Professional Documents
Culture Documents
Management”
Recognition:
The early to mid-1990s witnessed a growing recognition
that there could be value in coordinating the various
business functions, both:
- Within Organizations, and
- Across Organizations
Recognition (contd):
Customer’s
Supplier’s customers
suppliers
Source – Prof. Dr. Ted Lee’s Class Presentation - 2010
Ultimate Supply Chain
3rd Party Logistic Supplier
Ultimate
Ultimate customer
supplier Market Research
Financial Provider
- Conversion
- Logistics management
Management of the Supply Chain (contd)
This involves coordination, and collaboration with
channel partners such as:
- Suppliers
- Intermediaries
- Third party service providers, and
- Customers
1. Planning:
• A strategy for managing all the resources that goes toward meeting customer
demand for your product or service.
• Balances aggregate demand and supply to develop a course of action which best
meets the requirements for:
-Sourcing
- Production, and
-Delivery
BASIC COMPONENT OF SUPPLY CHAIN MANAGEMENT
(contd)
2. Sourcing:
•Choose the suppliers that will deliver the goods and services you need to create
your product or service.
•Develop a set of pricing, delivery and payment processes with suppliers and
create metrics for monitoring and improving the relationships.
•Put together processes for managing the inventory of goods and services you
receive from suppliers.
BASIC COMPONENT OF SUPPLY CHAIN MANAGEMENT
(contd)
3. Making: (The manufacturing step. )
It Involves:
- Coordinating the receipt of orders from customers
- Developing network of warehouses
- Picking carriers to get products to customers, and
- Set up an invoicing system to receive payments.
BASIC COMPONENT OF SUPPLY CHAIN
MANAGEMENT (contd)
• Lean Manufacturing
• Product management —
R&D, engineering and
product development
▫ Operational excellence
▫ Innovation excellence
Operational excellence
This involves:
• Reaching the ultmate in the execution of business processes
• Remove waste
• Reduce inefficiencies
Lean Manufacturing
Radio Frequency Identification
• RFID technology uses radio waves to read data
put on a chip embedded within a tag.
• Take a cue from the leaders when designing your own supply
chain strategy. Define how many supply chain types you have and
design a customized response for each.
Production:
What product does the market wants, how much and by when.
Inventory:
What inventory should be stocked at each stage of the supply chain and how
much of each type.
Location:
Where should facilities for production and inventory storage be located to be
most cost effective
Transportation:
How should inventory be moved from one supply chain location to another
Information:
How much data should be collected and how much information should be
shared.
Bibliography
• http://www.gartner.com/technology/supply-chain/top25.jsp
• http://www.businessweek.com/adsections/2004/pdf/0416_supplychain.pdf
• http://www.pwc.com/gx/en/transportation-logistics
• http://www.amrresearch.com
• http://www.ariba.com
• http://www.ifsna.com
• http://www.ipsmartpackaging.com
• http://www.matrics.com
• http://www.peoplesoft.com
• http://www.sap.com
• http://www.myyellow.com
• http://www.zebra.com
• Contemporary Logistics – 9th Edition - by Paul R. Murphy, JR. & Donald F. Wood