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Supply Chain Management

Supply Chain Management. Definition of Supply Chain. All the activities associated with the flow of goods and information from the raw materials stage to the end users. Materials and information flow both up and down the supply chain. A Supply Chain for A Product.

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Supply Chain Management

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  1. Supply Chain Management

  2. Definition of Supply Chain • All the activities associated with the flow of goods and information from the raw materials stage to the end users. • Materials and information flow both up and down the supply chain.

  3. A Supply Chain for A Product Suppliers – Manufacturers - Distributors - Retailers - Consumer

  4. Who Are Members of An Education Supply Chain?

  5. Members of An Education Supply Chain • End Users: Employers and Society • Supply Chain Members: • Colleges and Universities • High Schools • Middle Schools • Elementary Schools and Pre-Schools • Families

  6. Development of SCM • Pressure to increase productivity, reduce costs, and improve customer service • Increased use of outsourcing • Globalization • Increased transportation costs • Advancement in information technology • Emergence of new forms of inter-organizational relationships

  7. Key Elements of SCM • Strategic Issues • Tactical Issues • Operating Issues

  8. Strategic Issues • Design of Supply Chain • Selection of supply chain members, locations, outsourcing decisions, etc • Strategic Alliance • Alliance conceptualization • Alliance pursuance • Alliance confirmation • Alliance implementation

  9. Tactical Issues • Strategies and policies on inventories, purchasing, transportation, quality, etc. • Design of supply chain information systems • Inter-organizational information systems • Intra-organizational information system

  10. What Are the Inter-Organizational Information Systems?

  11. What Are the Inter-Organizational Information Systems? • Internet • Extranet • Electronic Data Interchange (EDI) • Satellite systems • SCM software systems

  12. What Are the Intra-Organizational Information Systems?

  13. What Are the Intra-Organizational Information Systems? • Intranet • Bar coding and scanners • RFID • Cable and wireless systems • ERP systems • Database and data warehouse systems

  14. Operating Issues • External supply chain process mapping and improvement • Business Process Reengineering • Benchmarking • Integrated logistics • Third-party logistics • Disintermediation • Reverse logistics

  15. External Process Improvement(Michael Hammer, HBR, Sept. 2001) • Scoping • Identify the appropriate business process to redesign • Select a partner • Organizing • Establish an executive steering committee • Convene a design team

  16. External Process Improvement(Michael Hammer, HBR, Sept. 2001) • Redesigning • Design the new, integrated process in a way that fulfills performance goals • Implementing • Roll out the new process • Communicate

  17. Optimization of A Supply Chain • Inventory levels • Lot size • Lead time • Product variety • Customer service • Information

  18. Performance Measures for SCM – SCOR (www.supply-chain.org) • Reliability • On-time delivery, order fulfillment lead time, fill rate, perfect orderfulfillment • Flexibility • Supply chain response time, upside production flexibility

  19. Performance Measures for SCM – SCOR (www.supply-chain.org) • Expenses • Supply chain management cost, warranty cost as a percentage of revenue, value added per employee • Asset Utilization • Total inventory days of supply, cash-to-cash cycle time, net asset turns

  20. Trip-A Supply Chain(Hau Lee, HBR, Oct. 2004) • Agility – respond to short-term changes in demand or supply quickly; handle external disruptions smoothly • Promote flow of information; dependable logistics system; design for postponement • Alignment – create incentives for better performance • Equitably share risks, cost, and gain of improvement initiatives

  21. Trip-A Supply Chain(Hau Lee, HBR, Oct. 2004) • Adaptability – adjust supply chain’s design to meet structural shifts in markets; modify supply network to strategies, products, and technologies • Spot new supply bases and markets; create flexible product designs; develop fresh supplies and logistics infrastructure

  22. Strategies for Improving Supply Chain Performance • Determine the cost drivers and supply chain performance • Focus on the needs of the end users • Understand trade partners’ priorities • Develop a clear and focused strategy • Assemble a high-performance project team • Commit to long-term improvement

  23. Software Systems for SCM • Collaborative Planning, Forecasting, and Replenishment (CPFR) - information sharing among supply chain partners • Front-end agreement • Joint business plan • Sales forecast collaboration • Order forecast collaboration • Order generation/delivery execution

  24. What Are the Key Requirements for A Successful Supply Chain?

  25. Requirements for A Successful Supply Chain • Share goals and interests • Trust • Information sharing • Long-term commitment • Strong individual members

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