SCM - JAS
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The document discusses supply chain management. It defines a supply chain as the system involved in moving a product from supplier to customer, including organizations, activities, and resources. It identifies five primary processes: inbound logistics, operations, outbound logistics, sales and marketing, and service. The goals of supply chain management are to understand a company's supply chain, identify bottlenecks, implement processes to deliver the right products on time, and empower people. Best-in-class supply chains aim for balance, increase demand visibility, and isolate high costs.
SCM - JAS
- 1. Jalaal A. Syed Supply Chain Management
- 2. The Supply Chain Defined • A Supply Chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.
- 3. Five primary processes on which its supply chain framework is built: 1. Inbound Logistics 2. Operations 3. Outbound Logistics 4. Sales and Marketing 5. Service
- 4. 1. Inbound Logistics • These are the activities associated with receiving, storing, and disseminating inputs to the product (material handling, warehousing, inventory control, transportation scheduling, and returns to suppliers).
- 5. 2. Operations • This refers to the activities associated with transforming inputs into the final product form (machining, packaging, assembly, equipment maintenance, testing, printing, and facility operations).
- 6. 3. Outbound logistics • These are the activities associated with collecting, storing, and physically distributing the product to buyers (finished goods warehousing, material handling, freight delivery, order processing, and scheduling).
- 7. 4. Sales and Marketing • Within a supply chain context, these are the activities that induce buyers to purchase a product and enable them to buy it (advertising, promotions, sales force, quoting, channel selection, channel relations, and pricing).
- 8. 5. Service • This refers to the activities associated with providing service to enhance or maintain the value of the product (installation, repair, training, parts supply, and product adjustment).
- 9. • The network created amongst different companies producing, handling and/or distributing a specific product. Specifically, the supply chain encompasses the steps it takes to get a good or service from the supplier to the customer. • Supply chain management is a crucial process for many companies, and many companies strive to have the most optimized supply chain because it usually translates to lower costs for the company. • Quite often, many people confuse the term logistics with supply chain. In general, logistics refers to the distribution process within the company whereas the supply chain includes multiple companies such as suppliers, manufacturers, and the retailers. Importance
- 10. • The underlying goals of Supply Chain Management have remained constant: I. Articulate exactly what a company’s supply chain looks like and what it encompasses. II. Identify specific bottlenecks that are slowing down the movement of information, goods, and services. III. Put the right processes in place to get the right products delivered to the right place on time. IV. Empower the right people so they can accomplish all of the above. Goals
- 11. Roadblocks OnThe Supply Chain Path • Technology implementations didn’t work as promised • Projects cost too much and never came close to meeting service targets • Supply chain projects were inconsistent with a company’s current business strategy • It was too difficult to manage change internally and externally
- 12. What distinguishes a best-in-class supply chain from every other supply chain? • Every top-performing company, no matter what industry it competes in, has aggressively attacked its inventory problems, committed resources to improving its customer service levels, and partnered with its key suppliers hence, taking control of its supply chain. Every single one of them.
- 13. Best-In-Class companies share these three traits: • They aim for balance. These companies may not be the very best in every category, but they are consistently good enough in all areas that they add up to be best-in-class. • They increase demand visibility. Having a high level of forecast accuracy is the key to reaching perfect order fulfillment, which is the holy grail of customer service. • They isolate high costs. The best companies know where they hold their costs and why, so that’s where they focus their best practices and technology investments.
- 14. • The best-run organizations have developed world-class supply chains that extend from their customers’ customers to their suppliers’ suppliers, and all points in between.