The document provides an overview of a university course on supply chain management. It introduces the lecturer and their qualifications. The course will cover various topics related to supply chain analysis over 15 weeks. Key models of supply chain management are also summarized, including continuous flow, fast chain, efficient chain, agile, custom-configured, and flexible models.
1. LECTURE 1
SUPPLY CHAIN MANAGEMENT
AND THE MODELS
NURUL AFSAR CHOWDHURY
LECTURER, ZUMS
COURSE NAME: SUPPLY CHAIN ANALYSIS (SCM-630)
2. ABOUT MYSELF
BSC IN MATERIALS & METALLURGICAL ENGINEERING FROM BUET
MSE IN MATERIALS SCIENCE & ENGINEERING FROM UNIVERSITY OF TORONTO
MASTER OF BUSINESS ADMINISTRATION FROM IBA, DHAKA UNIVERSITY
CERTIFIED SUPPLY CHAIN MANAGER (CSCM) FROM ISCEA, USA
CHARTERED MEMBER OF CHARTERED INSTITUTE OF LOGISTICS & TRANSPORT
MEMBER OF BANGLADESH SUPPLY CHAIN MANAGEMENT SOCIETY
FORMER SUPPLY CHAIN DEPUTY HEAD OF WALTON
CURRENT DEMAND PLANNING MANAGER OF SINGER BANGLADESH LIMITED
7. WEEKLY BREAKDOWN
WEEK 1, SUPPLY CHAIN MANAGEMENT AND THE MODELS.
WEEK 2, UNDERSTANDING GLOBAL SUPPLY CHAIN NETWORKS
WEEK 3, SUPPLY CHAIN ANALYSIS BASICS
WEEK 4, ANALYSIS FOR SOURCING PRODUCTS AND SERVICES
WEEK 5, ANALYSIS ON INTERNAL OPERATIONS AND INVENTORY
WEEK 6, ANALYSIS ON FORWARD AND REVERSE LOGISTICS
WEEK 7, SUPPLY CHAIN RELATIONSHIP ANALYSIS
WEEK 8, DEMAND ANALYSIS & DEMAND MANAGEMENT ROADMAP
WEEK 9, FORECASTING TECHNIQUES
WEEK 10, IMPLEMENTATION FOR SUPPLY CHAIN ANALYTICS IN REAL FIELDS
WEEK 11, FIELD VISIT TO UNDERSTAND DIRECT APPLICATIONS OF SUPPLY CHAIN ANALYSIS
WEEK 12, UNDERSTANDING RISK, OPTIMIZATION, SUSTAINABILITY AND TECHNOLOGY
WEEK 13, YOU WILL LEARN SUPPLY CHAIN ANALYSIS JOB OPPORTUNITIES AND JOB INTELLIGENCE.
WEEK 14, GENERAL DISCUSSIONS ON LEARNING EXPERIENCE, INCLUDING QUESTIONS FOR CLARITY.
WEEK 15, FINAL EXAMINATION.
8. A PICTURE IS BETTER THAN 1000 WORDS!
HOW MANY WORDS WOULD BE BETTER THAN
3 PICTURES?
- A SUPPLY CHAIN CONSISTS OF
- aims to Match Supply and Demand,
profitably for products and services
SUPPLY SIDE DEMAND SIDE
The right
Product
Higher
Profits
The right
Time
The right
Customer
The right
Quantity
The right
Store
The right
Price
=
+
+ +
+ +
- achieves
Supplier Manufacturer Distributor Retailer Customer
Upstream
Downstream
9. WHAT IS SUPPLY CHAIN MANAGEMENT
“SUPPLY CHAIN IS A GLOBAL NETWORK USED TO DELIVER PRODUCTS AND
SERVICES FROM RAW MATERIALS TO END CUSTOMERS THROUGH AN ENGINEERED
FLOW OF INFORMATION, PHYSICAL DISTRIBUTION, AND CASH”
(APICS DICTIONARY, 16TH EDITION)
SUPPLY CHAIN MANAGEMENT IS THE DESIGN, PLANNING, EXECUTION, CONTROL,
AND MONITORING OF SUPPLY CHAIN ACTIVITIES WITH THE OBJECTIVE OF
CREATING NET VALUE, BUILDING A COMPETITIVE INFRASTRUCTURE, LEVERAGING
WORLDWIDE LOGISTICS,SYNCHRONIZING SUPPLY WITH DEMAND, AND MEASURING
PERFORMANCE GLOBALLY
10. THREE ENTITIES OF SUPPLY CHAIN
• A SUPPLIER
• A PRODUCER
• A CUSTOMER
FOUR BASIC FLOWS OF SUPPLY CHAIN
• THE FLOW OF INFORMATION
• THE PRIMARY PRODUCT FLOW
• PRIMARY CASH FLOW
• REVERSE FLOW OF PRODUCTS RETURNED
11. CASH TO CASH CYCLE TIME
IT IS A KEY METRIC FOR MEASURING THE EFFICIENCY OF THE FLOW OF FUNDS. IT
BASICALLY MEASURES HOW LONG IT TAKES FOR AN INVESTMENT OF CASH INTO
OPERATIONS TO BE RETURNED IN THE FORM OF CASH RECEIPTS FROM SALES TO
CUSTOMERS.
STAKEHOLDERS
PEOPLE WITH A VESTED INTEREST IN A COMPANY, INCLUDING MANAGERS,
EMPLOYEES, STOCK-HOLDERS, CUSTOMERS, SUPPLIERS, AND OTHERS
12. SUPPLY CHAIN FLOWS
supplier customer
Information Flow
Material Flow
There must be a good inter-organizational information
provide the required information flow.
13. VERTICAL VS LATERAL INTEGRATION
VERTICAL: HENRY FORD OWNED IRON ORE MINES, STEEL MILLS, AND A FLEET OF
SHEEPS AS WELL AS MANUFACTURING PLANTS AND SHOWROOMS.
LATERAL: CORPORATE AROUND THE GLOBE TURNS TO OUTSOURCING THOSE
ASPECTS OF THEIR BUSINESS IN WHICH THEY JUDGE THEMSELVES TO BE LEAST
EFFECTIVE. GENERAL MOTORS DIVESTED ITS COMPONENT SUPPLIER AS A
SEPARATE ORGANIZATION, DELPHI CORPORATION.
14. PUSH VS PULL SYSTEM
• WHAT INSTIGATES THE MOVEMENT OF THE WORK IN THE
SYSTEM?
• IN PUSH SYSTEMS, WORK RELEASE IS BASED ON
DOWNSTREAM DEMAND FORECASTS
• KEEPS INVENTORY TO MEET ACTUAL DEMAND
• ACTS PROACTIVELY
• E.G. MAKING GENERIC JOB APPLICATION RESUMES TODAY (E.G.:
EXEMPLI GRATIA)
• IN PULL SYSTEMS, WORK RELEASE IS BASED ON ACTUAL
DEMAND OR THE ACTUAL STATUS OF THE
DOWNSTREAM CUSTOMERS
• MAY CAUSE LONG DELIVERY LEAD TIMES
• ACTS REACTIVELY
• E.G. MAKING A SPECIFIC RESUME FOR A COMPANY AFTER TALKING
TO THE RECRUITER
15. PUSH/PULL VIEW OF SUPPLY CHAINS
Procurement,
Manufacturing and
Replenishment cycles
Customer Order
Cycle
Customer
Order Arrives
Push Pull Boundary
PUSH PROCESSES PULL PROCESSES
19. THE SIX MODELS OF SUPPLY CHAIN
MANAGEMENT
• CONTINUOUS FLOW
• FAST CHAIN
• EFFICIENT CHAIN
• AGILE
• CUSTOM-CONFIGURED
• FLEXIBLE
THESE ARE ALL BASED ON EFFICIENCY AND RESPONSIVENESS!!!
20. THE CONTINUOUS FLOW MODEL
• THE CONTINUOUS FLOW MODEL IS BUILT AROUND EFFICIENCY. IT OFFERS
STABILITY IN HIGH-VOLUME ENVIRONMENTS. THIS CLASSIC MODEL IS BEST
SUITED FOR MANUFACTURERS WHO PRODUCE THE SAME PRODUCT REPEATEDLY,
WITH LITTLE DESIGN FLUCTUATION OR ALTERATION.
• THIS MODEL IS IDEAL FOR COMMODITY MANUFACTURING. ITS HIGH LEVEL OF
EFFICIENCY IS REFLECTED IN LOW PRODUCT PRICES. FOR MANUFACTURERS,
MARGINS ARE BASED ON RAW MATERIAL PRICES. THAT SOUNDS LIKE SCIENCE
TO ME.
21. THE FAST CHAIN MODEL
• THE FAST CHAIN MODEL IS BUILT FOR RESPONSIVENESS. IT’S IDEAL FOR
MANUFACTURERS WHO CHANGE THEIR PRODUCT LINE FREQUENTLY. THIS
MODEL IS THE BEST SUITED FOR TRENDY PRODUCTS WITH SHORT LIFE SPANS. IN
THIS EXAMPLE, THE MANUFACTURER THAT CAN FLOOD THE MARKET BEFORE
THE TREND CYCLE ENDS IS THE MANUFACTURER THAT WINS.
• THIS MODEL EMPHASIZES THE COMPETITIVE ADVANTAGE OF THE FIRST
ADOPTER. BUT THE TRUE DRIVER OF THE FAST CHAIN IS THE DESIGNER—AND
THE MARKETING DEPARTMENT. PUT ANOTHER WAY, IF YOU CAN CREATE YOUR
OWN TREND, YOU’LL BE THE FIRST TO MARKET. IN SHORT, THIS MODEL IS
DRIVEN BY ART.
22. THE EFFICIENT CHAIN MODEL
THE EFFICIENT CHAIN MODEL IS FOR HYPERCOMPETITIVE INDUSTRIES WHERE END-
TO-END EFFICIENCY IS THE ULTIMATE GOAL. THIS MODEL RELIES HEAVILY ON
PRODUCTION FORECASTING IN ORDER TO PROPERLY BURDEN AND SWEAT
MACHINERY ASSETS.
THE EFFICIENT MODEL ALSO RELIES HEAVILY ON COMMODITY AND RAW MATERIAL
PRICES. IN THE POST-PANDEMIC WORLD, EFFICIENT CHAINS ARE STRUGGLING
WITH CAPACITY ISSUES. DRIVERS FOR THIS ARE LABOR SHORTAGES, MATERIAL
SHORTAGES, AND DELAYS.
THE BOTTOM LINE IS THIS. WHEN YOU MISS A FORECAST, IT CAN CREATE A RIPPLE
EFFECT. THIS CAN RESULT IN LENGTHY LEAD TIMES AND INFLATED PRICES FOR
MANUFACTURERS UP AND DOWN THE SUPPLY CHAIN. AND THAT’S WHEN YOU
HEAR A LOT OF ARTFUL LANGUAGE.
23. THE AGILE MODEL
THE AGILE MODEL IS IDEAL FOR MANUFACTURERS THAT DEAL IN SPECIALTY
ITEMS. THIS MODEL IS FINELY TUNED FOR SMALL BATCHES OF PRODUCT. THAT
REQUIRES LESS AUTOMATION AND MORE EXPERTISE. AND THAT ADDITIONAL
VALUE-ADD IN TURN ALLOWS BUSINESSES USING THIS MODEL TO COMMAND
HIGHER PRICES.
AGILE-MODEL BUSINESSES CAN RAMP UP VOLUME. BUT PAST A CERTAIN VOLUME
THRESHOLD, THEY TYPICALLY PROVE UNCOMPETITIVE. COMPARED WITH
EFFICIENT-CHAIN-MODEL BUSINESSES, AT HIGHER VOLUMES AGILE BUSINESSES
GET BLOWN OUT OF THE WATER FROM A PRICING STANDPOINT.
24. THE CUSTOM-CONFIGURED MODEL
THE CUSTOM-CONFIGURATION MODEL FOCUSES ON PROVIDING CUSTOM SETUPS
DURING PRODUCTION AND ASSEMBLY. MOST OFTEN, THIS SETUP TIME OCCURS
AT THE BEGINNING OF A LENGTHIER PRODUCTION AND ASSEMBLY RUN PROCESS.
FOR EXAMPLE, CERTAIN PROTOTYPE OR LIMITED-PRODUCTION BUILDS FALL INTO
CUSTOM-CONFIGURED MANUFACTURING.
THIS IS A HIGHER-TOUCH MODEL THAT CAN INCLUDE QUICKER TURNAROUND
TIMES AND SMALL BATCHES OF PRODUCTS. IN ESSENCE, THE CUSTOM-
CONFIGURATION MODEL IS COMBINATION OF THE AGILE AND CONTINUOUS FLOW
MODELS.
25. THE FLEXIBLE MODEL
• THE FLEXIBLE MODEL TRIES TO BE THE BEST OF ALL WORLDS. IT CAN REACT TO
HIGH VOLUME DEMANDS DURING A PEAK SEASON. ON THE OTHER HAND,
FLEXIBLE MODEL BUSINESSES CAN MANAGE AND ABSORB STRETCHES OF LOW OR
NO DEMAND. THIS MODEL IS LIKE A LIGHT SWITCH. FLIP IT ON OR OFF AS
NEEDED.
• TO PULL OFF THE FLEXIBLE SUPPLY CHAIN MODEL, A BUSINESS REQUIRES THE
RIGHT TOOL (OR AUTOMATED MACHINERY) FOR THE JOB. THIS MODEL ALSO
REQUIRES A BROAD SUPPLIER NETWORK OR PERSONNEL WHO HAVE A BROAD
KNOWLEDGE BASE.
In this view processes are divided based on their timing relative to the timing of a customer order. Define push and pull processes.
They key difference is the uncertainty during the two phases.
Give examples at Amazon and Borders to illustrate the two views