Basics on supply chain management system

1. Supply Chain
Foundations
Conor Almoney

2. Part One: What is Supply Chain
Management

3. Understanding parts of a supply chain
 The main “parts” of a supply chain are procurement, operarations and
logistics.

4. The changing nature of supply chain
management
 Today, the steps within the supply chain are far more complex and involve
factions such as engineering and IT.

5. Establishing SCM goals
 The main goals of a Supply Chain are to generate profit, cut costs, and create
high-quality products.

6. Understanding SCM across industries
 The earliest adopters of this system were the Automotive, Aerospace,
Electronics, Clothing, and Textile industries, but it is essentially being used to
some degree by every company that sells a product.

7. Part 2: Purchasing and Supplier
relationships

8. Understanding inventory
 It is important the manager in charge of the raw materials department always
has everything in stock, as this is where it all starts.

9. Choosing a supplier
 It is important that a supplier is reliable and provides material that the
customer will consider to be of adequate quality.

10. Developing good buyer and supplier
relationships
 Buyers and suppliers must have reasonable expectations of one another and
observe each other in order to get a grasp on how the relationship can benefit
both parties.

11. Part 3: Manufacturing and Operations

12. Understanding manufacturing and
operations
 It is important that each department communicates with one another
properly so that they know what needs to be done and by when.

13. Marketing and designing your product
 Find a reliable location for manufacturing that isn’t too remote from
employees and potential customers, but is still within a reasonable price
range.

14. Managing quality
 Reconsider outsourcing if it is only for low cost-you may end up sacrificing
quality, which could be disastrous in the long run.

15. Part 4: Logistics

16. Understanding logistics
 Logistics is the coordination of a complex operation involving a large amount
of people facilities, or supplies.

17. Packaging your product
 It is important to have a multitude of strategies to package your products and
store all of said packaging to prevent damage and safety hazards.

18. Containerization
 The standardized container allows for storage and protection of countless
different products.

19. Transporting and distributing your product
 The four most effective ways of transporting merchandise is through the
mediums of trucks, airplanes, ships, and trains.

20. Delivering your product
 Distribution centers are an efficient way of preventing overflow in suppliers
and inadequate inventory in stores by acting as an intermediary between the
two.

21. Delivering the last mile
 Delivering from the distribution center to the stores can be quite taxing, as
there are often a plethora of stores that all require differing quantities of
varying products.

22. Part 5: Supply Chain Integration

23. Integrating and coordinating the entire
supply chain
 Supply Chain Managers must be willing to take charge when problems and
opportunities arise in order to adapt to constantly changing economic
circumstances.

24. Mitigating the bullwhip effect
 Be sure to communicate and build trust with customers/suppliers in order to
prevent unnecessary inventory from over complicating the process.

25. Basic supply chain strategies
 Have some steps of creating your product completed in advance, but leave
just enough undone so that your customer can customize it to their liking.

26. Understanding lean systems
 Do not overschedule to point of having no ability to make any kind of change
to your company’s routine.

27. Part 6: Issues in Supply Chain
Management

28. Going global
 A supply chain that tries to grow too quickly is at risk of communication
disasters to language/cultural differences and working with the schedules and
needs of all these new partners.

29. Creating and managing ethical supply
chains
 Be sure to develop a strong and reliable ethical system to monitor the
behavior of both your supplier and your supply chain partners.

30. Creating sustainable supply chains
 Be willing to make environmentally and socially conscious choices in running
your supply chain.

31. Dealing with disasters
 Be willing to provide products for humanitarian organizations and be a part of
the forces that will improve the lives of victims of disaster.

32. Conclusion
 Supply chains are the muscle and bone of an organization and we would have
nothing without them.