Supply Chain Management Basics

Definition: The coordination and management of activities involved in sourcing, producing, and delivering a product to the end customer.
Key components:
- Sourcing: selecting and acquiring materials and services
- Production planning: determining the quantity and timing of production
- Inventory management: controlling the storage and movement of goods
- Transportation: moving goods from one location to another
- Distribution: delivering products to customers
Goals:
- Reduce costs
- Improve quality
- Increase customer satisfaction
- Enhance competitiveness

Definition: The management of warehouse activities, including receiving, storing, and shipping products.
Key functions:
- Receiving: inspecting and processing incoming goods
- Storage: organizing and storing inventory in a warehouse
- Order picking: selecting and preparing products for shipment
- Shipping: transporting products to customers
Warehouse types:
- Distribution center: focuses on shipping products to customers
- Fulfillment center: focuses on shipping products directly to customers
- Warehouse management system (WMS): software used to manage warehouse operations

Definition: The planning, coordination, and execution of the movement of goods from one location to another.
Key components:
- Carrier selection: choosing the best transportation provider for a shipment
- Route optimization: determining the most efficient route for a shipment
- Load planning: planning the most efficient use of transportation capacity
- Freight audit and payment: verifying and paying for transportation services
Transportation modes:
- Land (truck, rail, intermodal)
- Air
- Ocean
- Multimodal (combines multiple modes)

Definition: The process of receiving, processing, and delivering customer orders.
Key steps:
- Order receipt: receiving and processing customer orders
- Order picking: selecting and preparing products for shipment
- Packing: packaging products for shipment
- Shipping: transporting products to customers
- Tracking: monitoring the status of shipments
Fulfillment strategies:
- Drop shipping: shipping products directly from supplier to customer
- In-house fulfillment: fulfilling orders from a company's own warehouse
- Third-party logistics (3PL): outsourcing fulfillment to a third-party provider

Definition: The management of inventory levels to ensure the right products are available at the right time.
Key components:
- Inventory tracking: monitoring inventory levels and locations
- Forecasting: predicting future demand for products
- Ordering: determining when to order more inventory
- Stocking: managing inventory levels and storage
Inventory control methods:
- Just-in-time (JIT): ordering and receiving inventory just in time for production or sale
- Economic order quantity (EOQ): ordering the optimal quantity of inventory to minimize costs
- Vendor-managed inventory (VMI): allowing suppliers to manage inventory levels

Coordinating and managing activities involved in sourcing, producing, and delivering a product to the end customer
Involves sourcing, production planning, inventory management, transportation, and distribution
Goals: reduce costs, improve quality, increase customer satisfaction, and enhance competitiveness

Managing warehouse activities, including receiving, storing, and shipping products
Key functions: receiving, storing, order picking, and shipping
Types of warehouses: distribution center, fulfillment center, and warehouse management system (WMS)

Planning, coordinating, and executing the movement of goods from one location to another
Key components: carrier selection, route optimization, load planning, and freight audit and payment
Transportation modes: land (truck, rail, intermodal), air, ocean, and multimodal

Receiving, processing, and delivering customer orders
Key steps: order receipt, order picking, packing, shipping, and tracking
Fulfillment strategies: drop shipping, in-house fulfillment, and third-party logistics (3PL)

Managing inventory levels to ensure the right products are available at the right time
Key components: inventory tracking, forecasting, ordering, and stocking
Inventory control methods: just-in-time (JIT), economic order quantity (EOQ), and vendor-managed inventory (VMI)

Inbound logistics involves managing receipt, inspection, and storage of goods.
Warehouse layout and design are crucial for optimizing space and workflow for efficient operations.
Inventory management involves tracking and updating stock levels in real-time.

Order processing involves receiving and processing customer orders, verifying, picking, and packing.
Managing backorders and inventory levels is essential to ensure timely fulfillment.
Carrier selection and management involves choosing the right carrier for each shipment.
Route optimization minimizes transportation costs and improves delivery times.
Managing returns and reverse logistics involves processing, inspecting, and restocking returned items.

Supply chain strategy involves defining goals and objectives, identifying and mitigating risks.
Supplier management involves selecting and onboarding suppliers, evaluating quality, cost, and reliability.
Network optimization involves designing and optimizing supply chain networks, facility location, inventory allocation, and transportation planning.
Implementing lean and agile supply chain practices improves efficiency.

Inventory management systems track stock levels, manage inventory, and optimize inventory levels.
Integrating inventory management systems with other logistics systems improves efficiency.
Forecasting demand involves using statistical models and machine learning algorithms.
Managing inventory levels involves setting reorder points, calculating safety stock, and determining optimal inventory levels.
Inventory accuracy and control involve conducting inventory audits and cycle counts, tracking stock movements, and preventing inventory loss.