1. SUPPLY CHAIN MANAGEMENT WIKE AGUSTIN PRIMA DANIA, STP, M.ENG

2. KONTRAK PERKULIAHAN • 1. Mobile Phone…Silent Please… • 2. Terlambat Max 15 mnt. • 3. Tugasharusselalumengumpulkanwalaupuntidakmasuk (No extend) • 4. Komponenpenilaian: • UTS 50% • Quiz 20% • Tugas 30%

3. LITERATURE • SUPPLY CHAIN MANAGEMENT, S. CHOPRA & P. MEINDL 2010 • OPERATION MANAGEMENT, J HEIZER & B RENDER 2011 • JOURNAL

4. Business & technology trends • Local market, local supply vs. global market, global sourcing. • Global competition. • Shorter product life. • Higher customer expectation • Rate of change in technology • Information & communication systems • Variety of transportation modes All these factors lead to an increase in pressure to reduce costs & Supply Chain Management provides the opportunity.

5. What is a supply chain? • A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request • A supply chain is dynamic and involves the constant flow of information, product, and funds between different stages • A supply chain stages include: • Customers • Retailers • Wholesalers/distributors • Manufacturers • Component/raw material suppliers

6. Timber Company Paper Manufacturer Packaging Corporation Customer Department Store Third Party DC P&G Manufacturer Chemical Manufacturer Plastic Producer Example. Stages of a Detergent Supply Chain

7. Decision phases in a supply chain • Supply chain strategy or design  long term decision • Decide what the chain’s configuration • How resources will be allocated • What processes each stage will perform • Strategic decisions • The location & capacities of production & warehouse • Modes of transportation • Type of information system

8. Supply chain planning  quarter to a year • Forecast for coming year • Which market will be supplied from which location • Subcontracting or manufacturing • Inventory policies • Timing and size of marketing • Promotion • Supply chain operation  short term decision • Allocate inventory or production to individual orders • Date of order to be filled • Shipping mode • Delivery schedule • Replenishment order

9. Process view of a supply chain • Cycle view • The processes in SC are divided into a series of cycle, each performed at the interface between two successive stages of a SC • Push/pull view • The processes in SC are divided into two categories: • Pull process: • initiated by customer orders  reactive process • Customer demand is known • Push process: • initiated and performed in anticipation of customer orders  speculative process • Operate in an uncertain environment  customer demand is not yet known

10. Cycle view of SC processes Customer Customer Order Cycle Retailer Replenishment Cycle Distributor Manufacturing Cycle Manufacturer Procurement Cycle Supplier

11. Sub-processes in each SC process cycle Supplier stage markets product Buyer return reserve flows to supplier/third party Buyer stage places order Supplier stage receives supply Supplier stage receives order Supplier stage supplies order

12. Push/pull view of SC processes Customer Order Cycle Customer PULL PROCESSES Replenishment Cycle & Manufacturing Cycle Customer order arrives Clothes Company Procurement Cycle PUSH PROCESSES Manufacturer Supplier Example for make to stock environment

13. Customer Customer Order & Manufacturing Cycle PULL PROCESSES Customer order arrives DELL Company PUSH PROCESSES Procurement Cycle Supplier Example for build to order environment

14. Supply chain macro processes in a firm Supplier Relationship Management (SRM) Internal Supply Chain Management (ISCM) Customer Relationship Management (CRM) Supplier Firm Customer • Source • Negotiate • Buy • Design Collaboration • Supply Collaboration • Strategic planning • Demand planning • Supply planning • Fulfillment • Field service • Market • Price • Sell • Call centre • Order management

15. Competitive Strategy Strategic Fit Supply Chain Strategy Efficiency Responsiveness Supply Chain Structure Facilities Inv & trans. Sourcing&Pricing Info system Drivers Supply chain decision making framework