Supply Chain Management (SCM)
The Efficient Integration of all parties associated with the
successful delivery of the final product and/or service.
USING THE FOLLOWING NETWORK
Suppliers, Manufacturers , Transporters
Distribution Centers, Warehouses, Retailers, etc.
Procurement
branch of an organization responsible for acquiring materials, equipment, products and services.
(Purchasing)
Examples of duties:
•Supplier selection
•Purchasing negotiations
•Managing supplier relationships – Motivation, Development
,•Materials/Inventory management
Operations
Responsible for making business processes EFFECTIVE and EFFCIENT that transforms INPUTS into
FINISHED GOODS and SERVICES.
Examples of duties:
•Process management, Plant management
•Capacity planning – resources, speed (How much, how fast?)
•Scheduling jobs/people
•Waiting line management
•Process improvement projects
Logistics
The COORDINATED Planning and Execution of the following:
,–Preparation of Packaged Product
–Movement Itinerary (Transport)
–Storage Itinerary (Warehousing)
–Product Distribution throughout the Supply Chain – Who gets what? When? How?
ORIGIN -----> To the FINAL DESTINATION
Examples of duties:
• Distribution/Warehousing, Infrastructure Mgmt.
• Packaging, containerization, transportation, documentation
• Third party management and communication
Reverse Logistics
management of products that flow backwards in the supply chain (upstream), away from the consumer
and back in the direction of manufacturers
Products/Services
Cost, Quality, Speed, Flexibility
, (Sales, Support, Returns)
Waste
Non-Valuable Outputs
Defects
Garbage, Emissions
Resource Waste
Global SCM
suppliers, manufacturers, transportation companies, warehouse and distribution centers, retailers, and
other supply chain partners span across multiple countries and/or continents.
1st, 2nd and 3rd Tier Suppliers
Tier 1 Suppliers are your direct suppliers.
Tier 2 suppliers are your suppliers' suppliers or companies that subcontract to your direct suppliers.
Tier 3 suppliers are the suppliers or subcontractors of your tier 2 suppliers.
Upstream vs. Downstream