SUPP

1. Supply Chain Management
a sequence of organizations, their facilities, functions
and activities, which are involved in producing and
delivering a product or service
Sequence begins with basic suppliers of raw materials,
and extends all the way to the final customer
Value chain or Supply chain?

2. Supply Chain Management
Supplier
Storage
Manufacturer
Distributor
Retailer
Customer
Supply Component
Demand Component

3. Supply Chain Management
Benefits
• Lower inventories
• Improved ability to respond to fluctuations in demand
• Lower cost
• Higher productivity
• Shorter lead time
• Greater customer loyalty
• Higher profit

4. Supply Chain Management
Element of Supply Chain Management
• Location
• Customer – the driving force
• Processing – schedule, quality control
• Forecasting – predicting demand
• Design – incorporating customers
• Inventory
• Supplier – product quality, on time delivery
• Purchasing – evaluating potential suppliers
• Logistics – movement within facility

5. Supply Chain Management
Integrated Supply Chain
Internal Department
• Purchasing
• Production
• Distribution
External Department
• Supplier
• Customer

6. Supply Chain Management
Supplier Purchasing Manufacturer Distributor Customer
Stage 1
Stage 2
Supplier Purchasing Distributor Customer
Internal Supply Chain
Manufacturer

7. Customer
Supply Chain Management
Stage 3
Supplier Purchasing Distributor
Internal Supply Chain
Manufacturer
Integrated Supply Chain