Ch1 - Operations and Supply
Chain Management (Lecture 1)
Course Supply chain management
Status Done
Tags
Semester Semester 5
Type Book
Files
What is operations and supply chain
management (OSCM)?
Sort of a pipeline through which material and information flow.
Operations = manufacturing and service processes that are used to transform the
resources employed by a firm into products desired by customers
Supply chain = processes that move information and material to and from the
manufacturing and service processes of the firm.
Ch1 - Operations and Supply Chain Management (Lecture 1) 1
, Supply chain management = a set of approached utilized to efficiently integrate
suppliers, manufacturers, warehouses and stores, so that merchandise is produced and
distributed at the right quantities, to the right locations and at the right time, in order to
minimize system wide costs while satisfying service level requirements.
Supply chains are tough to manage (think of all the shortages & delays during
covid).
Forecasting doesn’t solve the problem. There are multiple, inter-related sources of
uncertainty;
Lead times, transportation times, natural disasters, supplier bankruptcy
Goal of supply chain management = maximize customer service levels, minimize costs
(not strictly a cost reduction paradigm).
Typically, in networks like these, each part of the network is controlled by different companies.
Ch1 - Operations and Supply Chain Management (Lecture 1) 2
, Key observations
Every facility that impacts costs needs to be considered
Efficiency and cost-effectiveness throughout the system is required
Multiple levels of activities
Strategic - Design SC network: choose a design that enables matching supply
with demand at the least cost & develop an overall procurement strategy and
select suppliers
Tactical & operational - Forecast demand, process orders, plan & manage
inventory, move product & plan production
Success in today’s global markets requires a business strategy that matches the
preferences of customers with the realities imposed by complex supply networks.
Trends and developments
Ch1 - Operations and Supply Chain Management (Lecture 1) 3
, Sustainable operations (sustainability)
Online sales keep growing
Delivery charges & time
Alternative delivery options (click and collect, fast delivery and many options)
Integration of technologies (e.g. texting consumers)
Omni-channel order fulfillment strategies
Anticipatory shipping
Airborne fulfillment centers (AFC), Amazon patent for storing and deploying
packages
Can mean a new stage in the evolution of SCM: Digital supply chains?
Data analytics, drones and robotics, automation, blockchain, autonomous objects &
cloud technologies
Operations and supply chain processes
Planning = processes needed to operate an existing supply chain strategically
(metrics, how anticipated demand will be met with available resources)
Ch1 - Operations and Supply Chain Management (Lecture 1) 4
