designing & managing the supply chain （chpt1）.ppt

Chapter 1
Introduction toSupply Chain Management
What Is a Supply Chain?
Flow of products and services from:
Raw materials manufacturers
Intermediate products manufacturers
End product manufacturers
Wholesalers and distributors and
Retailers
Connected by transportation and storage activities
Integrated through information, planning, and integration activities
Cost and service levels
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.
Two Other Formal Definitions
The design and management of seamless, value-added process anizational boundaries to meet the real needs of the end customer
Institute for Supply 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
PC Industry Supply Chain
Tracing back the screen you stare at for the bulk of your time.
Cisco’s work
Source
Supplier
Supplier
Distributor
Distributor
Retailer
End-User
Converter
Converter
Consumers
Information Flow
Funds/Demand Flow
Value-Added Services
Material Flow
Reuse/Maintenance/After Sales Service Flow
SCM Definition
The work
FIGURE : The work
Key Observations
Every facility that impacts costs need to be considered
Suppliers’ suppliers
Customers’ customers
Efficiency and cost-effectiveness throughout the system is required
System level approach
Multiple levels of activities
Strategic – Tactical – Operational
Other Related Observations
Supply chain strategy linked to the Development Chain
Challenging to minimize system costs and maximize system service lev