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  • 1. Syllabus
    • Class 1 (Jan 5):chap 1; chap 2, case study
  • Class 2: (Jan 12) No Class
  • Class 3: (Jan 19) Chap 6, Chap 8
  • Class 4: (Jan 26) chap 10, chap 11, Chap 17(Take home exam)
  • Class 5: (Feb 2) Chap 5, Chap 7
  • Class 6: (Feb 9) Chap 9, Chap 12, 14
  • Class 7: (Feb 16) Chap 15, Reverse Logistics need The Forklifts Have Nothing To Do! Available in the Lewis and Clark Bookstore
  • Class 8: (Feb 23) Cabelas Tour
  • Class 9: (Mar 2) Chap 13; Chap 16, Chap 4 (take home exam)
  • Other requirements:
  • -> visit Harley-Davidson Plant in Kansas City to see operations management in practice and write a 3-5 page paper comparing the class slides and readings to the Harley operations
  • ->Home Work

2. Supply Chain Management 3. Supply Chain Management

  • First appearance Financial Times
  • Importance -
  • ->Inventory ~ 14% of GDP
  • ->GDP ~ $12 trillion
  • ->Warehousing/Trans ~ 9% of GDP
  • ->Rule of Thumb - $12 increase in sales to = $1 savings in Supply Chain
  • 1982 Peter Drucker last frontier
  • Supply Chain problems can cause 11% drop in stock price
  • Customer perception of company

4. SCOR Reference: 5. Supply Chain

  • All activities associated with the flow and transformation of goods and services from raw materials to the end user, the customer
  • A sequence of business activities from suppliers through customers that provide the products, services, and information to achieve customer satisfaction

6. Supply Chain

  • The global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash.
  • APICS Dictionary, 10th ed.

7. Supply Chain Management

  • Synchronization of activities required to achieve maximum competitive benefits
  • Coordination, cooperation, and communication
  • Rapid flow of information
  • Vertical integration

8. Supply Chain Uncertainty

  • Forecasting, lead times, batch ordering, price fluctuations, and inflated orders contribute to variability
  • Inventory is a form of insurance
  • Distorted information is one of the main causes of uncertainty Bullwhip effect

9. Information in theSupply Chain

  • Centralized coordination of information flows
  • Integration of transportation, distribution, ordering, and production
  • Direct access to domestic and global transportation and distribution channels
  • Locating and tracking the movement of every item in the supply chain -RFID

10. Information in theSupply Chain

  • Consolidation of purchasing from all suppliers
  • Intercompany and intracompany information access
  • Electronic Data Interchange
  • Data acquisition at the point of origin and point of sale
  • Instantaneous updating of inventory levels
  • Visibility

11. Electronic Business

  • Replacement of physical processes with electronic ones
  • Cost and price reductions
  • Reduction or elimination of intermediaries
  • Shortening transaction times for ordering and delivery
  • Wider presence and increased visibility

In Theory: 12. Electronic Business

  • Greater choices and more information for customers
  • Improved service
  • Collection and analysis of customer data and preferences
  • Virtual companies with lower prices
  • Leveling the playing field for smaller companies
  • Gain global access to markets & customers

13. Electronic Data Interchange

  • Computer-to-computer exchange of business documents in a standard format
  • Quick access, better customer service, less paperwork, better communication, increased productivity, improved tracing and expediting, improves billing and cost efficiency

14. Bar Codes

  • Computer readable codes attached to items flowing through the supply chain
  • Generates point-of-sale data which is useful for determining sales trends, ordering, production scheduling, and deliver plans

12345678 15. IT Issues

  • Increased benefits and sophistication come with increased costs
  • Efficient web sites do not necessarily mean the rest of the supply chain will be as efficient
  • Security problems are very real camera phones, cell phones, thumb drives
  • Collaboration and trust are important elements that may be new to business relationships

16. Suppliers

  • Purchased materials account for about half of manufacturing costs
  • Materials, parts, and service must be delivered on time, of high quality, and low cost
  • Suppliers should be integrated into their customers supply chains
  • Partnerships should be established
  • On-demand delivery (JIT) is a frequent requirement - what is JIT and does it work?

17. Sourcing

  • Relationship between customers and suppliers focuses on collaboration and cooperation
  • Outsourcing has become a long-term strategic decision
  • Organizations focus on core competencies
  • Single-sourcing isincreasingly a partof supplier relations

How does single source differ from sole source? 18. E-Procurement

  • Business-to-business commerce conducted on the Internet
  • Benefits include lower transaction costs, lower prices, reduce clerical labor costs, and faster ordering and delivery times
  • Currently used more for indirect goods
  • E-Marketplaces service industry-specific companies and suppliers

19. Distribution

  • The actual movement of products and materials between locations
  • Handling of materials and products at receiving docks, storing products, packaging, and shipping
  • Often called logistics
  • Driving force todayis speed
  • Particularly importantfor Internet dot-coms

20. Distribution Centersand Warehousing

  • DCs are some of the largest business facilities in the United States
  • Trend is for more frequent orders in smaller quantities
  • Flow-through facilities and automated material handling
  • Final assembly and product configuration(postponement)may be done at the DC

21. Warehouse Management Systems

  • Highly automated systems
  • A good system will control item slotting, pick lists, packing, and shipping
  • Most newer systems include transportation management (load management/configuration), order management, yard management, labor management, warehouse optimization

22. Vendor-Managed Inventory

  • Not a new concept same process used by bread deliveries to stores for decades
  • Reduces need for warehousing
  • Increased speed, reduced errors, and improved service
  • Onus is on the supplier to keep the shelves full or assembly lines running
  • variation of JIT
  • Proctor&Gamble - Wal-Mart
  • DLA moving from a manager of supplies to a manager of suppliers
  • Direct Vendor Deliveries loss of visibility

23. Collaborative Distribution and Outsourcing

  • Collaborative planning, forecasting, and replenishment (CPFR) started by Nabisco
  • Allows suppliers to know what is really needed and when
  • Electronic-based exchange of data and information
  • Significant decrease in inventory levels and more efficient logistics - maybe not!
  • Companies work together for benefit of all of the supply chain

24. Transportation

  • Common methods are railroads, trucking, water, air, intermodal, package carriers, and pipelines

25. Railroads

  • 150,000 miles in US
  • Low cost, high-volume
  • Improving flexibility
    • intermodal service
    • double stacking

Complaints: slow, inflexible, large loads Advantages: large/bulky loads, intermodal 26. Award-Winning Service Recognition United Parcel Service 99.5% failure free, damage free and on-time rating from United Parcel Service every year since 1995 Wal-Mart Stores, Inc. Carrier of the Year 5 years in a row Target Only rail carrier to receivethe Vice Presidents Award American Honda Motor Company Premier Partner 4 consecutive years Toyotas North American Parts and Logistics Division (NAPLD) Rail Carrier of the Year 3 consecutive years KIA Carrier of the Year Schneider Carrier of the Year 3 consecutive years Federal Express Only rail carrier to receive outstanding supplier award - 2 years in a row 27.

  • Most used mode in US -


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