Presented by:
S.M.TABATABAEE NASAB
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
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.
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.
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)
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.
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.
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.
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.
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.
Real competition is not company against
company, but rather supply chain against
supply chain.Christopher (1992)
Supply Chain ManagementSCM deals with the total flow of a materials
from suppliers through end users. Jones &
riley(1985)
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)
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.
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)
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
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
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
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
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
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
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
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
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
Q&A