Download - Supply Chain Management_II MFT
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SUPPLY CHAIN
MANAGEMENT
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What it Supply Chain?
Customer is an integral part of the supply chain
Includes movement of products from suppliersto manufacturers to distributors, but also
includes movement of information, funds, andproducts in both directions
Probably more accurate to use the term supplynetwork or supply web
Typical supply chain stages: customers, retailers,distributors, manufacturers, suppliers
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Supply Chain Stages
ManufacturerSupplier
Supplier
Supplier
Manufacturer
Manufacturer
Distributor
Distributor
Distributor Retailer
Retailer
Retailer
Customer
Customer
Customer
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Supply Chain Stages
Each stages in a supply chain is connectedthrough the flow of products, information andfunds.
These flows often occur in both directions Depends upon customer needs
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Objectives of Supply Chain
Maximise the overall value of the product
Maximise Supply Chain Profitability/supplychain surplus
Flow of information and funds
Effective Supply Chain Management
Management of supply chain assets, product,
information and fund flow
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Importance of Supply Chain Decisions
Supply Chain Flow product, information and
funds
Supply Chain design, planning and operation
decisions play a significant role in the success orfailure of a firm.
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Decision Phases in a Supply chain
Supply Chain Strategy or Design Marketing and pricing plans for a product
Structuring the supply chain for several years
In-House or Outsource
Decides the SC Configuration
Supply Chain Planning
Planning for quarter year to a year
Forecasting
Supply Chain Operation
Weekly or daily operation
Individual customer orders
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Process Views of Supply Chain
Cycle View
The processes in a supply chain are divided into aseries of cycles, each performed at the interface
between two successive stages of a supply chain Push/Pull View
Pull processes are initiated by a customer order
Push processes are initiated and performed inanticipation of customer orders.
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Cycle View of Supply Chain Processes
Customer order cycle
Replenishment Cycle
Manufacturing Cycle
Procurement Cycle
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Cycle View of Supply Chain Processes
CustomerCustomerOrder CycleRetailer
Replenishment CycleDistributor
Manufacturing Cycle
ManufacturerProcurement Cycle
Supplier
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Sub Process
Supplier StageMarket Product
Buyer Stage PlacesOrder
Supplier Stagereceives order Supplier Stage
supplies order
Buyer Stage receivessupply
Buyer returnsreverse flows tosupplier or thirdparty
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Push /Pull view of supply chain
processes
Pull Process
With Pull Process, execution is initiated in response
to a customer order
Also referred to as Reactive Processes
This process operate in an environment in which
customer demand is known
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Push /Pull view of supply chain
processes
Push Process
Execution is initiated in anticipation of customer
orders
Demand is not known and must be forecast
Also known as Speculative Processes
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Push /Pull view of supply chain
processes
Process Process Process Process Process Process Process1 2 3 4 5 6 7
Push/pull Boundary
Push Processes Pull Processes
Customer Order Arrives
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Supply Chain Macro Processes in a Firm
Customer Relationship Management (CRM)
All processes that focus on the interface between thefirm and its customers
Internal supply chain management (ISCM) All processes that are internal to the firm
Supplier Relationship Management (SRM)
All processes that focus on the interface between thefirm and its suppliers
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Supply Chain Macro Processes in a Firm
Supplier Firm Customer
Source Strategic Planning Market
Negotiate Demand Planning Price
Buy Supply Planning SellDesign Collaboration Fulfillment Call Center
Supply Collaboration Field Service OrderManagement
SRM ISCM CRM