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