supply chain management ii mft
DESCRIPTION
TRANSCRIPT
SUPPLY CHAIN MANAGEMENT
What it Supply Chain? A supply chain consists of all parties involved,
directly or indirectly, in fulfilling a customer request.
It includes Manufacturer and suppliers, transporters, warehouses, retailers and customers.
Within each company, the supply chain includes all functions involved in fulfilling a customer request (product development, marketing, operations, distribution, finance, customer service)
What it Supply Chain? Customer is an integral part of the supply
chain Includes movement of products from
suppliers to manufacturers to distributors, but also includes movement of information, funds, and products in both directions
Probably more accurate to use the term “supply network” or “supply web”
Typical supply chain stages: customers, retailers, distributors, manufacturers, suppliers
Supply Chain Stages
ManufacturerSupplier
Supplier
Manufacturer
Manufacturer
Distributor
Distributor
Distributor Retailer
Retailer
Retailer
Customer
Customer
Customer
Supply Chain Stages Each stages in a supply chain is
connected through the flow of products, information and funds.
These flows often occur in both directions
Depends upon customer needs
Objectives of Supply Chain Maximise the overall value of the
product Maximise Supply Chain
Profitability/supply chain surplus Flow of information and funds Effective Supply Chain Management –
Management of supply chain assets, product, information and fund flow
Importance of Supply Chain Decisions
Supply Chain Flow – product, information and funds
Supply Chain design, planning and operation decisions play a significant role in the success or failure of a firm.
Decision Phases in a Supply chain Supply Chain Strategy or Design
Marketing and pricing plans for a productStructuring the supply chain for several yearsIn-House or OutsourceDecides the SC Configuration
Supply Chain PlanningPlanning for quarter year to a yearForecasting
Supply Chain OperationWeekly or daily operation Individual customer orders
Process Views of Supply Chain Cycle View
The processes in a supply chain are divided into a series of cycles, each performed at the interface between two successive stages of a supply chain
Push/Pull ViewPull processes are initiated by a customer
orderPush processes are initiated and performed
in anticipation of customer orders.
Cycle View of Supply Chain Processes
Customer order cycle Replenishment Cycle Manufacturing Cycle Procurement Cycle
Cycle View of Supply Chain Processes
CustomerCustomer Order Cycle
RetailerReplenishment Cycle
DistributorManufacturing Cycle
ManufacturerProcurement Cycle
Supplier
Sub Process
Supplier Stage Market Product
Buyer Stage Places Order
Supplier Stage receives order Supplier Stage
supplies order
Buyer Stage receives supply
Buyer returns reverse flows to supplier or third party
Push /Pull view of supply chain processes
Pull ProcessWith Pull Process, execution is initiated
in response to a customer order Also referred to as Reactive Processes This process operate in an environment
in which customer demand is known
Push /Pull view of supply chain processes
Push ProcessExecution is initiated in anticipation of
customer ordersDemand is not known and must be
forecastAlso known as Speculative Processes
Push /Pull view of supply chain processes
Process Process Process Process Process Process Process 1 2 3 4 5 6 7
Push/pull Boundary
Push Processes Pull Processes
Customer Order Arrives
Supply Chain Macro Processes in a Firm
Customer Relationship Management (CRM)All processes that focus on the interface
between the firm and its customers Internal supply chain management (ISCM)
All processes that are internal to the firm Supplier Relationship Management (SRM)
All processes that focus on the interface between the firm and its suppliers
Supply Chain Macro Processes in a Firm
Supplier Firm Customer
Source Strategic Planning MarketNegotiate Demand Planning PriceBuy Supply Planning SellDesign Collaboration Fulfillment Call CenterSupply Collaboration Field Service Order
Management
SRM ISCM CRM