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Introduction To Supply Chain Management
Introduction To Supply Chain Management
MANAGEMENT
Information
Product
Funds
Customer
What is Knowledge?
A collection of data is not information.
A collection of information is not knowledge.
A collection of knowledge is not wisdom.
A collection of wisdom is not truth.
George Kotzmetzk
Chapter Outline
* Introduction
* What is Supply Chain Management?
* Why is Supply Chain Management important?
* The origins of Supply Chain Management
* Important Elements of Supply Chain Management:
- Purchasing
- Operations
- Distribution
- Integration
* Strategies for Supply Chain Management
* Future Trends in Supply Chain Management
* The Beer Game
Sources:
plants
vendors
ports
Customers,
demand
centers
Field
Regional
Warehouses: sinks
Warehouses: stocking
stocking
points
points
Supply
Inventory &
warehousing
costs
Production/
purchase
costs
Transportati
Transportatio
on
n
costs
Inventory & costs
warehousing
costs
End
customers
Raw material
Intermediate
Wholesalers,
suppliers
component mfgs.
distributors
Retailers
Distribution
Supplier
Supplier
Supplier
Storage
Mfg.
Storage
Dist.
Retailer
Customer
Supplier
Storage
Service
Customer
* Benefits
- Lower purchasing/inventory costs, higher
quality/customer service
Operations-
Distribution-
Integration-
Coordination/Integration activities,
global integration problems,
performance measurement
Optimization
* What is it?
* Why is it important?
* What tools and approaches help?
Global Optimization
What is it?
Why is it different/better than local optimization?
What are conflicting supply chain objectives?
What tools and approaches help with global
optimization?
Manufacturing
Planning
Distribution
Planning
Demand
Planning
Global Optimization
Supply Contracts/Collaboration/Information Systems and DSS
Procurement
Planning
Manufacturing
Planning
Distribution
Planning
Demand
Planning
Uncertainty
What is variation?
What is randomness?
What tools and approaches help us to
deal with these issues?
Lead times
Yields
Transportation times
Natural Disasters
Component Availability
Volumes
Manufacturer
Manufacturer Forecast
Forecast
of
of Sales
Sales
Retailer
Retailer Orders
Orders
Retailer
RetailerWarehouse
Warehouse
to
toShop
Shop
Actual
Actual
Consumer
Consumer
Demand
Demand
Production
ProductionPlan
Plan
Time
Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998
Volumes
Consumer
Consumer
Demand
Demand
Production
ProductionPlan
Plan
Time
Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998
Volumes
Production
ProductionPlan
Plan
Consumer
Consumer
Demand
Demand
Time
Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998
Pull Systems
Risk Pooling
Centralization
Postponement
Strategic Alliances
Collaborative Forecasting
Whats New?
Global competition
Shorter product life cycle
New, low-cost distribution channels
More powerful well-informed
customers
Internet and E-Business strategies
ERP5
OverviewSupply System at Hillerich & Bradsby
Technology/Logistics
LO2
American President Line