2 Chapter 14 Supply Chain Management Supply ChainsSupply ChainThe connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function22
3 Supply Chains Supply Chain Management Chapter 14 Supply Chain ManagementSupply ChainsA 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 valueSupply ChainManagement.33
5 Supply Chain Integration Chapter 14 Supply Chain ManagementSupply Chain IntegrationRelationship IntegrationMeasurement IntegrationTechnology and planning IntegrationFirm-to-Firm Social InteractionsOperational Planning and ControlMaterial and service supplier IntegrationInternal Operations IntegrationCustomer IntegrationCustomer Integration55
6 Key Processes of Supply Chain Management Chapter 14 Supply Chain ManagementKey Processes of Supply Chain Management66
7 Customer Relationship Management Chapter 14 Supply Chain ManagementCustomer Relationship ManagementCustomerRelationshipManagementProcessThe 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.77
8 Customer Service Management Chapter 14 Supply Chain ManagementCustomer Service ManagementCustomerServiceManagementProcessA multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced; designed to ensure that customer relationships remain strong.88
9 Demand Management Demand Management Process Chapter 14 Supply Chain ManagementDemand ManagementDemandManagementProcessThe 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.99
10 Chapter 14 Supply Chain Management Order FulfillmentOrder FulfillmentProcessA supply chain management process that involves generating, filling, delivering, and providing on-the-spot service for customer orders.1010
11 Manufacturing Flow Management Chapter 14 Supply Chain ManagementManufacturing Flow ManagementManufacturingFlowManagementProcessA process that ensures that firms in the supply chain have the resources they need1111
12 Supplier Relationship Management Chapter 14 Supply Chain ManagementSupplier Relationship ManagementSupplierRelationshipManagementProcessA supply chain management process that supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers1212
13 Product Development and Commercialization Chapter 14 Supply Chain ManagementProduct Development and CommercializationProductDevelopment andCommercializationProcessThe group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms.1313
14 Returns Management Returns Management Process Chapter 14 Supply Chain ManagementReturns ManagementReturnsManagementProcessA 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.1414
15 Logistical Components of the Supply Chain Chapter 14 Supply Chain ManagementLogistical Components of the Supply ChainSupply Chain TeamSourcing & ProcurementProduction SchedulingOrder ProcessingInventory ControlWarehouse & Materials HandlingTransportationLogistics Information System
16 Sourcing and Procurement Chapter 14 Supply Chain ManagementSourcing and ProcurementThe Role of Purchasing:Plan purchasing strategiesDevelop specificationsSelect suppliersNegotiate price and service levelsReduce costs
17 Production Scheduling Chapter 14 Supply Chain ManagementProduction SchedulingPush / PullStrategyTraditional FocusPushStart of ProductionManufacturingInventory- BasedMass ProductionCustomer FocusPullCustomer-Order BasedMass Customization
18 Just-in-Time Manufacturing Chapter 14 Supply Chain ManagementJust-in-Time ManufacturingJITA 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 ManagementBenefits of JITReduces raw material inventoriesShortens lead timesCreates better supplier relationshipsReduces production and storeroom costsReduces paperwork
20 Electronic Data Interchange Chapter 14 Supply Chain ManagementOrder ProcessingElectronic Data InterchangeInformation 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 ManagementOrder ProcessingInventoryControl SystemA 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 ManagementOrder ProcessingMaterialsRequirementPlanning (MRP)An inventory control system that managesthe replenishment of raw materials,supplies, and components from thesupplier to the manufacturer.DistributionResourcePlanning(DRP)the replenishment of goods from themanufacturer to the final consumer.
23 Materials Handling Functions Chapter 14 Supply Chain ManagementMaterials Handling FunctionsReceive goods intowarehouseDispatch the goods totemporary storageRecall, select, or pick the goods for shipmentIdentify, sort, and labelgoods
24 Transportation Airways Water Pipelines Motor Carriers Railroads Chapter 14 Supply Chain ManagementTransportationAirwaysWaterPipelinesMotor CarriersRailroads