This document discusses supply chain management and related topics. It begins with an overview of supply chain management, defining it as the coordination of supply chain activities from suppliers to customers. It then covers value chains and networks, options for restructuring supply chains, the role of e-business in supply chains, and trends in supply chain management. Key points include how information systems help integrate supply chain activities and data, and how trends involve simplification, adaptability, sustainability, and collaboration across supply chains.
2. OUTCOMES
Supply Chain Management
Value Chain & Value Network
Restructuring Options for Supply Chain
E-business & Supply Chain
Trends in SCM
3. OUTCOMES
Supply Chain Management
Value Chain & Value Network
Restructuring Options for Supply Chain
E-business & Supply Chain
Trends in SCM
4. SUPPLY CHAIN MANAGEMENT
Supply chain management (SCM)
The coordination of all supply activities of an
organization from its suppliers and partners to its
customers.
Upstream supply chain
Transactions between an organization and its
suppliers and intermediaries, equivalent to buyside e- commerce.
Downstream supply chain
Transactions between an organization and its
customers and intermediaries, equivalent to
sellside e- commerce.
5. SUPPLY CHAIN MANAGEMENT (CONT.)
SCM Definition (Tan, 2001)
Purchasing and supply activities of manufacturers.
Transportation and logistics function of merchants and retailers.
All value-adding activities from raw materials extractor to the end users, including recycling.
Achieving Competitive Advantage through Supply Chain Integration.
10. SUPPLY CHAIN MANAGEMENT (CONT.)
Other definitions
Logistics: Broad definition
Inbound logistics
Strategic management of the total supply chain (includes procurement, manufacture, distribution, transport, storage,…)
Management of material resources entering organization from suppliers and partners
Outbound logistics
Management of resources from organization to customers and intermediaries
11. SUPPLY CHAIN MANAGEMENT (CONT.)
Other definitions
Source: E-Business and E-commerce management, Dave Chaffey
12. OUTCOMES
Supply Chain Management
Value Chain & Value Network
Restructuring Options for Supply Chain
E-business & Supply Chain
Trends in SCM
13. VALUE CHAIN / VALUE NETWORK
Value Chain
Any element of the supply chain must add value to the product/service delivered to customers.
Can be Internal within organization boundary or External with partners.
Typical value chain
Source: E-Business and E-commerce management, Dave Chaffey
15. OUTCOMES
Supply Chain Management
Value Chain & Value Network
Restructuring Options for Supply Chain
E-business & Supply Chain
Trends in SCM
16. RESTRUCTURING OPTIONS FOR SUPPLY CHAIN
Does Internet primarily affect SCM restructuring or only supporting tool?
17. RESTRUCTURING OPTIONS FOR SUPPLY CHAIN (CONT.)
Vertical integration
The extent to which supply chain activities are undertaken and controlled within the organization.
Virtual integration
The majority of supply chain activities are undertaken and controlled outside the organization by third parties.
18. RESTRUCTURING OPTIONS FOR SUPPLY CHAIN (CONT.)
Source: E-Business and E-commerce management, Dave Chaffey
19. OUTCOMES
Supply Chain Management
Value Chain & Value Network
Restructuring Options for Supply Chain
E-business & Supply Chain
Trends in SCM
20. E-BUSINESS & SUPPLY CHAIN
Challenge?
achieving standardized data formats and data exchange
Information supply chain ISC
Marinos & Sun and Yen (2005): an information-centric view of physical and virtual supply chains where each
entity adds value to the chain by providing the right information to the right entity at the right time in a secure
manner.
21. E-BUSINESS & SUPPLY CHAIN (CONT.)
Technology standards in SCM
EDI: communications protocol for exchanging documents among computers.
XML: promotes a message-oriented view of e-commerce that isolates business transactions from differences in
software, hardware…programming languages.
Middleware: integrate or translate requests from external systems so they are understood by internal systems.
Manual ordering emails or web portal.
23. E-BUSINESS & SUPPLY CHAIN (CONT.)
Typical SCM IS infrastructure
Source: E-Business and E-commerce management, Dave Chaffey
24. E-BUSINESS & SUPPLY CHAIN (CONT.)
Increased efficiency of individual processes.
Reduced complexity of the supply chain.
Improved data integration between elements of the supply chain.
Reduced cost through outsourcing.
Innovation.
25. OUTCOMES
Supply Chain Management
Value Chain & Value Network
Restructuring Options for Supply Chain
E-business & Supply Chain
Trends in SCM
26. TRENDS IN SCM
Just-in-Time production
Method of inventory cost management
Seeks to eliminate excess inventory to bare minimum
Lean production
Set of production methods and tools
Focuses on elimination of waste throughout customer value chain, not just inventory
Supply Chain Simplification
Process standardization.
Use of Technologies.
27. TRENDS IN SCM (CONT.)
Adaptive Supply Chains
Reducing centralization.
Creating regional or product-based supply chains.
Sustainable Supply Chains
Considering social and ecological interests.
Using most efficient environmental means of production, distribution, logistics.
Collaborative Commerce
Use of technologies.
Moves focus from transactions to relationships among supply chain participants.
focused upon the physical movement of goods by treating stock management, warehousing, order processing and delivery as related rather than separate activities
process of raw materials acquisition, production and distribution as efficient and flexible as possible in terms of material supply and customer serviceMinimum order quantities and stock levels were sought by the customerThe Design for Manufacture technique was used to simplify the number of components required for manufacture
involved much closer integration between the supplier, customer and intermediaries
supply chain will shift from a focus on physically distributing goods to a process of collection, collation, interpretation and dissemination of vast amounts of information
AIRTEL: virtual integrationGoogle + Motorola, Microsoft + Nokia: Vertical integration
E-fulfillment:to fulfil a single order by shipping items from multiple locations increases costs for postage and the labour to assemble and dispatch goodsstocking all distribution centres with every product is financially prohibitive