31 What Are The Key Processes in Supply Chain Management and Who Performs Them Course Hero

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3.1 What are the key processes in supply chain management, and who performs them? How does each
process lead to increased customer satisfaction?

The key processes of supply chain management include customer relationship management, supplier
relationship management, customer service management, demand management, order fulfillment,
manufacturing flow management, product development and commercialization, and returns management.
Supply chain managers must focus on each of these eight critical business processes. Some processes extend
end-to-end in the supply chain; they are touched or affected by all of the supply chain’s firms. Others may be
the focus of only 2-3 of the involved companies. Most supply chains operate each of the eight key business
processes within some firms and/or business units.

4.1 When should firms pursue lean, agile, and/or Leagile supply chain strategies?

Students’ answers will vary. Because products and marketplaces may differ substantially in their core
characteristics from place to place and product to product, supply chain management strategies should be
selected according to the situation at hand. The lean supply chain management strategy embraces the removal
of waste from the supply chain system in whatever form it may be found. This strategy seeks to remove any
excesses from the supply chain, including overproduction, product defects, excess inventories, unneeded
processing, movement of people, transport of goods, or employee idling. Other companies sometimes choose
to adopt agile supply chain management strategies. Whereas the lean strategy is mostly concerned with waste
reduction, the agile strategy is concerned primarily with customer responsiveness, and focuses primarily on
the ability of the firm to fulfill demand in situations where consumer wants and needs are less obvious. The
Leagile supply chain management strategy brings together the principles from each of the main strategic
viewpoints. With the Leagile strategy, the best elements of each strategy for the particular product/market
combination describing the firm are selected. The Leagile strategy allows companies to take advantage of
many of the benefits of lean supply chain management while still providing the agility that makes many
customer experiences more desirable.

4.2 What are the expected benefits that may come from supply chain mapping?

Students’ answers will vary. In addition to the selection and implementation of an overarching supply chain
management strategy, firms must also understand the structure of their supply chain and the many
relationships existing between members. Firms consider issues such as how long the supply chain for a
product should be included in each level of the network. Most firms seek to “optimize” their collection of
suppliers by including only the certain number of suppliers that can be adequately managed through personal
relationships, given that the amount of resources the firm has available to expend on this task is limited.

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TERM PROFESSOR
Fall '16 Mark Young

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Supply Chain Management

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