Chapter 1: 21st Century Supply Chains

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Presentation transcript:

Chapter 1: 21st Century Supply Chains Supply Chain Management: What Is It?

Supply Chain Management: What Is It? Logistics. Supply Chain Management. =

Back in the day…

Back in the day…

But things began to change… $ $ $ $

But things began to change… www.agoravox.com . . . . www.quartermaster.army.mil . .

But things began to change… www.agoravox.com

The Value of Inventory $ $ $ $ . . .

The Value of Inventory $ $ $ $

The Value of Inventory . . .

The Value of Inventory . . .

Inventory Carrying Costs The Value of Inventory Inventory Carrying Costs $ $ $ $ $ . .

The Value of Inventory Housing the inventory (the truck trailer). Security (trucks are hijacked). Taxes. Insurance.

The Value of Inventory Housing the inventory (the truck trailer). Security (trucks are hijacked). Taxes. Insurance. $1,000,000? $750,000? $500,000?

The Value of Inventory The value of inventory becomes very important in supply chain management.

Back in the day…

Back in the day… .

Supply Chain Management: What Is It? Logistics. Supply Chain Management.

Business Logistics Goods Buyer Seller Services Information Money .

Business Logistics Goods Buyer Seller Services Information Money

Business Logistics Customer service Demand forecasting Inventory management Logistics communication Materials handling Order processing Plant and warehouse site selection Packaging Procurement Reverse logistics Traffic, transportation Warehousing, storage Buyer Seller

Business Logistics Goods Buyer Seller Services Information Money

Supply Chain Management Seller Buyer Flow of goods, services information, money

Supply Chain Management Supplier Seller Buyer Supplier Flow of goods, services information, money Supplier

Supply Chain Management Supplier What do we have? Supplier Supplier Supplier Seller Buyer Supplier Supplier Flow of goods, services information, money Supplier Supplier An integrated supply chain . .

Supply Chain Management Supplier What do we have? Supplier Supplier Supplier Seller Buyer Supplier Supplier Flow of goods, services information, money Supplier Supplier An integrated supply chain

Business Logistics Goods Buyer Seller Services Information Money

Supply Chain Management Supplier Supplier Supplier Supplier Seller Buyer Supplier Supplier Flow of goods, services information, money Supplier Supplier An integrated supply chain

One More Thing…

End of Program. Lee Scott Wal-Mart’s Chief Executive Officer www.nndb.com/people/469/000045334/h-lee-scott.jpg Lee Scott Wal-Mart’s Chief Executive Officer