Chapter_1__Introduction_to_Supply_Chain_Management

Supply Chain ManagementYuhua ZhangProfessor of Guangdong University of Foreign StudiesTel: 020-39328850 E-mail: zhyh58@

Chapter1 Introduction to Supply Chain Management Chapter2 Logistics Network Configuration Chapter3 Inventory Management, Supply Contracts and Risk Pooling Chapter4 The Value of Information Chapter5 Supply Chain Integration Chapter6 Strategic Alliances Chapter7 Procurement and Outsourcing Chapter8 International Issues in SCM Chapter9 Design for Supply Chain Management Chapter10 Pricing and Customer Value

Chapter 1 Introduction to Supply Chain Management

Outline What Is A Supply Chain? SCM Architecture Strategies for SCM Why Supply Chain Management? Key Issues

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1.1 What Is A Supply Chain? The system of suppliers, manufacturers, transportation, distributors, and vendors that exists to transform raw materials to final products and supply those products to customers.Supplier Manufacturer Distributor Retailer Customer

Upstream

Downstream

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SCM

What is SCM?SCM is a business network covering from buying, making, moving, warehousing to selling

Making

Buying

Moving

What is SCM?SellingWare housing

What Is the Goal of Supply Chain Management? Supply chain management is concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed: – In the right quantities – To the right locations – At the right time In order to – Minimize total system cost– Satisfy customer service requirements

The right

+ + +The right The right

The right

+

The right

+

The right

=

Higher

Product

Price

Store

Quantity

Customer

Time

Profits

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Supply Chain management Concept

The power and the potential impact of supply chain management to make organizations more globally competitive and to increase market share with consequent improvement in shareholder value.©Copyright

Development of the Concept A number of studies done during the 1950s and 1960s indicated the potential of the systems concept if it were applied in business-related situations. The focus of physical distribution management was on the system costs and analyzing trade-off scenarios to arrive at the best or lowest physical distribution system cost. The system relationships that exist among transportation, inventory levels, warehousing, exterior packaging, materials handling, and customer service cost centers were analyzed and evaluated. The initial focus on physical distribution or outbound logistics was logical since finished goods were usually higher in value, which meant that their inventory, warehousing, materials handling, and packaging costs were relatively higher than for inbound raw materials.©Copyright

Development of the Concept The 1980s were a decade of change with the deregulation of transportation, financial institution, and the communication industry. The technology revolution

was also well underway. During the 1980s, the business logistics or integrated logistics management concept developed in a growing number of organizations. Logistics in its simplest form added the inbound side to outbound logistics of physical distribution management. The underlying logic of the systems concept was also the rationale for the development of the logistics management concept, because in addition to analyzing trade-offs for total cost it could also include the value or demand aspects of customer service effectiveness.©Copyright

Development of the Concept After 1990s, supply chain management can be viewed as a pipeline or conduit for the efficient and effective flow of products and materials, services, information, and financials (usually cash) from the supplier’s supplier through the various immediate organizations out to the customer’s customer. It is a system of connected networks between the original vendor and the ultimate final customer.

The extended enterprise or boundary spanning perspective of supply chain management represents a logical extension of the logistics concept, providing an opportunity to view to total system of interrelated companies and their impact for the final product in the marketplace in terms of its price-value relationship.©Copyright

Important Points Extended enterprise– Coordinated or integrated two-way flow of goods Reverse logistics systems

– Information Bull whip effect

Advanced shipment notices

– Financials (especially cash) “Free” cash flow

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SCM

Supply Chain StatusYet existing supply chain is managed manually, causing serious loss of efficiency and costT I E R 3 Supplier T I E R 2 Supplier Supplier T I E R 1 OEM

Supply Chain Status-Manual communication

Prospect of supply chain200078% 65% 28% Fax/ E-mail EDI On-line

200260% 60% 88%

(Phone/Fax/EDI)-Spontaneous planning -Hypothetical planning -Tier To Tier -Enormous inventory buffer

Forrester Research, 2000

SCM

Background of SCM and its effectThe change in the industrial environment demands the business to adopt to SCM and it can bring the following effects

Background Emerging new channel Standardization of product and tech Severe competition Speed management Internet booming Shorter product life cycle

Effects Channel integration

Speedy adaption to change supply chainEnhanced customer satisfaction Supply chain integration thru web Product life cycle management

“Competition among supply chains not among companies”

SCM

Components of SCMSCM is devided by SCP to offer optimized planning, SCE to stable execution platform, CP to collaborateSupply Chain Execution

Supply Chain PlanningOptimized planning for balanced supply for varied …… 此处隐藏：4711字，全部文档内容请下载后查看。喜欢就下载吧 ……