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1、,21st-Century Supply Chains,Overview of 21st-century supply chains,The supply chain revolution Why integration creates value Generalized supply chain model Responsiveness Financial sophistication Globalization,Introduction,Question P20 3. Compare the concept of a modern supply chain with more tradit
2、ional distribution channels. Be specific regarding similarities and differences.,The supply chain revolution has reshaped contemporary strategic thinking,Supply Chain Management Consists of firms collaborating to leverage strategic positioning and to improve operating efficiency Supply Chain Strateg
3、y Is a channel and business organizational arrangement based on acknowledge dependency and collaboration Logistics The work required to move and geographically position inventory,Successful supply chain strategies,Successful supply chain strategies,Source: Supply Chain Management Review, March/ Apri
4、l 2000, p. 29.,P20 4. What specific role does logistics play in supply chain operations? 1.Why can the current movement toward establishing supply chains be characterized as a revolution?,Question,Origins of Supply Chain Management,1950s & 1960s U.S. manufacturers focused on cost reduction and produ
5、ctivity improvement strategies 1960s-1970s Introduction of new computer technology lead to development of Materials Requirements Planning (MRP) to coordinate inventory management,Origins of Supply Chain Management Cont.,1980s & 1990s Intense global competition led U.S. manufacturers to adopt Supply
6、Chain Management along with Just-In-Time (JIT), Total Quality Management (TQM), and Business Process Reengineering (BPR) practices,Origins of Supply Chain Management Cont.,2000s and Beyond Industrial buyers will rely more on third-party service providers to improve purchasing and supply management W
7、holesalers/retailers will focus on transportation and logistics more & refer to these as quick response, service response logistics, and integrated logistics,The total integration of the overall business process creates value,Table 1.1 Integrative Management Value Proposition,P20 2. Compare and cont
8、rast economic, market, and relevancy value.,Question,The integrated value-creation process must be managed across firms from end to end,Figure 1.1 The Integrated Supply Chain Framework,What is a Supply Chain?,A supply chain consists of the flow of products and services from: Raw materials manufactur
9、ers Intermediate products manufacturers End product manufacturers Wholesalers and distributors and Retailers Connected by transportation and storage activities, and Integrated through information, planning, and integration activities,What is a Supply Chain?,What is Supply Chain Management?,Here are
10、two definitions: The design and management of seamless, value-added process across organizational boundaries to meet the real needs of the end customer Institute for Supply Management Managing supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory
11、tracking, order entry and order management, distribution across all channels, and delivery to the customer The Supply Chain Council,What is Supply Chain Management? -Cont.,Old paradigm- Firm gained synergy as a vertically integrated firm encompassing the ownership and coordination of several supply
12、chain activities. New paradigm- Firm in a supply chain focuses activities in its area of specialization and enters into voluntary and trust-based relationships with supplier and customer firms.,Importance of Supply Chain Management?,Firms have discovered value-enhancing and long term benefits Who be
13、nefits most? Firms with: Large inventories Large number of suppliers Complex products Customers with large purchasing budgets,Importance of Supply Chain Management? Cont.,Firms with Supply Chain Management: Start with key suppliers Move on to other suppliers, customers, and shippers Integrate second
14、 tier suppliers and customers (second tier refers to the customers customers and the suppliers suppliers),Importance of Supply Chain Management? Cont.,Cost savings and better coordination of resources are reasons to employ Supply Chain Management Reduced Bullwhip Effect- the magnified reduction of s
15、afety stock costs based on coordinated planning and sharing of information Process Integration- Interdependent activities can lead to improved quality, reduced cycle time, better production methods, etc.,Forces driving supply chain strategies,Information technology Integrative management Responsiven
16、ess Financial sophistication Globalization,Integrative management requires simultaneous achievement of 8 processes,Table 1.2 Eight Supply Chain Processes,P20 5.Describe Integrative Management. Be specific concerning the relationship between functionality and process.,Question,Concepts necessary for achieving integrated management,Lowest total process cost is the focus of integrated management Differs from lowest cost of each function in the process Collaboration of
