Chapter 14 Supply chain management
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Transcript of Chapter 14 Supply chain management
Chapter 1
Chapter 14Supply chain managementSupply Chains2Supply ChainThe connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics functionChapter 14 Supply Chain Management
22Supply Chains3Supply Chain ManagementA management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic valueChapter 14 Supply Chain Management
33.Benefits of Supply Chain Management10Supply chain oriented companies commonly report:
Lower inventory, transportation, warehousing, and packaging costs
Greater supply chain flexibility
Improved customer service
Higher revenues
Increased profitability Chapter 14 Supply Chain Management
44Supply Chain Integration5Material and service supplier IntegrationInternal Operations IntegrationCustomer IntegrationRelationship IntegrationMeasurement IntegrationTechnology and planning IntegrationFirm-to-Firm Social InteractionsOperational Planning and ControlCustomer Integration
Chapter 14 Supply Chain Management
55Key Processes of Supply Chain Management6
Chapter 14 Supply Chain Management
66Customer Relationship Management7Customer Relationship Management ProcessThe prioritization of a firms marketing focus on different customer groups according to each groups long-term value to the company or supply chain; designed to identify and build relationships with good customers.
Chapter 14 Supply Chain Management
77Customer Service Management8Customer ServiceManagement ProcessA multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced; designed to ensure that customer relationships remain strong.Chapter 14 Supply Chain Management
88Demand Management9DemandManagement ProcessThe alignment of supply and demand throughout the supply chain to anticipate customer requirements at each level and create demand-related plans of action prior to actual customer purchasing behavior.
Chapter 14 Supply Chain Management
99Good demand management can increase both sales and customer satisfaction, and at the same time, it can reduce the overall cost of serving the firm or supply chains customer base.Order Fulfillment10Order FulfillmentProcessA supply chain management process that involves generating, filling, delivering, and providing on-the-spot service for customer orders.
Chapter 14 Supply Chain Management
1010Manufacturing Flow Management11Manufacturing Flow Management ProcessA process that ensures that firms in the supply chain have the resources they need
Chapter 14 Supply Chain Management
1111Supplier Relationship Management12Supplier Relationship Management ProcessA supply chain management process that supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers
Chapter 14 Supply Chain Management
1212Product Development and Commercialization13Product Development and Commercialization ProcessThe group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms.
Chapter 14 Supply Chain Management
1313Returns Management14Returns Management ProcessA process that enables firms to manage volumes of returned product efficiently, while minimizing costs and maximizing the value of the returned assets to the firms in the supply chain.
Chapter 14 Supply Chain Management
1414Logistical Components of the Supply ChainSupplyChainTeamSourcing & ProcurementProduction SchedulingOrder ProcessingInventory ControlWarehouse & Materials HandlingTransportationLogistics Information SystemChapter 14 Supply Chain Management
15Sourcing and ProcurementPlan purchasing strategies
Develop specifications
Select suppliers
Negotiate price and service levels
Reduce costsThe Role of Purchasing:Chapter 14 Supply Chain Management
16Production SchedulingPush / Pull StrategyTraditional Focus PushStart of ProductionManufacturingInventory-BasedMass ProductionCustomer Focus PullCustomer-Order BasedMass CustomizationChapter 14 Supply Chain Management
17Just-in-Time Manufacturing
A process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed on the production line.JITChapter 14 Supply Chain Management
18Benefits of JITReduces raw material inventoriesShortens lead timesCreates better supplier relationshipsReduces production and storeroom costsReduces paperworkChapter 14 Supply Chain Management
19Order Processing
Information technology that replaces paper documents that accompany business transactions with electronic transmission of the information.ElectronicDataInterchangeChapter 14 Supply Chain Management
20Order Processing
A method of developing and maintaining an adequate assortment of materials or products to meet a manufacturers or a customers demand.InventoryControlSystemChapter 14 Supply Chain Management
21Order ProcessingMaterialsRequirementPlanning(MRP)An inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer.DistributionResourcePlanning(DRP)An inventory control system that manages the replenishment of goods from the manufacturer to the final consumer.Chapter 14 Supply Chain Management
22MaterialsHandling FunctionsReceive goods into warehouseDispatch the goods totemporary storage Recall, select, or pick the goods for shipment Identify, sort, and label goodsChapter 14 Supply Chain Management
23TransportationAirwaysWaterPipelinesMotor CarriersRailroadsChapter 14 Supply Chain Management
24Transportation Mode Choice25CostTransit timeReliabilityCapabilityAccessibilityTraceabilityChapter 14 Supply Chain Management
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