1. Chapter 14 Supply chain management

2. Chapter 14 Supply Chain Management
Supply Chains
Supply Chain
The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function 2 2

3. Supply Chains Supply Chain Management
Chapter 14 Supply Chain Management
Supply Chains
A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value
Supply Chain
Management . 3 3

4. Benefits of Supply Chain Management
Chapter 14 Supply Chain Management
Benefits of Supply Chain Management
Supply chain oriented companies commonly report:
Lower inventory, transportation, warehousing, and packaging costs
Greater supply chain flexibility
Improved customer service
Higher revenues
Increased profitability 10 4

5. Supply Chain Integration
Chapter 14 Supply Chain Management
Supply Chain Integration
Relationship Integration
Measurement Integration
Technology and planning Integration
Firm-to-Firm Social Interactions
Operational Planning and Control
Material and service supplier Integration
Internal Operations Integration
Customer Integration
Customer Integration 5 5

6. Key Processes of Supply Chain Management
Chapter 14 Supply Chain Management
Key Processes of Supply Chain Management 6 6

7. Customer Relationship Management
Chapter 14 Supply Chain Management
Customer Relationship Management
Customer
Relationship
Management
Process
The prioritization of a firm’s marketing focus on different customer groups according to each group’s long-term value to the company or supply chain; designed to identify and build relationships with good customers. 7 7

8. Customer Service Management
Chapter 14 Supply Chain Management
Customer Service Management
Customer
Service
Management
Process
A multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced; designed to ensure that customer relationships remain strong. 8 8

9. Demand Management Demand Management Process
Chapter 14 Supply Chain Management
Demand Management
Demand
Management
Process
The alignment of supply and demand throughout the supply chain to anticipate customer requirements at each level and create demand-related plans of action prior to actual customer purchasing behavior.
Good demand management can increase both sales and customer satisfaction, and at the same time, it can reduce the overall cost of serving the firm or supply chain’s customer base. 9 9

10. Chapter 14 Supply Chain Management
Order Fulfillment
Order Fulfillment
Process
A supply chain management process that involves generating, filling, delivering, and providing on-the-spot service for customer orders. 10 10

11. Manufacturing Flow Management
Chapter 14 Supply Chain Management
Manufacturing Flow Management
Manufacturing
Flow
Management
Process
A process that ensures that firms in the supply chain have the resources they need 11 11

12. Supplier Relationship Management
Chapter 14 Supply Chain Management
Supplier Relationship Management
Supplier
Relationship
Management
Process
A supply chain management process that supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers 12 12

13. Product Development and Commercialization
Chapter 14 Supply Chain Management
Product Development and Commercialization
Product
Development and
Commercialization
Process
The group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms. 13 13

14. Returns Management Returns Management Process
Chapter 14 Supply Chain Management
Returns Management
Returns
Management
Process
A process that enables firms to manage volumes of returned product efficiently, while minimizing costs and maximizing the value of the returned assets to the firms in the supply chain. 14 14

15. Logistical Components of the Supply Chain
Chapter 14 Supply Chain Management
Logistical Components of the Supply Chain
Supply Chain Team
Sourcing & Procurement
Production Scheduling
Order Processing
Inventory Control
Warehouse & Materials Handling
Transportation
Logistics Information System

16. Sourcing and Procurement
Chapter 14 Supply Chain Management
Sourcing and Procurement
The Role of Purchasing:
Plan purchasing strategies
Develop specifications
Select suppliers
Negotiate price and service levels
Reduce costs

17. Production Scheduling
Chapter 14 Supply Chain Management
Production Scheduling
Push / Pull
Strategy
Traditional Focus
Push
Start of Production
Manufacturing
Inventory- Based
Mass Production
Customer Focus
Pull
Customer-Order Based
Mass Customization

18. Just-in-Time Manufacturing
Chapter 14 Supply Chain Management
Just-in-Time Manufacturing
JIT
A process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed on the production line.

19. Benefits of JIT Reduces raw material inventories Shortens lead times
Chapter 14 Supply Chain Management
Benefits of JIT
Reduces raw material inventories
Shortens lead times
Creates better supplier relationships
Reduces production and storeroom costs
Reduces paperwork

20. Electronic Data Interchange
Chapter 14 Supply Chain Management
Order Processing
Electronic Data Interchange
Information technology that replaces paper documents that accompany business transactions with electronic transmission of the information.

21. Order Processing Inventory Control System
Chapter 14 Supply Chain Management
Order Processing
Inventory
Control System
A method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer’s or a customer’s demand.

22. Order Processing Materials Requirement Planning (MRP) Distribution
Chapter 14 Supply Chain Management
Order Processing
Materials
Requirement
Planning (MRP)
An inventory control system that manages
the replenishment of raw materials,
supplies, and components from the
supplier to the manufacturer.
Distribution
Resource
Planning
(DRP)
the replenishment of goods from the
manufacturer to the final consumer.

23. Materials Handling Functions
Chapter 14 Supply Chain Management
Materials Handling Functions
Receive goods into
warehouse
Dispatch the goods to
temporary storage
Recall, select, or pick the goods for shipment
Identify, sort, and label
goods

24. Transportation Airways Water Pipelines Motor Carriers Railroads
Chapter 14 Supply Chain Management
Transportation
Airways
Water
Pipelines
Motor Carriers
Railroads

25. Transportation Mode Choice
Chapter 14 Supply Chain Management
Transportation Mode Choice
Cost
Transit time
Reliability
Capability
Accessibility
Traceability 25 25