Supply Chain Management (SCM) CHP1 PDF

Supply Chain Management Supply Chain/ Logistics Purchasing Management BSHM 24: CHP1 – Overview & Levels of SCM Regine Mae M. Gimeno Faculty – Department of Hospitality Management Cavite State University – Trece Martires City Campus SUPPLY CHAIN MANAGEMENT (SCM) Supply chain management (SCM) is the...

Supply Chain Management Supply Chain/ Logistics Purchasing Management BSHM 24: CHP1 – Overview & Levels of SCM Regine Mae M. Gimeno Faculty – Department of Hospitality Management Cavite State University – Trece Martires City Campus SUPPLY CHAIN MANAGEMENT (SCM) Supply chain management (SCM) is the coordination of a business’ entire production flow, from sourcing raw materials to delivering a finished item.  “ What’s the importance of SCM?  Companies can become Improved SCM practices SCM more competitive can transform by minimizing waste minimizing waste and surplus businesses. minimizing waste and surplus and surplus while lowering costs and increasing efficiency. They can boost customer loyalty by They can automate offering personalized their processes to be logistics that meet faster, smarter, and individual preferences. more productive. By helping products arrive on time and in good condition, supply chain management can improve customer satisfaction and loyalty.  “ “My logisticians are a humorless lot… for they know if my campaign fails, they are the first ones I will slay.” -Alexander, the Great Supply Chain Management Overview Levels of SCM Strategical Level directs the supply chain in the long term; evaluating the supply chain’s strengths and weaknesses; lays the groundwork for the entire SCM process. Tactical Level Operational Level  Some of the decisions in the strategic level of SCM are: Creating a network Long-term improvements, IT programs and Choosing the site of reliable Inventory and product integration and systems to make and purpose of suppliers, management innovations to meet client the process more business facilities transporters, and throughout its life cycle demands effective logistics handlers ADVANTAGES: 1. Increased market power 2. Building economies of scale. 3. Building synergies CHALLENGES: 1. Antitrust issues 2. Cultures and integration challenges. 3. Increased complexity and financial risks ADVANTAGES: 1. Greater control and independence. 2. Cost savings. 3. Better marketability and market control. CHALLENGES: 1. Many resources are needed 2. A great part of flexibility may be lost. 3. Lost focus on their main goals and customer loyalty. Levels of SCM Strategical Level directs the supply chain in the long term; evaluating the supply chain’s strengths and weaknesses; lays the groundwork for the entire SCM process. Tactical Level achieving the supply chain’s medium and short-term goals. ensuring that all surface of the supply chain operation all work in line with the objectives of the strategic team. Operational Level Some issues addressed in the tactical level of SCM are: Evaluation of Seasonal space Suppliers' Carrier Vehicle routing Warehouse inventory- and improvement selection and scheduling layout control limits transportation Levels of SCM Strategical Level directs the supply chain in the long term; evaluating the supply chain’s strengths and weaknesses; lays the groundwork for the entire SCM process. Tactical Level achieving the supply chain’s medium and short-term goals. ensuring that all surface of the supply chain operation all work in line with the objectives of the strategic team. Operational Level day-to-day running of the supply chain and all the decision-making that entails. decisions on the strategic and tactical levels are enforced. must go up against unexpected events while using the blueprint from the 2 levels.  Some of the decisions in the strategic level of SCM are: Hires, lead Sourcing Processing Resource Quality Supplier Customer Forecasting times, raw returned management control management Success capacity materials items planning OBA 1. Watch a Movie!