MODULE 1

Supply Chain
Management
Strategic Planning

Mtro. William Delano Frier

Chapter Outline

1. What is Supply Chain?

2. What is the Internal Supply Chain?
3. Strategic Deployment and Value Chain
4. SCOR Model
5. Roles and Responsibilities of the Supply Chain
6. What is Logistics?
7. Roles and Responsibilities of Logistics
8. Performance Indicators
9. Supply Chain and the Logistics System in Mexico

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What is Supply Chain?
It is a series of processes that integrate companies into a:

• Customer-supplier relationship
• Incorporating the value chain of a product or service,

This enables companies to manage the process of:

• Planning
• Procurement
• Production
• Delivery
• Return

From raw material to the end user or final customer

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What is the Internal Supply Chain?

• All the processes that intergrate Client – Supplier

relationships.
• They help manage:

Demand Purchasing Producing Supplying

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 Typical Supply Chain Diagram
Demand

Local Sup. Distributor N Cust.

Assembly Packaging
Import Sup. Distributor S Cust.

Outsourcing General Exports Cust.

Part WH
Production
Others Supply Chain Cust.

Supply
Flows:
LEAD • Information
• Inventory
TIME • CASH

Source Make Deliver

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Strategic Deployment

Vision
Strategy
(Business Objectives)

Supply Chain Strategy

Objectives → Initiatives

Process Deployment
Plan Supply Produce Deliver

Performance Management

Organization Deployment

Colaboration & Team work

IT, Marketing & Communications
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What is the Value Chain?*

It is the sequence of processes and / or

operations that add value from design to
the final product /service.

Innovation Operations
Identify Market & Satisfy
Customer Design Develop Produce Distribute
Sell Deliver Customer
Needs Needs

Time to Market Supply Chain

*Michael Porter 1980

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What is Customer Value?

The set of properties and

services: tangible /
intangible, even
emotional, to be delivered

in exchange for price

Customer satisfaction is achieved when

a
higher value is delivered.
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What is the Customer Value Formula?

Product / Service Customer

Attributes + Image + Relationship = Value

Shopping Experience:
• Deal
• Availability
• Service

Customer pull factors: Expectation

• Brand Receive more
• Reputation for less.

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• Supply Chain Operations Reference Model
• The SCOR Framework is the basis for all
supply chain management.
• The metrics in SCOR provide a solid
foundation for measuring performance and
identifying priorities, the processes are the
common language in your supply chain
operations.

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Supply Chain Operations Reference
Model (SCOR):
Basic Management Process

Plan-Source-Make-Deliver-Return

Plan – Source-Make-Deliver- ReturnAnáhuac

Universidad the organizational
/ WHD structure of the SCOR -model11
Roles and Responsibilities of the Supply Chain

Control
Increase customer
Satisfaction Tower Improve Financial
Position

Reduce production
costs

Develop Marketing
Improve Product Strategies
quality
Logistics
• Logistics:
It’s the integration and management of the PRODUCT VALUE CHAIN from suppliers to
customers

• Coordinating & moving Resources

• People
• Materials
• Inventory
• Equipment

Normal flow

Inverse flow

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Logistics
•Why it matters
Logistics manages the flow of supplies to match the needs of
the producer with the customer’s sales schedule.

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Logistics
•Target
• Transform the Supply Chain into an efficient process
towards an increase in customer satisfaction , where the
overall Supply Chain effectiveness is more important than
each department’s individual effectiveness.

Supply
Chain

Logistic
s

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Roles and Responsibilities of Logistics

Execution

Materials Flow System:

•The ability to plan the finished

product manufacturing process

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Roles and Responsibilities of Logistics

• Optimize the distribution system

WAREHOUSE

• Trustworthy shipping suppliers

• Effective localization of distribution centers
• Optimized shipping routes

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Roles and Responsibilities of Logistics
Optimize the Warehousing and Storage system

01

02

04

03

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Performance Indicators

• A global overview is required to

evaluate performance.
• Performance measures focused on:
• Overall performance
• Total value or total cost.
• The main measure of performance is
customer satisfaction
• Optimal service levels are required from the
supplier to the customer through the supply
chain.

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 Performance Indicators
Customer Service + Quality

Efficiency Effectiveness

Productivity
Customer
Service

Profit / Loss

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Performance Metrics

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