Summary Guide to Supply Chain Management book, second edition, by Colin Scott, Henriette Lundgren, Paul Thompson.'
Summary written for the course International Supply Chain Management in year 1 and year 2.
Contents
CHAPTER 1 .......................................................................................................................................... 3
START OF SUPP. CHAIN................................................................................................................. 3
PLAN PROCESS ................................................................................................................................ 3
SUPPLAY CHAIN ARCHITECTURE .............................................................................................. 3
SUPPLY CHAIN DINAMICS ........................................................................................................... 3
CHAPTER 2 .......................................................................................................................................... 4
Inventory........................................................................................................................................ 4
Demand .......................................................................................................................................... 4
The sales and operation planning (S&OP) ................................................................................. 5
Zara example ................................................................................................................................... 6
Big data .......................................................................................................................................... 6
CHAPTER 3 .......................................................................................................................................... 7
SOURCING ........................................................................................................................................ 7
PROCESSING PROCESS .................................................................................................................. 7
TACTICAL SOURCING ................................................................................................................... 7
CATEGORY SOURCING/MANAGEMT ......................................................................................... 7
SOURCING STRATEGY MATRIX.................................................................................................. 8
SUPPLIER RELATIONSHIP MANAGEMENT (SRM) ................................................................... 8
SUSTAINABILITY AND RESPONSABILE SOURCING .............................................................. 8
SOURCING IN THE DIGITAL AGE ................................................................................................ 8
SOURCING MANAGEMENT TOOLS ............................................................................................ 8
CHAPTER 4 .......................................................................................................................................... 9
MANUFACTURING PLANNING AND CONTROL ....................................................................... 9
MANUFACTURING PROCESSES................................................................................................... 9
MASTER PRODUCTION SCHEDULING ....................................................................................... 9
MATERIALS REQUIREMENT PLANNING ................................................................................. 10
CAPACITY REQUIREMENTS PLANNING (CRP) ...................................................................... 10
DISTRIBUTION REQUIREMENT PLANNING (DRP) ................................................................ 10
JUST IN TIME STRATEGY (JIT)................................................................................................... 10
LEAN MANUFACTURING ............................................................................................................ 10
TOTAL QUALITY MANAGEMENT (TQM) ................................................................................ 10
WASTES CATEGORIES ................................................................................................................. 11
CHAPTER 5 ........................................................................................................................................ 11
FACILITY LOCATION DECISIONS ............................................................................................. 11
, DELIVERY COMPONENTS .......................................................................................................... 11
CHAPTER 6 ........................................................................................................................................ 13
RETURN .......................................................................................................................................... 13
DRIVERS OF RL: ............................................................................................................................ 13
THE RETURN PROCESS ............................................................................................................... 13
RETURN BUSINESS MODELS ..................................................................................................... 14
PRODUCT RECOVERY ISSUES ................................................................................................... 14
IMPROVING RETURNS ................................................................................................................. 14
GOLDEN RULES FOR RETURN MANAGEMENT ..................................................................... 14
CHAPTER 10 ....................................................................................................................................... 14
CUSTUMER SERVICE ................................................................................................................... 14
CUSTOMERS................................................................................................................................... 15
MANAGING VARIABILITY.......................................................................................................... 15
KEY CUSTOMERS ......................................................................................................................... 15
CUSTOMER LIFE TIME VALUE .................................................................................................. 15
CUSTOMER SERVICE AMBASSADORS .................................................................................... 15
DELIVERING AGAINST CUSTOMERS NEEDS ......................................................................... 15
CHAPTER 7 ........................................................................................................................................ 16
Corporate strategy ...................................................................................................................... 16
4 drivers of supply chain performance = .................................................................................. 16
5 inventory strategy .................................................................................................................... 17
Lean and agile ............................................................................................................................. 17
Postponement .............................................................................................................................. 17
CHAPTER 9 ........................................................................................................................................ 17
The business process ................................................................................................................... 17
ROCE ........................................................................................................................................... 18
6 supply chain performance levers ............................................................................................ 18
CHAPTER 11 ...................................................................................................................................... 19
Outsourcing ................................................................................................................................. 19
The tendering process ................................................................................................................. 19
, CHAPTER 1
START OF SUPP. CHAIN
1. FLOW OF MATERIALS: The materials range from raw materials, to work in progress, all the
way to finished goods.
2. REVERSE FLOW ARE: Goods, information (costumer feedback), packaging material,
transportation equipment.
3. REVERSE FLOW OF FOUNDDS: money that flows back in the supply chain.
There are 2 forces in the chain of goods, information and founds.
• PRODUCT SUPPLY: Commodities (products of the supermarket), electronics, fashion clothes,
are produced on a product supply basis.
• COSTUMER DEMAND: product with high degree of customization or innovation. Tailor-
made clothes, customised tools..
PLAN PROCESS
In the plan process the demand and supply are balanced to develop a course of action to meet sourcing,
production, and delivery needs. The plan process aligns the supply chain with the financial plan.
1. Selecting suppliers, establishing policies and assessing performance. Once demand and supply
are planned and materials sourced, you can start with the actual manufacturing.
2. MANUFACTURING: all processes that transform raw materials into the finished product, with
the aim to meet costumer demand.
3. After manufacturing, the products are ready for DISTRIBUTION or DELIVERY (delivery
function provide finished good to costumer).
4. The last process is the RETURN.
SUPPLAY CHAIN ARCHITECTURE
UPSTREAM SIDE: towards supply. DOWNSTREAM SIDE: towards demand
Consist of 3 nodes: the company, the supply, the costumer.
In extended supply chain there are 3 more: on upstream side supplier’s supplier. On downstream side
costumer’s costumer. But may have also more.
COSTUMERS can be: distributors (company that take inventory in bulk from manufactures and
deliver), wholesalers (buy from distributors or manufacturers directly), or retailers (stock products in
smaller quantities, and sell them to the general public).
SUPPLY CHAIN DINAMICS
The challenge in supply chain management is to balance the level of inventory while maintaining a high
level of service. External influences will affect the equilibrium (es/ demand for ice cream depend on
how hot is during summer).
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