Chapter 1
A process is simplified in; any activity or group of activities that takes one or more inputs, transforms
them, and provides one or more outputs for its internal- or external customers.
Processes can be linked together to form supply chains which is a interrelated of processes within a
firm and across different firms that produce a service or product to the satisfaction of its customers.
When we are closing in on a process we see that some have a subprocess, these are called nested
processes.
The two major process types are service and manufacturing. The difference between the two is that
manufacturing processes changes at least 1 out of 5 dimensions (materials. These dimensions are:
1. Physical properties
2. Shape
3. Size (e.g. length, breadth, and height of a rectangular block of wood)
4. Surface finish
5. Joining parts and materials
Output is then produced, stored and transported in anticipation of future demand.
So a process is either a service process (Non-manufacturing) or manufacturing process.
Even though they differ in the broad lines, similarities are common in a firm. But only when you are
looking close to a process you see the differences between them.
In a supply chain services or product should add value to the customers. The concept of supply chain
reinforces the link between processes and performance, which includes a firms internal processes as
well as those of its external customers and suppliers.
A core process is a set of activities that deliver value to its external customers, in this chapter we
know of four:
1. Supplier Relationship Process
i. A process that selects the supplier of services, materials and information and
facilitates the timely and efficient flow of these items into the firm.
2. New service/product Development Process:
i. A process that designs and develops new services or products from inputs
received from external customer specification or from the markets in general
through the custom relationship process
3. Order fulfilment process:
i. A process that includes the activities required to produce and deliver the
service or product to the external customer.
4. Customer Relationship Process or Customer relationship Management:
i. A process that identify, attracts, and builds relationships with external
customers and facilitates the placement of orders by customers.
2
, Samenvatting: Supply Chain Management H.1,2, 11 & 12.
The four core-processes above are typical with in a firm and needs input to add value to the supply
chain. Support processes provide vital resources and inputs to the core processes and therefor is
essential to the management of the business.
Some examples are, but not limited to:
- Employee recruitment
- Finance
- Help desks
- IT Networks
- Payroll
- Sales
Supply chain processes are business processes that have external customers or suppliers. Common
supply chain processes are:
- Logistics (Selecting transportation mode (train, ship, truck, airplane or pipeline))
- Warehousing (Receiving shipments from suppliers, verifying quality and placing in order)
- Customer service (Providing information to answer questions or resolve problems)
- Outsourcing (Exploring available suppliers for the best options to perform processes)
Operation strategy
Operation strategy specifies the means by which operations implement corporate strategy and helps
to builds a customer driven firm. It links long-term and shot-term operations decisions to corporate
strategy and develops the capabilities the firm needs to be competitive.
Developing a customer-driven operation strategy is a process that begins with corporate strategy.
Which provides an overall direction that serves as the framework for carrying out all the
organizations function.
To develop a corporate strategy we need to involve 4 considerations:
1. Environmental scanning
The process by which managers monitor the trends in the environment for potential
opportunities and threats. E.g. the industry, the marketplace and society.
2. Developing core competencies
Firms succeed by taking advantage of what they do particularly well – that is the
organizations strength; Core competencies.
These are:
Workforce
Facilities
Market and financial know-how
System and technology
3. Developing core processes
A firms core competencies should drive its core processes: Customer relationship, new
service or product development, order fulfilment and supplier relationship.
4. Developing Global Strategies
A global strategy includes buying foreign services or parts, combating threats from foreign
competitors or planning ways to enter markets beyond traditional national boundaries.
Two effective global strategies are (1) strategic alliances and (2) locating abroad.
2
A process is simplified in; any activity or group of activities that takes one or more inputs, transforms
them, and provides one or more outputs for its internal- or external customers.
Processes can be linked together to form supply chains which is a interrelated of processes within a
firm and across different firms that produce a service or product to the satisfaction of its customers.
When we are closing in on a process we see that some have a subprocess, these are called nested
processes.
The two major process types are service and manufacturing. The difference between the two is that
manufacturing processes changes at least 1 out of 5 dimensions (materials. These dimensions are:
1. Physical properties
2. Shape
3. Size (e.g. length, breadth, and height of a rectangular block of wood)
4. Surface finish
5. Joining parts and materials
Output is then produced, stored and transported in anticipation of future demand.
So a process is either a service process (Non-manufacturing) or manufacturing process.
Even though they differ in the broad lines, similarities are common in a firm. But only when you are
looking close to a process you see the differences between them.
In a supply chain services or product should add value to the customers. The concept of supply chain
reinforces the link between processes and performance, which includes a firms internal processes as
well as those of its external customers and suppliers.
A core process is a set of activities that deliver value to its external customers, in this chapter we
know of four:
1. Supplier Relationship Process
i. A process that selects the supplier of services, materials and information and
facilitates the timely and efficient flow of these items into the firm.
2. New service/product Development Process:
i. A process that designs and develops new services or products from inputs
received from external customer specification or from the markets in general
through the custom relationship process
3. Order fulfilment process:
i. A process that includes the activities required to produce and deliver the
service or product to the external customer.
4. Customer Relationship Process or Customer relationship Management:
i. A process that identify, attracts, and builds relationships with external
customers and facilitates the placement of orders by customers.
2
, Samenvatting: Supply Chain Management H.1,2, 11 & 12.
The four core-processes above are typical with in a firm and needs input to add value to the supply
chain. Support processes provide vital resources and inputs to the core processes and therefor is
essential to the management of the business.
Some examples are, but not limited to:
- Employee recruitment
- Finance
- Help desks
- IT Networks
- Payroll
- Sales
Supply chain processes are business processes that have external customers or suppliers. Common
supply chain processes are:
- Logistics (Selecting transportation mode (train, ship, truck, airplane or pipeline))
- Warehousing (Receiving shipments from suppliers, verifying quality and placing in order)
- Customer service (Providing information to answer questions or resolve problems)
- Outsourcing (Exploring available suppliers for the best options to perform processes)
Operation strategy
Operation strategy specifies the means by which operations implement corporate strategy and helps
to builds a customer driven firm. It links long-term and shot-term operations decisions to corporate
strategy and develops the capabilities the firm needs to be competitive.
Developing a customer-driven operation strategy is a process that begins with corporate strategy.
Which provides an overall direction that serves as the framework for carrying out all the
organizations function.
To develop a corporate strategy we need to involve 4 considerations:
1. Environmental scanning
The process by which managers monitor the trends in the environment for potential
opportunities and threats. E.g. the industry, the marketplace and society.
2. Developing core competencies
Firms succeed by taking advantage of what they do particularly well – that is the
organizations strength; Core competencies.
These are:
Workforce
Facilities
Market and financial know-how
System and technology
3. Developing core processes
A firms core competencies should drive its core processes: Customer relationship, new
service or product development, order fulfilment and supplier relationship.
4. Developing Global Strategies
A global strategy includes buying foreign services or parts, combating threats from foreign
competitors or planning ways to enter markets beyond traditional national boundaries.
Two effective global strategies are (1) strategic alliances and (2) locating abroad.
2
