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Agenda of Week II. Introduction to SCM

Agenda of Week II. Introduction to SCM. Purposes : Understanding the definition of SCM Analyzing SCM through system approach. 1. 2. 3. 4. Review of week 1. Definition of SCM. Objective of SCM. Structure and functions of SCM. Office and contact point Education Research interest.

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Agenda of Week II. Introduction to SCM

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  1. Agenda of Week II. Introduction to SCM Purposes : • Understanding the definition of SCM • Analyzing SCM through system approach. 1 2 3 4 Review of week 1 Definition of SCM Objective of SCM Structure and functions of SCM • Office and contact point • Education • Research interest • Visibility • Examples • What is SCM • Diagram • 3PL • Network • Logistics • Players in SC • Physical vs. Cyber • Organically functioning

  2. Review of Week I. Introduction Purposes : • Understanding the general aspects of SCM lecture through introduction of professor and whole class. 1 2 3 Professor Introduction Lecture Issues Modules • Office and contact point • Education • Research interest • Module I: Theoretical SCM • Module II: SCM issues • Lecture site • Text book • Lecture structure

  3. What is SCM? • Diagram for typical supply chain Product Design Suppliers Manufacturer 3rd party logistics company Retailers Wholesalers Distributors Customers

  4. Definition of SCM • Supply chain • Chain relationship among companies which participate in providing a final product for customers • TraditionallyManufacturer is the master of supply chain and suppliers, distributors, wholesalers, and retailers are included • CurrentlyProduct design, customers, customer services are included • Supply chain network

  5. Definition of SCM • Supply chain Management • To manage the whole supply chain in order to achieve some objectives • To decide the parameters (such as quantity, quality, price, and delivery date etc.) between two players in supply chain • Logistics • To concentrate on moving the products including parts, raw materials, w.i.p., and final products

  6. Objectives of SCM • Visibility • Through supply chain • To make Whole SC visible to all who have some interests in an industry • To integrate the power of all players in SC to optimize the SC performance • To maximize the customer satisfaction • Example: Television, Pizza

  7. Structure of SCM • Players in supply chain • Logistics infra • Seaport, airport, railroad, road, warehouse, handling facilities • Vessels, cargos, trains, trucks etc. • Logistics policy, laws, regulations etc.

  8. Physical SC vs. Cyber SC • Information technology • e-Business • e-Commerce • Cyber SC • Supply chain which is made up of e-business systems and e-commerce systems • Each player is e-business and it is connected by e-commerce • Cyber chain controls and manages physical chain

  9. Functions of SCM • Inbound logistics • Product design based on feedback from customer service area • Timely procurement of quality raw materials and parts at a ‘reasonable’ price • Production/operations • Production of products effectively and efficiently to satisfy divergent customer needs • Innovation of service system • Technology improvement vs. process improvement

  10. Functions of SCM • Outbound logistics • Timely distribution to correct destinations of correct quantity at a ‘reasonable price’ • Distributed quantity, destination, compensation for distribution, and penalty etc. • Art of delivery • Marketing and customer service • Fast and accurate identification of customer needs and reflection of them to products • Progress in information technology and telecommunication networks

  11. Functions of SCM • Inventory management • Raw materials, parts, work-in-process, and final products • Safety stock model, EOQ, EPQ • News vender model, stochastic news vendor model, MRP, JIT

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