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Supply Chain Management
Overview of Supply Chain Management
What is Supply Chain ?
2
What is Supply Chain ?
3
What is Supply Chain ?
4
What is Supply Chain ?
5
What is Supply Chain ?
6
What is Supply Chain ?
7
What is Supply Chain ?
8
What is Supply Chain ?
9
What is Supply Chain ?
10
What is Supply Chain ?
11
What is Supply Chain ?
12
What is Supply Chain ?
13
Supply Chain :
- All the activities, which include the purchase of raw
materials, receiving of raw materials,
manufacturing, and production of goods, and
delivery of the desired goods to their respective
customers or destinations.
What is Supply Chain ?
14
Supply Chain :
- Chain of connected and interdependent
organizations working on the flow of materials and
information from suppliers to end users.
What is Supply Chain ?
15
Supply Chain :
- All the activities, which include the purchase of raw
materials, receiving of raw materials,
manufacturing, and production of goods, and
delivery of the desired goods to their respective
customers or destinations.
- Chain of connected and interdependent
organizations working on the flow of materials and
information from suppliers to end users.
What is Supply Chain ?
16
Main Components of Supply Chain’s Definition:
-
-
-
Examples of Supply Chain ?
17
- Supply Chains exist everywhere, in all fields.
- Titles and names may differ, but the same
concept could be applied.
- Examples:
•
•
•
Basic Supply Chain
18
Customer
Retailer
Participants in Supply Chain
19
- Suppliers:
Firms supplying raw materials, components, parts,
machinery, plant.
- Manufacturers:
Firms that make (produce, assembly) a product.
- Distributors:
Firms that take products in bulk from producers and
deliver to retailers and customers. AKA wholesalers.
Participants in Supply Chain
20
- Retailers:
Firms that stock inventory and sell to the general public.
- Customers:
Firms or individuals that purchase and use products.
- Service Providers:
Firms providing specialized services to producers,
distributors, retailers, and customers.
Not Chain, Network actually
21
Suppliers Manufacturers Warehouses &
Distribution Centers
Customers
Material Costs
Transportation
Costs
Transportation
Costs
Transportation
Costs
Inventory Costs
Manufacturing Costs
Hit, by your own rock !
22
- Spherical earth.
- Domino.
- My salary
WILL BE IMPACYED, EVENTUALLY!
Goals; mine vs yours !
23
- I’ve achieved my goals. ENOUGH ??
- Smarter to be in group.
- Profiting. Is that all ??
- Goose swarm.
Well Said !
24
- Different parts, but ONE body.
- How to fight ?
- All for one, one for all.
- One hand doesn't …..
- It takes two to ….
The Objective of SCM
25
- “ WE “, no more “ I “.
- Your win is my win.
- Strategic gain.
NOT EASY AT ALL, BUT NOT IMPOSSIBLE
What is SCM ?
26
Supply Chain Management :
- The coordination of production, inventory, location,
and transportation among the participants in a
supply chain to achieve the best mix of
responsiveness and efficiency for the market being
served.
- Design, planning, execution, control, and
monitoring of supply chain activities with the
objective of creating net value
What is SCM ?
27
Supply Chain Management :
- The coordination of production, inventory, location,
and transportation among the participants in a
supply chain to achieve the best mix of
responsiveness and efficiency for the market being
served.
- Design, planning, execution, control, and
monitoring of supply chain activities with the
objective of creating net value
What is SCM ?
28
Main Components of SCM’s Definition:
-
-
-
Why Managing ?
29
iPhone .. Samsung Galaxy .. Huawei
Which one ? WHY
Competitive Advantage
Competitive Advantage
30
The Objective of SCM
31
- Objective:
Maximizing the overall value generated.
- Supply Chain Surplus =
customer value – overall supply chain cost
Therefore …
32
- We will make decisions, big ones.
- And, small ones.
- But, ALL are important.
- To see the big picture, let’s FLY.
Decision Phases in a Supply Chain
33
- Supply chain strategy/design:
• Long term: several years.
• Resource allocation, outsource?, capacity, products
- Supply chain planning:
• Medium term: 3 months – 1 year.
• Demand forecast, costs & prices, distribution network
- Supply chain operation:
• Short term: days - weeks.
• Customer order, pick-up list, delivery schedule
Process Views of a Supply Chain
34
- There are TWO views to look at SC processes:
1- Cycle View
2- Push/Pull View
Process Views of a Supply Chain
35
- Cycle view:
Process Views of a Supply Chain
36
- Subprocesses in each cycle:
Process Views of a Supply Chain
37
- Cycle view is useful when:
considering operational decisions
- Because:
it specifies the roles and responsibilities of each
member of the supply chain
Process Views of a Supply Chain
38
- Push/Pull view:
• Push:
execution is initiated in anticipation of
customer orders (speculative).
Process Views of a Supply Chain
39
- Push/Pull view:
• Pull:
execution is initiated in response to a
customer order (reactive).
Process Views of a Supply Chain
40
- Push/Pull view is useful when:
considering strategic decisions
- Because:
it identifies the push/pull boundary for the
supply chain processes in order to match supply
and demand effectively.
The End
41

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CH 2.pptx

  • 1. 1 Supply Chain Management Overview of Supply Chain Management
  • 2. What is Supply Chain ? 2
  • 3. What is Supply Chain ? 3
  • 4. What is Supply Chain ? 4
  • 5. What is Supply Chain ? 5
  • 6. What is Supply Chain ? 6
  • 7. What is Supply Chain ? 7
  • 8. What is Supply Chain ? 8
  • 9. What is Supply Chain ? 9
  • 10. What is Supply Chain ? 10
  • 11. What is Supply Chain ? 11
  • 12. What is Supply Chain ? 12
  • 13. What is Supply Chain ? 13 Supply Chain : - All the activities, which include the purchase of raw materials, receiving of raw materials, manufacturing, and production of goods, and delivery of the desired goods to their respective customers or destinations.
  • 14. What is Supply Chain ? 14 Supply Chain : - Chain of connected and interdependent organizations working on the flow of materials and information from suppliers to end users.
  • 15. What is Supply Chain ? 15 Supply Chain : - All the activities, which include the purchase of raw materials, receiving of raw materials, manufacturing, and production of goods, and delivery of the desired goods to their respective customers or destinations. - Chain of connected and interdependent organizations working on the flow of materials and information from suppliers to end users.
  • 16. What is Supply Chain ? 16 Main Components of Supply Chain’s Definition: - - -
  • 17. Examples of Supply Chain ? 17 - Supply Chains exist everywhere, in all fields. - Titles and names may differ, but the same concept could be applied. - Examples: • • •
  • 19. Participants in Supply Chain 19 - Suppliers: Firms supplying raw materials, components, parts, machinery, plant. - Manufacturers: Firms that make (produce, assembly) a product. - Distributors: Firms that take products in bulk from producers and deliver to retailers and customers. AKA wholesalers.
  • 20. Participants in Supply Chain 20 - Retailers: Firms that stock inventory and sell to the general public. - Customers: Firms or individuals that purchase and use products. - Service Providers: Firms providing specialized services to producers, distributors, retailers, and customers.
  • 21. Not Chain, Network actually 21 Suppliers Manufacturers Warehouses & Distribution Centers Customers Material Costs Transportation Costs Transportation Costs Transportation Costs Inventory Costs Manufacturing Costs
  • 22. Hit, by your own rock ! 22 - Spherical earth. - Domino. - My salary WILL BE IMPACYED, EVENTUALLY!
  • 23. Goals; mine vs yours ! 23 - I’ve achieved my goals. ENOUGH ?? - Smarter to be in group. - Profiting. Is that all ?? - Goose swarm.
  • 24. Well Said ! 24 - Different parts, but ONE body. - How to fight ? - All for one, one for all. - One hand doesn't ….. - It takes two to ….
  • 25. The Objective of SCM 25 - “ WE “, no more “ I “. - Your win is my win. - Strategic gain. NOT EASY AT ALL, BUT NOT IMPOSSIBLE
  • 26. What is SCM ? 26 Supply Chain Management : - The coordination of production, inventory, location, and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served. - Design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value
  • 27. What is SCM ? 27 Supply Chain Management : - The coordination of production, inventory, location, and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served. - Design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value
  • 28. What is SCM ? 28 Main Components of SCM’s Definition: - - -
  • 29. Why Managing ? 29 iPhone .. Samsung Galaxy .. Huawei Which one ? WHY Competitive Advantage
  • 31. The Objective of SCM 31 - Objective: Maximizing the overall value generated. - Supply Chain Surplus = customer value – overall supply chain cost
  • 32. Therefore … 32 - We will make decisions, big ones. - And, small ones. - But, ALL are important. - To see the big picture, let’s FLY.
  • 33. Decision Phases in a Supply Chain 33 - Supply chain strategy/design: • Long term: several years. • Resource allocation, outsource?, capacity, products - Supply chain planning: • Medium term: 3 months – 1 year. • Demand forecast, costs & prices, distribution network - Supply chain operation: • Short term: days - weeks. • Customer order, pick-up list, delivery schedule
  • 34. Process Views of a Supply Chain 34 - There are TWO views to look at SC processes: 1- Cycle View 2- Push/Pull View
  • 35. Process Views of a Supply Chain 35 - Cycle view:
  • 36. Process Views of a Supply Chain 36 - Subprocesses in each cycle:
  • 37. Process Views of a Supply Chain 37 - Cycle view is useful when: considering operational decisions - Because: it specifies the roles and responsibilities of each member of the supply chain
  • 38. Process Views of a Supply Chain 38 - Push/Pull view: • Push: execution is initiated in anticipation of customer orders (speculative).
  • 39. Process Views of a Supply Chain 39 - Push/Pull view: • Pull: execution is initiated in response to a customer order (reactive).
  • 40. Process Views of a Supply Chain 40 - Push/Pull view is useful when: considering strategic decisions - Because: it identifies the push/pull boundary for the supply chain processes in order to match supply and demand effectively.