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Transcript of Presented by: S.M.TABATABAEE NASAB. Supply Chain flow The supply chain- 1 The global environment- 2...
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Presented by:
S.M.TABATABAEE NASAB
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Supply
Chain
flow
The supply chain- 1
The global environment- 2Inter – corporate coordination -
15Inte
r- fun
ction
al
Coord
inatio
n- 1
4
Marketing - 4
Sales -5
R&D - 6
Forecasting - 7
Production - 8
Purchasing - 9
Logistics - 10
Information systems-11
Finance -12
Customer Service - 13
Products
Services
Information
Financial resource
s
Demand
forecasts
Customer satisfaction
Value
Profitability
Differential advantage
-3
A model of supply chain management
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INTRODUCTIONForrester(1985) introduced a theory of
management that recognized the integrated nature of organizational relationships in distribution channels.
He argued that system dynamics can influence the performance of functions such as research, ingineering , sales & promotion.
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The reasons for popularity of SCMGlobal sourcingCompetition on the basis of time & qualityThis global orientation & increased
performance –based competition combined with rapidly changing technology and economic conditions all contribute to marketplace uncertainty.
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Confusion in SCM definitionSome authors define SCM in operational terms
involving the flow of materials & products. (tyndall, gopal, partsch,
kamauff, 1998)Others view it as a management philosophy. (ellram &
cooper, 1990)some view it as a management process. (la
londe, 1997)
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Defining the supply chain La londe & masters(1994) proposed that a
supply chain is a set of firms that pass materials forward.
Lambert, Stock & Ellram (1998) define a supply chain as the alignment of firms that brings products or services to market.
Christopher(1992) defines a supply chain as the network of organizations that are involved, through upstream & downstream linkages, in the different processes and activities that produce value in the form of products & services in the hands of the ultimate consumer.
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Supply chain definitionA set of three or more companies directly
linked by one or more of the upstream & downstream flows of products, services , finances, and information from a source to a customer.
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Basic Supply ChainConsists of a company, an immediate
supplier, and an immediate customer directly linked by one or more of the upstream & downstream flows of products, services , finances, and information.
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extended Supply ChainIncludes suppliers of the immediate supplier,
and customers of the immediate customer , all linked by one or more of the upstream & downstream flows of products, services , finances, and information.
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ultimate Supply ChainIncludes all the companies involved in all the
upstream & downstream flows of products, services , finances, and information from the initial supplier to the ultimate customer.
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Real competition is not company against
company, but rather supply chain against
supply chain.Christopher (1992)
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Supply Chain ManagementSCM deals with the total flow of a materials
from suppliers through end users. Jones &
riley(1985)
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Supply Chain ManagementThe objective of managing the supply chain is
to synchronize the requirements of the customer with the flow of materials from suppliers in order to effect a balance between what are often seen as conflicting goals of high customer service, low inventory management, and low unit cost.
Stevens(1989)
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Supply Chain ManagementReferring to Stevens(1989) , Jones &
riley(1985) , houlihan (1985,1988), Ellram & Cooper(1990) SCM define as:
an integrative philosophy to manage the total flow of a distribution channel from
supplier to the ultimate user.
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SCM as a management philosophyAs a philosophy, SCM takes a systems approach
to viewing channel as a single entity, rather than as a fragmented parts.
(ellram & cooper,1990)
SCM as a philosophy of channel management seeks synchronization and convergence of intrafirm and interfirm operational & strategic capabilities into unified , compelling marketplace force.
(ross,1998)
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SCM activities (to implement a management philosophy)
Integrated behaviorMutually sharing informationMutually sharing channel risks & rewardsCooperationThe same goal and the same focus of serving
customersIntegration of processesPartners to build & maintain long0term
relationships
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SCM versus SCO
SCM is the implementation of a SCO across supplier and customer.
SCO is a management philosophy & SCM is the total management action undertaken to realize that philosophy
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SCO-Systemic view-Strategic view
scm - 3 or mor firms
with sco- sharing information-sharing channel risks & rewards-Cooperation-The same goal and the same focus of serving customers-Integration of processes-long0term relationships- coordination
Consequences
•Improved customer value &
satisfaction
•Profitability
•Differential
advantage
Single company antecedentsWillingness to
adress:•Trust
•Commitment•Interdependence
•Vision•Key process
•LeaderTop management
support
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Drivers for globalization
of firms-Access to
market-Access to raw
materials-Economies of scope & scale
-Access to technology
Global environmental
factors- Uncertainty- complexity- Asymmetry
Drivers for economic globalization-Decreasing tariffs-Economic regionalism-Improving transportation , communications & IT-Globalization of products and services- global competition
Global diversity- Political- Cultural
- Economic
Global strategic thrust
-Local responsiveness- global efficiency- transfer of knowledge & competencies
Approach to globalization-Multinational
firms-International
firms-Global firms
-transnational
Factors influencing the globalization of firms
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unitMultinationalStrategic thrustLocal responsiveness
Configuration of assets & capabilities
Decentralized & nationally self sufficient
Role of overseas operationsSensing & exploiting local opportunities
Development & diffusion of knowledge
Knowledge developed and retained within each unit
Supply chain implications
-Multiple domestic supply chains operating in different political economic and cultural contexts-Decentralized development of SCM capability - limited sharing of knowledge & resources across borders
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unitinternationalStrategic thrustTransfer of knowledge & competencies
Configuration of assets & capabilities
Sources of core competencies centralized, others decentralized
Role of overseas operationsAdapting & leveraging parent company competencies
Development & diffusion of knowledge
Knowledge developed at the center & transferred
Supply chain implications
- supply chains operation across multiple borders & multiple countries- centralized development of SCMcapability- transfer of knowledge from corporate headquarter to other countries
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unitglobalStrategic thrustGlobal efficiency
Configuration of assets & capabilities
Centralized & globally scaled
Role of overseas operationsimplementing parent company strategies
Development & diffusion of knowledge
Knowledge developed & retained at the center
Supply chain implications
- integrated management of a global network of supply & demand- SCM aimed at efficiency & operating flexibility- Centralized development of SCM capability- SCM processes & policies dictated by corporate headquarters
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unitglobal
Strategic thrust Balance of Local responsiveness,Global efficiency &
Transfer of knowledge & competencies
Configuration of assets & capabilities
Dispersed, interdependent, and specialized
Role of overseas operationsDifferentiated contributions by national units to
integrated world wide operationsDevelopment & diffusion of
knowledgeKnowledge developed jointly & shared worldwide
Supply chain implications
- supply chain network itegrated to achieve economies of scale but locally responsive to different markets- skill & capabilities developed & shared worldwide-Joint decision making, with appropriate global/local balancing
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Approach to
globalization
-Multinational firms
-International firms
-Global firms-transnational
Global diversity- Political- Cultural
- Economic
Global environmental factors
- Uncertainty- complexity- Asymmetry
Corporate supply chain strategy
-multiple domestic supply chains-multiple international supply chains- global network & supply & demand- flexible ,interdependent ,balance of locally responsive & globally efficient supply chains
Supply chain process-Strategic fit-Risk management-Knowledge management- relationship management- financial management-Development of organizational capability-Technology management-Channel management/outsourcing decisions- information management
Factors influencing global supply chain management
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Q&A