MGT 524 Food Supply Chain Management Lecture 1

Introduction to Food Supply Chain Management

• Every organization is involved directly or indirectly in production, manufacturing, distribution, and consumption of goods and services.
• Companies must have a good knowledge of consumer desires to bring success in the design and delivery processes.

Objectives

• Understand the meaning of Supply Chain and Logistics
• Understand the relationship between Logistics and Supply Chain Management
• Identify the purpose of Supply Chain
• Understand the importance of Supply Chain decision and the various Supply Chain decision phases

Supply Chain Management

• Includes all activities involved in sourcing and procurement, conversion, and logistics management activities
• Includes coordination and collaboration with channel partners (suppliers, intermediaries, third-party service providers, and customers)

Streams of Supply Chain

• Upstream supply chain: includes the organization’s first-tier suppliers and their suppliers
• Internal supply chain: includes all processes used by an organization in transforming inputs to outputs
• Downstream supply chain: includes all processes involved in delivering products to final customers

Supply Chain Management

• A focal company is an entity involved in producing raw materials and components for consumers as goods and services
• Distributors are entities involved in delivering produced goods and services through various modes of transportation between each location of the chain
• Overt Chain: the chain through which goods and services pass from one company to another before reaching the final consumer
• Factors necessary for effective overt chain: information communication, management coordination, and chain leadership

Purpose of Supply Chain

• Optimization of performance
• Achieving excellence
• Optimization of all departments within the supply chain

Logistics Management

• Defined as that part of Supply Chain Management process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption
• Role of logistics: coordination of the process from point of production to point of delivery

Relationship Between Logistics and Supply Chain Management

• Logistics Management is part of Supply Chain Management that concerns itself with the coordination, planning, implementation of the movement and reverse movement of goods and services
• Logistics involves getting the right product, in the right quantity, and right quality, in the right place, at the right time, for the right customer, at the right cost

Decision Phases in Supply Chain

• Supply Chain Strategic Decision: long-term decisions that consider market conditions and involve optimal maximization of long-term profit
• Supply Chain Planning: examining competitors and strategies to meet customer requirements
• Supply Chain Operations: making decisions within minutes, hours, or days to reduce uncertainty and optimize performance

Introduction to Food Supply Chain Management

• Every organization is involved directly or indirectly in production, manufacturing, distribution, and consumption of goods and services.
• Companies must have a good knowledge of consumer desires to bring success in the design and delivery processes.

Objectives

• Understand the meaning of Supply Chain and Logistics
• Understand the relationship between Logistics and Supply Chain Management
• Identify the purpose of Supply Chain
• Understand the importance of Supply Chain decision and the various Supply Chain decision phases

Supply Chain Management

• Includes all activities involved in sourcing and procurement, conversion, and logistics management activities
• Includes coordination and collaboration with channel partners (suppliers, intermediaries, third-party service providers, and customers)

Streams of Supply Chain

• Upstream supply chain: includes the organization’s first-tier suppliers and their suppliers
• Internal supply chain: includes all processes used by an organization in transforming inputs to outputs
• Downstream supply chain: includes all processes involved in delivering products to final customers

Supply Chain Management

• A focal company is an entity involved in producing raw materials and components for consumers as goods and services
• Distributors are entities involved in delivering produced goods and services through various modes of transportation between each location of the chain
• Overt Chain: the chain through which goods and services pass from one company to another before reaching the final consumer
• Factors necessary for effective overt chain: information communication, management coordination, and chain leadership

Purpose of Supply Chain

• Optimization of performance
• Achieving excellence
• Optimization of all departments within the supply chain

Logistics Management

• Defined as that part of Supply Chain Management process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption
• Role of logistics: coordination of the process from point of production to point of delivery

Relationship Between Logistics and Supply Chain Management

• Logistics Management is part of Supply Chain Management that concerns itself with the coordination, planning, implementation of the movement and reverse movement of goods and services
• Logistics involves getting the right product, in the right quantity, and right quality, in the right place, at the right time, for the right customer, at the right cost

Decision Phases in Supply Chain

• Supply Chain Strategic Decision: long-term decisions that consider market conditions and involve optimal maximization of long-term profit
• Supply Chain Planning: examining competitors and strategies to meet customer requirements
• Supply Chain Operations: making decisions within minutes, hours, or days to reduce uncertainty and optimize performance

This quiz covers the introductory concepts of food supply chain management, including production, manufacturing, distribution, and consumption of goods and services.