Chapter 15: Learning Objectives
You should be able to:
Discuss the key issues of supply chain management (SCM)
Name the recent trends in SCM
Summarize the motivations and risks of outsourcing as a strategy
State some of the complexities that are involved with global supply chains
List some of the strategic, tactical and operational responsibilities of SCM
Give examples of some advantages of e-business
Explain the importance of supplier partnerships
Discuss the issues involved in managing returns
List the requirements of an effective supply chain
Name some of the challenges in creating an effective supply chain
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Supply Chain ManagementMcGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.You should be able to:Discuss the key issues of supply chain management (SCM)Name the recent trends in SCMSummarize the motivations and risks of outsourcing as a strategyState some of the complexities that are involved with global supply chainsList some of the strategic, tactical and operational responsibilities of SCMGive examples of some advantages of e-businessExplain the importance of supplier partnershipsDiscuss the issues involved in managing returnsList the requirements of an effective supply chainName some of the challenges in creating an effective supply chain15-*Student SlidesSupply Chain:the sequence of organizations - their facilities, functions, and activities - that are involved in producing and delivering a product or serviceSometimes referred to as value chains15-*Student SlidesThe sequence of the supply chain begins with basic suppliers and extends all the way to the final customerWarehousesFactoriesProcessing centersDistribution centersRetail outletsOffices15-*Student SlidesSupply chain functions and activitiesForecastingPurchasingInventory managementInformation managementQuality assuranceSchedulingProduction and deliveryCustomer service15-*Student SlidesSupply Chain Management (SCM)The strategic coordination of business functions within a business organization and throughout its supply chain for the purpose of integrating supply and demand management15-*Student SlidesThe goal of SCM is to match supply to demand as effectively and efficiently as possibleKey issues:Determining appropriate levels of outsourcingManaging procurementManaging suppliersManaging customer relationshipsBeing able to quickly identify problems and respond to themManaging risk15-*Student SlidesTrends affecting supply chain design and management:Measuring supply chain ROI“Greening” the supply chainRe-evaluating outsourcingIntegrating ITManaging risksAdopting lean principles15-*Student SlidesThe purchasing department is responsible for obtaining the materials, parts, and supplies and services needed to produce a product or provide a service.The goal of procurementDevelop and implement purchasing plans for products and services that support operations strategies15-*Student SlidesE-businessThe use of electronic technology to facilitate business transactionsApplications includeInternet buying and sellingE-mailOrder and shipment trackingElectronic data interchangeProduct and service promotionProvide information about products and services15-*Student SlidesChoosing suppliersSupplier auditsSupplier certificationSupplier relationship managementSupplier partnershipsCPFR (collaborative planning, forecasting, and replenishment)Strategic partneringStudent Slides15-*Variations in demand cause inventory fluctuations to fluctuate and get out of controlInventory fluctuation can be magnified byPeriodic orderingReactions to shortagesForecast inaccuraciesOrder batchingSales incentives and promotionsLiberal product return policiesResults inHigher costsLower customer satisfaction15-*Student SlidesLogisticsRefers to the movement of materials, services, cash, and information in a supply chainMovements within a facilityIncoming shipmentsOutgoing shipmentsStudent Slides15-*It begins with strategic sourcingAnalyzing the procurement process to lower costs by reducing waste and non-value-added activities, increase profits, reduce risks, and improve supplier performanceThere must beTrustEffective communicationInformation velocitySupply chain visibilityEvent management capabilityPerformance metrics15-*Student SlidesEffective supply chains are necessary for organizational successRequires integration of all aspects of the chainSupplier relationships are a critical component of supply chain strategyLean operations and six sigma are being employed to improve supply chain success15-*Student Slides