unit i introduction to scm

8/14/2019 Unit I Introduction to SCM

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Paper IV: Supply ChainManagement

perations Management


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Unit I: Introduction to SCM - Building Blocks of a Supply Chain

Network,

Performance Measures,

Decisions in the Supply Chain World,

Models for Supply Chain Decision-Making.

ection


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ntroduction to SC

e flow and transfer of goods from the raw ma


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the operations of the supply chain as efficiently as possible. S

ntroduction to SC

nagement encompasses the planning and management of all ac
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A sample of definitions of supply chain management

AUTHORS DEFINITION

Oliver and Webber (1982) Supply chain management covers the flow of goods from supplier through manufacturing and distribution chainsto end-user

Jones and Riley (1987) Supply chain management techniques deal with the planning and control of total materials flow from suppliersthrough end-users

Ellram (1991) An integrative approach to dealing with the planning and control of the materials flow from suppliers to end-users

Christopher (1992) Supply chain management is the management of a network of organizations that are involved, through upstreamand downstream linkages, in the different processes and activities that produce value in the form of products andservices in the hands of the ultimate consumer

International Center forCompetitive Excellence (1994)

Supply chain management is the integration of business processes from end-user through original suppliers thatprovides products services and information that add value for customers

Harland (1994) Supply chain management is defined as the management of the flow of goods and services to end customers tosatisfy their requirements

Berry et al. (1994) Supply chain management aims at building trust, exchanging information on market needs, developing newproducts, and reducing the supplier base to a particular original equipment manufacturer (OEM) so as to releasemanagement resources for developing meaningful, long-term relationships

Cooper et al. (1997) An integrating philosophy to manage the total flow of a distribution channel from supplier to ultimate customer

Lee and Ng (1997) (The management of) a network of entities that starts with the suppliers' supplier and end with the customers'customers for the production and delivery of goods and services

Handfield and Nichols (1999) The supply chain encompasses all activities associated with the flow and transformation of goods from the rawmaterials stage (extraction), through to the end-user, as well as associated information flows. Material andinformation flow both up and down the supply chain. Supply chain management is the integration of theseactivities though improved supply chain relationships to achieve sustainable competitive advantage

Simchi-Levi et al. (2000) Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers,warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the rightlocations and at the right time, in order to minimize system-wide costs while satisfying service level requirements

Ayers (2001) Supply chain management is the design, maintenance, and operation of supply chain processes for satisfaction ofend-users
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History,The term supply chain management was coined by consultant strategyconsulting firm Booz Allen Hamilton in

.1982

Keith OliverKeith Oliver

Supply Chain Management

( )abbreviated as

SS CC MM

,Some experts distinguish supply chain management and logistics,Some experts distinguish supply chain management and logistics.while others consider the terms to be interchangeable.while others consider the terms to be interchangeable

ntroduction to SC


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rating the organization s functionsv :ptions for integrating the organization s functions :ptions for integrating the organization s functions

MATERIALSMANAGEMENT

MERCHANDISINGLOGISTICS

.UPPLY CHAIN MANAGEMENT


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Managing the supply chain

First-tier

suppliers

The

operation

Second-tier

suppliers

First-tier

customers

Second-tier

customers

Purchasing andsupply management

Physical distributionmanagement

Logistics

Materials management

Supply chainmanagement


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Supply chain management (SCM) is the combination of art andscience that goes into improving the way your company finds theraw components it needs to make a product or service and deliver it

to customers.


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gy for managing all the resources that go

the supply chain so that it is efficient, costs less and delivers high quality and value to customers.

Plan Source

s need to create product. Develop a set of pricing, delivery and payment processes with suppliers a

g shipments, verifying them,supplier payments.

Make

This is the manufacturing step. Schedule the activities necess

packaging and preparation for delivery. As the most metric-intemeasure quality levels, production output and worker productiv


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ders refer to as logistics. Coordinate the receipt of orders from

f warehouses, pick carriers to get products to customers and set up an

ments.

Deliver Return

The problem part of the supply chain. Create a network for receivin

products back from customers and supporting customers who have pro


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SUPPLYCHAIN_SIMPLEUPPLYCHAIN_SIMPLE


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SUPPLYCHAIN_COMPLEXUPPLYCHAIN_COMPLEX


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uilding Blocks of a Supply Chain NetTheHouse of SCM illustrates the many facets of SCM. The roof stands for the ultimate goal

of SCM competitiveness customer service indicates the means. Competitiveness can be

improved in many ways, e. g. by reducing costs, increasing flexibility with respect to changes

in customer demands or by providing a superior quality of products and services.

The roof rests on two pillars

representing the two main

components of SCM, namely the

integration of a network of

organizations and the

coordination of information,

material and financial flows. Thefigure also shows that there are

many disciplines that formed the

foundations of SCM.
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unit i introduction to scm

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