Date post: | 21-Dec-2015 |
Category: |
Documents |
Upload: | bryan-perry |
View: | 215 times |
Download: | 1 times |
Copyright Cengage Learning 2013
All Rights Reserved
1
Chapter 14: Supply Chain Management
Introduction to
Designed & Prepared by Laura RushB-books, Ltd.
Copyright Cengage Learning 2013
All Rights Reserved
2
Learning Outcomes
LO1
LO2
LO3
Define the terms supply chain and supply chain management, and discuss the benefits of supply chain management
Discuss the concept of supply chain integration and explain why each of the six types of integration is important
Identify the eight key processes of excellent supply chain management, and discuss how each of these processes impacts the end customer
Discuss the key strategic decisions supply chain managers must make when designing their companies’ supply chains
LO4
Copyright Cengage Learning 2013
All Rights Reserved
3
Learning Outcomes
Describe the logistical components of the supply chain
Explain why supply chain performance measurement is necessary and important
Discuss why the supply chains of the present and future will be both environmentally conscious and sustainable, and the implications of these changes
Discuss new technology and emerging trends in supply chain management
LO6
LO7
LO5
LO8
4
Supply Chains
4
The connected chain of all the business entities, both internal and external to the company,
that perform or support thelogistics functions.
Copyright Cengage Learning 2013
All Rights Reserved
5
Supply Chains
Supply Chain Management- Amanagement system that
coordinates and integrates allof the activities performed bysupply chain members into a seamless process, from the
source to the point ofconsumption, resulting inenhanced customer and
economic value.
Copyright Cengage Learning 2013
All Rights Reserved
6
Supply Chain Integration
System ApproachSystem
Approach
A key principle of supply chain management – that multiple firms work together to perform tasks as a single, unified system, rather than as several individual companies acting in isolation.
A key principle of supply chain management – that multiple firms work together to perform tasks as a single, unified system, rather than as several individual companies acting in isolation.
Supply Chain Integration
Supply Chain Integration
When multiple firms in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer.
When multiple firms in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer.
Copyright Cengage Learning 2013
All Rights Reserved
7
Relationship Integration
Relationship Integration
Relationship Integration
The ability of two or more companies to develop social connections that serve to guide their interactions when working together.
The ability of two or more companies to develop social connections that serve to guide their interactions when working together.
Role Specificity
Role Specificity
When each firm in a supply chain has clarity in terms of knowing which firm is the leader, which firms are the followers, and which responsibilities are assigned to each firm.
When each firm in a supply chain has clarity in terms of knowing which firm is the leader, which firms are the followers, and which responsibilities are assigned to each firm.
Copyright Cengage Learning 2013
All Rights Reserved
8
Measurement Integration
Measurement Integration
Measurement Integration
The performance assessment of the supply chain as a whole that also holds each individual firm or business unit accountable for meeting its own goals
Activity-Based costing (ABC)
An accounting method used in measurement integration to assess the costs associated with each supply chain activity
Copyright Cengage Learning 2013
All Rights Reserved
9
Technology and Planning Integration
Technology and planning integration
The creation and maintenance of information technology systems that connect managers across and through the firms in the supply chain
Copyright Cengage Learning 2013
All Rights Reserved
10
Material and Service Supplier Integration
Material and Service Supplier Integration
The strategic alignment between a firm and its supply chain materials and services providers that enables the firm to streamline work processes and provide smooth, high-quality customer experiences.
Copyright Cengage Learning 2013
All Rights Reserved
11
Internal Operations Integration
Internal Operations Integration
Links internally performed work into a seamless process that stretches across departmental and/or functional boundaries, with the goal of satisfying customer requirements
Copyright Cengage Learning 2013
All Rights Reserved
12
Customer Integration
CustomerIntegrationCustomerIntegration
A competency that enables firms to offer long-lasting, distinctive, value-added offerings to those customers who represent the greatest value to the firm or supply chain
ABC Segmentation
The supply-chain process whereby customers are placed into groups A, B, and C according to their overall long-term value to the firm and to the extent to which the firm can serve their desires
Copyright Cengage Learning 2013
All Rights Reserved
13
Customer Relationship Management
Customer Relationship Management Process - The
prioritization of a firm’s marketingfocus on different customer
group’s long-term value to thecompany or supply chain;
designed to identify andbuild relationships with good
customers.
Copyright Cengage Learning 2013
All Rights Reserved
14
Customer Service Management
Customer Service ManagementProcess- A multi-company, unifiedresponse system to the customerwhenever complaints, concerns,
questions, or comments are voiced;designed to ensure that customer
relationships remain strong.
Copyright Cengage Learning 2013
All Rights Reserved
15
Demand Management
Demand Management Process- Thealignment of supply and demandthroughout the supply chain to
anticipate customer requirementsat each level and create demand-
related plans of action prior toactual customer purchasing
behavior.
Copyright Cengage Learning 2013
All Rights Reserved
16
Order Fulfillment
Order Fulfillment Process- Asupply chain management process
involves generating, filing, delivering, and providing on-the-spot service for customer orders.
Copyright Cengage Learning 2013
All Rights Reserved
17
Manufacturing Flow Management
17
Manufacturing Flow ManagementProcess - A process that ensures
that firms in the supply chain havethe resources they need.
Copyright Cengage Learning 2013
All Rights Reserved
18
Supplier Relationship Management
Supplier Relationship ManagementProcess - A supply chain
management process that supportsmanufacturing flow by identifying
and maintaining relationshipswith highly valued suppliers.
Copyright Cengage Learning 2013
All Rights Reserved
19
Product Development and Commercialization
Product Development and Commercialization Process- Thegroup of activities that facilitates
the joint development and marketing of new offerings among
a group of supply chain partnerfirms.
Copyright Cengage Learning 2013
All Rights Reserved
20
Returns Management
Returns Management Process- Aprocess that enables firms to manage volumes of returned
product efficiently, whileminimizing costs and maximizingthe value of the returned assetsto the firms in the supply chain.
Copyright Cengage Learning 2013
All Rights Reserved
21
Supply Chain Management
Lean Supply Chain Management – The strategy that focuses primarily on
the removal of waste from the supply chain to achieve the lowest total cost to
the members of the supply chain system.
Agile Supply Chain Management – The supply chainstrategy that focuses primarily on
the ability of the firm to fulfill customer demand,even if this means somewhat higher costs.
Copyright Cengage Learning 2013
All Rights Reserved
22
Logistical Components of the Supply Chain
SupplySupplyChainChainTeamTeam
Sourcing & ProcurementSourcing & Procurement
Order ProcessingOrder Processing
Inventory ControlInventory Control
Warehouse & Materials HandlingWarehouse & Materials Handling
TransportationTransportationLo
gis
tics
Info
rma
tio
n S
yste
mL
og
isti
cs In
form
ati
on
Sys
tem
Copyright Cengage Learning 2013
All Rights Reserved
23
Supply Chain Performance Measurement
A good metric is characterized by five qualities:
•Creates understanding of strategic objectives and tactical plans
•Promotes behaviors that are consistent with achieving these objectives
•Allows for recording of actual results/outcomes
•Allows companies to compare themselves to competitors and customer expectations
•Motivates continuous improvement
Copyright Cengage Learning 2013
All Rights Reserved
24
Supply Chain Management
Green Supply Chain Management—the integration of environmentally conscious thinking into all phases of
key supply chain management processes.
Copyright Cengage Learning 2013
All Rights Reserved
25
Sustainability
Supply Chain Sustainability—A sustainable supply chain employs
renewable naturalresources wherever possible.
Copyright Cengage Learning 2013
All Rights Reserved
26
Trends in Supply Chain Management
Electronic distributionElectronic distribution
Outsourcing of logistics functionsOutsourcing of logistics functions
Advanced computer technologyAdvanced computer technology
Globalization of supply chain managementGlobalization of supply chain management
Copyright Cengage Learning 2013
All Rights Reserved