Bonus and Funding
Bonus and Funding
Bonus and Funding
Learning Outcomes
Distinguish between supply chains and value
chains;
Explain, with reference to particular firms and
industries, the significance of supply chains in
the twenty-first century competitive landscape;
Discuss the requisite conditions for effective
supply chain management and, specifically, how
supply chain uncertainty could be dealt with;
Describe how contemporary information
technology creates the enabling platform upon
which effective supply chains could be built;
Copyright 2011 John Wiley & Sons, Inc.
10-2
Learning Outcomes
Elaborate upon the critical elements that must
be set in place to establish optimal supply chain
integration and to put forward illustrative
examples from both manufacturing enterprises
and firms providing services;
Identify the SCOR performance metrics and to
explain the underlying rationale for each one;
10-3
Supply Chains
All facilities, functions, and activities associated
with flow and transformation of goods and
services from raw materials to customer, as well
as the associated information flows
An integrated group of processes to source,
make, and deliver products
10-4
10-5
10-6
10-7
10-8
10-9
Value Chains
Value chain
every step from raw materials to the eventual end
user
ultimate goal is delivery of maximum value to the
end user
Supply chain
activities that get raw materials and subassemblies
into manufacturing operation
ultimate goal is same as that of value chain
10-10
Value Chains
Demand chain
increase value for any part or all of chain
10-11
information
communication
cooperation
trust
10-12
Supply Chain
Uncertainty and Inventory
A major objective of SCM:
respond to uncertainty in customer demand without
creating costly excess inventory
Inventory
insurance against supply chain uncertainty
10-13
Supply Chain
Uncertainty and Inventory
Factors that contribute to uncertainty
10-14
Bullwhip Effect
Occurs when slight demand variability is
magnified as information moves back upstream
10-15
Risk Pooling
Risks are aggregated to reduce the impact of
individual risks
Combine inventories from multiple locations into one
Reduce parts and product variability, thereby reducing
the number of product components
Create flexible capacity
10-16
10-17
10-18
Information Technology:
A Supply Chain Enabler
Information links all aspects of supply chain
E-business
replacement of physical business processes with
electronic ones
10-19
Internet
allows companies to communicate with suppliers,
customers, shippers and other businesses around the
world instantaneously
Build-to-order (BTO)
direct-sell-to-customers model via the Internet;
extensive communication with suppliers and customer
10-20
10
10-21
10-22
11
10-23
Bar Codes
10-24
12
10-25
RFID Capabilities
10-26
13
RFID Capabilities
10-27
10-28
14
Production efficiencies
Fast response
Improved service
Quicker to market
10-29
10-30
15
SCM Software
Enterprise resource planning (ERP)
software that integrates the components of a
company by sharing and organizing
information and data
10-31
Inventory turns
10-32
16
Days of supply
10-33
10-34
17
10-35
10-36
18
10-37
10-38
19