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Understanding Supply Chain Management: Consequences, Definition, Evolution, and Strategies, Slides of Business Administration

Manav Bharti UniversityBusiness Administration

An overview of supply chain management (scm), discussing its consequences, definition, evolution, and various strategies. Scm is an integrative philosophy to manage the flow of goods and information from suppliers to ultimate customers, aiming to reduce costs and add value. Topics like functional vs. Integrated scm, different visions, types, and industry specificities. It also emphasizes the importance of consumer responsiveness and understanding the concept of value.

Typology: Slides

2012/2013

Uploaded on 07/29/2013

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Consequences
•Lack of knowledge of the end-to-end demand
function –high levels of uncertainty
•Erratic variations in demand (Bull whip effect)
•inconsistent / out-of-date data about SC (poor
decision making)
•Fragmentation of processes and operations
•lack of process integration with partners
•need for fundamental structural changes
•Need for integrated information systems
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Download Understanding Supply Chain Management: Consequences, Definition, Evolution, and Strategies and more Slides Business Administration in PDF only on Docsity!

Consequences

  • Lack of knowledge of the end-to-end demand

function – high levels of uncertainty

  • Erratic variations in demand (Bull whip effect)
  • inconsistent / out-of-date data about SC (poor

decision making)

  • Fragmentation of processes and operations
  • lack of process integration with partners
  • need for fundamental structural changes
  • Need for integrated information systems

Supply Chain Management is…

  • an integrative philosophy to manage the flow of goods and information from the earliest supplier of raw materials to the ultimate customer through integration and collaboration of all channel partners”
  • SCM aims to reduce costs and add value for the consumers through more efficient and effective supply chain linkages
  • Operative across a range of industries
  • Leverages new technologies to achieve these aims

A Definition

  • ‘Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion and all logistics management activities. Importantly it also includes coordination and collaboration with the channel partners, which can be suppliers, intermediaries, the third party service providers, and customers. In essence the supply chain integrates supply and demand management within and across companies.’

Evolution

  • Functional to integrated
  • Mass Production to Lean to agile and then

leagile

Types of SCM

  • Integrated Make-to-stock
    • smoothing demand in mass production industries
    • linked to postponement in distribution channel
  • Continuous replenishment
    • customer-demand pull system across firms
    • ECR, QR
  • Build-to-order
    • efficient SCM allows return to BTO model
    • inventory substituted with information (Dell)

Understanding industry specificities

  • Type of product
  • Complexity of production process
  • Type(s) of customers
  • Complexity of supply chain (eg: lead times)
  • Complexity of demand function (eg: seasonality)
  • These determine the strategies that are suitable

Elements of consumer responsiveness

  • Product Availability
  • Length of order cycle Time
  • Consistency of Order Cycle Time
  • Invoice/ Billing Procedure Accuracy
  • Information Requests responsiveness
  • Flexibility in resolving problems
  • Distance to suppliers warehouse
  • Special Customer Request
  • Frequency of Damaged Goods
  • Quality of Order Department
  • On time Delivery
  • A combination of there will add to customer satisfaction

Understanding the concept of value

Hill’s manufacturing strategy matrix

Christopher and Towill (2002)