Introduction to Supply Chain Management

 
13
 
Supply Chain
Management
 
 
1.
Supply Chains
2.
Supply Chain Management
3.
Information Technology Support for
Supply Chain Management
 
1.
Describe the three components and the three
flows of a supply chain.
2.
Identify popular strategies to solving different
challenges of supply chains.
3.
Explain the utility of each of the three major
technologies that support supply chain
management.
 
 
Coca Cola Enterprises
Describe why new supply
chain management
technology is so important
to CCE.
Describe the advantages of
the new system to CCE.
Refer to Chapter 2. Is the
new supply chain management system at CCE
a strategic information system? Why or why
not?
 
 
Supply Chains
 
13.1
 
The Structure and Components of
Supply Chains
 
 
 
 
 
 
Supply Chain;
Supply Chain Visibility
 
6
 
Supply chain: 
flow of 
materials,
information, money, and services 
from
raw material suppliers, 
thru
 factories and
warehouses, 
to
 the end customers.
Supply chain visibility: abilities of orgs
w/in the supply chain to 
access
 or view
relevant data
 
on purchased materials
 
as
they move thru
 their suppliers’ production
processes and transportation networks to
the receiving docks.
 
The Structure and
Components of Supply Chains
 
Three Segments of the Supply Chain
Tiers of Suppliers
Three Flows of the Supply Chain
 
Three Segments of the
Supply Chain
 
Upstream
Internal
Downstream
 
Fig 13.1: Generic Supply Chain
Segments; not
“directions”
 
Three Segments of the
Supply Chain - Upstream
 
Where 
sourcing or procurement
 from
external 
suppliers
 occurs.
Processes for
managing inventory,
receiving and verifying shipments,
transforming goods to manufacturing
facilities, and
authorizing payments to suppliers
 
Three Segments of the
Supply Chain - Internal
 
Where 
packaging, assembly, or
manufacturing 
occurs.
Processes production
Testing
Packaging
Preparing goods for delivery
Monitor
quality levels
Production outputs
Worker productivity
 
Three Segments of the
Supply Chain - Downstream
 
Where 
distribution
 takes place.
Receipt of orders from customers
Develop network of warehouse
Select carriers for delivery
Implement invoicing system
 
Three Flows of the Supply
Chain
 
1.
Material Flows
Reverse Flows
2.
Information Flows
SCM systems here
3.
Financial Flows
 
Supply Chain
Management (SCM)
 
13.2
 
Five Basic Components of SCM
Supply Chain Management Systems
The Push Model Versus the Pull
Model
Problems Along the Supply Chain
Solutions to Supply Chain Problems
 
 
 
 
 
 
Five Basic Components of
SCM
 
1.
Plan
2.
Source
3.
Make
4.
Deliver
5.
Return
Goal of SCM (info) sys: reduce the
frictions along the supply chain
 
Push versus Pull Model
Make to stock
Make to order
 
’S ABOUT BUSINESS 13.1
 
Crate & Barrel Increases Its
Supply Chain Visibility
Discuss the advantages of supply chain
visibility for any organization.
Explain how an increase in shipping costs
can actually generate higher revenues for
Crate & Barrel.
 
Problems Along the Supply
Chain
 
Two Primary Sources of Problems
Along the Supply Chain:
1.
Uncertainties
2.
The need to coordinate multiple
activities, internal units, and business
partners.
Demand Forecast
Bullwhip Effect
 
Figure 13.2: The Bullwhip
Effect
 
Solutions to Supply Chain
Problems
 
Using Inventories to Solve Supply
Chain Problems
Vertical Integration
Just-In-Time Inventory
Information Sharing
Vendor-Managed Inventory (VMI)
Baxter Intl
 
IT Support for Supply
Chain Management
 
13.3
 
Electronic Data Interchange (EDI)
Extranets
Portals and Exchanges
 
 
 
 
 
 
 
Electronic Data Interchange
(EDI): What it is
 
Communications standard that
enables business partners to
exchange routine documents
electronically
Formats documents according to
agreed-upon standards
 
Figure 13.3: Purchase Order
Fulfillment without EDI
 
Figure 13.3: Purchase
Order Fulfillment with EDI
 
Electronic Data Interchange
(EDI): Benefits
 
Enhances customer service
Reduces cycle time
Increases productivity
Minimizes data entry errors
Length of the message can be shorter
Messages are secured
Minimizes paper usage and storage
 
Electronic Data Interchange
(EDI): Disadvantages
 
Business processes sometimes must
be restructured to fit EDI
requirements
Many EDI standards in use today
 
Extranet
 
A Company and Its Dealers,
Customers, or Suppliers
Industry Extranet
Joint Ventures and Other Business
Partnerships
 
Figure 13.4: Structure of an
Extranet
 
’S ABOUT BUSINESS 13.2
 
India’s New
Automotive Supply
Chain Extranet
Discuss the difficulties
involved in implementing Auto DX.
Describe the advantages of Auto DX to the
Indian automotive supply chain.
 
Portals and Exchanges
 
Procurement Portal
Distribution Portal
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Explore the key components of supply chains, the importance of supply chain management technology, and strategies to overcome challenges. Learn about supply chain visibility, the structure of supply chains, and the three segments - upstream, internal, and downstream. Discover how organizations access data on materials flowing through the supply chain. Dive into Coca Cola Enterprises' adoption of new supply chain management technology and its advantages.


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  1. CHAPTER13 Supply Chain Management

  2. 1. Supply Chains 2. Supply Chain Management 3. Information Technology Support for Supply Chain Management

  3. >>> 1. Describe the three components and the three flows of a supply chain. 2. Identify popular strategies to solving different challenges of supply chains. 3. Explain the utility of each of the three major technologies that support supply chain management.

  4. OPENING > Coca Cola Enterprises Describe why new supply chain management technology is so important to CCE. Describe the advantages of the new system to CCE. Refer to Chapter 2. Is the new supply chain management system at CCE a strategic information system? Why or why not?

  5. 13.1 Supply Chains The Structure and Components of Supply Chains

  6. Supply Chain; Supply Chain Visibility Supply chain: flow of materials, information, money, and services from raw material suppliers, thru factories and warehouses, to the end customers. Supply chain visibility: abilities of orgs w/in the supply chain to access or view relevant data on purchased materials as they move thru their suppliers production processes and transportation networks to the receiving docks. 6

  7. The Structure and Components of Supply Chains Three Segments of the Supply Chain Tiers of Suppliers Three Flows of the Supply Chain

  8. Three Segments of the Supply Chain Upstream Internal Downstream Segments; not directions Fig 13.1: Generic Supply Chain

  9. Three Segments of the Supply Chain - Upstream Where sourcing or procurement from external suppliers occurs. Processes for managing inventory, receiving and verifying shipments, transforming goods to manufacturing facilities, and authorizing payments to suppliers

  10. Three Segments of the Supply Chain - Internal Where packaging, assembly, or manufacturing occurs. Processes production Testing Packaging Preparing goods for delivery Monitor quality levels Production outputs Worker productivity

  11. Three Segments of the Supply Chain - Downstream Where distribution takes place. Receipt of orders from customers Develop network of warehouse Select carriers for delivery Implement invoicing system

  12. Three Flows of the Supply Chain 1. Material Flows Reverse Flows 2. Information Flows SCM systems here 3. Financial Flows

  13. 13.2 Supply Chain Management (SCM) Five Basic Components of SCM Supply Chain Management Systems The Push Model Versus the Pull Model Problems Along the Supply Chain Solutions to Supply Chain Problems

  14. Five Basic Components of SCM 1. Plan 2. Source 3. Make 4. Deliver 5. Return Goal of SCM (info) sys: reduce the frictions along the supply chain

  15. Push versus Pull Model Make to stock Make to order

  16. S ABOUT BUSINESS 13.1 Crate & Barrel Increases Its Supply Chain Visibility Discuss the advantages of supply chain visibility for any organization. Explain how an increase in shipping costs can actually generate higher revenues for Crate & Barrel.

  17. Problems Along the Supply Chain Two Primary Sources of Problems Along the Supply Chain: 1. Uncertainties 2. The need to coordinate multiple activities, internal units, and business partners. Demand Forecast Bullwhip Effect

  18. Figure 13.2: The Bullwhip Effect

  19. Solutions to Supply Chain Problems Using Inventories to Solve Supply Chain Problems Vertical Integration Just-In-Time Inventory Information Sharing Vendor-Managed Inventory (VMI) Baxter Intl

  20. 13.3 IT Support for Supply Chain Management Electronic Data Interchange (EDI) Extranets Portals and Exchanges

  21. Electronic Data Interchange (EDI): What it is Communications standard that enables business partners to exchange routine documents electronically Formats documents according to agreed-upon standards

  22. Figure 13.3: Purchase Order Fulfillment without EDI

  23. Figure 13.3: Purchase Order Fulfillment with EDI

  24. Electronic Data Interchange (EDI): Benefits Enhances customer service Reduces cycle time Increases productivity Minimizes data entry errors Length of the message can be shorter Messages are secured Minimizes paper usage and storage

  25. Electronic Data Interchange (EDI): Disadvantages Business processes sometimes must be restructured to fit EDI requirements Many EDI standards in use today

  26. Extranet A Company and Its Dealers, Customers, or Suppliers Industry Extranet Joint Ventures and Other Business Partnerships

  27. Figure 13.4: Structure of an Extranet

  28. S ABOUT BUSINESS 13.2 India s New Automotive Supply Chain Extranet Discuss the difficulties involved in implementing Auto DX. Describe the advantages of Auto DX to the Indian automotive supply chain.

  29. Portals and Exchanges Procurement Portal Distribution Portal

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