Supply Chain Doctors The Supply Chain Doctors Supply Chain Management Kimball Bullington, Ph.D. .
Supply Chain Management -Introduction · different stages • A supply chain stages include:...
Transcript of Supply Chain Management -Introduction · different stages • A supply chain stages include:...
What is a supply chain?
• A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request
• A supply chain is dynamic and involves the constant flow of information, product, and funds between different stages
• A supply chain stages include:
– Customers
– Retailers
– Wholesalers/distributors
– Manufacturers
– Component/raw material suppliers
Consumer
Retailer
Manufacturing
Material Flow
VISA ®
Credit Flow
Supplier
Supplier Wholesaler
Retailer
Cash Flow
Order Flow Schedules
Supply Chain Stages
Timber Company
Department Store
Paper Manufacturer
Packaging Corporation
Chemical Manufacturer
P&G Manufacturer
Third Party DC
Customer
Plastic Producer
Ex. : Stages of SCM at P&G’s Detergent Product
What is a supply chain? (cont.)
• Planning, organizing, directing, & controlling flows of materials – Begins with raw materials
– Continues through internal operations
– Ends with distribution of finished goods
• Involves everyone in supply-chain – Example: Your supplier’s supplier
• Objective: Maximize value & lower waste
Why supply chain?
• Local market, local supply vs. global market, global sourcing.
• Global competition. • Shorter product life. • Higher customer expectation • Rate of change in technology • Information & communication systems • Variety of transportation modes
All these factors lead to an increase in challeges to reduce costs & Supply Chain Management provides the opportunity.
Decision phases in a supply chain
• Supply chain strategy or design long term
decision
– Decide what the chain’s configuration
– How resources will be allocated
– What processes each stage will perform
– Strategic decisions
– The location & capacities of production & warehouse
– Modes of transportation
– Type of information system
• Supply chain planning quarter to a year
– Forecast for coming year
– Which market will be supplied from which location
– Subcontracting or manufacturing
– Inventory policies
– Timing and size of marketing
– Promotion
• Supply chain operation short term decision
– Allocate inventory or production to individual orders
– Date of order to be filled
– Shipping mode
– Delivery schedule
– Replenishment order
Supply Chain : Planning and Operation
Process view of a supply chain • Cycle view
– The processes in SC are divided into a series of cycle, each performed at the interface between two successive stages of a SC
• Push/pull view
– The processes in SC are divided into two categories:
• Pull process:
– Initiated by customer orders reactive process
– Customer demand is known
• Push process:
– Initiated and performed in anticipation of customer orders
speculative process
– Operate in an uncertain environment customer demand is not
yet known
Cycle view of SC processes
Customer Order Cycle
Replenishment Cycle
Manufacturing Cycle
Procurement Cycle
Customer
Retailer
Distributor
Manufacturer
Supplier
Sub-processes in each SC process cycle
Supplier stage markets product
Buyer stage places order
Supplier stage receives order
Supplier stage supplies order
Supplier stage receives supply
Buyer return reserve flows to
supplier/third party
Push/pull view of SC processes Example for make to stock environment
Customer Order Cycle
Replenishment Cycle & Manufacturing Cycle
Procurement Cycle
Customer
Clothes Company
Manufacturer
Supplier
PULL PROCESSES
PUSH PROCESSES
Customer order arrives
Customer Order & Manufacturing Cycle
Procurement Cycle
PULL PROCESSES
PUSH PROCESSES
Customer order arrives
Customer
DELL Company
Supplier
Push/pull view of SC processes Example for make to order environment
Supply chain macro processes in a firm
Supplier Relationship Management (SRM)
Internal Supply Chain Management
(ISCM)
Customer Relationship
Management (CRM)
Supplier Firm Customer
•Source •Negotiate •Buy •Design Collaboration •Supply Collaboration
•Strategic planning •Demand planning •Supply planning •Fulfillment •Field service
•Market •Price •Sell •Call centre •Order management