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Supply Chain Management (3rd Edition)
Supply Chain Management (3rd Edition)
(3rd Edition)
Chapter 1
Understanding the Supply Chain
Profit
Profit 4%
Logistics
Cost
Logistics Cost 21% Marketing
Cost
Chemical
Plastic Tenneco
manufacturer
Producer Packaging
(e.g. Oil Company)
Chemical
Paper Timber
manufacturer
Manufacturer Industry
(e.g. Oil Company)
Information
Product
Customer
Funds
Retailer
Replenishment Cycle
Distributor
Manufacturing Cycle
Manufacturer
Procurement Cycle
Supplier
© 2007 Pearson Education 1-21
Cycle View of a Supply Chain
Each cycle is at the interface between two successive stages
Customer order cycle (customer-retailer)
Replenishment cycle (retailer-distributor)
Manufacturing cycle (distributor-manufacturer)
Procurement cycle (manufacturer-supplier)
Figure 1.3
Cycle view clearly defines processes involved and the
owners of each process. Specifies the roles and
responsibilities of each member and the desired outcome of
each process.
Customer
Order Arrives
DELL
WalMart
Toyota
Gateway
Zara
McMaster Carr / W.W. Grainger
Amazon / Borders / Barnes and Noble
Webvan / Peapod / Jewel