2013-gkk-scm-lec-1.pdf
TRANSCRIPT
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Supply Chain Management
Supply Chain ManagementSupply Chain Management
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Supply Chain Management
Value Adding Process in FirmsValue Adding Process in Firms
InputsOutputs
Product
Material
Value Adding
Process
or orce
Service
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Supply Chain Management
ASimpleSupplyChainExample
RawMaterialSourcesSuppliers Manufacturers Distributors Retailers Customers
Material, Information and Funds Flow
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Supply Chain Management
whatwhat is a supply chain?is a supply chain?
A supply chain encompasses all activities involved in the
transformation of goods from the raw material stage to the final stage
w en goo s an serv ces reac t e en customer
.
Exam le: A deter ent su l chain:
CustomerManufacturer
(P&G)
Wal-Mart
DC
Wal-Mart
Store
Chemical PlasticPackaging
aper
Manufacturer
m er
IndustryIndustry
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Supply Chain Management
The Supply ChainThe Supply Chain
Suppliers Manufacturers Warehouses & Distribution Centers
Customers
Material Costs
CostsTransportation
CostsTransportation
CostsInventory CostsManufacturing Costs
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Supply Chain Management
Supply Chain StagesSupply Chain Stages
A typical supply chain involves a variety ofstages
All sta es involved in fulfillin customer demand
Manufacturer Distributor Retailer Customer Su lier
Not a one-way chain; Most SCs are actually supply network of stages
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Supply Chain Management
Supply Chain FlowsSupply Chain Flows
Manufacturer Distributor Retailer Customer Su lier
Value-Added Services
Material/Product Flow
Funds/Demand Flow
Information Flow
Returns/Recylcing
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Supply Chain Management
What is a Supply Chain?What is a Supply Chain?
The system of suppliers, manufacturers, transportation, distributors, and
vendors that exists to transform raw materials to final products and supply
consists of all parties involved, directly or indirectly, in fulfilling a customer
re uest
{ Suppliers, manufacturers, transporters, warehouses, retailers, and customers
includes all functions involved in receiving and filling a customer request
{ New product development, marketing, operations, distribution, finance, and
customer service
{ An integrated group of processes to source, make, and deliver products
That ortion of the su l chain which comes after the manufacturin
process is sometimes known as the distribution network.
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Supply Chain Management
What Is a Supply Chain?What Is a Supply Chain?
Also referred to as the logistics network
Suppliers, manufacturers, warehouses, distribution centers and retail
outlets facilities
Suppl iers Manufacturers Warehouses & Customers
and the
{ Raw materials
{ - -
{ Finished products
that flow between the facilitiesMaterial Costs
TransportationCosts
TransportationCosts Transportation
CostsInventory CostsManufacturing Costs
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Supply Chain Management
Definition of a Supply ChainDefinition of a Supply Chain
consists of multiple firms, both upstream (ie supply) and downstream (ie
distribution)
A network of organizations that are involved thru upstream anddownstream linkages, in different processes and activities that produce
value in the form of products and services in the hands of the ultimate
customer
{ Basic supply chain
{ Extended supply chain
{ Ultimate supply chain
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Supply Chain Management
Types of Supply ChainTypes of Supply Chain
SELLER BUYER
SUPPLIER FOCAL FIRMCUSTOMER
SUPPLIERS
SUPPLIERFOCAL FIRM CUSTOMER
SUPPLIER
CUSTOMERS
CUSTOMER. .
A
THIRD PARTY
LOGISTICS SUPPLIER
SUPPLIER
SUPPLIER
CUSTOMER. .
FINANCIAL
PROVIDER
MARKET
RESEARCH FIRM
ULTIMATE/EXTENDED SUPPLY CHAIN
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Supply Chain Management
A Sample Supply ChainA Sample Supply Chain
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Supply Chain Management
Components of Supply ChainsComponents of Supply Chains
Upstream Supply Chain
{ Organizations first tier suppliers & their suppliers.
Internal Supply Chain{ Processes used by an organization to transform their inputs to outputs.
Downstream Supply Chain
{ Processes involved in delivering the product to the final customers.
Value Chain
{ Su l side- raw materials, inbound lo istics and roduction rocesses
{ Demand side- outbound logistics, marketing and sales.
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Supply Chain Management
Components of Supply ChainComponents of Supply Chain
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Supply Chain Management
Supply Chain and SCMSupply Chain and SCM
Supply chains exist whether they are managed or not
{ Can come in all shapes and sizes and may be fairly complex
{
Can be bi-directional and involve the return of products (reverse logistics)
If none of the organizations implements any of the SCM concepts to
manage the supply chain, the SC as a phenomenon of business still
exists
One organization can be part of numerous supply chains