What is SCM?

Supply Chain Management

By: Keiko Arai

What is Supply Chain Management? CSCMP: “Supply chain management encompasses

the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies.”

APICS: “Design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."

How much does it cost to make money?

$1.00 you save= $1.00

$1.00 you make= $0.15

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$Total Revenue

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$ $$

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=Total Cost

Profit

T-Shirt

Cotton!

The five leading exporters of cotton in 2009:

(1)United States(2) India(3) Uzbekistan(4) Pakistan (5) Brazil

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Export!$

Manufacturing!

Printing!

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Packaging!$

Import! $

Distribution/Warehousing!$

Retail Store$

Raw Materials Manufacturing

Distribution Retail Store

= Logistics!

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How much does it cost to make money?

$1.00 you save= $1.00

$1.00 you make= $0.15

$$ $

$Total Revenue

-$

$ $ $

$$

$$$$

$ $$

$

$

$

$$

$

$$ $

=Total Cost

Profit

Supply Chain Management

Study of ProcessesBetterCheaperFaster

Reduce CostSaving Money!

Sourcing &Procurement

Supplier Management

Contract Management

Improving and Reevaluating Purchasing Activities

Manufacturing Jean Manufacturing

LEAN manufacturing Continuous Improvement Just-in-Time

6- Sigma 3.4 Defects per 1,000,000

•Craft or Guild System•Putting-out system•Mass Production•Just In Time Manufacturing•Lean Manufacturing•Mass Customization•Agile Manufacturing•Prefabrication•Packaging and Labeling•Ownership

Methods:

Distribution/Warehousing Order Fulfillment Direct to Store Direct to Consumer 50,000 sq ft- 300,000 sq ft

Topeka Service Area

Logistics

A B B A 3rd Party Logistics

Modes of Transportation Truck Rail Ocean Air

UPS Global Worldport Hub

Forecasting/Demand Planning Time series methods Moving average weighted moving average Exponential smoothing Autoregressive moving average (ARMA) Autoregressive integrated moving average (ARI

MA) Linear prediction Trend estimation Growth curve Causal / econometric forecasting methods Regression analysis Autoregressive moving average with exogenous

inputs (ARMAX)

You’re either wrong, or you’re lucky!

Inventory Management

What of how much do we have?

Where? How much

and where it is in use?

How much is in order and on its way?

“International Business”

BuyMakeSell

Internationally!

Raw Materials Manufacturing

Distribution Retail Store

= Logistics!

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Who should major in SCM?

Love and embrace change!FlexibleNo “right answer”Big Picture

Internships and Full time Positions

Questions?