Supply chain management optimizes and designs key business processes to increase overall performance by fully integrating customers, suppliers, and partners into seamless processes. These processes can overcome internal and external barriers by designing synchronized processes to optimize information, material, and financial flows. Supply chain management focuses on optimizing production planning, procurement, distribution to customers, product development, and other relevant processes. The most competitive supply chains in the future will be those that optimize these end-to-end processes rather than individual companies working alone.

1. Supply Chain Management
Prof. Dr.-Ing. K. Thaler
Stuttgart Media University (HdM)
© Prof. Dr.-Ing. K. Thaler Stuttgart Media University

2. Supply Chain Management
Opimizes and designs Key Business Processes to achieve an overall
performance increase
Customers, Suppliers and other Partners are fully integrated into the whole
Supply Chain
Based on a company-centred view, Seamless Overall Processes are going
to be introduced and implemented
Internal and external borders can be overcome by designing synchronized
business processes to optimize Information, Material and Financial Flows.
© Prof. Dr.-Ing. K. Thaler Stuttgart Media University

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6. Example: Demand-Supply Effects (Bull-Whip)
Source: Tom McGuffog, Electronic Commerce and Value Chain Management, Sales Forcast
1998 of Producer
Quantity
Demand
Distribution Centre
Orders of to local Distributor
Retailer
Production Plan
Time
© Prof. Dr.-Ing. K. Thaler Stuttgart Media University

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9. Example: Automotive Supply Chain Dealer Customer
Network
Logistic Automotive
Partner Producer (OEM)
Make to stock about 50%
purchased
about 2-3 h
Material flow
System Industry Logistic
Supplier Park Partner
Supplier
JIT-Supply
Supplier Module
Supplier
Supplier
Supplier
Direct to OEM
© Prof. Dr.-Ing. K. Thaler Stuttgart Media University

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18. Which Key Processes are seen as SCM-relevant?
Distribution to customer
Production planning
(plants)
Order aquisition
expected
possible
Recycling
unlikely
no opinion
Procurement
Production planning
(customer)
Product development
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
© Prof. Dr.-Ing. K. Thaler Stuttgart Media University

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20. On the markets the best Supply Chains will compete,
not any more single companies.
Thank You.
Prof. Dr.-Ing. K. Thaler
Stuttgart Media University (HdM)
www.hdm‐stu*gart.de/scm
© Prof. Dr.-Ing. K. Thaler Stuttgart Media University