tothe point of consumption,resulting in enhancedcustomer and economicvalue


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Supply Chain Managers

The philosophy behind supply chain

management is that by visualizing the entire

supply chain, supply chain managers can

maximize strengths and efficiencies at each

level of the process to create a highly

competitive, customer-driven supply system

that is able to respond immediately tochanges in supply and demand.


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Physical f lowprocess that engineers themovement of goods

Communicatorof customer demandfrom point of sale to supplier


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Benefits of Supply

Chain Management

Supply chain oriented companies

commonly report:

Lower inventory, transportation,warehousing, and packaging costs

Greater supply chain flexibility

Improved customer service

Higher revenues

Increased performance and profitability


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Supply Chain Integration

Discuss the concept ofsupply chain integration

and explain why eachof the six types of

integration is important


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Material and ServiceSupplier Integration

Internal OperationsIntegration

Customer Integration

Relationship Integration

MeasurementIntegration

Technology andPlanning Integration

Firm-to-Firm SocialInteractions

OperationalPlanning and

Control

CustomerIntegration


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Relationship

Integration

The ability of two or more

companies to develop social

connections that serve to guide

their interactions when working

together.

The performance assessment of

the supply chain as a whole that

also holds each individual firm orbusiness unit accountable for

meeting its own goals

Measurement

Integration


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Technology

and planning

integration

The creation and maintenance ofinformation technology systems

that connect managers across

and through the firms in the

supply chain

Material and

service

supplierintegration

Requires firms to link seamlessly

to those outsiders that provide

goods and services to them so

that they can streamlineprocesses and provide quality

customer experiences.


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InternalOperations

Integration

Links internally performed workinto a seamless process that

stretches across departmental

and/or functional boundaries,

with the goal of satisfying

customer requirements

A competency that enables firms to

offer long-lasting, distinctive, value-

added offerings to those customerswho represent the greatest value to

the firm or supply chain

Customer

Integration



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Key Processes of


Identify the eight key processesof excellent supply chainmanagement and discuss

how each of these processes

impacts the end customer


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Key Business Processes

1. Customer relationship management

2. Customer service management

3. Demand management

4. Order fulfillment5. Manufacturing flow management

6. Supplier relationship management

7. Product development and

commercialization8. Returns management


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Customer Relationship

Management

Customer

Relationship

Management

(CRM) Process

Allows companies to prioritize

their marketing focus on

different customer groups

according to each groupslong-term value to the

company or supply chain


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Customer

Service Management

Customer

Service

Management

Process

Presents a multi-company,

unified response system to

the customer whenever

complaints, concerns,questions, or comments

are voiced


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Demand Management

Demand

Management

Process

Seeks to align supply and

demand throughout the supply

chain by anticipating customer

requirements at each level andcreate demand-related plans of

action prior to actual customer

purchasing behavior


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Order Fulfillment

Order

Fulfillment

Process

a highly integrated process,

often requiring persons from

multiple companies and

multiple functions to come

together and coordinate to

create customer satisfaction at

a given place and time


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Manufacturing Flow

Management

Manufacturing

Flow

Management

Process

Concerned with ensuring

that firms in the supply

chain have the needed

resources to manufacture

with flexibility and to

move products through a

multi-stage productionprocess


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Supplier Relationship

Management

Supplier

Relationship

Management

Process

Closely related to the

manufacturing flow

management process and

contains several

characteristics that

parallel the customer

relationship managementprocess


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Product Development and

Commercialization

Product

Development and

Commercialization

Process

Includes the group

activities that facilitates

the joint development and

marketing of new

offerings among a group

of supply chain partner

firms


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Returns Management

Returns

Management

Process

Enables firms to manage

volumes of returned product

efficiently, while minimizing

returns-related costs andmaximizing the value of the

returned assets to the firms in

the supply chain


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Managing the Logistical

Components of the Supply Chain

Discuss the key strategicdecisions supply chain

managers must make whendesigning their companies

supply chains


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the process of strategically managing

the efficient flow and storage of raw

materials, in-process inventory, and

finished goods from point of origin to

point of consumption.

Logis t icsis

Logistics


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Logistical Components

of the Supply Chain

SupplyChainTeam

Sourcing & Procurement

Production Scheduling

Order Processing

Inventory Control

Warehouse & Materials Handling

TransportationLogisticsInformationSystem


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Sourcing and Procurement

Plan purchasing strategies

Develop specifications

Select suppliers

Negotiate price and service levels

Reduce costs

The Role of Purchasing:

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kphoto.com/MariaToutoudaki


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Production Scheduling

Push / PullStrategy

Traditional Focus

Push

Start ofProduction

Manufacturing

Inventory-Based

Mass Production

Customer Focus

Pull

Customer-OrderBased

Mass Customization


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Just-in-Time Manufacturing

A process that redefines andsimplifies manufacturing by

reducing inventory levels and

delivering raw materials at the

precise time they are needed

on the production line.

JIT


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Benefits of JIT

For manufacturers: reduces rawmaterial inventories; immediate

shipping of products For suppliers: daily or hourly deliveries

rather than weekly

For customers: lower costs; shorterlead times; products tailored tocustomer needs


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Order Processing

Order processing is becoming more automatedthrough the use of computer technology known

as ELECTRONIC DATA INTERCHANGE (EDI).

a system whereby orders are

entered into the supply chainand filled.

An Order Process ingSystemis


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Inventory Control

Inventory

Control

System

A method of developing and

maintaining an adequate

assortment of materials or

products to meet amanufacturers or a

customers demand


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Inventory Control

Tools for managing inventory include:

materials requirement planning (MRP) ormaterials management supplier to

manufacturer distribution resource planning (DRP)

manufacturer to end user

automatic replenishment programs

minimal forecasting

W h i d


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Warehousing and

Materials Handling

Most manufacturers today have moved toAUTOMATEDmaterials-handling systems to

minimize the amount of handling.

a method of moving inventory into, within,and out of the warehouse.

A Materials-Hand ling

Systemis


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Transportation

Airways

Water

Pipelines

Motor Carriers

Railroads


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Transportation Mode Choice

Cost

Transit time Reliability

Capability

Accessibility Traceability

E hibit 14 1


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Exhibit 14.1

Criteria for Ranking Modes

of Transportation

Trends in Supply Chain


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Management

Discuss new technology

and emerging trends in

supply chain management


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Management

Electronic distribution

Outsourcing of logistics functions

Advanced computer technology


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Advanced Computer

Technology

Automatic identification systems

- Bar coding- Radio frequency technology

Communications technology

Supply chain software systems


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Outsourcing Logistics

Functions

Outsourcing Benefits

Reduce inventories

Locate stock at fewer plants and distribution

centers

Provide same or better levels of service


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Electronic Distribution

a distribution technique that includes

any kind of product or service thatcan be distributed electronically,

whether over traditional forms such

as fiber-optic cable or through

satellite transmission of electronicsignals.

G S l Ch i


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Green Supply Chain

Management

Requires integrating green thinking into allphases of the supply chain

Green materials sourcing

Environmental impact of packaging,shipment, use

Incorporate end-of-life management

Recycling Clean disposal

Gl b l L i ti d S l


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Global Logistics and Supply

Chain Management

Logistical challenges of global markets:

Understanding and coping with the

legalities of trade in other countries Uncertainty regarding shipping


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BeyondtheB

ook

Chapter 14 Videos

Sephora Supp ly Chain

Management

How does Sephora manage its supply chain?What information goes into deciding which

suppliers become incorporated?

http: / /www.cengage.com/market ing/boo

k_content/1439039429_lamb/company_c

l ips/ch14.html
http://www.cengage.com/marketing/book_content/1439039429_lamb/company_clips/ch14.htmlhttp://www.cengage.com/marketing/book_content/1439039429_lamb/company_clips/ch14.htmlhttp://www.cengage.com/marketing/book_content/1439039429_lamb/company_clips/ch14.htmlhttp://www.cengage.com/marketing/book_content/1439039429_lamb/company_clips/ch14.htmlhttp://www.cengage.com/marketing/book_content/1439039429_lamb/company_clips/ch14.htmlhttp://www.cengage.com/marketing/book_content/1439039429_lamb/company_clips/ch14.html

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