A “process umbrella” under which products are created and delivered to customers.
The complex network of relationships that organizations maintain with trading partners to source, manufacture, and deliver products
A network of autonomous or semi-autonomous business entities collectively responsible for procurement, manufacturing, and distribution activities associated with one or more families of related products.
Suppliers Europe DC Suppliers Suppliers Subassembly PC Board Suppliers ASIC Assembly Asia DC US DC Resellers Resellers Resellers Customers Customers Customers Source: Supplychain online ASIC: Application-Specific Integrated Circuit; An Example of SC for Computer Printers
Long term, closely linked to coporate strategy and guide supply chain polices.
Short term, day-to-day activities
Major Decision Areas
Supply Chain Decisions
Supply Chain Planning Order Commitment Advanced Scheduling Demand Planning Transportation Planning Distribution Planning Customer Order
Supply Chain Execution Order Entry Fulfillment Planning Order Confirm. Forecasting Aggregate Inventory Planning MPS/ Sourcing Inventory Availability Schedule Production Allocate inventory Production scheduling Distribution Scheduling Order Planning Process Distribution Process Pick & Load schedule delivery customer Service Replenishment Process Production Process
Demand management – e-business provide enough demand data. Using the extensive data, companies proprietary scientific methods, sophistical statistical analyses and optimization techniques,business can help companies to optimize their demand management decisions
Provide up-to-the-minute capacity and resource data
Companies can target demand creation program – discount, rebates, regional or niche marketing to stimulate demand
Market Intelligent – By using the above data, data mining and data analysis can properly derive business intelligent
Use the business intelligent to plan merchandise decision, promotion plans, and new product development decisions
Business can use this data and perform this function as a service to customers for profitability and market positions
Targeted at providing a single enterprise (usually the channel master) with a solution that enables it to better manage its supply chain processes and integrates itself into the processes and application architectures of its trading partners.
Not owned by a single enterprise, but are used to manage the multi-enterprise interactions within a value chain. The participants in a particular ecosystem will engage these services to collaborate and transact.
Example: Uniform Code Council (UCC) for participants in the retail and consumer goods value chain to access product data.
Long-term contracts based on negotiation between the sellers and buyers
Can be supported more effectively and efficiently through a streamlined supply chain
Purchasing of goods and services at market prices, as determined by supply and demand in a dynamic manner. Buyers and sellers do not know each other. Eg. Stock exchanges, or commodity exchanges (oil, sugar, corn)
Can be more economically supported by the 3 rd party exchange
Aggregation: Large # of sellers and buyers, reduced transaction, static pricing , one-stop shopping
Benefits: purchasing cost is high, specialized products, large SKU, fragmented supplier chain, buyers not sophisticated, pre-negotiated contracts, meta catalog
Matching : Dynamic pricing, bid, auction, player’s role is fluid
Benefits: products are commodities or near-commodities and can be traded sight unseen; massive trading volumes to transaction costs; buyers and sellers are sophisticated; use spot sourcing to smooth the peaks and valleys of supply and demand, logistics and fulfillment can be conducted by third parties, demand and prices and volatile