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Supply Chain Management
Transcript of Supply Chain Management
No consistency in supply chain
individual planning at every station in the supply chain
inaccurate planning is result for the creation of safety stock
low level of reaction on change in demand behavior
limited imagination of supply chain
lack of attention to internal and external operating capacity
Most important models in SCM
Components of Supply Chain Management (SCM)
- Definitions -
Supply Chain Network
Due to the rapid advancement of technology the basic supply chain is rapidly evolving into what is known as a Supply Chain Network.
All organizations have or can purchase the components to build a supply chain network, it is the collection of physical locations, transportation vehicles and supporting systems through which the products and services your firm markets are managed and ultimately delivered.
Supply chain management is a cross-functional approach that includes managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end consumer.
Supply Chain Management has three
levels of activities
1. Strategic -
company management will be looking to high level strategic decisions concerning the whole organization. The activities include building relationships with suppliers and customers, and integrating information technology (IT) within the supply chain.
2. Tactical -
focus on adopting measures that will produce cost benefits.
3. Operational -
decisions at this level are made each day in businesses that affect how the products move along the supply chain.
Supply Chain Management (SCM)
all coordination and management of all activities involved to achieve optimal performance.
all suppliers, production capabilities, distribution centers, deposits and customers together with raw materials, stock of semi-finished products and stock of finished products and all resources and information involved in customer satisfaction.
an economic process which connects suppliers, manufacturers, deposits, logistics, distributors and final customers.
1. Plan -
must be developed, to address, how a given good or service will meet the needs of the customers.
2. Develop (Source) -
building a strong relationship with raw materials suppliers.
3. Make -
the product is manufactured, tested, packaged, and scheduled for delivery.Supply chain managers schedule the activities necessary for production, testing, packaging and preparation for delivery.
4. Deliver -
companies coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.
5. Return -
customers may return defective products. The company will also address customer questions.
JIS - just in sequence
JIT - Just in time
- Channel coordination
- CRM - Customer relationship management
- ECR - Efficient Consumer Response
- JIS - Just in sequence
- JIT - Just in time
- Kaizen model
- Kanban model (Pull Concept)
- Knowledge-based view
- Materials logistics management
- Push principle
- Quick response manufacturing
- Resource-based view
- SCOR - Model (Supply Chain Operations Reference)
- Strategic choice theory
- TQM - Total quality management
- Transaction cost analysis
Kaizen is a Japanese term which means "change for the better." A company that practices kaizen is making small changes for the better on an ongoing basis- this is commonly called continuous improvement.
Practicing kaizen means eliminating waste. Taichi Ohno (Creater of this model) identified the "seven wastes" of manufacturing as:
SCM offer a range of considerable potentials
There are some currently problems in the implementation of SCM e.g. lack of cooperation of partner(s)
the implementation of SCM is often underestimated >>> using of SCM-Solution often by:
a) high level of suffering
b) market power of the partner is higher
Technology for integration of logistic is available but will be not used in a full extent.
Most famous models in SCM
Typical problems in SCM (Examples)
Modern SCM synchronizes Offer and Demand in the whole supply chain
How the SCM can be optimized?
Products queue should be kept as small as possible.
Integration of all partners in this tasks
Reduction of information barriers between planning and control
Creation of transparency
Automation of standard workflow in order to overcome with special situation.