3. SCM is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying service level requirements.

4. All facilities, functions, activities, associated with flow and transformation of goods and services from raw materials to customer, as well as the associated information flows

5. 1960’s- First inventory software developed 1970’s- Material Requirements Planning was introduced. 1980’s- Market demand increased which led to managing material flow through SCM systems. 1990’s-NOW- SCM systems are more technologically enabled.

6. Speed Efficiency Reduce Cost Improve Supply chain cycle times (to get a company’s products from concept to market)

7. ERP integrates all functions of a business in a unified manner. SCM is a more specialized system.

9. Comprehensive Complexity Sourcing Tables Handling of Constraints Functionality Speed of processing requests

10. HR Marketing Accounting Operations Finance

13. The Architecture

15. 1. Plan 2. Source 3. Make 4. Deliver 5. Return

16. Develop strategies in order to meet customer’s needs and demands. Plan to develop high quality products with a lower cost at a fast pace.

17. Decide where your products will come from. Who will be your supplier? Helps the company know who they can rely on to deliver their products in a timely manner.

18. Where the source is going to manufacture their product. Includes scheduling, testing, packaging, and preparing the product for distribution How much inventory should they produce?

19. Where the company decides what distribution carrier to use in order to successfully get their orders fulfilled. How fast can they get their products to their consumers? Involves how the company is going to receive their payments.

20. Involves the products that the customers are not satisfied with that get sent back to the company. Are the customers satisfied with their service?

21. The Process

22. SCM systems include the flow of – Raw materials – Producing products – Providing service – Delivering the product to the end consumer.

24. The Integration

25. AccountingOperations SCM System ERP System MarketingHuman Resources Finance Model of ERP and SCM systems working together:

26. Information sharing among supply chain members – Early problem detection – Faster response – Builds trust and confidence Collaborative planning, forecasting, replenishment, and design – Lower Costs (material, logistics, operating, etc.) – Higher capacity utilization – Improved customer service levels

27. Coordinated workflow, production and operations, procurement – Production efficiencies – Fast response – Improved service – Quicker to market Adopt new business models and technologies – Penetration of new markets – Creation of new products – Improved efficiency – Mass customization

28. logistics is basically managing and controlling the flow or supply of goods, information, personnel, utilities and other resources from one location to destination to meet the demands of a customer or the requirement of one department or section of the organization.

29. Rail – low-value, high-density, bulk products, raw materials, intermodal containers – not as economical for small loads, slower, less flexible than trucking Trucking – main mode of freight transport – small loads, point-to-point service, flexible – More reliable, less damage than rails; more expensive than rails for long distance

30. Air – most expensive and fastest, mode of freight transport – lightweight, small packages – high-value, perishable and critical goods – less theft Package Delivery – small packages – fast and reliable – increased with e-Business – primary shipping mode for Internet companies

31. Water – low-cost shipping mode – primary means of international shipping – slowest shipping mode Intermodal – combines several modes of shipping-truck, water and rail – key component is containers Pipeline – transport oil and products in liquid form – high capital cost, economical use – long life and low operating cost