Ch 13 & 14

Be familiar with the 8 key processes of supply chain management.

Customer relationship management- CRM allows companies to prioritize their marketing focus on different customer groups according to each group's long-term value to the company or supply chain. Customer Service Management-The customer service management process presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced. -Hilton and reservationdesk.com Demand Management- The demand management process seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating customer-focused plans of action prior to actual purchases being made. -Seeks to minimize the costs of serving multiple types of customers who have variable wants and needs. -Collecting customer data, forecasting demand, and developing activities that smooth out demand (EDLP) Order Fulfillment- The order fulfillment process is a highly integrated process, often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time. -Order cycle time: the time between the order being place and the receipt of the order. -Shorter order cycle times allow the customer to carry less inventory. Manufacturing Flow Management- The manufacturing flow management process is concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process. -Flexible Manufacturing is facilitated with flexible agreements between suppliers and shippers. -Lean supply chain- build for inventory and focus on reducing waste. -Agile supply chain- produce when demand occurs using communications and flexibility to fill demand quickly. Supplier Relationship Management- The supplier relationship management process supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers. - a key step toward ensuring that firms' manufacturing resources are available Product Development and Commercialization- The product development and commercialization processes include the group activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms. Returns Management- The returns management process enables firms to manage volumes of returned product efficiently, while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain. - Allows for additional tough points with customers -Can result in a positive image of the organization if done correctly -Allows the firm to recognize weaknesses in product design

Know the benefits of supply chain management.

Supply chain oriented companies commonly report: Lower inventory, transportation, warehousing, and packaging costs Greater supply chain flexibility Improved customer service Higher revenues Relationship between supply chain performance and profitability -Honey Nut Cheerios- 2 to 4 factories saved 10% on fuel

Define supply chain, supply chain management, and marketing channel.

Supply chain- The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function. Supply chain (continued)- A company's supply chain includes all of the companies involved in all of the upstream and downstream flows of products, services, finances, and information, from initial suppliers (the point of origin) to the ultimate customer (the point of consumption). Supply chain management- A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value. Marketing channel-A set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer.

Be familiar with the logistical components of the supply chain to the extent of our class discussion.

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