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Supply Chain Management

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The Supply Chain Network

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PRODUCTION

Su

pp

lier C

usto

mer

Flow of products & services

Information flow

LOGISTICS

Physicalsupply

Planning & Manufacturing

Warehousing & Distribution

Scope of the Supply Chain

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INTERNAL & EXTERNAL SUPPLY CHAIN

MANUFACTURE

DISTRIBUTION

DISTRIBUTION

PURCHASING

SUPPLIER

THE INTERNAL SUPPLY CHAIN

THE EXTERNAL SUPPLY CHAIN

• Internal SC: within and control of the business

• External SC:outside and not under the control of the business

The Total Supply Chain

Scope of the Supply Chain

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QUESTIONWhat do you consider to be the challenges facing supply chain managers today?

6Challenges for Supply Chain managers, today:

•Logistics management a key function •Global activity - Global markets – Global

procurement•Extensive use of IT (e.g. SAP, Oracle,

BAAN) •Strategic in outlook (alliances)•Few big players (Car industry,

Pharmaceuticals)•Short product life cycles•Speed to market• Interfacing with other managerial

functions•Dealing with increased rates of change

(changing environments – including wide range of service environments)

• Increasing demanding standards, TQM; ISO 9000

•Need for continuous improvement• Increasing array of skills necessary •Need for constant innovation.

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CASE STUDY: TESCO

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