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Enero de 2015

Santa Cruz - Bolivia

Overall Objective

Describe, Apply and implement the stages and

components of the Supply Chain Management.

Specific Objectives

To describe the stages and components of the

Supply Chain.
To identify the process of logistics and the supply
To understand and use advanced vocabulary
related to logistics.
To understand and use advanced vocabulary
related to the supply chain.

1 Description

1.1 What is the Supply Chain Management (SCM)

1.1.1 What is the importance of Supply Chain Management
1.1.2 Supply Chain Management Today
1.1.3 Supply Chain Management Tomorrow
1.1.4 The Supply Chain Management Pipeline
1.2 Objectives of the Supply Chain Management
1.3 Supply Chain principles/ Methodology and Solutions
1.3.1 Supply Chain Principles
1.3.2 Methodology of a Supply Chain Management project-solutions
1.4 Expected results/ benefits
1.4.1 Opportunity areas (examples)
1.4.2 There for the Taking
1.5 Characteristics of firms/ organizations and service providers

2 Application
2.1 Where the technique has been
2.1.1 How can Supply Chain Management
(SCM) be applied to an organization?
2.2 Types of firms/ organizations where
SCM can be applied
2.3 Duration and implementation cost of
Supply Chain Management
2.4 Conditions for implementation
2.5 European organizations supporting
the implementation of the method

3 Implementation procedure
3.1 Steps-actions/ phases
3.1.1 Implementing a competitive
approach to Warehousing and
3.2 Partial techniques and tools
included in each step
3.3 Related software


With this activity we will break the

ice and exchange knowledge with
the students. They will provide
feedback based on questions
about the video in regards to
their knowledge in logistics and
English, and I will add to that
knowledge with theory and real
life examples such as:
1. Experiences working at Lowes

and Target, since the retailers

were mentioned.
2. First hand experiences I have with
Hurricanes and evacuation
procedures (how important
logistics is in order to provide
human assistance)

Supply Chain Management (SCM)

The best companies around the

world are discovering a powerful
new source of competitive
advantage. It's called supply-chain
management and it encompasses
all of those integrated activities that
bring product to market and create
satisfied customers.

Supply Chain
Management (SCM)

The Five Steps Of Supply Chain Management

The first stage, planning, is fairly

self-explanatory. Company executives
and managers develop strategies to
manage resources for timely product
delivery. Metrics should be developed
to monitor progress and compliance.

The Five Steps Of Supply Chain Management

Choosing your suppliers is the next

step. Managers are responsible for
developing a system for pricing,
delivery and payment. (Ex: Wallmart)

The Five Steps Of Supply

Chain Management
Manufacturing is the third phase.
During this step, the manager schedules activities
necessary for production, testing, packaging and
preparation for delivery of goods or services to
customers. The manufacturing process is very
intense; worker productivity, level of quality and
product output are monitored at this stage.

The Five Steps Of Supply

Chain Management

Delivery, or logistics, is the fourth

stage of supply chain management.
Managers coordinate order receipts,
develop a network of warehouses and
choose their carriers.

The Five Steps Of Supply

Chain Management

Finally, there is the defect and

excess stage, which is likely the most
difficult to handle effectively. Here,
managers need to review their system
of supporting customers who have
problems with product delivery.


Asupply chainis a system of organizations,

people, activities, information, and resources
involved in moving a product or service
fromsupplier tocustomer. Supply chain
activities transform natural resources,raw
materials, and components into a finished
product that is delivered to the end customer.
In sophisticated supply chain systems ,
usedproducts may re-enter the supply chain
at any point where residual value is


There are five key processes in the

supply chain; purchasing,
producing, distributing, storing
and selling.


Purchasing activities occur throughout

the entire supply chain. Everything that
an individual purchases has a price,
however it is important that managers
are able to recognize that some
supplies cost more than the price they
are listed for. Being able to effectively
manage purchasing activities can help
to reduce expenses and maximize


Production processes in the supply chain

include activities such as manufacturing or
refining products and providing services. Some
organizations have very little to do with the
production process, whereas for others, it is their
main focus.
Before production can occur, a manufacturer
needs to source raw materials from either an
internal department or an external supplier. Raw
materials are then converted into a product that
can be sold or transferred to the next production
department for further processing.

Distributing and
The distribution and
storage process, often referred

to as logistics, involves the transporting,

warehousing and distribution of products and services
throughout the supply chain. The management of
these activities is crucial to the efficient operation of
the supply chain.
The physical transportation of goods can be handled
using a range of different services. Transport can
occur by road, rail, air or sea. Generally, most
products will travel by a combination of these
methods throughout their lifecycle. The organization
and management of transport is important so as to
avoid delays and cause inefficiencies. You can
optimize the transportation process by analyzing all
of your transport options and working out what will be
the most efficient and cost effective route for your

Ideally, storage and warehousing requirements

should be kept to a minimum. Warehouses
should aim to utilize their space as efficiently
as possible, and should always consider both
floor space and vertical storage space. Quick
and simple to understand identification of
stored items is essential to improve efficiency
and reduce costs. When designing, producing
or acquiring your inventory, you should keep
storage requirements in mind and aim for a
maximum utilization of space. For example,
square packaging stacks together better than
round packaging in a warehouse and could
help you to reduce your overheads.

Distribution centers are concerned with delivering the

correct goods to the right place on time. They aim to
minimize costs to the consumer and adhere to strict
policies and procedures to maintain consistency and
customer service. They organize the collection, sorting,
handling and transportation of materials between different
locations, both domestically and internationally.
Distribution and storage activities can also occur within an
organization between different departments. For example,
raw materials must be stored at the manufacturing center
before they are processed. The product may then need to
be transferred from the production department to the
packaging department and then finally out to the
distributor. The method you use to track the movement of
inventory will depend on if it is fast moving, low cost
inventory such as stationary, or slow moving, high cost
inventory such as farming machinery. These will also have
an obvious impact on storage requirements and
distribution methods.

There are many specialist logistics

management businesses that are able
to handle all transport, storage and
distribution requirements. This can
save money and make the process
more streamlined and easier to
monitor and control.


Selling receives plenty of attention by most

organizations in the supply chain as it allows them
to realize the value of their products and services.
It is important to remember that selling isn't
necessarily the last step in the supply chain. It
occurs as each organization transfers its products
to the next for something of value in return.


The Five Steps Of Supply Chain Management are:

Planning; Choosing your suppliers; manufacturing;
Delivery, or logistics; defect and excess stage

The five key processes in the supply chain are:

purchasing, producing, distributing, storing and