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Chapter 14 Supply chain management

Chapter 14 Supply chain management. Supply Chains. Supply Chain. The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function. 2. Supply Chains.

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Chapter 14 Supply chain management

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  1. Chapter 14Supply chain management

  2. Supply Chains Supply Chain The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function 2

  3. Supply Chains A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value Supply Chain Management 3

  4. Benefits of Supply Chain Management • Supply chain oriented companies commonly report: • Lower inventory, transportation, warehousing, and packaging costs • Greater supply chain flexibility • Improved customer service • Higher revenues • Increased profitability 10

  5. Supply Chain Integration Material and service supplier Integration Relationship Integration Internal Operations Integration Measurement Integration Customer Integration Technology and planning Integration Firm-to-Firm Social Interactions Operational Planning and Control Customer Integration 5

  6. Key Processes of Supply Chain Management 6

  7. Customer Relationship Management The prioritization of a firm’s marketing focus on different customer groups according to each group’s long-term value to the company or supply chain; designed to identify and build relationships with good customers. Customer Relationship Management Process 7

  8. Customer Service Management Customer Service Management Process A multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced; designed to ensure that customer relationships remain strong. 8

  9. Demand Management The alignment of supply and demand throughout the supply chain to anticipate customer requirements at each level and create demand-related plans of action prior to actual customer purchasing behavior. Demand Management Process 9

  10. Order Fulfillment A supply chain management process that involves generating, filling, delivering, and providing on-the-spot service for customer orders. Order Fulfillment Process 10

  11. Manufacturing Flow Management Manufacturing Flow Management Process A process that ensures that firms in the supply chain have the resources they need 11

  12. Supplier Relationship Management A supply chain management process that supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers Supplier Relationship Management Process 12

  13. Product Development and Commercialization The group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms. Product Development and Commercialization Process 13

  14. Returns Management A process that enables firms to manage volumes of returned product efficiently, while minimizing costs and maximizing the value of the returned assets to the firms in the supply chain. Returns Management Process 14

  15. Sourcing & Procurement Production Scheduling SupplyChainTeam Order Processing Logistics Information System Inventory Control Warehouse & Materials Handling Transportation Logistical Components of the Supply Chain

  16. Sourcing and Procurement • Plan purchasing strategies • Develop specifications • Select suppliers • Negotiate price and service levels • Reduce costs The Role of Purchasing:

  17. Traditional Focus Customer Focus Push / Pull Strategy Push Pull Start of Production Inventory-Based Customer-Order Based Manufacturing Mass Production Mass Customization Production Scheduling

  18. A process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed on the production line. Just-in-Time Manufacturing JIT

  19. Benefits of JIT • Reduces raw material inventories • Shortens lead times • Creates better supplier relationships • Reduces production and storeroom costs • Reduces paperwork

  20. Information technology that replaces paper documents that accompany business transactions with electronic transmission of the information. Order Processing ElectronicDataInterchange

  21. A method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer’s or a customer’s demand. Order Processing Inventory ControlSystem

  22. Materials Requirement Planning(MRP) An inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer. Distribution Resource Planning (DRP) An inventory control system that manages the replenishment of goods from the manufacturer to the final consumer. Order Processing

  23. Receive goods into warehouse Identify, sort, and label goods Dispatch the goods to temporary storage Recall, select, or pick the goods for shipment MaterialsHandling Functions

  24. Airways Water Pipelines Motor Carriers Railroads Transportation

  25. Transportation Mode Choice • Cost • Transit time • Reliability • Capability • Accessibility • Traceability 25

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