INTRODUCTION:

SUPPLY CHAIN
MANAGEMENT
Slide presentation
prepared by:

ENG’R. JEFFERSON C. SALINAS

College Faculty
 1.1 DEFINING SUPPLY CHAIN

SUPPLY CHAIN
- is the sequence of organizations –
their facilities, functions, and
activities – that are involved in
producing and delivering a product
or service.
FACILITIES include:
 warehouses
 factories
 processing centers
 distribution centers
 retail outlets
 offices

FUNCTIONS & ACTIVITIES include:

 forecasting
 purchasing
 inventory management
 information management
 quality assurance
 scheduling
 production
 distribution
 delivery
 customer service
- the sequence begins with basic
suppliers of raw materials and
extends all the way to the final
customers.
SUPPLY CHAIN
- is defined as a group of inter-
connected participating companies
that add value to a stream of
transformed inputs from their source
of origin to the end products or
services that are demanded by the
designated end-customers.
Underlying Characteristics to Portrait
a Supply Chain:
1) First, a supply chain is formed and can only
be formed if there are more than one
participating companies.
2) Second, the participating companies
normally do not belong to the same business
ownership, and hence there is a legal
independence between them.
3) Lastly, those companies are interconnected
on the common commitment to add value to
the steam of material flow that run through
the supply chain.
The Basic Supply Chain Model
SUPPLY CHAIN
- is sometimes referred to as “value
chain”, a term that reflects the
concept that value is added as goods
and services progress through the
chain
2 Components of Supply Chain or
Value Chain:
1) Supply Component
- starts at the beginning of the chain and
ends with the internal operations of the
organization.
2) Demand Component
- starts at the point where the
organizations output is delivered to its
immediate customers and ends in the final
customers.
 1.2 WHY SUPPLY CHAIN
MANAGEMENT?
“You sink or swim with the supply
chain.”

It is the reason that gives rise to the to

the need for supply chain
management.
 Since the business connections
between organizations are
pervasive, how could one draw a
boundary of a supply chain?
4 Intrinsic Flows of a Supply Chain:

1) Material Flow
2) Information Flow
3) Finance Flow
4) Commercial Flow
 1.3 CUSTOMER ORIENTATION

Having understood the supply chain

model, one may ask: “Is the end
consumer a part of the supply chain?”
Accdg to the author, Dr. Dawei Lu, the end
consumer is NOT part of the supply chain.

The Supply Chain only extends from the

very raw materials suppliers to the
retailer (if that’s the last link in the supply
chain before the end-consumer).
Fundamental Reasons to Support the
said Argument:
1) First, all supply chains supply, and every
member of the supply chain supplies; but
the consumer DON’T; it demands instead
of supply.
2) Second, a supply chain adds value to a
product (or transformed inputs), but the
consumer DON’T. Consumer consumes the
product and depletes its market value.
3) Third, a supply chain is always
specialized and a consumer is always
general.
Any supply chain management practices
and activities is captured by the 3
conceptual components:

1) Supply Chain Configuration

2) Supply Chain Relationship
3) Supply Chain Coordination
ENDING STATEMENT
“Nothing is so complicated that
cannot be understood.”