Supply Chain #1

Global Supply Chain

- Focusing on lean production and quick response systems ( shipping and inventory information)

local supply chain

- first half of 21st century focused on self sufficiency - work with suppliers that are close to them - shift from "make" to "buy" model

trends in supply chain managment

- improving artificial intelligence - increasing sustainability - circular supply chain

Characteristics of Supply Chains (4)

-physical flow: physical movement of goods -information flow: updating info to partners about physical flow -funds flow: compensation to customers -relational flow: relationship between partners

Category killers

A store like ikea who just dominates over competition

BPR

Business process re engineering - data management information (digitalize your platform)

CE

Concurrent Engineering -collaboration and info sharing about customers expectations -product development -shorter time to market

DFM

Design for Manufactorability -design products to be. easily manufactorable -customizable, build to order

Explicit vs. Implicit information

Explicit: Transactional data, procedures, policies, lessons learned, performance criteria and revenue reports Implicit: Intuition, corporate sales and culture, and the SCM experience- harder to document

MRP

Materials requirement planning - demand for materials and knowing how much materials for the demand

Hidden Costs in Funds Flow

Overstock, stockouts, defective inventory and market fluctuations that add to the total cost of ownership (TCO)

QFD

Quality function development -direct customer interaction to understand preferences, likely for customers to be satisfied

Different flows in a generic supply

Raw material suppliers - intermediate component manufactures - transportation - wholesalers - retailers

Aligning with supplier categories

Scale: can be achieved when firm is large

4 Foundational elements in supply chain

Supply, operations, logistics, integration

ITO Model

The input transformation output (ITO) Model is the DNA of the supply chain- creating systematic, functioning system

What is supply chain management?

The planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities ... also includes coordination with channel partners, which can be suppliers, intermediaries, third party service providers, and customers.

TQM

Total quality management - on going, reduce errors in the supply chain

Trends in supply chain management (Trans, Trace, visibility)

Trans: external, what the company wants to share Trace: being able to track

Value Creation

Walmart: "everyday low Prices" separates them from. the competition and keeps customers coming back

omnichannel retailing

a multichannel approach to sales that seeks to provide a seamless shopping experience to customers(amazon)

Early Supply Chains

date back to the earliest time when traders obtained goods from merchants and then delivered them to buyers

multichannel retailing

providing multiple distribution channels for consumers to buy a product