Supply chain management
Introducti on
Not only book, also cases, and homework that is discussed in class -> multiple choices questions
(ABCD) 40 questions
SCM will enable you to solve complex business problems related to the journey of products and
services from the manufacturer or provide to the end customer.
Every organization must make a product or service that someone values. Most organizations
function as apart of a larger supply chains. Organizations must carefully manage their operations and
supply chains in or to survive.
A common definitions of logistics: SEVEN RIGHTS OF LOGISTICS
Getting:
The right product
To the right customers
At the right time
At the right place
In the right condition
In the right quantity
At the right cost
Logistic meaning;
“Logistics management is that part of the supply chain management, that plans, implements, and
controls the efficient, effective forward and reverse flow and storage of goods, services and related
information between the point of origin and the point of consumption in order to meet customers
requirement.”
A supply chain ‘encompasses all activities associated with the flow and transformation of goods from
the raw material stage (extraction), through to the end user, as well as the associated information
flows’.
Take over the picture from supply chain slide with the suppliers etc and make questions from the
PowerPoint.
Transformation process: input -> output -> product
Questions:
True
True
False
According to airmic the following 7 factors underlie supply chain failures:
1. Offshoring, making it increasingly difficult for firms to monitor supply chains adequately
2. Increasing complexity of supply chains, meaning companies were often unaware of who
their suppliers were subcontracting to
3. Cost pressures, which could lead to compromise on quality and ethics
4. Geographic clustering, making manufactures vulnerable to a localized disaster such as the
Japanese tsunami of 2011
5. Modern communications, which can quickly damage reputations
, 6. Just-in-time production methods, which have reduced the time to recover from supply chain
failure
7. Dependence on multiple suppliers, increasing overall vulnerability
The active management of supply chain activities and relationships in order to maximize customer
value and achieve a sustainable competitive advantage.
Upstream: a term used to describe activities or firms that are positioned earlier in the supply chain
relative to some other activity or firm interest. For example, corn harvesting takes place upstream of
cereal process and cereal processing takes places upstream of cereal packaging.
Downstream: a term used to describe activities or firms that are positioned later in the supply chain
relative to some other activity or firms interest. For example, sewing a shirt takes place downstream
of weaving fabric, and weaving the fabric takes place downstream of harvesting the cotton.
Read chapter 1 & 2, make case study CH. 1
Training two
Uncertainties and SC risk
Take over from PowerPoint
Due to its global nature and systemic impact on firm’s financial performance, the supply chain
arguable faces more risk than other areas of the company.
Supply chain managers thinks with and from the business and the functions (departments) in the
business and come with solutions for the company as well as for the customer. A strategy is planning
a business plan for in the future.
Decisions guided by the structural strategy;
- Facilities
Services, manufacturing, warehouse, distribution hubs-> size, location, degree of
specialization
- Capacity
Amount, type, timing
- Technology
Services/manufacturing, material handling equipment, transportation equipment,
information systems
- Organization
Structure, control/reward systems, workforce decision
- Sourcing/purchasing
Sourcing strategies, supplier selection, supplier performance, measurement
- Planning and control
Forecasting, tactical planning, inventory management, production planning and control
- Business processes and quality management
Six Sigma, Continuous improvement, statistical process control
- Product and service development
The development process, organizational and supplier roles
Value Analysis: a process for assessing the value of a product or service
Value index: a measure that uses the performance and importance scores for various dimensions of
performance for an item or a service tot calculate a score that indicates the overall value of an item
or a service to a customer