Supply Management

Desired Scholastic CultureDesired Scholastic CultureDesired Scholastic CultureDesired Scholastic Culture

•Values and Dress code

•Late coming / Early

leaving

•Class participation

•Exams ‘approach’

•Counseling hours

Reference Text

Week Topic Readings1 Introduction

Purchasing processChapter 1, Chapter 2

2 Purchasing process + Demand Planning + Forecasting

Chapter 2

3 Policy and procedures , Integration Chapter 3, Chapter 44 Purchasing’s Position within Organization structure Chapter 5

5,6 Commodity strategy Chapter 67 Optimal Decision Making Case study /Articles/Excel Solver

8 Supplier evaluation and structure Chapter 79 Mid term10 Supplier management Chapter 8, Chapter 911 Inventory Models, Waiting Lines Cases/Articles/Online resources

12 Global sourcing Chapter 1013 Transportation Decisions and Cost Calculations Cases/Articles/Online resources

14 Negotiations Chapter 1315 Project presentations16 Project presentations17 Final

Semester Plan

But since “Most plans are just inaccurate predictions” …I may back off!! But since “Most plans are just inaccurate predictions” …I may back off!!

Grading SchemeGrading Scheme

Where are the SC Jobs?Where are the SC Jobs?

Difference between Supply Chain and Value Chain

A supply chain is a set of three or more organizations linked directly by one or more of the upstream or downstream flows of products, services, finances, and information from a source to a customer.

Michael Porter, who first articulated the value chain concept in the 1980s, argues that a firm’s value chain is composed of primary and support activities that can lead to competitive advantage when configured properly.

Value chain is a systematic approach to examine the development of competitive advantage and it consists of a series of activities that create and build value

The supply Chain key areas of concerns are forecasting, purchasing, production planning, warehousing and distribution; In addition, manufacturing of the product and its distribution

A Cereal Manufacturer’s

Supply Chain

Supply Management in the Chain

Supply Management Process

IdentifyRequirements

EstablishSpecifications

AssessSuppliers

SelectSupplier(s)

IssuePurchase

Order

Follow-Up& Expedite

Receive &Verify

ProcessPayment

MaintainRecords

SupplyMgmt

ProductionCustomer

ServiceShippingCustomerDemand

ProductionSchedule

The process of obtaining and managing of products or services needed to operate a business.

Elements: Actual Products, Information, Budgets, Employees etc

Aim/Objective: keep costs low/stable and use resources effectively to increase the profits and efficiency of the business or organization.

Supply Management

Strategic approach to planning for and acquiring the organization’s current and future needs through effectively managing the supplybase, utilizing a process orientation in conjunction with cross-functional teams (CFTs) to achieve the organizational mission.

Key Issues

• Overcoming functional silos with conflicting goals

Purchasing Manufacturing Distribution Customer Service/Sales

Few change- overs

Stable schedules

Long run lengths

High inventories

High service levels

Regional stocks

SOURCE MAKE DELIVER SELL

Low invent-ories

Low trans-portation

Low pur-chase price

Multiple vendors