Supply Chain Management_II MFT

8/3/2019 Supply Chain Management_II MFT

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SUPPLY CHAIN

MANAGEMENT


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What it Supply Chain?

Customer is an integral part of the supply chain

Includes movement of products from suppliersto manufacturers to distributors, but also

includes movement of information, funds, andproducts in both directions

Probably more accurate to use the term supplynetwork or supply web

Typical supply chain stages: customers, retailers,distributors, manufacturers, suppliers


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Supply Chain Stages

ManufacturerSupplier

Supplier

Supplier

Manufacturer

Manufacturer

Distributor

Distributor

Distributor Retailer

Retailer

Retailer

Customer

Customer

Customer


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Supply Chain Stages

Each stages in a supply chain is connectedthrough the flow of products, information andfunds.

These flows often occur in both directions Depends upon customer needs


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Objectives of Supply Chain

Maximise the overall value of the product

Maximise Supply Chain Profitability/supplychain surplus

Flow of information and funds

Effective Supply Chain Management

Management of supply chain assets, product,

information and fund flow


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Importance of Supply Chain Decisions

Supply Chain Flow product, information and

funds

Supply Chain design, planning and operation

decisions play a significant role in the success orfailure of a firm.


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Decision Phases in a Supply chain

Supply Chain Strategy or Design Marketing and pricing plans for a product

Structuring the supply chain for several years

In-House or Outsource

Decides the SC Configuration

Supply Chain Planning

Planning for quarter year to a year

Forecasting

Supply Chain Operation

Weekly or daily operation

Individual customer orders


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Process Views of Supply Chain

Cycle View

The processes in a supply chain are divided into aseries of cycles, each performed at the interface

between two successive stages of a supply chain Push/Pull View

Pull processes are initiated by a customer order

Push processes are initiated and performed inanticipation of customer orders.


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Cycle View of Supply Chain Processes

Customer order cycle

Replenishment Cycle

Manufacturing Cycle

Procurement Cycle


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Cycle View of Supply Chain Processes

CustomerCustomerOrder CycleRetailer

Replenishment CycleDistributor

Manufacturing Cycle

ManufacturerProcurement Cycle

Supplier


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Sub Process

Supplier StageMarket Product

Buyer Stage PlacesOrder

Supplier Stagereceives order Supplier Stage

supplies order

Buyer Stage receivessupply

Buyer returnsreverse flows tosupplier or thirdparty


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Push /Pull view of supply chain

processes

Pull Process

With Pull Process, execution is initiated in response

to a customer order

Also referred to as Reactive Processes

This process operate in an environment in which

customer demand is known


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processes

Push Process

Execution is initiated in anticipation of customer

orders

Demand is not known and must be forecast

Also known as Speculative Processes


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processes

Process Process Process Process Process Process Process1 2 3 4 5 6 7

Push/pull Boundary

Push Processes Pull Processes

Customer Order Arrives


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Supply Chain Macro Processes in a Firm

Customer Relationship Management (CRM)

All processes that focus on the interface between thefirm and its customers

Internal supply chain management (ISCM) All processes that are internal to the firm

Supplier Relationship Management (SRM)

All processes that focus on the interface between thefirm and its suppliers


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Supply Chain Macro Processes in a Firm

Supplier Firm Customer

Source Strategic Planning Market

Negotiate Demand Planning Price

Buy Supply Planning SellDesign Collaboration Fulfillment Call Center

Supply Collaboration Field Service OrderManagement

SRM ISCM CRM

Supply Chain Management_II MFT

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