• Supply Chain Goals Efficient supply chain management must result in tangible business improvements. It is characterized by a sharp focus on – Revenue growth – Better asset utilization – Cost reduction.
• In his keynote address to the International Association of Food Industry Suppliers in March 2005, Tom Blackstock, Vice President of Supply Chain Operations at Coca-Cola North America, confirmed the need to involve all business functions in supply chain management when he said: “Supply chain management is everybody’s job”
In many major corporations, such as Coca-Cola, management hasreached the conclusion that optimizing the product flows cannot beaccomplished without implementing a process approach to thebusiness.
The supply chain management processes identified by The GlobalSupply Chain Forum and shown in above slide are:• Customer Relationship Management• Supplier Relationship Management• Customer Service Management• Demand Management• Order Fulfillment• Manufacturing Flow Management• Product Development and Commercialization• Returns Management
Customer Relationship ManagementThe customer relationship management process provides thestructure for how the relationships with customers will bedeveloped and maintained.
Supplier Relationship ManagementThe supplier relationship management process provides thestructure for how relationships with suppliers will be developed andmaintained.
Customer Service ManagementCustomer service management is the supply chain managementprocess thatdeals with the administration of the PSAs developed by customerteams as part of the customer relationship management process.
Demand ManagementDemand management is the supply chain management process thatbalancesthe customers’ requirements with the capabilities of the supplychain.
Order FulfillmentThe order fulfillment process involves more than just filling orders. Itincludes all activities necessary to design a network and enable afirm to meet customer requests while minimizing the total deliveredcost.
Manufacturing Flow ManagementManufacturing flow management is the supply chain managementprocess that includes all activities necessary to obtain, implementand manage manufacturing flexibility in the supply chain and tomove products into, through and out of the plants.
Product Development and CommercializationProduct development and commercialization is the supply chainmanagement process that provides the structure for developing andbringing to market products jointly with customers and suppliers.
Returns ManagementReturns management is the supply chain management process bywhich activities associated with returns, reverse logistics,gatekeeping, and avoidance are managed within the firm and acrosskey members of the supply chain.
Summary of the Supply Chain Management Framework
ConclusionsExecutives are becoming aware of the emerging paradigm ofinternetwork competition, and that the successful integration andmanagement of the supply chain management processes acrossmembers of the supply chain will determine the ultimate success of thesingle enterprise 24