BUAD306

Supply Chain Management

Supply Chain

 Think about it… where does your cup

of Starbucks coffee come from?

How many “steps back”

do their supplies go?
Starbucks SC - Coffee

Receive
Storage Sift Storage Roast
Beans

Quality Quality
Blend Cool
Control Control

Package Pallet Prepare Fulfill

Supply Chain (Value Chain)

 The sequence of organizations - their

facilities, functions, and activities - that
enable the production and delivery of
a product or service
 Customers

Supply Chain Flow

Marketing
Reverse Suppliers
Logistics

Product/Svc
Design

Customers Production

Logistics

Goods vs. Cash Flow

vs. Information
Supply Chain - Facilities
 Farms/Sources
 Factories
 Laboratories
 Offices
 Warehouses
 Processing centers
 Retail outlets
 Data centers
Supply Chain - Functions
 Forecasting
 Procurement
 Purchasing
 Inventory Management
 Quality Control
 Distribution
 Delivery
 Return Processing
 Customer Service
Supply Chain Management

 Must efficiently integrate suppliers,

manufacturers, warehouse,
distribution centers/endpoints…
 So that the product/service is
distributed in the right quantities to the
right locations at the right time…
 And that costs are minimized and
“customers” are satisfied
 Supplier Relationships

Buyer
Buyer

Supplier
Supplier Supplier
Supplier
Supplier
Supplier
TIERED
Supplier
Supplier Supplier
Supplier Supplier Supplier
Supplier Supplier
Buyer
Buyer
TRADITIONAL

1st Tier Supplier

Supplier
Supplier Supplier
Supplier
Supplier
2nd Tier

Supplier Supplier Supplier

Supplier Supplier
Supplier
Supplier Supplier
3rd Tier
Supplier Management

 Vendor Analysis
 Contracting

 Supplier Audits

 Supplier Certifications (ISO 9000)

 Data Sharing
Logistics

 Movement of materials, services,

cash, and information in a supply
chain
 Includes materials for production,
support items, office supplies,
workers, etc.
 Inside and outside the company
Key SCM Concerns

 Risk Management
 Lean Operations

 IT Investment

 Environmental Impact

 Quality Control

 Outsourcing Implications

 Socio-Political-Economic Factors
E-Business

 The use of electronic technology to

facilitate business transactions
 E-Procurement
 Internet buying and selling
 Communications
 Warehousing/Order Picking/Packaging
 Order and shipment tracking
 CRM
Advantages of E-Business

 Companies can:
 Have a global presence
 Improve competitiveness and quality
 Analyze customer interests
 Collect detailed information
 Shorten supply chain response times
 Realize substantial cost savings
 Levels of the playing field for small and
virtual companies
Concerns of E-Business

 Instability abroad – political, economic,

etc.
 Technical Issues  Impact
 Risk Hacking
 MUST compete!