Supply Chain Management PDF - BUS 101 Notes

Supply Chain Management Introduction to Supply Chain Management BUS 101 Course outline/Content 1. Meaning of supply chain management. 2. Distribution strategy in channels. 3. Channel design decisions. 4. Managing m...

Supply Chain Management Introduction to Supply Chain Management BUS 101 Course outline/Content 1. Meaning of supply chain management. 2. Distribution strategy in channels. 3. Channel design decisions. 4. Managing marketing channels. 5. Logistics, the Supply Chain and Competitive Strategy. 6. Logistics and Customer Value. 7. Conflicts and cooperation within marketing channels. 8. Difference between distribution channels for consumer and business markets. 9. Key issues and challenges in supply chain management. 10. Planning framework for logistics. 11. Production and procurement planning. 12. Warehousing and storage. 13. Freight transport. Monitoring and control. 14. Global supply chain management. 15. Supply chain risk management. 16. Warehousing and storage. 17. Globalization and International logistics. 18. Financial measures in Logistics performance. 19. Customer service in Logistics and Supply Chains. 20. The Concept of Procurement and Supply. 21. Inventory Management. 22. Quality Customer Service. 23. The Key Variables of Procurement and Supply. 24. Functions of Purchasing Department. 25. Objectives of Purchasing. 26. Advantages of Effective Procurement. 27. Matching Demand and Supply. 28. Strategic Lead-Time Management. 29. Managing Risk in the Supply Cain. 30. Barriers to Supply Chain Integration. i. Concepts of and the relationship between logistics and supply chain management. ii. Historical development of Logistics and Supply Chain Management iii. The critical developmental roles of Logistics and Supply Chain Management in advancing nations' political, social, and economic status on a global scale with local and regional examples. iv. The mission of logistics management and the seven rights of logistics. v. The introduction of the supply chain as a value chain and how it confers competitive advantages of cost and value with examples. vi. The four different schools of thoughts (Traditionalists, Unionists, Re-labelling and Intersectionists) and their influences in practice across the globe. vii. Theories of Supply Chain Management. (a). Transaction Cost Analysis. (b). Resource-based view. (c). Knowledge-based view. (d). Strategic choice theory. (e). Agency theory. (f). Institutional Theory. (g). Systems Theory. (h). Network Perspective, and (i). Stakeholder Theory. viii. Introduction to the changing competitive environment (the new rules of competition, turbulence and volatility, globalisation of industry, downward price pressure) and the principles of managing supply chain competition, Responsiveness, Reliability, Resilience and Relationships 4rs  Concept of Supply Chain Management Supply Supply simply refers to the total amount of a product that is available to consumers or businesses at a given time. It represents the quantity that producers are willing and able to sell at various prices during a specific period. Product A product is any item that is created, developed, or offered for sale to meet the needs or wants of consumers. It can take many forms, such as physical goods, services, or even intangible items like digital goods or intellectual property. Products are usually designed to solve a problem, satisfy a need, or provide value to the customer. For businesses, the development, marketing, and improvement of products are central to their operations and success. There are generally two types of products: Tangible Products Physical items that can be touched or seen, like a smartphone, furniture, or food. They are referred to as goods. Intangible Products Non-physical items that cannot be touched or seen such as services, like consulting, repair services or digital products, software, music downloads. They are referred to as services. Chain Chain has several meanings depending on the context. Physical Chain A series of connected metal links or rings, typically used to fasten or secure objects. It can also refer to a flexible length of linked metal used for various purposes, like pulling or lifting. Business Chain In the business world, a "chain" refers to a group of retail stores, restaurants, or hotels that share a brand and operate under the same management. For example, a "chain store" is one of several similar establishments owned by the same company. Supply Chain In economics and logistics, a "chain" often refers to the sequence of processes involved in the production and distribution of goods, known as the "supply chain." It encompasses all steps from the acquisition of raw materials to delivering the final product to consumers. Chain of Events This refers to a sequence of related events, where each event is a result of the one preceding it, leading to an outcome. Blockchain In technology, particularly in cryptocurrency and digital security, a "blockchain" is a decentralized digital ledger that records transactions across many computers in such a way that the data cannot be altered retroactively. Chain of Command n an organizational context, this refers to the hierarchy of authority in which instructions are passed from the top management to lower levels of the organization. The specific meaning of “chain” depends on how and where it is being used. Management Management is the process of planning, organizing, leading, and controlling resources, including people, finances, and materials, to achieve specific goals efficiently and effectively. It is essential in every organization to ensure that resources are utilized in the best possible way to meet objectives. Management ensures that the collective efforts of the team or organization are aligned and directed towards achieving common goals. It plays a crucial role in organizational success across all sectors. Supply Chain Management Supply Chain Management is the coordination and management of the flow of goods, services, information, and finances as they move from the supplier to the manufacturer, wholesaler, retailer, and finally, to the consumer. It involves overseeing and optimizing the entire process to ensure that products are produced and delivered efficiently, at the right time, place, and cost. Key aspects of Supply Chain Management: Planning SCM begins with planning the production and demand forecasting. This involves determining what goods need to be produced, in what quantities, and by when. Sourcing Selecting suppliers who provide the goods, raw materials, or services needed. This includes evaluating suppliers based on cost, quality, and reliability, as well as managing relationships and contracts. Manufacturing/Production Transforming raw materials into finished products. Effective SCM ensures that production processes are efficient and meet quality standards. Logistics Managing the storage, transportation, and distribution of goods. This includes warehousing, inventory management, and delivering products to the final customer. Return of Goods (Reverse Logistics) Managing the return of defective or unwanted products from consumers back through the supply chain for repairs, recycling, or disposal. Integration SCM involves coordination among various participants (suppliers, manufacturers, distributors, and retailers) to ensure that all processes are aligned, reducing waste and inefficiencies. Effective Supply Chain Management helps companies reduce costs, improve efficiency, and enhance customer satisfaction by ensuring products are delivered on time and meet quality expectations. It plays a crucial role in a business's overall competitiveness. Terms used in supply chain management Supply Chain Management involves various processes, and to understand it well, there are several key terms used frequently. Here are some of the major terms in SCM: Supply Chain The entire network of entities involved in producing and delivering a product or service, from raw material suppliers to end consumers. Logistics The part of SCM that deals with the movement, storage, and transportation of goods within the supply chain. It includes activities like warehousing, inventory management, and distribution. Procurement The process of sourcing and acquiring goods, services, or raw materials from suppliers. It includes negotiating contracts and ensuring the timely delivery of resources. Supplier An entity (business or individual) that provides goods, raw materials, or services to another company in the supply chain. Demand Forecasting The process of predicting customer demand for a product. It helps companies plan production, inventory, and distribution to meet future demand efficiently. Lead Time The amount of time between placing an order and receiving the product. It includes time for production, transportation, and any waiting periods. Just-in-Time (JIT) An inventory management system where materials and products are ordered and produced only as needed to reduce inventory costs. It emphasizes efficiency and waste reduction. Inventory The goods or materials a company holds for the purpose of resale or production. Effective inventory management ensures that the right quantity is available without overstocking or understocking. Warehouse Management The process of managing the storage, handling, and movement of goods within a warehouse. It includes receiving goods, inventory control, and order fulfillment. Distribution The process of delivering the finished product from the manufacturer to the end customer, usually through a network of distributors, retailers, and logistics providers. Third-Party Logistics (3PL) Companies that provide outsourced logistics services, such as warehousing, transportation, and distribution, to other companies. This helps businesses focus on core operations while experts manage logistics. Reverse Logistics The process of handling the return of goods from customers back to the supplier or manufacturer for repairs, recycling, or disposal. Bill of Materials (BOM) A comprehensive list of raw materials, components, and assemblies required to manufacture a product. It acts as a blueprint for production. Supplier Relationship Management (SRM) The practice of managing and optimizing interactions with suppliers to ensure the best performance, quality, and cost-effectiveness. Order Fulfillment The complete process from receiving a customer order to delivering the product. It includes order processing, packaging, and shipping. Capacity Planning Determining the production capacity needed to meet changing demand. It ensures that a company can meet future demand without overcommitting or underutilizing resources. Safety Stock Extra inventory kept on hand to avoid stockouts due to unpredictable demand or supply chain disruptions. It acts as a buffer to ensure smooth operations. Freight Forwarder An intermediary that arranges transportation and logistics for goods being shipped internationally. Freight forwarders help with documentation, customs clearance, and selecting carriers. Supply Chain Visibility The ability to track all aspects of the supply chain in real-time, from raw materials to finished products, allowing for better decision-making and responsiveness. Sustainability in SCM Practices aimed at minimizing the environmental and social impact of supply chain operations, such as reducing carbon emissions, improving labor conditions, and adopting eco-friendly sourcing methods. These terms are essential to understanding how supply chain management works and how companies can optimize their operations to deliver products efficiently and cost-effectively