supply chain management kalakota: pp 271 - 306. what is a supply chain? the network of retailers,...
TRANSCRIPT
What is a supply chain?
The network of retailers, distributors, transporters, storage facilities and suppliers that participate in the sale, delivery and production of a particular product
What is supply chain management?
The coordination of processes involved in producing, shipping and distributing products.
Components of a supply chain (cont)
Information flows
Demand forecasts Order transmissions Delivery reports
Components of a supply chain (cont)
Financial flows
Credit card information Credit terms Payment schedules
What do SCM software applications do?
Integrate demand prediction, inventory stocking and transportation decisions
Focus on managing tasks rather than costs
Ensure timely delivery of raw materials required for production and the finished product
Trends in SCM
World wide dispersion of manufacturing and distribution facilities The demand for customized products
for local markets has increased
Trends in SCM (cont)
Channel unpredictability Firms must work with multiple
suppliers to ensure reliability of raw material supply
Trends in SCM (cont)
Responsiveness over efficiency Companies have to change the way
that they manage their inventory because of customized delivery schedules
Customers Products
NOW!
Trends in SCM (cont)
Acceptance of lower margins for greater market share Companies are re-designing supply
chains to eliminate waste and inefficiencies.
SCM and Integration The ultimate aim of SCM is
integration This will involve eliminating the
middle man (The direct focus approach used by Dell computers eliminates the need for retailers)
Customers – Manufacturers – Suppliers
should be seamlessly integrated
Some e-Supply strategies
Make – to - stock (Starbucks) Based on Vertically integrated supply chain
Continuous replenishment (CVS pharmacy – Mckesson demand chain)
Based on tight integration of wholesaler and manufacturer
Build-to-Order (Intel, Solectron, Micro)
Real time matching of supply to demand.
Order commitment
Allows vendors to accurately quote delivery dates to customers
Provides customers the ability to “see” the progress of deliveries
Advanced Scheduling
These modules provide real-time updates to delivery schedules based on changing conditions
Allows players along the supply chain to view and modify delivery schedules.
Demand Planning modules
Consolidate demand forecasts from all business units in a corporation
Support the use of statistical tools and business forecasting techniques
Distribution Planning
Creates operating plans for a company’s logistic managers
Provides a complete model of the supply chain
Can address customer requirements in some cases
Transportation planning
Monitors transport operations to ensure Raw materials and finished products are delivered on time
Can analyze factors such as loading capacity of vehicles, vehicle availability and vehicle location