2. NATURE OF SUPPLY CHAIN MANAGEMENT
ā¢SUPPLY CHAIN INCLUDES THOSE VARIOUS FIRMS
INCLUDED IN THE EXECUTION OF THE ACTIVITIES
NEEDED TO PRODUCE AND TRANSPORT A PRODUCT
OR SERVICE TO CONSUMERS OR INDUSTRIAL
USERS.
3. ā¢SUPPLY CHAIN MANAGEMENT (SCM) IS THE
SUPERVISION OF MATERIALS, INFORMATION, AND
FINANCE AS THEY MOVE IN A PROCESS FROM
SUPPLIER TO MANUFACTURER TO WHOLESALER TO
RETAILER TO CONSUMER.
4. THE MAIN GOALS FOCUS ON SHARED
EFFICIENCY, OPTIMIZED
TRANSPORTATION AND UTILIZATION,
QUALITY IMPROVEMENT AND LONG-
TERM STABILITY.
5. 1.COLLABORATIVE EFFORT FOR EFFICIENCY
ā¢WHEN MANAGING INVENTORY , TRANSPORTATION
AND LOGISTICS ARE DIFFICULT AND EXPENSIVE FOR
ORGANIZATION THAT DO NOT HAVE AN EFFECTIVE
SYSTEM. PRODUCERS, WHOLESALERS AND
RETAILERS
6. 2. MAXIMIZED TRANSPORTATION AND LOGISTICS
ā¢ORDERS ARE AUTOMATED BETWEEN A
RESELLER AND A VENDOR , AND VENDORS
QUICKLY PULL, SHIP AND TRANSMIT ORDERS
TO BUYER FOR CONCRETE AND FULL
COMMUNICATION.
7. 3. QUALITY ENHANCEMENT
ā¢IN A COLLABORATIVE SUPPLY CHAIN, A SYSTEM
EXISTS FOR RETAILERS TO COMMUNICATE
CUSTOMER FEEDBACK TO WHOLESALERS AND
PRODUCERS.
8. 4. LONG TERM STABILITY AND RELATIONSHIP
ā¢THROUGH STRUCTURING STRONG TRUSTING
SUPPLY CHAIN RELATIONSHIP AND WORKING
TOWARD BEST PRACTICES IN DISTRIBUTION,
COMPANIES AIM FOR LONG-TERM STABILITY AND
RELATIONSHIP.
9. KEY PROCESS OF SUPPLY CHAIN MANAGEMENT
ā¢THERE ARE EIGHT CRITICAL BUSINESS PROCESSES IN
WHICH SUPPLY CHAIN MANAGERS MUST FOCUS:
10. 1
COSTUMER RELATIONSHIP MANAGEMENT
THIS WILL ALLOW COMPANIES TO PRIORITIZE THEIR
MARKETING FOCUS ON DIFFERENT COSTUMER GROUPS BASED
ON EACH GROUPāS LONG TERM VALUE TO THE COMPANY OR
SUPPLY CHAIN
12. 3
DEMAND MANAGEMENT
THIS PROCESS TRIES TO ALIGN THE SUPPLY AND DEMAND
THROUGH OUT THE SUPPLY CHAIN BY FORESEEING
CUSTOMERS REQUIREMENTS AND CREATING AN ACTION
PLAN BEFORE ACTUAL PURCHASING OF CUSTOMERS
14. 5
MANUFACTURING FLOW MANAGEMENT
THIS ENSURES THAT FIRMS IN THE SUPPLY CHAIN
HAVE THE NECESSARY RESOURCES TO PRODUCE WITH
FLEXIBILITY AND TO MOVE PRODUCTS IN A MULTI-
STAGE PRODUCTION PROCESS
15. 6
SUPPLIER RELATIONSHIP MANAGEMENT
THIS PROVIDES STRUCTURAL SUPPORT FOR
DEVELOPING AND MAINTAINING GOOD RELATIONSHIP
ESPECIALLY WITH HIGLY VALUED SUPPLIER IN ORDER
TO GAIN PERFORMANCE ADVANTAGE
19. LOGISTICS
ā¢IS THE STRATEGIC MANAGING OF THE EFFICIENT
FLOW AND STORAGE OF RAW MATERIALS, IN- A
PROCESS INVENTORY AND FINISHED GOODS
FROM THE POINT OF ORIGIN TO POINT OF
CONSUMPTION.
20. THE SUPPLY CHAIN ENTAILS A NUMBER OF
INTER CONNECTED LOGISTICAL COMPONENTS
WHICH ARE:
21. 1. SOURCING AND PROCUREMENT
ā¢THE AIM IS TO LESSEN THE COST OF RAW
MATERIALS AND SUPPLIES
23. 3. ORDER PROCESSING
ā¢IT PROCESSES THE REQUIREMENTS OF THE
CUSTOMER AND SENDS THE INFORMATION INTO
THE SUPPLY CHAIN THROUGH THE LOGISTICS
INFORMATION SYSTEM THEN TO THE WAREHOUSE
24. 4. INVENTORY CONTROL
ā¢THIS SYSTEM DEVELOPS AND MAINTAINS
ENOUGH VARIETY OF MATERIALS OR PRODUCTS
TO MEET A MANUFACTURER OR CONSUMERS
DEMANDS.
25. 5. WAREHOUSING AND MATERIALS HANDLING
ā¢STORAGE AIDS MANUFACTURERS MANAGE
SUPPLY AND DEMAND OR PRODUCTION AND
CONSUMPTION.
26. 5. TRANSPORTATION
ā¢THIS CONCERNS THE DECISION ON THE MODE
OF TRANSPORTATION OF THE GOODS FROM
SUPPLIERS TO PRODUCER AND FROM
PRODUCERS TO COSTUMERS.
27. A. COST
ā¢THE TOTAL AMOUNT OF CHARGE BY THE
CARRIER TO MOVE THE PRODUCT FROM
POINT OF ORIGIN TO DESTINATION
28. B. TRANSIT TIME
ā¢THE TOTAL TIME FOR THE CARRIER TO
PICK-UP DELIVERY, HANDLING AND
MOVEMENT FROM POINT OF ORIGIN TO
DESTINATION.
30. D. CAPABILITY
ā¢THE ABILITY OF THE CARRIER TO PROVIDE
APPLICABLE EQUIPMENT AND CONDITIONS FOR
MOVING THE GOODS LIKE THOSE THAT MUST BE
TRANSPORTED IN A CONTROLLED
ENVIRONMENT
33. VALUE CHAIN
ā¢IS A SET OF ACTIVITIES THAT A FIRM OPERATES
ACTIVITIES IN A SPECIFIC INDUSTRY IN ORDER
TO DELIVER A VALUABLE PRODUCT OR SERVICE
TO THE MARKET.
34. ā¢THE CONCEPT COMES FROM BUSINESS
MANAGEMENT AND WAS FIRST DESCRIBED AND
POPULARIZED BY PORTER IN HIS 1975 BEST-SELLER ,
COMPETITIVE ADVANTAGE: CREATING AND
SUSTAINING SUPERIOR PERFORMANCE
35. SAMPLE VALUE CHAIN IN THE INDUSTRY LEVEL
CONTENT
1. FIRM LEVEL
1.1 PRIMARY ACTIVITIES
1.2 SUPPORT ACTIVITIES
1.3 PHYSICAL, VIRTUAL AND COMBINED VALUE CHAIN
2. INDUSTRY LEVEL
3. GLOBAL VALUE CHAIN (GVCS)
3.1 CROSS BORDER
3.3 GLOBAL VALUE CHAIN IN DEVELOPMENT
4. SIGNIFICANCE
5.UE OF OTHER ANALYSIS TOOL
37. INBOUND LOGISTICS
ARRANGING THE INBOUND MOVEMENT OF MATERIALS,
PARTS, AND/OR FINISHED INVENTORY FROM SUPPLIERS TO
MANUFACTURING OR ASSEMBLY PLANTS, WAREHOUSES,
OR RETAIL STORES.
39. OUTBOUND LOGISTICS
THE PROCESS RELATED TO THE STORAGE AND
MOVEMENT OF THE FINAL PRODUCT AND THE RELATED
INFORMATION FLOWS FROM THE END OF THE
PRODUCT LINE TO THE END USER
40. MARKETING AND SALES
SELLING A PRODUCT OR SERVICE AND PROCESSES
FOR CREATING, COMMUNICATING, DELIVERING AND
EXCHANGING OFFERINGS THAT HAVE VALUE FOR
CUSTOMERS, CLIENTS, AND SOCIETY AT LARGE
41. SERVICE
INCLUDES ALL THE ACTIVITIES REQUIRED
TO KEEP THE PRODUCT/SERVICE
WORKING EFFECTIVELY FOR THE BUYER
AFTER IT IS SOLD AND DELIVERED
42. SAMPLE VALUE CHAIN IN THE INDUSTRY LEVEL
CONTENT
1. FIRM LEVEL
1.1 PRIMARY ACTIVITIES
1.2 SUPPORT ACTIVITIES
1.3 PHYSICAL, VIRTUAL AND COMBINED VALUE CHAIN
2. INDUSTRY LEVEL
3. GLOBAL VALUE CHAIN (GVCS)
3.1 CROSS BORDER
3.3 GLOBAL VALUE CHAIN IN DEVELOPMENT
4. SIGNIFICANCE
5.UE OF OTHER ANALYSIS TOOL
45. HUMAN RESOURCE MANAGEMENT
CONSISTS OF ALL ACTIVITIES INVOLVED IN
RECRUITING, HIRING, TRAINING, DEVELOPING,
COMPENSATING, AND IF NECESSARY
DISMISSING AND LAYING-OFF PERSONELL
46. TECHNOLOGICAL DEVELOPMENT
PERTAINS TO THE EQUIPMENT, HARDWARE, SOFTWARE,
PROCEDURES AND TECHNICAL KNOWLEDGE BROUGHT TO
BEAR IN THE TRANSFORMATION OF THE FIRM INPUTS INTO
OUTPUTS
48. SAMPLE VALUE CHAIN IN THE INDUSTRY LEVEL
CONTENT
1. FIRM LEVEL
1.1 PRIMARY ACTIVITIES
1.2 SUPPORT ACTIVITIES
1.3 PHYSICAL, VIRTUAL AND COMBINED VALUE CHAIN
2. INDUSTRY LEVEL
3. GLOBAL VALUE CHAIN (GVCS)
3.1 CROSS BORDER
3.3 GLOBAL VALUE CHAIN IN DEVELOPMENT
4. SIGNIFICANCE
5.UE OF OTHER ANALYSIS TOOL
49. PHYSICAL, VIRTUAL, AND COMBINED VALUE
CHAIN
COMPETITIVE ADVANTAGE CANNOT BE UNDERSTOOD BY LOOKING
AT A FIRM AS A WHOLE. IT STEMS FROM THE MANY DEISCRETE
ACTIVITIES A FIRM PERFORMS IN DESIGNING, PRODUCING ,
MARKETING, DELIVERING, AND SUPPORTING ITS PRODUCT. EACH
OF THIS ACTIVITIES CAN CONTRIBUTE TO THE RELATIVE COST OF
THE FIRM POSITION AND CREATE A BASIS FOR DIFFERENTIATION
50. MICHAEL PORTERāS VALUE CHAIN
ā¢THE APPROPRIATE LEVEL FOR CONSTRUCTING A VALUE CHAIN IS THE
BUSINESS UNIT NOT THE DIVISION OR CORPORATE LEVEL
ā¢THE PRODUCT GAINS SOME VALUE IF IT PASSES THROUGH A CHAIN OF
ACTIVITIES IN PROPER ORDER OF EACH ACTIVITY
ā¢THE CHAIN OF ACTIVITIES GIVES THE PRODUCTS MORE ADDED VALUE
THAN THE SUM OF ADDED ALL VALUE OF ACTIVITIES
51. ā¢A VALUE SYSTEM, OR AN INDUSTRY VALUE CHAIN, INCLUDE THE SUPPLIERS
THAT PROVIDES THE INPUTS NECESSARY TO THE FIRM ALONG WITH THEIR
VALUE CHAINS
ā¢AFTER THE FIRM CREATES THE PRODUCT, THESE PRODUCTS PASS
THROUGH THE VALUE CHAINS OF THE DISTRIBUTOR, ALL THE WAY TO THE
CUSTOMERS
ā¢ALL PARTS OF THESE SYSTEM INCLUDE IN THE VALUE SYSTEM
52. TO ACHIEVE AND SUSTAIN A COMPETITIVE ADVANTAGE, AND TO
SUPPORT THE ADVANTAGE WITH INFORMATION TECHNOLOGIES, A
FIRM MUST UNDERSTAND EVERY COMPONENT OF THIS VALUE
SYSTEM
54. PHYSICAL/TRADITIONAL VALUE CHAIN
A PHYSICAL-WORLD ACTIVITY PERFORMED IN ORDER
TO ENHANCE A PRODUCT OR A SERVICE. SUCH
ACTIVITIES EVOLVED OVER TIME BY THE EXPERIENCE
PEOPLE GAINED FROM THEIR BUSINESS CONDUCT
55. VIRTUAL VALUE CHAIN
THE ADVENT OF COMPUTER- BASED BUSINESS-AID SYSTEMS IN
THE MODERN WORLD HAS LED TO A COMPLETELY NEW HORIZON OF
MARKET SPACE IN MODERN-BUSINESS JARGON- THE CYBER-
MARKET SPACE. ALL ACTIVITIES OF PERSISTENT PHYSICAL
WORLDāS PHYSICAL VALUE-CHAIN ENHANCEMENT PROCESS.
WHICH WE IMPLEMENTED IN THE CYBER-MARKET