1.

Introduction to
Supply Chain
CHAPTER 1 reading.
What Is Supply Chain and Operations Management? George
Brown College School of Management. – YouTube
0.10-1.3min

ADE
Spring 2023
Business Communication Page 1
Topic 1 (Week 1 & 2)

a) Supply Chain & SCh Management Definition

b) The 5 major SCh Drivers
c) External Participants in the SCh
d) Aligning the SCh with Business Strategy
i. Understand the Market your company
serve
ii. Define Core Competencies
iii. Develop Needed SCh capabilities
e) Responsiveness vs. Efficiency
f) Functions (Internal Participants) within the SCh
and its conflicting needs
g) 4 Categories of SCh
Topic 1 – 5 sessions

-Theory
-Short Exercise,
-SCh Functions: Açai
Role Play
Exercise/ Assignment 1.1- to load in e-study
- Supply Chain Definitions

a) Write 3-4 lines on your own words of what

do you think is supply chain and
b) 3 official definitions.
c) Include 2-3 recent news related to SCh
d) Include an image that illustrates SCh

Don´t forget to do Harvard Referencing (HRS).

Individual – Load into e-study
SCM Definition
SCM is the management of a network of all SCM is also called :
business processes and activities involving
procurement of raw materials, manufacturing The art of management of
and distribution management of Finished providing & coordinating:
Goods.
• The Right Product,
The end objective of SCM is to cut out • At the Right Time,
inefficiencies in the chain, reduction of costs • Right Place and
and thus improvement of profits, as well as • At the Right Cost
have a satisfied customer. • To the right customer or
consumer.

http://managementstudyguide.com/supply-chain-management-definition.htmer.
KEY WORDS in SCh
Network Time
Dynamic Network Buffer Time
Information Network Quantity
Negotiations Assortment
Effective coordination Distance
Cost Resources
Constraints Provisions
Efficiency Flow
Integration of activities Planning
Intensive Cash flow movement IT
Alternatives Contingency
Participants Suppliers
Warehouse Distribution
COLLABORATION COMMUNICATION
COORDINATION & ORGANIZATION OF ACTIVITIES &
DECISIONS
Supply Chain- The Future of Supply Chain – YouTube
(if not watched in session 0)

Supply chain includes the company and

the businesses´ activities needed to
design, make, deliver and use a product
or service
CONFLICTING NEEDS

Different supply chain

requirements at different
functions often have
conflicting needs.
Internal PARTICIPANTS IN THE SCh
Sales, Marketing, Purchases, Logistics, Product Development,
Manufacturing, Quality Department.
- Almost every function in the company!
Ch 1- Internal participants take decisions that affect every
participant in the chain- Internal and External.
S.Chain Drivers:

1 PRODUCTION 2 INVENTORY
What, how and when to produce How much to make and how
much to store

INFORMATION
The basis for making these
decisions

4 TRANSPORTATION 3 LOCATION
How and when to move the Where best to do what
product activity

Need to find the right combination of responsiveness and

efficiency in each of these drivers
Drivers summary – Ch1
1. Production- How much of which products and by when

2. Inventory- How much should be held of what, for what purpose,

at which cost

3. Location- Where to locate facilities, use existing or new ones

and define the flow to final consumer

4. Transportation- How to move inventory from one location to

another

5. Information- How much (reports, frequency), how much should

be shared, when (timely) and which (accurate)
 Participants and costs within the
Supply Chain

http://www.youtube.com/watch?v=Mi1QBxVjZAw
BE SURE YOU WATCH IT ALL LATER
Exercise 1.2 (in teams in paper)
Draw a detailed International SCh
Steps to align your supply chain
with your business strategy.

1) Understand the market you serve

2) Define your core competencies

3) Develop the needed Supply Chain capabilities

1) Understand the market you serve
• Response Time and Service level expected
• Price of product
• No. of sku´s(variety of products)
• Desired level of innovation

2) Define core competencies

• No need to own and control the entire SCh
• Focus on the activities that does best
• Multiple companies working together
• Define strategic areas for competitive advantage
• Move from: Vertical Integration Virtual integration

3) Develop Needed SCh Capabilities

Once you know
- the kind of market your company serve
- role of your company in the SCh
- size of your company
- finance boundaries
then:It is time to develop the needed and chosen capabilities
RESPONSIVENESS VS. EFFICIENCY
Responsiveness Efficiency

Excess Capacity Little excess capacity

Flexible manufacturing Narrow focus
Production Many Small Factories Few Central Plants

High Inventory Levels Low inventory levels

Inventory Wide range of items Fewer Items

Many locations close to Few Central locations serve

Location customers wide areas

Frequent shipments Few & large Shipments

TransportationFast and flexible mode Slow, cheaper modes

Collect & Share timely Cost of information drops

Information accurate data while other costs rise

→ Look for examples

SCOR Model → http://www.apics.org/apics-for-business/frameworks/scor
 SCOR is a supply chain process
reference model containing over 200
process elements, 550 metric and 500
best practices including risk and
environmental management.
Organized around the 5 primary
management processes of Plan,
Source, Make, Deliver & Return.
Used as an industry open standard.
More News:
Supply Chain Council – EU https://scceu.org/
(6) Reimagining supply chain planning with
Deloitte and o9 Solutions - YouTube
Supply Chain Operations Reference
(SCOR) model
Process reference models integrate
the well-known concepts of business
process engineering, benchmarking,
process measurement and
organizational design into a cross-
functional framework.
The SCOR model is unique in that it
links business processes, performance
metrics, practices, and people skills
into a unified structure. It is
hierarchical in nature, interactive and
interlinked.
From:http://www.apics.org/apics-for-business/frameworks/scor
CONCLUSION:

What have you learned?