AR-RASHID SMART ‫الجمهورية اليمنية‬

UNIVERSITY ‫وزارة التعليم العالي والبحث‬

Republic of Yemen ‫العلمي‬
Ministry of Higher Education &
Scientific Research

Teaching by:
Dr: Abdulkarim Al-Gafri
Supply Chain
Management
What is a Supply Chain management?
Losing Sight of the Common Objective

I'm glad that the hole

is not on our side!
1- Supply Chain: management

Concept and definitions

What is a Supply Chain?

 What is a Supply Chain?
A supply chain is the system of (organizations, people,
activities, information and resources) complex in
moving a product or service from supplier to
customer.
Supply chain activities transform raw materials
and components into a finished product that is
delivered to the end customer..
supply chain is the interconnected journey that
raw materials, components, and goods before their
assembly and sale to customers.
 Supply Chain

Supplier Manufacturer Distributor Retailer Customers

Q-Try to design an outline of a Supply Chain?

The supply chain is itself defined as:
“ A channel of goods distribution, which
starts with the supplier of raw materials
or components, moves through an
operational process to the distributor
and retailer, and finally to the
consumer.”
Q-Try to design the Supply chain Cycle /series?
 What is a Supply Chain?
 Flow of products and services from:-
 Suppliers
 Raw materials manufacturers
 Intermediate goods manufacturers
 Finished goods manufacturers
 Distributors and wholesalers
 Retailers
 Customers
 Connected through transportation, information,
and exchanges of funds
Supplier Manufacturer Distributor Retailer Customer
 Types of Transportation
1) Air-way
2) Truck
3) Rail-way
4) Ship
5) Pipeline
6) Electronic

Q-What are the Types of Transportation ?

Next Period
 Flows in a Supply Chain
The flows resemble a chain reaction.
Material
Information
Supplier Customer
Funds

Q- discuss with drawing, The flows resemble a chain reaction?

 Supply Chain Stages
A typical supply chain may
involve a variety of stages:

1. Customers

2. Retailers

3. Wholesales/distributors

4. Manufacturers/ Plants

5. Component/raw
material suppliers Q- Write in sequence the stage of Supply Chain?
 A Supply Chain Example…

V. Highlands
Kroger
Peachtree
Publix
GA

End customer
Coke Ocean Drive

Ft. Laud.
JNJ FL

Kellog
AL
P&G
TX
Tier 1
suppliers State
distributors Super market Local stores
chains
 The importance of distribution
channels
Achieve benefits.
Reducing the number of contacts.
Deepening the relationship in the
supply chain.
Knowledge and information.

18
 An indirect communication process between the
producer and the buyer

Buyer commodity
producer (A)
Buyer Mediator/
mediator
Buyer commodity
producer (B)

Buyer
commodity
Buyer producer (C)

This method includes 8 connection operations

19
 A direct communication process between the
producer and the buyer

Buyer commodity
producer (A)

Q - Make a Buyer
comparison commodity
between Buyer
A direct and
producer (B)
indirect
communication Buyer
proses commodity
between the producer (C)
producer and Buyer
the buyer ??

This method includes 15 contact operations

20
2- Supply Chain
Management?
 What is a Supply Chain management?
 Flow of products and services from:-
 Suppliers
 Raw materials manufacturers
 Intermediate goods manufacturers
 Finished goods manufacturers
 Distributors and wholesalers
 Retailers
 Customers
 Connected through transportation, information,
and exchanges of funds
Supplier Manufacturer Distributor Retailer Customer
 What we mean by the term of “ Supply
Chain Management”?
Supply chain management involves
assets , products, information, and
fund flows to maximize total supply
chain surplus.
Q-What we mean by the term of
“ Supply Chain Management”?
 Supply Chain Management involve the
following activities:

Getting the right things

to the right places
at the right times
for good profit
S.C. M. involve activities: Getting the right things,……….. at the right times…..…..

S.C. M. involve activities: Getting the right things, at the right times, for good profit ( )
Supply chain management is the
management of flows (product,
information, funds, etc..) between
and among supply chain stages to
maximize total supply chain
profitability.
Q-What is “ Supply Chain Management”?
 Supply Chain Management
Supply Chain Management is the design and
management of processes across organizational
Boundaries with the goal of matching supply and
demand in the most cost effective way.

Supply Demand

Matching Supply and Demand

 Supply Chain Management
 “Managing supply and demand, sourcing raw
materials and parts, manufacturing and assembly,
warehousing and inventory tracking, order entry
and order management, distribution across all
channels, and delivery to the customer”
 The Supply Chain Council
 “The design and management of seamless, value-
added process across organizational boundaries to
meet the real needs of the end customer”
What is Supply Chain Management?
 “Supply chain management is a set of
approaches utilized to efficiently integrate
suppliers, manufacturers, warehouses, and
stores, so that merchandise is produced and
distributed at the right quantities, to the right
locations, and at the right time, in order to
minimize system wide costs while satisfying
service level requirements”
 Simchi-Levi et al, 2003
 Supply Chain Management:
 Supply chain management is all about
relationships
 Management of relationships in order to

enhance value and reduce cost. ( )

 Collaboration is an important part of

effective supply chain management. ( )

 The Chartered Institute of
Procurement and Supply (CIPS)
defines supply chain management (SCM)
as:
“ The handling of the flow of goods and
services from the raw manufacturing of
product to the consumption
by the consumer.”
(David Ross, 1997) defines supply chain
management as “the continuous development of
management philosophy, which is looking at
unifying the combined productive capabilities as
well as business resources and functions inside and
outside of organization with business partners, and
determining the importance of supply channels
within the framework of competitive advantage and
harmonization The customer in the flow of products
and services to the market and finally the
information necessary to create excellence as a
source of customer's value”
 Home assignment:
Answer the
Supposed questions
which
Inside the slides for the
next lecture?