Supply Chains 2 Supply Chain The connected chain of all of the
business entities, both internal and external to the company, that
perform or support the logistics function
Slide 3
Supply Chains 3 Supply Chain Management Supply Chain Management
A management system that coordinates and integrates all of the
activities performed by supply chain members into a seamless
process, from the source to the point of consumption, resulting in
enhanced customer and economic value
Slide 4
Benefits of Supply Chain Management 10 Supply chain oriented
companies commonly report: Lower inventory, transportation,
warehousing, and packaging costs Greater supply chain flexibility
Improved customer service Higher revenues Increased
profitability
Slide 5
Supply Chain Integration 5 Material and service supplier
Integration Internal Operations Integration Customer Integration
Relationship Integration Measurement Integration Technology and
planning Integration Firm-to-Firm Social Interactions Operational
Planning and Control Customer Integration
Slide 6
Key Processes of Supply Chain Management 6
Slide 7
Customer Relationship Management 7 Customer Relationship
Management Process Customer Relationship Management Process The
prioritization of a firms marketing focus on different customer
groups according to each groups long-term value to the company or
supply chain; designed to identify and build relationships with
good customers.
Slide 8
Customer Service Management 8 Customer Service Management
Process Customer Service Management Process A multi-company,
unified response system to the customer whenever complaints,
concerns, questions, or comments are voiced; designed to ensure
that customer relationships remain strong.
Slide 9
Demand Management 9 Demand Management Process Demand Management
Process The alignment of supply and demand throughout the supply
chain to anticipate customer requirements at each level and create
demand-related plans of action prior to actual customer purchasing
behavior.
Slide 10
Order Fulfillment 10 Order Fulfillment Process Order
Fulfillment Process A supply chain management process that involves
generating, filling, delivering, and providing on-the-spot service
for customer orders.
Slide 11
Manufacturing Flow Management 11 Manufacturing Flow Management
Process Manufacturing Flow Management Process A process that
ensures that firms in the supply chain have the resources they
need
Slide 12
Supplier Relationship Management 12 Supplier Relationship
Management Process Supplier Relationship Management Process A
supply chain management process that supports manufacturing flow by
identifying and maintaining relationships with highly valued
suppliers
Slide 13
Product Development and Commercialization 13 Product
Development and Commercialization Process Product Development and
Commercialization Process The group of activities that facilitates
the joint development and marketing of new offerings among a group
of supply chain partner firms.
Slide 14
Returns Management 14 Returns Management Process Returns
Management Process A process that enables firms to manage volumes
of returned product efficiently, while minimizing costs and
maximizing the value of the returned assets to the firms in the
supply chain.
Slide 15
Logistical Components of the Supply Chain Supply Chain Team
Sourcing & Procurement Production Scheduling Order Processing
Inventory Control Warehouse & Materials Handling Transportation
Logistics Information System
Slide 16
Sourcing and Procurement Plan purchasing strategies Develop
specifications Select suppliers Negotiate price and service levels
Reduce costs The Role of Purchasing:
Slide 17
Production Scheduling Push / Pull Strategy Traditional Focus
Push Start of Production Manufacturing Inventory- Based Mass
Production Customer Focus Pull Customer-Order Based Mass
Customization
Slide 18
Just-in-Time Manufacturing A process that redefines and
simplifies manufacturing by reducing inventory levels and
delivering raw materials just when they are needed on the
production line. JIT
Slide 19
Benefits of JIT Reduces raw material inventories Shortens lead
times Creates better supplier relationships Reduces production and
storeroom costs Reduces paperwork
Slide 20
Order Processing Information technology that replaces paper
documents that accompany business transactions with electronic
transmission of the information. Electronic Data Interchange
Slide 21
Order Processing A method of developing and maintaining an
adequate assortment of materials or products to meet a
manufacturers or a customers demand. Inventory Control System
Inventory Control System
Slide 22
Order Processing Materials Requirement Planning (MRP) Materials
Requirement Planning (MRP) An inventory control system that manages
the replenishment of raw materials, supplies, and components from
the supplier to the manufacturer. An inventory control system that
manages the replenishment of raw materials, supplies, and
components from the supplier to the manufacturer. Distribution
Resource Planning (DRP) Distribution Resource Planning (DRP) An
inventory control system that manages the replenishment of goods
from the manufacturer to the final consumer. An inventory control
system that manages the replenishment of goods from the
manufacturer to the final consumer.
Slide 23
Materials Handling Functions Receive goods into warehouse
Dispatch the goods to temporary storage Recall, select, or pick the
goods for shipment Identify, sort, and label goods
Slide 24
Transportation Airways Water Pipelines Motor Carriers
Railroads