College 1: Introduction to supply chain management
What is a supply chain
- Supplier → your company → customer.
Een supply chain is een systeem van organisaties, bedrijven, activiteiten, informatie en
middelen dat zich bezighoudt met het aanbieden van een product of dienst aan een klant.
Vroeger stond supply chain eigenlijk gelijk aan de logistieke afdeling van een bedrijf, de supply
chain management focuste zich dus op vervoer, transport en opslag. Nu is het een breder
begrip. Vandaag de dag wordt aangenomen dat je de volledige supply chain nodig hebt om je
doelstelling te behalen.
A slightly more realistic supply chain
Doelstellingen:
- Keep costs low → cost optimization.
- Satisfy all demand → service level optimization.
A definition of supply chain management
SCM is a set of approaches to efficiently integrate suppliers, manufacturer, so that the
merchandise is produced and distributed at the right quantities, to the right locations, and at
the right time, in order to minimize systemwide costs, while satisfying service level
requirement.
Two different kind of products
Nature of demand: functional or innovative.
1. Functional: staples.
• Stable, predictable demand.
• Long life cycle.
• Competition thus low profit margins.
De vraag hiernaar is vrij stabiel.
2. Innovative: fashion, B&J, Nespresso, Apple
• Unpredictable demand.
• High profit margins.
• Short life cycle (few months), great variety.
Functions and kinds of supply chain
,Supply Chain Management Colleges 2020/2021
The two distinct functions of a SC:
- Physical function ← focus of efficient SC.
- Market mediation function ← focus on responsive sc.
Different kind or SC (Fisher’s strategies)
- Efficient.
- Responsive.
Mismatch causes.
De kosten die hierbij komen zijn product-, transport- en opslagkosten. Daarnaast hebben ze
een markt bemiddelingsfunctie. Het doel in deze functie is dat het aanbod gelijk is aan de
vraag.
Important observation in supply chains
- Interaction between supply chain and development chain.
- Coordination across companies/global optimization.
- Uncertainty and risk.
The development chain
Kijkt naar de ontwikkeling van een nieuw product.
Set of activities and processes associated with new product introduction.
Includes:
- Product design phase & research.
- Associated capabilities and knowledge.
- Sourcing decision.
- Production plans.
De impact van de development chain is vrij groot op de supply chain, maar andersom geldt dit
ook.
,Supply Chain Management Colleges 2020/2021
Coordination across companies & global optimization
Dit is om ervoor te zorgen dat de supply chain voor alle partijen gunstig is.
Information sharing
What kinds of extra costs is incurred? Opslagkosten.
- The so-called Bullwhip effect.
Network coordination
Coordination also means information sharing.
But it is more:
- Coordination = integration.
Information sharing and cooperation.
Global optimization vs. local optimization.
, Supply Chain Management Colleges 2020/2021
That is why supply chains cannot be introduced without immediately stressing the
importance of integration. Indeed: no success possible without integration.
Complexity and coordination
Voor een eenvoudig product is de supply chain al vrij complex.
Avoid conflicting strategies
Manufacturers need to adapt to changing customers demand (e.g. fashion trends).
- Even if longer production run would be more profitable (why?).
Suppliers seek a long commitment to large quantities with flexible delivery times.
Warehouses and distribution centers aim to reduce inventory.
Uncertainty and risk factors
De supply chain is omgeven door allerlei risico’s en onzekerheden. Een bedrijf heeft hier
weinig invloed op.
- Most important uncertainty is demand.
- Forecasting alone is not a solution, het neemt niet de hele onzekerheid weg.
- Demand is not the only source – lead time.
- Recent trends make things more uncertain.
• Lean manufacturing.
• Outsourcing.
• Offshoring: waar de activiteit wordt uitgevoerd.
- Natural disasters: earthquake, hurricane, tsunami.
- Politics: strikes, trade sanctions (embargo).
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