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1 Supply Chain Management: The Science of Better, Faster, and Cheaper Bin Zhou Rutgers University

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Presentation on theme: "1 Supply Chain Management: The Science of Better, Faster, and Cheaper Bin Zhou Rutgers University"— Presentation transcript:

1 1 Supply Chain Management: The Science of Better, Faster, and Cheaper Bin Zhou Rutgers University

2 2 Outline What is Supply Chain Management Why Supply Chain Management is Important Research and Practice in SCM Career in Supply Chain Management What You Can Learn in Supply Chain Management

3 3 A Supply Chain is the sequence of organizations involved in the transformation of raw materials into finished goods and the delivery of those goods to the customer Supply Chain Management is the coordination and integration of the activities: Procure services and materials Transform them into intermediate and final products Deliver them to the customer What is Supply Chain Management?

4 4 The Supply Chain Network MaterialCash Information

5 5 What is Supply Chain Management? Supply Chain Management is also a process management involves Inter-organizational Cross-functional

6 6 What is Supply Chain Management? Objective of Supply Chain Management Maximize value & lower waste/cost Create and sustain competitive advantage (based on the delivery of basic and value-added services) Achieve “win-win”, global optimal not local optimal Competition is between supply chains, not single companies

7 7 Components of Supply Chain Management Production focus on which suppliers to use; how much to produce; when to produce; where to produce…(insource vs. outsource; quantities; time; locations…) Inventory decide where to store their products and how much to store…(make-to-order vs. make-to-stock; consolidated vs. break bulk; locations…) Distribution/Logistics address issues about how the products should be moved and stored…(logistic methods; own fleet vs. 3PL…) Payments look for the best ways to pay suppliers and get paid by customers…(pricing policies; promotion and discounts…)

8 8 Why Supply Chain Management is Important Huge financial impacts nearly $800 billion on supply chain activities in US and more than $1.4 trillion globally, and it continues to grow Critical importance to human survival supply chain system provides the continuous availability of food, water, medicine, and other key materials people need to survive Greatly impacts the quality of life provide employment, cost-effective means of sourcing and distributing goods locally and globally Affects the success in a wide variety of endeavors other than the flow of industrial and consumer products, such as Red Cross provides support in life-threatening situations (flood, hurricanes…), military or UN humanitarian activities, Olympic Games…

9 9 Why Supply Chain Management is Important Supply Chain Opportunities Source: Pittiglio Rabin Todd & McGrath

10 10 Why Supply Chain Management is Important Advances in information technology (IT) and the expanding IT infrastructure are introducing new possibilities to improve service and efficiencies RFID generated cost savings at Wal-Mart Wal-Mart's CEO Lee Scott said: "We expect RFID to drive down inventory and improve stock turnover, as it helps through the supply chain..." Source: EAN

11 11 Research and Practice in SCM Production and Inventory Control Widely used EOQ and (s, S) policies in business practice Production/inventory policies, single, multiple products Minimum Order Quantity (MOQ) Single product, multiple product, multiple period Free Shipping Option (FSO) Single product, multiple product, multiple period Revenue Management and Pricing Hotel, airline, retail industries Finite and infinite sales horizons Fixed inventory or capacity Pricing policies and timing of price adjustment Resource allocation

12 12 Research and Practice in SCM Supply Chain Contracts Two-party supply chain Price and order quantities Global and local optimization Supply Chain Optimization and Consolidation Integrated Production/Inventory/Distribution Multiple modes supply chain Decisions on production, storage, and logistics/routing Global optimization or sub-optimal solutions Consulting projects: General Chemical, Benjamin Moore

13 13 Career in Supply Chain Management A Variety of Industries to Choose Different Roles and Levels

14 14 Career in Supply Chain Management Many Functional Areas

15 15 Career in Supply Chain Management Market Outlook

16 16 Career in Supply Chain Management Compensation

17 17 Career in Supply Chain Management Education is critical to success A Recent study by Council of Supply Chain Management Professionals (CSCMP) revealed that “…majority of supply chain managers surveyed hold at least a 4-year degree and an increasing number have graduate degrees. …effective planning is needed. The time for career planning is NOT after college graduation!”

18 18 What You Can Learn Supply Chain Management builds on several business areas: Accounting, Finance, General Management, Marketing, and MIS, etc. Supply Chain Management Cores: Principles/Strategies of Supply Chain Management Supply Chain Logistics and Operations Analysis Supply Chain Information Systems and Enterprise Resource Planning

19 19 Supply Chain Management Cores 3 Perspectives

20 20 What You Can Learn Global Sourcing and Procurement E-Commerce/Marketing Database Management for Info Systems Human Resource Management Quality Management and Control Project Management Service Operations Management And many more… Functional Electives:

21 21 What You Can Learn Provide a better understanding of SCM Both educational and professional/practical point of view Student club/organization Professional societies: APICS, CSCMP, INFORMS Chapters… “End-to-End” Supply Chain Management training: sourcing and procurement, logistics, operations, strategy, information technology, and organizational alignment A balanced blend of strategic, tactical, and operational topics Many choices of functional areas

22 22 What You Can Learn Opportunities with Corporations 144/500 US biggest companies in NJ/NY US busiest sea port: Port Newark-Elizabeth, I/E Top 5 pharmaceutical companies in US Assist to pave career path in the Supply Chain Industry Implementation oriented Development of academic/professional plan


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