Supply Chain Management

08/09/21
Certified Supply Chain Analyst
International
©Copyright - International Supply Chain Education Alliance www.iscea.org Supply Chain
Education Alliance
ISCEA Certified Supply Chain Analyst Program
• Course CSCA01:
• Supply Chain Planning and Strategy
• Course CSCA02:
• Procurement & Logistics Management
• Course CSCA03:
• Supply Chain Management Tools &
Techniques
• Certified Supply Chain Analyst
• CSCA - Certification Exam
International
Education Alliance
1
08/09/21
Course CSCA01:
Supply Chain Planning and Strategy
• Supply Chain Overview
• Strategy
• Framework for discussion
• Fundamental Issues
International
Education Alliance
Supply Chain Overview

Title
Subtitle
International
Supply Chain
Education Alliance
International
Education Alliance
2
08/09/21
Certified Supply Chain Analyst

§ Certified—an independent organisation attesting to an individuals
qualifications
§ ISCEA attesting , through issuance of a certificate, to an individual’s

mastering of the fundamental issues of the supply chain body of
knowledge
§ Supply chain—all processes and activities to provide a product or service to a

final customer(much more to follow)
§ Analyst---title chosen to encompass all of the possible positions involved in

a supply chain, ranging from entry level through full performance
International
Education Alliance
Overview
• Supply Chain
• All stages involved, directly or indirectly, in fulfilling a customer request
• Includes manufacturers, suppliers, transporters, warehousers, retailers,

and customers
• Within each company, it includes all functions involved in fulfilling a

customer request (marketing, operations, distribution, finance, customer
service)
International
Education Alliance
3
08/09/21
Supply Chain
• Customer is an integral part of the supply chain
• Probably more accurate to use the term “supply network” or “supply web”
• Typical supply chain stages: customers, retailers, distributors, manufacturers,

suppliers
• Includes movement of products from suppliers to manufacturers to

distributors, but also includes movement of information, funds, and products
in both directions
International
Education Alliance
Supply chain
International
Education Alliance
4
08/09/21
Supply chain
• Information---production schedules, promotions planned, delivery status,
forecasts, order status, etc.
• Product---finished goods, components, specialised operations, defective

goods, etc.
• Funds--- payment, volume discounts, rebates, surcharges, etc.
International
Education Alliance
Examples of supply chains
International
Education Alliance
10
5
08/09/21
Global supply chains are nothing new…..
International
Education Alliance
11
Supply chain
• Objective---maximise overall value generated
• Value (Supply chain surplus)---the difference between what the product

is worth to the customer, and the costs incurred by the chain in providing
the product
• Profitability---revenue generated from the customer minus the overall cost

across the supply chain
• Profit = Revenue - Cost
International
Education Alliance
12
6
08/09/21
Why are we in business?

TO MAKE MONEY!
The Underlying GOAL of any Business is to MAKE MONEY!
International
Education Alliance
13
Income statement
The really odd business Ltd
Income statement for the year ended 28 February 20XX
INCOME 20xx
Sales 100 000 000
Cost of sales 60 000 000
Gross profit 40 000 000
OTHER INCOME 1 000 000

Interest received 500 000
Commission 400 000
Other – Dividend 100 000
41 000 000
EXPENSES 31 000 000
Administration expenses 25 000 000
Depreciation of assets 5 000 000
Financing Costs 1 000 000
NET INCOME BEFORE TAX
10 000 000
International
Education Alliance
14
7
08/09/21
Balance sheet
The really odd business Ltd
Balance sheet at 28 February 20XX
ASSETS 20xx LIABILITIES 20xx

Fixed Assets Cost Equity investment
25 000 000 5 000 000
Depreciation 5 000 000 Share capital 15 000 000
Net value 20 000 000 Retained income 5 000 000
10 000 000
Long term loans
Long term investments 10 000 000
Investment in subsidiary 1 000 000 Current Liabilities 12 000 000

Current assets 16 000 000
Accounts payable –trade 6 000 000
Accounts receivable-trade 8 500 000
Bank overdraft 2 000 000
Inventory 6 000 000 Current portion – loans 3 000 000
Bank accounts & cash 1 500 000 Taxation payable 1 000 000
TOTAL ASSETS TOTAL LIABILITIES

47 000 000 47 000 000
International
Education Alliance
15
Supply chain managers play a key role in

simultaneously increasing all of these measures
Net Profit (NP)
Revenues – Expenses
Return on Assets (ROA) or Return on Investment (ROI)
Net income / assets Deployed
Operational Cash Flow (CF)

Cash income – Cash expenses
International
Education Alliance
16
8
08/09/21
Linking financial measures to supply chain

operation measures
International
Education Alliance
17
Managing the cash flow
International
Education Alliance
18
9
08/09/21
Cash to cash cycle time

The cash-to-cash cycle time calculates the time operating capital (cash) is out of
reach for use by your business. The speedier your cash-to-cash cycle, the fewer
days your cash is unavailable for use in propelling your value stream. You can use
this metric to gauge whether you are operating "lean" with regard to cash. Also,
good performance on the cash-to-cash measurement has been associated with
improved earnings per share
International
Education Alliance
19
Calculating cash to cash cycle time

Cash to cash = Days cash is locked up as inventory
+ Days cash locked up in receivables
– Days cash free because business has not paid its bills
Example:
105 Day cash to cash cycle
= 90 Days inventory + 45 Days receivables - 30 Days payables
If the company can collect the payments faster (on-line), hold less inventory, and
negotiate better (longer) payable terms. It can reduce the Cash to Cash time from
105 to 30 days. This cash is available 75 days sooner to support the supply chain.
30 Day Cash to Cash Cycle

= 45 Days inventory + 30 Days receivables - 45 Days payables
International
Education Alliance
20
10
08/09/21
Supply chain
• Sources of supply chain revenue: the customer, information, recycling
• Sources of supply chain cost: flows of information, products, or funds

between stages of the supply chain
International
Education Alliance
21
Supply chain
• Competitive strategy---the plan to utilise the products or services of an
organisation to ‘delight’ the demands or needs of customers or customer
segments
• Supply chain strategy must be in agreement with the competitive strategy

• If the customer need being satisfied is “low cost” or “volume variability”,
then the supply chain must be positioned to provide “low cost” or
“volume variability”
International
Education Alliance
22
11
08/09/21
Framework to attain strategic fit
Reference:: Adapted from Chopra, S .and Meindl, P, Supply Chain Management, Prentice Hall, 2010
International
Education Alliance
23

• Competitive strategy drives supply chain strategy
• Responsive versus efficient represent the extremes of the cost spectrum
• Decisions regarding, and the management of the drivers, i.e., facilities,

inventory, transportation, etc., define the structure of the supply chain and
position it on the cost spectrum in agreement with the competitive strategy
• Arrows connecting the boxes illustrate the inter-relatedness of the drivers
International
Education Alliance
24
12
08/09/21
Reference:: Adapted from Chopra, S .and Meindl, P, Supply Chain Management, Prentice Hall, 2010
International
Education Alliance
25
Framework to attain strategic fit (FITSIP)

Logistical Drivers
• Facilities
• places where inventory is stored, assembled, or fabricated
• production sites and storage sites
• Inventory
• raw materials, Work in Process(WiP), finished goods
• inventory policies
• Transportation
• moving inventory from point to point in a supply chain
• combinations of transportation modes and routes
International
Education Alliance
26
13
08/09/21
Framework to attain strategic fit (FITSIP)

Cross-functional Drivers
• Information
• data and analysis regarding inventory, transportation, facilities, costs,
pricing, and customers throughout the supply chain
• Sourcing
• functions a company performs and functions that are outsourced
• Pricing
• Price associated with goods and services provided by a company to the
supply chain
International
Education Alliance
27
Supply chain
Focus no longer just within the walls of the organisation because it has been
recognised that the competitive playing field has shifted from company versus
company, to supply chain versus supply chain. A company’s success may well be
determined by the company’s partners in the supply chain.
International
Education Alliance
28
14
08/09/21
Presentation scope and depth

• Foundational in nature
• Definitions---types of inventory, backorder, cross-docking, bullwhip
effect
• Views and approaches---Vendor managed inventory, push versus pull,

Lean, Sustainability
• Tools---math models, inventory models, improvement techniques, EOQ,

fishbone diagram
• Simplification---one product line, chain versus web, instantaneous

receipt
International
Education Alliance
29
Advanced topics
• ISCEA CSCM (Certified Supply Chain Manager) program covers a more in-
depth discussion on many of these topics and for issues more of a
managerial nature, e.g., pricing, collaboration, facility location and network
design.
• Certifications from other professional groups, university courses, continuing

education courses
• Textbooks---Chopra, Krajewski, Heizer and Render
International
Education Alliance
30
15

Supply Chain Management

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Supply Chain Management

Uploaded by

Copyright:

Available Formats

08/09/21

Certified Supply Chain Analyst

ISCEA Certified Supply Chain Analyst Program

• Supply Chain Planning and Strategy

• Procurement & Logistics Management

• Supply Chain Management Tools &

• Certified Supply Chain Analyst

• CSCA - Certification Exam

• Supply Chain Overview

• Framework for discussion

Supply Chain Overview

Certified Supply Chain Analyst

§ ISCEA attesting , through issuance of a certificate, to an individual’s

§ Supply chain—all processes and activities to provide a product or service to a

§ Analyst---title chosen to encompass all of the possible positions involved in

• All stages involved, directly or indirectly, in fulfilling a customer request

• Includes manufacturers, suppliers, transporters, warehousers, retailers,

• Within each company, it includes all functions involved in fulfilling a

• Typical supply chain stages: customers, retailers, distributors, manufacturers,

• Includes movement of products from suppliers to manufacturers to

• Product---finished goods, components, specialised operations, defective

• Funds--- payment, volume discounts, rebates, surcharges, etc.

Examples of supply chains

Global supply chains are nothing new…..

• Value (Supply chain surplus)---the difference between what the product

• Profitability---revenue generated from the customer minus the overall cost

• Profit = Revenue - Cost

Why are we in business?

The Underlying GOAL of any Business is to MAKE MONEY!

OTHER INCOME 1 000 000

ASSETS 20xx LIABILITIES 20xx

Investment in subsidiary 1 000 000 Current Liabilities 12 000 000

TOTAL ASSETS TOTAL LIABILITIES

Supply chain managers play a key role in

Return on Assets (ROA) or Return on Investment (ROI)

Net income / assets Deployed

Operational Cash Flow (CF)

Linking financial measures to supply chain

Managing the cash flow

Cash to cash cycle time

Calculating cash to cash cycle time

30 Day Cash to Cash Cycle

• Sources of supply chain cost: flows of information, products, or funds

• Supply chain strategy must be in agreement with the competitive strategy

Framework to attain strategic fit

Framework to attain strategic fit

• Responsive versus efficient represent the extremes of the cost spectrum

• Decisions regarding, and the management of the drivers, i.e., facilities,

• Arrows connecting the boxes illustrate the inter-relatedness of the drivers

Framework to attain strategic fit

Framework to attain strategic fit (FITSIP)

Framework to attain strategic fit (FITSIP)

Presentation scope and depth

• Views and approaches---Vendor managed inventory, push versus pull,

• Tools---math models, inventory models, improvement techniques, EOQ,

• Simplification---one product line, chain versus web, instantaneous

• Certifications from other professional groups, university courses, continuing

• Textbooks---Chopra, Krajewski, Heizer and Render

You might also like