Introduction to Supply Chain Management - a brief overview
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This document discusses supply chain management. It defines a supply chain as involving two or more parties linked by the flow of materials, information, and money to fulfill customer requests. Supply chain management aims to get the right goods to the right place at the right time while maximizing total value. It encompasses logistics and focuses on managing the flow of items, information, cash, and ideas through coordination across the supply chain. The document also outlines the primary cycles in a supply chain process between suppliers, manufacturers, distributors, and customers.
Introduction to Supply Chain Management - a brief overview
- 2. Session Objectives To enable the learner to understand: What is a Supply Chain? What are logistics and supply chain management? Perspectives of SCM
- 3. Supply chain of these varied items have common supply chain elements
- 4. Supply chain of these varied items have common supply chain elements
- 5. Supply chain of these varied items have common supply chain elements
- 6. Supply chain of these varied items have common supply chain elements
- 7. What is a Supply Chain? Two or more parties linked by a flow of resources – typically material, information, and money – that ultimately fulfill a customer request. Information (order) Information (status) Material (delivery) Money (payment) The supply chain encompasses all activities associated with the flow & transformation of goods from the raw materials stage (extraction) , through to the end user, as well as the associated information flows.
- 8. Mission of SCM “To get the right goods or services to the right place, at the right time, and in the desired condition , while making the greatest contribution to the firm.”
- 9. What is a Supply Chain? The primary purpose of a SC is to satisfy customer needs. Only one source of revenue – the customer Payments between parties are just fund exchanges Division of intra-SC payments are a function of power, market conditions, etc.
- 10. Supply Chains try to maximize the total value generated = (What customer pays ) – (Total effort expended to fulfill )
- 12. Logistics versus Supply Chain Management “Managing the flow of items, information , cash & ideas through the coordination of supply chain processes and through the strategic addition of place, period and pattern values.” “Deals with the management of materials, information, and financial flows in a network consisting of suppliers , manufacturers, distributors, & customers.” Logistics Supply Chain Management
- 14. ProcessView of Supply Chains Four Primary Cycles Customer Order Cycle Replenishment cycle Manufacturing Cycle Procurement Cycle Cycles Occur Between Stages Interactions differ at each stage Not every SC will have all 4 Cycles Supplier • Procurement cycle Manufacturer • Manufacturing cycle Distributor • Replenishment cycle Retailer • Customer Order Cycle Customer
- 15. Video on How a SCM Company Works https://www.youtube.com/watch?v=XoC5mI1Jk7A
- 16. Let’s Summarize Supply chain management focuses on the customers at the end of supply chain which is flexible and responsive. It is the flow of goods, services & information from the point of origin to the point of consumption efficiently to provide optimal customer delight. It comprises of four cycles primarily. The performance of supply chains is usually measured in terms of overall corporate goals for success.
Editor's Notes
- #16: Source: APL Logistics – YouTube