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Definition of Supply Chain
Management 1
Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses and stores, so that merchandise 商品,货物 is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize systemwide costs while satisfying service level requirements.
improved profitability
How to integrate supply chain?
Three primary methods to integrate Supply Chain
Vertical integration Outsourcing Strategic alliance
Chapter 9 Supply Chain Management
Topics
“Nowadays, it’s supply chains that compete with
supply chains!”
What is Supply Chain ? What is Supply Chain Management? What factors have attributed to the boost of SMC? How to integrate supply chain?
PC store
stoቤተ መጻሕፍቲ ባይዱk
Factor 2: Consumer power
Why consumer power became a attribute to the SMC development?
Consumer affluence Consumer’s needs and
wants change quickly
Factor 1:Excess Inventory costs
Why? The lengthy order-to-delivery Unpredictable market Product variation
Stockpile inventory in different part of the supply chain
What Is Supply Chain ?
workshop
train
brewery
What is supply chain ?
A supply chain encompass all activities associated with the flow and transformation of goods from the raw material stage, through to the end user, as well as the associated information flows
2. Outsourcing 外包
Concept
Outsourcing is the action taken by an organization to move a part of its
internal processes to an outside entity or group (a third party) to improve efficiency, quality, or reduce time to deliver services or products
3.Strategic alliances 战略联盟
"A strategic alliance is a partnership between firms whereby resources, capabilities, and core competences are combined to pursue mutual interests."
1. Vertical integration 纵向整合
Oil Iron ore Rubber
Auto
One organization owns multiple participants in the supply chain , Example: Ford Motor in 1920 Vertical integration extends a firm’s competitive scope within same industry
Fast and agile respond to their changing demand –achieve through SCM
Factor 3: Information availability
Computerization— efficient and low-cost tool to solve logistical and supply chain decisions
Bullwhip effect 长鞭效应
Bullwhip Effect (以PC产业为例)
IC parts and Components manufacturer
IC manufacturer
Peripheral Industry
PC Assembling
firm
stock
stock
Stock
stock
Internet— instantaneous visibility to the same data througout supply chain
Supply chain become more proactive, which can transform into lower inventories and
Suppliers
Sourcing
Inbound storage/ FigO. 1p-e3rations Transportation
Outbound storage/ Transportation
Consumer distribution
Customers
what factors have attributed to the boost of SMC?
