1. Presented by: S.M.TABATABAEE NASAB

2. Supply Chain flow The supply chain- 1 The global environment- 2 Inter – corporate coordination - 15 Inter- functionalCoordination- 14 Marketing - 4 Sales -5 R&D - 6 Forecasting - 7 Production - 8 Purchasing - 9 Logistics - 10 Information systems-11 Finance -12 Customer Service - 13 Products Services I nformation Financial resources Demand forecasts Customer satisfaction Value Profitability Differential advantage - 3 A model of supply chain management

3. INTRODUCTION Forrester(1985) introduced a theory of management that recognized the integrated nature of organizational relationships in distribution channels. He argued that system dynamics can influence the performance of functions such as research, ingineering, sales & promotion.

4. The reasons for popularity of SCM Global sourcing Competition on the basis of time & quality This global orientation & increased performance – based competition combined with rapidly changing technology and economic conditions all contribute to marketplace uncertainty.

5. Confusion in SCM definition Some authors define SCM in operational terms involving the flow of materials & products. (tyndall, gopal, partsch, kamauff, 1998) Others view it as a management philosophy. (ellram & cooper, 1990) some view it as a management process. (la londe, 1997)

6. Defining the supply chain La londe & masters(1994) proposed that a supply chain is a set of firms that pass materials forward. Lambert, Stock & Ellram (1998) define a supply chain as the alignment of firms that brings products or services to market. Christopher(1992) defines a supply chain as the network of organizations that are involved, through upstream & downstream linkages, in the different processes and activities that produce value in the form of products & services in the hands of the ultimate consumer.

7. Supply chain definition A set of three or more companies directly linked by one or more of the upstream & downstream flows of products, services, finances, and information from a source to a customer.

8. Basic Supply Chain Consists of a company, an immediate supplier, and an immediate customer directly linked by one or more of the upstream & downstream flows of products, services, finances, and information.

9. extended Supply Chain Includes suppliers of the immediate supplier, and customers of the immediate customer, all linked by one or more of the upstream & downstream flows of products, services, finances, and information.

10. ultimate Supply Chain Includes all the companies involved in all the upstream & downstream flows of products, services, finances, and information from the initial supplier to the ultimate customer.

11. Real competition is not company against company, but rather supply chain against supply chain. Christopher (1992)

12. Supply Chain Management SCM deals with the total flow of a materials from suppliers through end users. Jones & riley(1985)

13. Supply Chain Management The objective of managing the supply chain is to synchronize the requirements of the customer with the flow of materials from suppliers in order to effect a balance between what are often seen as conflicting goals of high customer service, low inventory management, and low unit cost. Stevens(1989)

14. Supply Chain Management Referring to Stevens(1989), Jones & riley(1985), houlihan (1985,1988), Ellram & Cooper(1990) SCM define as: an integrative philosophy to manage the total flow of a distribution channel from supplier to the ultimate user.

15. SCM as a management philosophy As a philosophy, SCM takes a systems approach to viewing channel as a single entity, rather than as a fragmented parts. (ellram & cooper,1990) SCM as a philosophy of channel management seeks synchronization and convergence of intrafirm and interfirm operational & strategic capabilities into unified, compelling marketplace force. (ross,1998)

16. SCM activities (to implement a management philosophy) Integrated behavior Mutually sharing information Mutually sharing channel risks & rewards Cooperation The same goal and the same focus of serving customers Integration of processes Partners to build & maintain long0term relationships

17. SCM versus SCO SCM is the implementation of a SCO across supplier and customer. SCO is a management philosophy & SCM is the total management action undertaken to realize that philosophy

18. SCO -Systemic view -Strategic view SCO -Systemic view -Strategic view scm - 3 or mor firms with sco - sharing information -sharing channel risks & rewards -Cooperation -The same goal and the same focus of serving customers -Integration of processes - long0term relationships - coordination scm - 3 or mor firms with sco - sharing information -sharing channel risks & rewards -Cooperation -The same goal and the same focus of serving customers -Integration of processes - long0term relationships - coordination Conseque nces Improved customer value & satisfaction Profitability Differential advantage Conseque nces Improved customer value & satisfaction Profitability Differential advantage Single company antecedents Willingness to adress: Trust Commitment Interdependence Vision Key process Leader Top management support SCM antecedents and cosequences

20. Drivers for globalization of firms -Access to market -Access to raw materials -Economies of scope & scale -Access to technology Global environmental factors - Uncertainty - complexity - Asymmetry Drivers for economic globalization -Decreasing tariffs -Economic regionalism -Improving transportation, communications & IT -Globalization of products and services - global competition Drivers for economic globalization -Decreasing tariffs -Economic regionalism -Improving transportation, communications & IT -Globalization of products and services - global competition Global diversity - Political - Cultural - Economic Global strategic thrust -Local responsiveness - global efficiency - transfer of knowledge & competencies Approach to globalization -Multinational firms -International firms -Global firms -transnational Factors influencing the globalization of firms

21. Multinationalunit Local responsivenessStrategic thrust Decentralized & nationally self sufficient Configuration of assets & capabilities Sensing & exploiting local opportunitiesRole of overseas operations Knowledge developed and retained within each unit Development & diffusion of knowledge -Multiple domestic supply chains operating in different political economic and cultural contexts -Decentralized development of SCM capability - limited sharing of knowledge & resources across borders Supply chain implications Approaches to globalization

22. internationalunit Transfer of knowledge & competenciesStrategic thrust Sources of core competencies centralized, others decentralized Configuration of assets & capabilities Adapting & leveraging parent company competenciesRole of overseas operations Knowledge developed at the center & transferred Development & diffusion of knowledge - supply chains operation across multiple borders & multiple countries - centralized development of SCMcapability - transfer of knowledge from corporate headquarter to other countries Supply chain implications Approaches to globalization

23. globalunit Global efficiencyStrategic thrust Centralized & globally scaled Configuration of assets & capabilities implementing parent company strategiesRole of overseas operations Knowledge developed & retained at the center Development & diffusion of knowledge - integrated management of a global network of supply & demand - SCM aimed at efficiency & operating flexibility - Centralized development of SCM capability - SCM processes & policies dictated by corporate headquarters Supply chain implications

24. Approaches to globalization globalunit Balance of Local responsiveness,Global efficiency & Transfer of knowledge & competencies Strategic thrust Dispersed, interdependent, and specialized Configuration of assets & capabilities Differentiated contributions by national units to integrated world wide operations Role of overseas operations Knowledge developed jointly & shared worldwide Development & diffusion of knowledge - supply chain network itegrated to achieve economies of scale but locally responsive to different markets - skill & capabilities developed & shared worldwide -Joint decision making, with appropriate global/local balancing Supply chain implications

25. Approach to globalization -Multinational firms -International firms -Global firms -transnational Global diversity - Political - Cultural - Economic Global environmental factors - Uncertainty - complexity - Asymmetry Corporate supply chain strategy -multiple domestic supply chains -multiple international supply chains - global network & supply & demand - flexible,interdependent,balance of locally responsive & globally efficient supply chains Supply chain process -Strategic fit -Risk management -Knowledge management - relationship management - financial management -Development of organizational capability -Technology management -Channel management /outsourcing decisions - information management Factors influencing global supply chain management

26. Q&A