SUPPLY CHAIN MANAGEMENT LESSON 2: DECISION PHASES IN ...
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SUPPLY CHAIN MANAGEMENT
LESSON 2: DECISION PHASES IN
SUPPLY CHAIN
By
Fazeeda Mohamad
Faculty of Industrial Management
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Chapter Description
• Aims– To provide students with better understanding on decision phases in
supply chain and the value chain competitive strategy
• Expected OutcomesStudents should be able to:
– Determine the decision phases in supply chain
– Explain process view of supply chain
– Explain value chain and competitive strategy
• References– Chopra, Sunil, and Peter Meindl. (2016) Supply Chain Management:
Strategy, Planning, & Operation. 6th. Ed. Upper Saddle River, NJ: Prentice Hall.
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Chapter Outline
2.1 Decision Phases in Supply Chain
2.2 Process View of Supply Chain
2.3 Value Chain & Competitive Strategy
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Objectives
To determine the decision phases in SC
To explain the process view of Supply Chain
To explain the value chain
and the competitive strategy
2
3
1
LEARNING OUTCOMES
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Decision Phases In SC
•Long term planning
•Structure the company’s SC
•e.g sourcing, location, facility, capacity, transportation, etc.
SC strategy/design
•Short term planning with short term operating policies (max: one year planning)
•Goal: maximize SC surplusSC planning
•Daily/weekly planning
•Focus: handling + meeting customer orderSC operation
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SC Process View
Cycle View Series of cycle
Push/Pull View
Made to order (responsive)
Made to stock (projected)
SC Process View
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SC Cycle View
Customer order cycle (customer-retailer)
Replenishment cycle (retailer-distributor)
Manufacturing cycle
(distributor-manufacturer)
Procurement cycle
(manufacturer-supplier)
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SC Macro Processes in a Firm Su
pp
ly c
hai
n
pro
cess
es a
re • Customer Relationship Management (CRM)• Approach to manage interactions between companies and
customers
• Internal Supply Chain Management (ISCM)• Activities in companies that provide products to
customers
• Supplier Relationship Management (SRM)• Strategic planning and management in all dealings
with third parties supplying goods or services by maximizing the value of such interactions.
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Value chain
• Combination of 9 activities that work together within any business to provide value for customers (Porter, 1985).
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Value chain and competitive strategy
May focus at specific industry and deliver the
valued products according to market
demand
Creating values to fulfill
customers desire
Emphasis at the downstream
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Conclusion of The Chapter
• Conclusion #1
– Different levels of decision phases of SC give different impacts
based on the timeframe.
• Conclusion #2
– SC process view are divided into 2; cycle view and push/pull
view
• Conclusion #3
– The goal of value chain to create value that exceed the
customers demand by creating competitive advantage