Understanding the Supply Chain

Ch 1

Overview

Introduction to SCM Decision Phases in Supply Chain Process view of a Supply Chain The importance of Supply Chain Flows Examples of Supply Chain Flows

Introduction to Supply Chain Management

Management of activities that procure materials and services, transforming them into intermediate goods and final products, and delivering the products through a distribution system A supply chain consists of all parties involved directly or in directly in fulfilling a customer request

Introduction to Supply Chain Management cont

The Objective of a Supply Chain

To maximize the overall value Supply chain profitability

Decision Phases in a Supply Chain

Supply chain Strategy or Design Supply Chain Planning Supply Chain Operations decision

Process View of a Supply Chain

Cycle View

Customer order cycle Replenishment cycle Manufacturing cycle Procurement cycle

Push/Pull View

Process View of a Supply Chain cont

Customer order cycle

Customer arrival Customer order entry Customer order fulfillment Customer order receiving Retail Retail Retail Retail order order order order trigger entry fulfillment receiving

Replenishment Cycle

Process View of a Supply Chain cont

Manufacturing Cycle

Order Arrival Production Scheduling Manufacturing and Shipping Receiving Fig 1.7

Procurement Cycle

Process View of a Supply Chain cont

Push/Pull View of Supply Chain Processes

Fig 1.8 CRM ISCM SRM Fig 1.11 Integration among processes

Supply Chain Macro Processes in a Firm

Assignment
Read the following topics. Examples of Supply Chain Question: What are the major stages in the process conducted by the purchasing department to develop a vendor relationship? Which one of these is more important in the local business Environment? Why? Explain.