SCM Ch1.pptx

Chapter 1 INTRODUCTION TO SUPPLY CHAIN MANAGEMENT Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cenga...

Chapter 1 INTRODUCTION TO SUPPLY CHAIN MANAGEMENT Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1  What is a Supply Chain? A supply chain consists of the flow of products and services from:  Raw materials manufacturers  Component and intermediate manufacturers  Final product manufacturers  Wholesalers and distributors and  Retailers  Connected by transportation and storage activities, and Integrated through information, planning and integration activities. Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3  What is a Supply Chain? Supplier Manufacturer Customer Upstream Downstream Tier 3 Tier 2 Tier 1 Tomato Tomato Tomato paste Ketchup grading Distributors Retail stores Consumers growers factories factory stations Information flows Cash flows Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4  What is a Supply Chain? Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5  What is Supply Chain Management? The planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities … includes coordination with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. Council of Supply Chain Management Professionals The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer. Institute for Supply Management Management of material and information flow in a supply chain to provide the highest degree of customer satisfaction at the lowest possible cost. Requires commitment of supply chain partners to work closely to coordinate order generation, order taking, and order fulfillment. Business Dictionary Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6 Importance of Supply Chain Management, Production Speed of service Supply Chain Management System efficiency Market and sales SCM Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7  Origins of Supply Chain Management Increased supply chain capabilities Supply chain relationship formation, sustainability, social responsibility JIT, TQM, BPR, supplier and customer alliances Inventory management, MRP, MRPII and cost containment Traditional mass manufacturing 1950s 1960s 1970s 1980s 1990s 2000s Future Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 The Foundations of Supply Chain Management, Part 1 Supply Supply base, supplier alliances, SRM, global sourcing, ethical and sustainable sourcing Operations Demand management, CPFR, inventory management, MRP, ERP, lean systems, Six Sigma quality systems Logistics Logistics management, customer relationship management, network design, RFID, global supply chains, sustainability, service response logistics Integration Barriers to integration, risk and security management, performance measurement, green supply chains Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9  The Foundations of Supply Chain Management, Part 2 Supply Elements:  Supplier management - improve performance through  Supplier evaluation (determining supplier capabilities)  Supplier certification (third party or internal certification to assure product quality and service requirements)  Strategic partnerships - successful and trusting relationships with top- performing suppliers  Ethics and sustainability - recognizing suppliers’ impact on reputation and carbon footprint Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10  The Foundations of Supply Chain Management, Part 3 Operations Elements:  Demand management - match demand to available capacity  Linking buyers and suppliers via MRP and ERP systems  Extending order communication and inventory visibility farther up the supply chain  Radio frequency identification (RFID) systems scan cartons describing contents of the packages  Use lean systems to improve the flow of materials to reduce inventory levels  Employ Six Sigma to improve quality compliance among suppliers Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11  The Foundations of Supply Chain Management, Part 4 Logistics Elements:  Transportation management - trade-off decisions between cost and delivery timing considering modes of transportation and customer service  Third party logistics providers (3PLs) - for hire outside agencies providing transportation and other logistics services  Creating distribution networks based on trade-off decisions between cost and sophistication of distribution system Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12  The Foundations of Supply Chain Management, Part 5 Integration Elements:  Supply Chain Process Integration - when supply chain participants work for common goals. Requires intra-firm functional integration, with efforts to change attitudes & adversarial relationships  Supply Chain Performance Measurement - Crucial for firms to know if procedures are working as expected  High-level supply chain performance occurs when strategies at each firm fit well with overall supply chain strategies Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13 Current Trends in Supply Chain Management, Part 1 Supply Chain Analytics - examining raw supply chain data and reaching conclusions or making predictions with the information Growth being pushed by the rise in computing capabilities and big data Huge volumes of data generated in business organizations including retail, healthcare, manufacturing, and electronics Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 Current Trends in Supply Chain Management, Part 2 Most companies are trying to improve their supply chain sustainability performance  Possible benefits:  enhance processes  reduce costs  increase productivity  uncover product innovation  achieve market differentiation  improve societal outcomes Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15 Current Trends in Supply Chain Management, Part 3 Increasing Supply Chain Visibility  Knowing exactly where products are, at any point in the supply chain  Inventory visibility is made easier by technology  Sophisticated software applications for tracking orders, inventories, deliveries, returned goods, and even employee attendance Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 “The U.S. supply chain contains 37% of all jobs, employing 44 million people. These jobs have significantly higher than average wages, and account for much of the innovative activity in the economy. The intensity of Science, Technology, Engineering and Math (STEM) jobs, a proxy for innovation potential, is almost 5 times higher in the supply chain economy than in the B2C economy.” - Mercedes Delgado And Karen Mills (2018) https://hbr.org/2018/03/the-supply-chain-economy-and-the-future-of-good-jobs-in-america Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17  End of Chapter 1 Wisner | Tan | Leong, Principles of Supply Chain Management: A Balanced Approach, 6 th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18