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The Supply Chain

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loreleen vasquez

on 28 February 2015

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Transcript of The Supply Chain

How Internet Affects Supply Chain
How is the internet affecting supply chain?
Trends and Company Focuses
What are Trends?
In Conclusion...

Relationships and Information
1. Closeness relationship with customers and business associates.
2. Trust
3. Leadership roles, shared responsibilities and rewards and penalties.
Hopkins Six Trends
Refers to the management of different processes, such as customer relationship management, customer service, demand management, order management, production and material flows and purchasing.
Supply chain activities cover everything from :

- Product development
- Sourcing
- Production
- Logistics

as well as the information systems needed to coordinate these activities.
Product Development
1. Globalization
2. The significant increase in Logistics costs.
3.The increase in the level of risk that many companies are exposed to.
4.An increase in labor costs developing countries.
5. Companies focusing on sustainability.
6. Increase volatility of commodity prices.
Trends are a general direction in which something is developing or changing.
What are Companies Focusing on?
Material Flow Consists of practices such as flow through assortment, continuous replenishment, and warehouse based product customization.
Offering new or improved products for present markets.
Making goods or performing services.
The transporting, storing, and handling of goods in ways that match target consumers' needs with a firm's marking mix-both within individual firms and along a channel of distribution.
Material Flow
Any Questions or Comments?
The internet is creating opportunities to apply optimization.
Its changing supply relationship with vendors
Cost Reduction
Shortening the Supply Chain
Increased Interdependence
Cost of Implementation
Keeping up with the changes.
Supply Chain (What is Supply Chain?)
What Companies are Focusing on.
How the Supply Chain is affected by the Internet.
Measuring Supply Chain Performance
1. Efficiency focuses on minimizing cost by decreasing the inventory investment or value relative to the cost of goods sold. An efficient firm is therefore one with a higher inventory turnover or fewer weeks' worth of inventory on hand.

2. Responsiveness focuses on reduction in both inventory cost and missed sales that comes with a faster, more flexible supply chain. A responsiveness firm is proficient in an uncertain market environment, because it can quickly adjust production to meet demand.

3.Effectiveness of the supply chain relates to the degree to which the supply chain creates value for the customer. Effectiveness-focused Supply Chains are called "Value Chains" because they focus more on creating customer value than reducing costs and improving productivity.
Supply Chain Management covers product development, sourcing, production, logistics, relationships, as well as the information systems needed to coordinate these activities. On the other hand, trends have been developing on globalization, with a significant increase in: logistics, level of risks to company exposure, and labor cost in developing countries. This also includes how companies are focusing on sustainability with an increase in the volatility of commodity prices. With that in mind the internet is changing the Supply Chain Management relationship with vendors creating opportunities to apply optimization.
Supply Chain
The Complete Set of firms and Facilities and logistics activities that are involved in procuring materials, transforming them into intermediate and finished products, and distributing them to customers.
Sourcing is a long term strategy.
Delivers a sourcing infrastructure incrementally.
It is highly adaptable, and delivers value.
Full transcript