Supply Chain Management Overview

Definition and Overview

• A supply chain is a network of organizations, people, activities, and resources involved in the production and delivery of a product or service from the supplier to the end customer.
• It encompasses the entire journey of a product, from raw material sourcing to end customer delivery, including manufacturing, logistics, and distribution.

Key Components

• Suppliers: Provide raw materials, components, or services to the manufacturer.
• Manufacturers: Convert raw materials into finished products.
• Logistics providers: Handle transportation, warehousing, and inventory management.
• Distributors: Deliver products to retailers or customers.
• Retailers: Sell products to end customers.

Supply Chain Management (SCM)

• SCM is the coordination and management of supply chain activities to maximize efficiency, reduce costs, and improve customer satisfaction.
• Includes:
  • Supply chain planning and strategy
  • Sourcing and procurement
  • Production planning and control
  • Inventory management
  • Transportation and logistics
  • Warehousing and storage

Types of Supply Chains

• Forward supply chain: Focuses on the flow of products from supplier to end customer.
• Reverse supply chain: Focuses on the flow of products from customer to supplier, often for recycling or refurbishment.
• Hybrid supply chain: Combines forward and reverse supply chain activities.

Supply Chain Performance Metrics

• Lead time: Time from order placement to delivery.
• Inventory turnover: Ratio of inventory sold to average inventory level.
• Fill rate: Percentage of customer orders fulfilled on time.
• Supply chain visibility: Ability to track and monitor supply chain activities in real-time.

Challenges and Opportunities

• Globalization: Managing complex global supply chains.
• Risk management: Mitigating risks such as natural disasters, supplier insolvency, and supply chain disruptions.
• Sustainability: Reducing environmental impact and improving social responsibility.
• Technology: Leveraging digital technologies, such as blockchain and IoT, to improve supply chain efficiency and transparency.

Definition and Overview

• A supply chain is a network of organizations, people, activities, and resources involved in producing and delivering a product or service from supplier to end customer.
• It encompasses the entire journey of a product, from raw material sourcing to end customer delivery, including manufacturing, logistics, and distribution.

Key Components

• Suppliers provide raw materials, components, or services to manufacturers.
• Manufacturers convert raw materials into finished products.
• Logistics providers handle transportation, warehousing, and inventory management.
• Distributors deliver products to retailers or customers.
• Retailers sell products to end customers.

Supply Chain Management (SCM)

• SCM is the coordination and management of supply chain activities to maximize efficiency, reduce costs, and improve customer satisfaction.
• SCM includes supply chain planning and strategy, sourcing and procurement, production planning and control, inventory management, transportation and logistics, and warehousing and storage.

Types of Supply Chains

• Forward supply chain focuses on the flow of products from supplier to end customer.
• Reverse supply chain focuses on the flow of products from customer to supplier, often for recycling or refurbishment.
• Hybrid supply chain combines forward and reverse supply chain activities.

Supply Chain Performance Metrics

• Lead time is the time from order placement to delivery.
• Inventory turnover is the ratio of inventory sold to average inventory level.
• Fill rate is the percentage of customer orders fulfilled on time.
• Supply chain visibility is the ability to track and monitor supply chain activities in real-time.

Challenges and Opportunities

• Globalization involves managing complex global supply chains.
• Risk management involves mitigating risks such as natural disasters, supplier insolvency, and supply chain disruptions.
• Sustainability involves reducing environmental impact and improving social responsibility.
• Technology involves leveraging digital technologies, such as blockchain and IoT, to improve supply chain efficiency and transparency.