This document discusses supply chain management. It defines a supply chain as all parties involved in procuring raw materials and delivering products to customers. It describes the five basic supply chain activities as plan, source, make, deliver, and return. Key factors driving supply chain management are visibility into inventory and demand, responding to consumer behavior, competition, and speed. The document outlines principles of supply chain management like customizing logistics based on customer segments and listening for market demand signals. It recommends industry best practices like communicating successes and being future oriented when implementing supply chain systems.
This document discusses supply chain management. It defines a supply chain as all parties involved in procuring raw materials and delivering products to customers. It describes the five basic supply chain activities as plan, source, make, deliver, and return. Key factors driving supply chain management are visibility into inventory and demand, responding to consumer behavior, competition, and speed. The document outlines principles of supply chain management like customizing logistics based on customer segments and listening for market demand signals. It recommends industry best practices like communicating successes and being future oriented when implementing supply chain systems.
This document discusses supply chain management. It defines a supply chain as all parties involved in procuring raw materials and delivering products to customers. It describes the five basic supply chain activities as plan, source, make, deliver, and return. Key factors driving supply chain management are visibility into inventory and demand, responding to consumer behavior, competition, and speed. The document outlines principles of supply chain management like customizing logistics based on customer segments and listening for market demand signals. It recommends industry best practices like communicating successes and being future oriented when implementing supply chain systems.
This document discusses supply chain management. It defines a supply chain as all parties involved in procuring raw materials and delivering products to customers. It describes the five basic supply chain activities as plan, source, make, deliver, and return. Key factors driving supply chain management are visibility into inventory and demand, responding to consumer behavior, competition, and speed. The document outlines principles of supply chain management like customizing logistics based on customer segments and listening for market demand signals. It recommends industry best practices like communicating successes and being future oriented when implementing supply chain systems.
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CHAPTER 10
SUPPLY CHAIN MANAGEMENT
Prepared by :-
Faisal Amirdeen Asyraf Shahir
BASIC OF SUPPLY CHAIN MANAGEMENT
A supply chain consists of all parties involved, directly, in the procurement of a product or raw material.
It becoming increasingly important in creating organizational efficiencies and competitive advantages.
It improves ways of companies to find the raw components they need to make a product or service, manufacture that product or service, and deliver it to customer.
The Five Basic Supply Chain Management Activities
1. Plan
2. Source
3. Make
4. Deliver
5. Return
Factors Driving Supply Chain Management
Visibility
Consumer Behavior
Competition
Speed
VISIBILITY
Supply chain visibility The ability to view all areas up and down the supply chain
Bulwhip effect Occurs when distorted product demand information passes from one entity to the next throughout the supply chain CONSUMER BEHAVIOUR
Companies can respond faster and more effectively to consumer demands through supply chain enchances Demand planning software generates demand forecast using statistical tools and foreasting techniques COMPETITION
Supply chain planning (SCP) software usesadvanced mathemetical algorithms to improve the flow and effeciency of the supply chain Supply chain execution (SCE) software automates the different steps and stages of supply chain
Supplier
Manufacturer
Distributor
Retailer
Customer
Three Fostering Supply Chain Speed
1. Pleasing customers has become something of a corporate obsession.
2. Information is crucial to managers abilities to reduce inventory and human resources requirements to a competitive level.
3. Information flows are essential to strategic planning for and deployment of resources.
Principles of Supply Chain Management
1. Segment customers by service needs, regardless of industry and then tailor services to those particular segments.
2. Customize the logistics network and focus intensively on the service requirements and on the profitability of the preidentified customer segments.
3. Listen to signals of market demand and plan accordingly. Planning must span the entire chain to detect signals of changing demand.
4. Differentiate products closer to the customer, since companies can no longer afford to hold inventory to compensate for poor demand forecasting.
5. Strategically manage sources of supply, by working with key suppliers to reduce overall costs of owning materials and services. Five industry best practices to improve their chances of successful implementation of SCM system
1. Make the sale to suppliers.
2. Wean employees off traditional business practice.
3. Ensure the supply chain management system support the organizational goal.
4. Deploy in incremental phases and measure and communicate success.