Chapter 1: 21st Century Supply Chains

Supply Chain Management:

What Is It?

Supply Chain Management: What Is It?

Logistics.

Supply Chain Management.

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Back in the day…

Back in the day…

But things began to change…

$$$$

But things began to change…

www.agoravox.com

www.quartermaster.army.mil .

..

. ..

But things began to change…

www.agoravox.com

The Value of Inventory

$ $

$$

...

The Value of Inventory

$

$

$$

The Value of Inventory

..

.

The Value of Inventory

..

.

The Value of InventoryInventory Carrying Costs

..

$$$$$

The Value of Inventory

• Housing the inventory (the truck trailer).

• Security (trucks are hijacked).

• Taxes.• Insurance.

The Value of Inventory

• Housing the inventory (the truck trailer).

• Security (trucks are hijacked).

• Taxes.• Insurance.

$750,000?$500,000?$1,000,000?

The Value of Inventory

• The value of inventory becomes very important in supply chain management.

Back in the day…

Back in the day…

Supply Chain Management: What Is It?

Logistics.

Supply Chain Management.

Business Logistics

Seller Buyer

Goods

Services

Information

Money

.

Business Logistics

Seller Buyer

Goods

Services

Information

Money

Business Logistics

• Customer service

• Demand forecasting

• Inventory

• management

• Logistics

• communication

• Materials handling

• Order processing

• Plant and

warehouse site

selection

• Packaging

• Procurement

• Reverse logistics

• Traffic, transportation

• Warehousing, storage

Seller Buyer

Seller Buyer

Goods

Services

Information

Money

Business Logistics

Seller

Flow ofgoods, servicesinformation,money

Buyer

Supply Chain Management

Supplier

Supplier

Supplier

Seller

Flow ofgoods, servicesinformation,money

Buyer

Supply Chain Management

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Seller

Flow ofgoods, servicesinformation,money

Buyer

Supply Chain Management

What do we have?

An integrated supply chain.

.

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Seller

Flow ofgoods, servicesinformation,money

Buyer

Supply Chain Management

What do we have?

An integrated supply chain

Business Logistics

Seller Buyer

Goods

Services

Information

Money

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Seller

Flow ofgoods, servicesinformation,money

Buyer

Supply Chain Management

An integrated supply chain

One More Thing…

www.nndb.com/people/469/000045334/h-lee-scott.jpg

End of Program.

Lee ScottWal-Mart’s Chief Executive Officer