1. Supply Chain Management
CHAPTER 13
Supply Chain Management

2. CHAPTER OUTLINE
13.1 Supply Chains 13.2 Supply Chain Management 13.3 Information Technology Support for Supply Chain Management

3. LEARNING OBJECTIVES
Describe the three components and the three flows of a supply chain
Identify popular strategies to solving different challenges of supply chains
Explain the utility of each of the three major technologies that supports supply chain management

4. Supply Chains

5. The Flows of the Supply Chain
Material flows
Information flows
Financial flows

6. 13.2 Supply Chain Management

7. Supply Chain Management
Supply chain management (SCM)
Interorganizational information system (IOS)
Push and Pull Model

8. Problems Along the Supply Chain
Poor customer service
Poor quality product
High inventory costs
Loss of revenues

9. Solutions to Supply Chain Problems
Using inventories
Just-in-time inventory
Information sharing
Vendor-managed inventory

10. 13.3 Information Technology Support for Supply Chain Management

11. EDI Benefits Minimize data entry errors Length of messages are shorter
Messages are secured
Reduces cycle time
Increases productivity
Enhances customer service
Minimizes paper usage and storage

12. EDI Limitations Significant initial investment to implement
Ongoing operating costs are high due to the use of expensive, private VANs
Traditional EDI system is inflexible
Long startup period
Multiple EDI standards exist

13. Types of Extranets A company and its dealers, customers or suppliers
An industry’s extranet
Joint ventures and other business partnerships

14. Closing Case #1 IT Helps Cannondale Manage Its Complex Supply Chain
The Problem
The Solution
The Results

15. Closing Case #2 Driving Innovation
The Problem
The Solution
The Results