Supply Chain Management PDF

ANNOUNCEMENT  ANNOUNCEMENT T - Face-to-face Mode (AC09) Th - Course Work August 22 - General Assembly August 30 - Organizational Fair Social Orientation - Aug. 31 and Sept. 7 OSA Advisory - ID Lace Vape - 100% not allowed Grooming UNIT 1: Introduction to Supply Chain...

ANNOUNCEMENT  ANNOUNCEMENT T - Face-to-face Mode (AC09) Th - Course Work August 22 - General Assembly August 30 - Organizational Fair Social Orientation - Aug. 31 and Sept. 7 OSA Advisory - ID Lace Vape - 100% not allowed Grooming UNIT 1: Introduction to Supply Chain Management Desiree Anne Lumba-Olimpo, CGSP, MBA LEARNING OUTCOMES Upon successful completion of this unit, you will be able to: Discuss the major change drivers in our economy and in the global marketplace. Understand the rationale for the development of supply chain management in leading organizations. Appreciate the importance and role of supply chain management among private and public organization. Supply Chain Management is the management of flow of products and services, which begins from the origin of products and ends at the products consumption. What is a supply chain for a service provider? The service supply chain is the part of the supply chain dedicated to providing service on products. It addresses the supply of parts, materials, personnel and services needed to provide timely and effective product service, such as repair and maintenance. A. Supply Chain for Service Providers More difficult than manufacturing Does not focus on the flow of physical goods Focuses on human resources and support services More compact and less extended B. Value vs. Supply Chain Value chain - every step from raw materials to the eventual end user - ultimate goal is delivery of maximum value to the end user Supply chain - activities that get raw materials and subassemblies into manufacturing operation - Terms are used interchangeably C. Keys to effective SCM information communication cooperation trust What Is Supply Chain Management (SCM)? A set of approaches used to efficiently integrate – Suppliers – Manufacturers – Warehouses – Distribution Centers Is the strategic management of activities involved in the acquisition and conversion of materials to finished products delivered to the customer.  So that the product is produced and distributed – In the right quantities – To the right locations – And at the right time System-wide costs are minimized and Service level requirements are satisfied  INTRINSIC FLOW OF SUPPLY CHAIN Material Flow Information Flow Finance Flow Commercial Flow  Supply chain is the system by which organizations source, make and deliver their products or services according to market demand. Supply chain management operations and decisions are ultimately triggered by demand signals at the ultimate consumer level. Supply chain as defined by experienced practitioners extends from suppliers‘ suppliers to customers‘ customers. II. HISTORY OF SUPPLY CHAIN MANAGEMENT – 1960‘s - Inventory Management Focus, Cost Control – 1970‘s - MRP & BOM - Operations Planning – 1980‘s - MRPII, JIT - Materials Management, Logistics – 1990‘s - SCM - ERP - ―Integrated‖ Purchasing, Financials, Manufacturing, Order Entry – 2000‘s - Optimized ―Value Network‖ with Real-Time Decision Support; Synchronized & Collaborative Extended Network III.EVOLUTION OF SUPPLY CHAIN MANAGEMENT STUDIES: Five major movements can be observed in the evolution of supply chain management studies: Creation era - Supply chain management was first coined by a U.S. industry consultant in the early 1980s. - Supply chain management include the need for large-scale changes, re-engineering, downsizing driven by cost reduction programs. Integration era - Development of Electronic Data Interchange (EDI) systems in the 1960s and developed through the 1990s by the introduction of Enterprise Resource Planning (ERP) systems. Globalization era - The third movement of supply chain management development, the globalization era, can be characterized by the attention given to global systems of supplier relationships and the expansion of supply chains over national boundaries and into other continents. https://www.youtube.com/watch?v=M5HbUkR_XFA III.EVOLUTION OF SUPPLY CHAIN MANAGEMENT STUDIES: Specialization era Phase I: Outsourced Manufacturing and Distribution - In the 1990s, industries began to focus on ―core competencies‖ and adopted a specialization model. - Companies abandoned vertical integration, sold off non-core operations, and outsourced those functions to other companies. Specialization Era Phase II - Supply Chain Management as a service - Specialization within the supply chain began in the 1980s with the inception of transportation brokerages, warehouse management, and non-asset-based carriers and has matured beyond transportation and logistics into aspects of supply planning, collaboration, execution and performance management https://www.youtube.com/watch?v=M5HbUk R_XFA IV. IMPORTANCE OF SUPPLY CHAIN MANAGEMENT To compete in the global market and networked economy. Inter-organizational supply network can be acknowledged as a new form of organization. The network structure fits neither “ market" nor "hierarchy" categories Why Is SCM Difficult? Uncertainty is inherent to every supply chain o Travel times o Breakdowns of machines and vehicles o Weather, natural catastrophe, war o Local politics, labor conditions, border issues o The complexity of the problem to globally optimize a supply chain is significant o Minimize internal costs o Minimize uncertainty o Deal with remaining uncertainty  The Need for Supply Chain Management o The need to improve operations. o Increasing levels of outsourcing. o Increasing transportation costs. o Competitive pressures. o Increasing importance of e-commerce. o The need to manage inventories Supply Chain Includes: o Material Flows o Information Flows o Financial Flows Supply Chain Management is Facilitated by: o Process o Structure o Technology V. ELEMENTS AND ISSUES OF SUPPLY CHAIN MANAGEMENT A. Supply Chain Elements B. Supply Chain Management – Key Issues Overcoming functional silos with conflicting goals C. Supply Chain Management Operations Strategies D. Supply Chain Imperatives for Success View the supply chain as a strategic asset and a differentiator ◦Wal-Mart‘s partnership with Proctor & Gamble to automatically replenish inventory ◦Dell‘s innovative direct-to-consumer sales and build-to-order manufacturing Create unique supply chain configurations that align with your company‘s strategic objectives ◦ Operations strategy ◦ Outsourcing strategy ◦ Channel strategy ◦ Customer service strategy ◦ Asset network Reduce uncertainty Supply chain configuration components Additional Reference https://www.youtube.com/watch?v=- pqzsgpCcHw