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Supply chain management ii mft


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  • 2. What it Supply Chain? A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. It includes Manufacturer and suppliers, transporters, warehouses, retailers and customers. Within each company, the supply chain includes all functions involved in fulfilling a customer request (product development, marketing, operations, distribution, finance, customer service)
  • 3. What it Supply Chain? Customer is an integral part of the supply chain Includes movement of products from suppliers to manufacturers to distributors, but also includes movement of information, funds, and products in both directions Probably more accurate to use the term “supply network” or “supply web” Typical supply chain stages: customers, retailers, distributors, manufacturers, suppliers
  • 4. Supplier Manufacturer Distributor Retailer Customer Manufacturer Distributor Retailer CustomerSupplier Manufacturer Distributor Retailer Customer Supply Chain Stages
  • 5. Supply Chain Stages Each stages in a supply chain is connected through the flow of products, information and funds. These flows often occur in both directions Depends upon customer needs
  • 6. Objectives of Supply Chain Maximise the overall value of the product Maximise Supply Chain Profitability/supply chain surplus Flow of information and funds Effective Supply Chain Management – Management of supply chain assets, product, information and fund flow
  • 7. Importance of Supply Chain Decisions Supply Chain Flow – product, information and funds Supply Chain design, planning and operation decisions play a significant role in the success or failure of a firm.
  • 8. Decision Phases in a Supply chain Supply Chain Strategy or Design  Marketing and pricing plans for a product  Structuring the supply chain for several years  In-House or Outsource  Decides the SC Configuration Supply Chain Planning  Planning for quarter year to a year  Forecasting Supply Chain Operation  Weekly or daily operation  Individual customer orders
  • 9. Process Views of Supply Chain Cycle View  The processes in a supply chain are divided into a series of cycles, each performed at the interface between two successive stages of a supply chain Push/Pull View  Pull processes are initiated by a customer order  Push processes are initiated and performed in anticipation of customer orders.
  • 10. Cycle View of Supply Chain Processes Customer order cycle Replenishment Cycle Manufacturing Cycle Procurement Cycle
  • 11. Cycle View of Supply Chain Processes CustomerCustomer Order Cycle RetailerReplenishment Cycle DistributorManufacturing Cycle ManufacturerProcurement Cycle Supplier
  • 12. Sub ProcessSupplier Stage Buyer returnsMarket Product reverse flows to supplier or third partyBuyer Stage PlacesOrder Buyer Stage receives supplySupplier Stagereceives order Supplier Stage supplies order
  • 13. Push /Pull view of supply chain processes Pull Process  With Pull Process, execution is initiated in response to a customer order  Also referred to as Reactive Processes  This process operate in an environment in which customer demand is known
  • 14. Push /Pull view of supply chain processes Push Process  Execution is initiated in anticipation of customer orders  Demand is not known and must be forecast  Also known as Speculative Processes
  • 15. Push /Pull view of supply chain processes Push/pull Boundary Push Processes Pull ProcessesProcess Process Process Process Process Process Process 1 2 3 4 5 6 7 Customer Order Arrives
  • 16. Supply Chain Macro Processes in a Firm Customer Relationship Management (CRM)  All processes that focus on the interface between the firm and its customers Internal supply chain management (ISCM)  All processes that are internal to the firm Supplier Relationship Management (SRM)  All processes that focus on the interface between the firm and its suppliers
  • 17. Supply Chain Macro Processes in a FirmSupplier Firm Customer SRM ISCM CRMSource Strategic Planning MarketNegotiate Demand Planning PriceBuy Supply Planning SellDesign Collaboration Fulfillment Call CenterSupply Collaboration Field Service Order Management