Lesson 12: Supply Chain Management
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Transcript of Lesson 12: Supply Chain Management
Novus Business and IT Training Program
Supply Chain Management
Objective: To discuss the process by which goods and services start as raw materials and end as finished goods in the hands of customers, as well as considerations to make it more efficient and inexpensive.
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Supply Chain
• A system to transform raw materials into finished goods
• Illustrates supply and demand
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Computer Supply Chain
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Supply Chain Management
• Using supply chain concept to increase efficiency from original suppliers to end users
• Information Efficiency
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Supply Chain Management
• Objective: Efficiently fulfill customer demands
• Only buy and produce what can be sold
• Customers always find what they want
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Cooperatives
• Combining for efficiency
• Can apply to
– Purchasing
– Transportation
–Marketing
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Benefits of Supply Chain Management
• Inventory
• Location decision
• Transportation
• Anything between raw materials and final customer can be more efficient
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Constraints
• Internal– Equipment– People– Policy– Cure by process improvement
• External – Excess supply – Cure by increasing demand
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Supply Chain Analysis
• Forecasting very important to analysis and management
• Be realistic
• Forecasting and Supply Chains are closely related
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Value Chain vs. Supply Chain
• Similar to Supply Chain but looks at increase in value
• Supply Chain looks at industry
• Value Chain looks at single business