Order Fulfilment & Customer

Service

Introduction
Order Fulfilment & Customer
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Session Agenda
1) Introduction to module
2) Assessments
3) Source of information
 Text Books
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Text Books
 Joel D. Wisner; G.Keong Leong, “Principles Of
Supply Chain management” (A balanced
Approach). FT Prentice Hall. 7th Edition 2006
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Supply Chain Management
Management of the flow of goods or services between entities in the
chain to realize delivery of end products or services, satisfying
customers at minimum cost.
OR
Set of approaches utilized to efficiently integrate suppliers,
manufacturers, warehouses and stores, so that merchandise is produced
and distributed in the right quantities, to the right locations at the right
time in order to minimize system wide costs while satisfying service
level requirements.
More Realistic Supply Chain
Flow within a Supply Chain
Returned Goods

Material Flow

Cash Flow

Supplier Factory Retailer Consumer

Supplier Distr. Center Retailer

Information Flow
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Why is SCM difficult?
Different facilities may have different, conflicting
objectives
◦ Suppliers want manufacturers to commit themselves to
purchasing large quantities in stable volumes with flexible
delivery dates
◦ Manufacturers want large production runs
◦ Warehouses and Distribution Centers want to reduce
inventory
◦ Reduction in inventory levels increase transportation costs
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Conclusion
 Supply chains compete, not companies
 Most of the opportunities for cost reduction and
value enhancement lie at the interface between
supply chain partners
 Supply chain integration implies process
integration
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End of Topic