The document discusses supply chain management and strategy. It notes that supply chains can behave unpredictably due to complexity and variability in supplier performance and links. It provides an example supply chain for denim jeans production that shows the flow from raw materials to farmers, suppliers at different tiers, manufacturing, retailers and customers. It also presents a figure illustrating the fundamental flow of supply chain management including market research, product improvement, material flow, and satisfying customer needs.

1. 7-1
Supply Chain Mgmt & Strategy
Supply Chain : a Strategic
Factor
J. Tannock (2007)
Supply chain do not always behave as
expected or desired, due to the complexity
of interconnections and variability in both
performance of suppliers and the links
between them.

2. 7-2
Supply Chain Mgmt & Strategy
Supply
Chain for
Denim
Jeans

3. 7-3
Supply Chain Mgmt & Strategy
Scheduling & Planning
Process & Design
Market research
Product improvement
Distributor
Farm
RM 1.15
Chillies RM0.50
Customer
Suppliers Tier 3
S3
Suppliers Tier
2
Collection
RM 1.89
RM 1.50
Suppliers Tier 1
S2
S1
RM 0.40
Manufacturer
Retailer
S2
S3
S2
S3
Budget
Material Flow
Ideas and design to satisfy the end customer
Figure 2, Fundamental Flow of Supply Chain Management (SCM)

4. 7-4
Supply Chain Mgmt & Strategy
Fundamental Issues of SCM
Delivery
Quality
Technology
Networking
& Linkage
Communication
Cultural & Trust
Competitiveness
Issues
Human & Nature Risks

5. 7-5
Supply Chain Mgmt & Strategy
Duties and Tariffs
APEC
NAFTA
TAFTA
FTAA
ASEAN
ACFTA
CALM
ATPA
MERCOSUR
ANZCERTA

6. 7-6
Supply Chain Mgmt & Strategy
Volkswagen

7. 7-7
Supply Chain Mgmt & Strategy
Bullwhip Effect
Occurs when slight demand variability is magnified as information moves back
upstream