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Supply Chain Management
Supply Chain Strategy
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A supply chain strategy is a structured way to managing a company's


relationship with its suppliers. This strategy is generally developed by
a supply chain management with the primary objective of maximizing
Topic Highlights value at all stages of the manufacturing cycle.

Supply Chain Goals Cycle Macro Processes


TOPIC SLIDE POSTS
1m

SUPPLY CHAIN STRATEGY

A supply chain strategy is a structured way to managing a


company's relationship with its suppliers. This strategy is
generally developed by a supply chain management with the
primary objective of maximizing value at all stages of the
manufacturing cycle.

As the global market gets more complicated, each company


that converts raw materials into completed items must have a
supply chain plan ahead of time. Manufacturing, retail,
construction, and wholesale or distribution are all examples of
this.
GOALS OF SUPPLY CHAIN STRATEGY
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The supply chain's main goal is to meet demand, provide


customer value, enhance responsiveness, allow financial success, and
create a strong network. Faster delivery, more efficiency, and
increased cash flow should be the core aims of effective supply chain
management.

The planning, design, production, inventory, and distribution


processes necessary to manufacture and sell a company's products are
all consolidated under SCM. Supply chain management aims to
increase efficiency by coordinating the actions of diverse supply chain
organizations.
3 KEY SUPPLY CHAIN DECISIONS
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Supply Chain Strategy - During this period, management


makes the majority of the decisions. At this point, it's
critical to research market circumstances.

Supply Chain Planning - The demand and supply


perspectives should be considered while developing the
supply chain.

Supply Chain Operations - The third and final decision


phase entails making a variety of functional decisions in a
matter of minutes, hours, or days.
CYCLE PUSH/PULL
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Cycle - The processes in a supply chain are divided into a series of


cycle, each performed at the interface between two successive
stages of a supply chain. Cycle view of Supply chain process
includes,
• Customer order cycle
• Replenishment cycle
• Manufacturing cycle
• Procurement cycle
IMPORTANT ISSUES AND DECISIONS
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Managing Customer Expectations - One of the challenges of


effective supply chain management is managing customer
expectations. Supply Chain Managers are service providers.

Managing Suppliers - Along with controlling consumer


expectations, suppliers must also be managed.

Maintaining quality and sustainability - Concerns regarding the


quality and sustainability of items manufactured in other nations
are one of the issues of global supply networks.
Supply Chain Macro Processes

Supply chain processes discussed in the two views


can be classified into:
1 Customer Relationship Management (CRM): –all
processes at the interface between the firm and
its customers

2 Internal Supply Chain Management (ISCM): –all


processes that are internal to the firm

Supplier Relationship Management (SRM): –all


3
processes at the interface between the firm and its
suppliers

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Supply Chain Macro Processes
Figure 1-8 Supply Chain Macro Processes
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EXAMPLE OF SUPPLY CHAIN


Zara 1.What advantage does Zara gain against the competition by
having a very responsive supply chain?

2. Why has Inditex chosen to have both in-house manufacturing


and outsourced manufacturing? Why has Inditex maintained
manufacturing capacity in Europe even though manufacturing
in Asia is much cheaper?

// Put your picture here // 3. Why does Zara source products with uncertain demand from
local manufacturers and products with predictable demand
from Asian manufacturers?

4. What advantage does Zara gain from replenishing its stores


Zara´s reflection is about style, multiple times a week compared to a less frequent schedule?
individualism and assurance.
5. Do you think Zara’s responsive replenishment infrastructure
is better suited for online sales or retail sales?
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EXAMPLE OF SUPPLY CHAIN


Toyota 1.Where should the plants be located, and what degree of
flexibility should be built into each? What capacity should
each plant have?

2. Should plants be able to produce for all markets or only


for specific contingency markets?

3. How should markets be allocated to plants and how


// Put your picture here //
frequently should this allocation be revised?

4. How should the investment in flexibility be valued?


5 BENEFITS OF HAVING A SUPPLY CHAIN STRATEGY
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1. To support your business goals.

2. To understand your historical data.

3. To know where your inventory is.

4. To adapt to changing customer demand

5. To adapt changes in internal product design or management


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THANK YOU!

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