CHAPTER 9:

SUPPLY CHAIN
MANAGEMENT
INVOLVES THE MANAGEMENT OF INFORMATION FLOWS
BETWEEN AND AMONG STAGES IN A SUPPLY TO MAXIMIZE
TOTAL SUPPLY CHAIN EFFECTIVENESS AND PROFITABILITY

BASICS OF SUPPLY CHAIN

3 main link in the supply chain:
• Material flows from a supplier and their "upstream" suppliers at
all levels
• Transformation of material into the semi-finished product
through the organization's own production process
• Distribution of products to customers and their "downstream"
customers at all levels. FIGURE 9.1: TYPICALS
supply chain

FIGURE 9.2: 5 BASIC SUPPLY

CHAIN MANAGEMENT
COMPONENTS

FACTOR'S SUPPLY CHAIN

SUPPLY CHAIN MANAGEMENT

SUCCESS FACTORS
• Make the sale to suppliers
• Wean employees off traditional business practices
• Ensure the SCM system supports the organizational goals
• Deploy in incremental phases and measure and communicate success
• .Be future-oriented