myerson unit 1 power point slides

8/16/2019 Myerson Unit 1 Power Point Slides

http://slidepdf.com/reader/full/myerson-unit-1-power-point-slides 1/20



PART ISUPPLY CHAIN & LOGISTICSMANAGEMENT – OVERVIEW



Supply Chain Defined

The supply chain itself is a system of

organizations, people, activities, informatand resources involved in the planning,moving or storage of a product or servicefrom supplier to customer (actually more a “web” than a “chain”). Supply chain

activities transform natural resources, rawmaterials, and components into a finishedproduct that is delivered to the endcustomer.



Depending on one’s view, some of the functions below may be included witchain & logistics organization:

Procurement - The acquisition of goods or services from an outside extern

Demand forecasting - Estimating the quantity of a product or service thapurchase.

Customer service and order management - Tasks associated with fulfillinggoods or services placed by a customer.

Inventory – Planning and management.

Transportation – For hire and private.

Warehousing – Public and private.

Materials handling and packaging - Movement, protection, storage and materials and products using manual, semi-automated and automated equi

Facility network – Location decision in an organization’s supply chain netw

Supply Chain Functions



SCOR Model



VALUE CHAIN

o Inbound logistics—Receiving, warehousing, and inventory control of input materials.o Operations—Transforming inputs into the final product or service to create value.

o Outbound logistics— Actions that get the final product to the customer, including wareh

order fulfillment.

o Marketing and sales— Activities related to buyers purchasing the product, including ad

pricing, distribution channel selection, and the like.

o Service—Activities that maintain and improve a product’s value, including customer su

warranty service, and the like.

There are also support activities identified by Porter that can add value to an organization

o Procurement—Purchasing raw materials and other inputs that are used in value-creati

o Technology development—Research and development, process automation, and simi

that support value chain activities.

o Human resource management—Recruiting, training, development, and compensation

o

Firm infrastructure—Finance, legal, quality control, etc.



LEVERAGING THE SUPPLY CHAIN

SUPPLY CHAIN STRATEGY FOR A COMPETITIVE



SUPPLY CHAIN STRATEGY FOR A COMPETITIVEADVANTAGE

Cost Strategy – Focuses on delivering a product or service tocustomer at the lowest possible cost without sacrificing quality.has been the low cost leader in retail by operating an efficient s

chain. Time Strategy – This strategy can be in terms of speed of deli

response time or even product development time. Dell has beeexample of a manufacturer that has excelled at response time assembling, testing and shipping computers in as little as a fewFedEx is known for fast, on-time deliveries of small packages.

Quality Strategy – Consistent, high quality goods or services reliable, safe supply chain to deliver on this promise. If Sony hainferior supply chain with high damage levels, it wouldn’t mattecustomer that their electronics are of the highest quality.

Flexibility Strategy – Can come in various forms such as voluvariety and customization. Many of today’s e-commerce businesuch as Amazon offer a great deal of flexibility in many of these

categories.



SEGMENTING THE SUPPLY CHAIN

Product complexity based

Supply chain risk based

Manufacturing process and technology based

Customer service needs based

Market driven



CHAPTER 2

UNDERSTANDING THE IMPORTANCE OF

SUPPLY CHAIN TO AN ORGANIZATION



INTEGRATED SUPPLY CHAIN

ORGANIZATION



VALUE AS A UTILITY

Form Utility – Performed by the manufacturers (as well as third party logistics compan

“3PL’s” that perform value added activities such as kitting and display assembly) mathe products useful.

Time Utility – Having products available when needed.

Place Utility – Having items available where people want them.

Possession Utility – Transfer ownership to the customer as easily as possible, including extension of credit.

Information Utility – Opening two way flows between parties (i.e. customer and

manufacturer). Service Utility - Providing fast, friendly service during and after the sale and teaching

customers how to best use products. This is becoming one of the most important utilioffered by retailers, which in many ways are part of the supply chain.



ORGANIZATIONAL AND SUPPLY CHAIN STRATEG



S.W.O.T. ANALYSIS

The components of a SWOT analysis are described as: Strengths - Resources and capabilities that can be used as a

basis for developing a competitive advantage

Weaknesses - Characteristics that place the business or project ata disadvantage relative to other businesses.

Opportunities - External environmental analysis may reveal

certain new opportunities for profit and growth.

Threats - Changes in the external environmental also may presentthreats to the firm.



SUPPLY CHAIN STRATEGY ELEMENTS



SUPPLY CHAIN STRATEGY DRIVERS

There are four drivers that can impact supply chain design. They are:

Demand variation – This can a wide array of manufacturing and supply chaicosts and is therefore a major driver of efficiency and ultimately cost.

Market mediation costs – Costs incurred when supply doesn’t match demanoften resulting in either lost sales or higher than needed supply chain costs anexcess inventory.

Product lifecycle – Advances in technology as well as consumer trends havereduced the time to bring an item to market as well as its useful life. Affectsdemand variability as well as marketing and supply chain costs.

Relevance of the cost of assets to total cost – Largely affects businessesrequiring a high utilization rate to remain profitable (ex: chemical industry). Thencourages a “push” mentality to gain high utilization of assets but can resulhigher than inventory costs and lower service levels. Industries that have lowecost assets can focus on being more responsive



SUPPLY CHAIN ORGANIZATIONS COMPETIV

PRIORITIES

SUPPLY CHAIN OPPORTUNITIES AND CHALL



SUPPLY CHAIN OPPORTUNITIES AND CHALL

1. Demand Planning

2. Globalization

3. Increased competition and price pressures

4. Outsourcing5. Shortened and more complex product life cycles

6. Closer integration and collaboration with supplier

The Bullwhip



CAREER OPPORTUNITIES IN SUPPLY CHAIN ANDLOGISTICS MANAGEMENT

myerson unit 1 power point slides

Documents