Chapter 14 Supply chain management. Supply Chains. 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. 2. Supply Chains. - PowerPoint PPT Presentation
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Chapter 14Supply chain managementSupply Chains2Supply ChainThe
connected chain of all of the business entities, both internal and
external to the company, that perform or support the logistics
functionChapter 14 Supply Chain Management
22Supply Chains3Supply Chain ManagementA 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 valueChapter 14 Supply Chain Management
33.Benefits of Supply Chain Management10Supply chain oriented
companies commonly report:
Lower inventory, transportation, warehousing, and packaging
costs
Greater supply chain flexibility
Improved customer service
Higher revenues
Increased profitability Chapter 14 Supply Chain Management
44Supply Chain Integration5Material and service supplier
IntegrationInternal Operations IntegrationCustomer
IntegrationRelationship IntegrationMeasurement
IntegrationTechnology and planning IntegrationFirm-to-Firm Social
InteractionsOperational Planning and ControlCustomer
Integration
Chapter 14 Supply Chain Management
55Key Processes of Supply Chain Management6
Chapter 14 Supply Chain Management
66Customer Relationship Management7Customer Relationship
Management ProcessThe prioritization of a firms marketing focus on
different customer groups according to each groups long-term value
to the company or supply chain; designed to identify and build
relationships with good customers.
Chapter 14 Supply Chain Management
77Customer Service Management8Customer ServiceManagement
ProcessA multi-company, unified response system to the customer
whenever complaints, concerns, questions, or comments are voiced;
designed to ensure that customer relationships remain
strong.Chapter 14 Supply Chain Management
88Demand Management9DemandManagement ProcessThe alignment of
supply and demand throughout the supply chain to anticipate
customer requirements at each level and create demand-related plans
of action prior to actual customer purchasing behavior.
Chapter 14 Supply Chain Management
99Good demand management can increase both sales and customer
satisfaction, and at the same time, it can reduce the overall cost
of serving the firm or supply chains customer base.Order
Fulfillment10Order FulfillmentProcessA supply chain management
process that involves generating, filling, delivering, and
providing on-the-spot service for customer orders.
Chapter 14 Supply Chain Management
1010Manufacturing Flow Management11Manufacturing Flow Management
ProcessA process that ensures that firms in the supply chain have
the resources they need
Chapter 14 Supply Chain Management
1111Supplier Relationship Management12Supplier Relationship
Management ProcessA supply chain management process that supports
manufacturing flow by identifying and maintaining relationships
with highly valued suppliers
Chapter 14 Supply Chain Management
1212Product Development and Commercialization13Product
Development and Commercialization ProcessThe group of activities
that facilitates the joint development and marketing of new
offerings among a group of supply chain partner firms.
Chapter 14 Supply Chain Management
1313Returns Management14Returns Management ProcessA process that
enables firms to manage volumes of returned product efficiently,
while minimizing costs and maximizing the value of the returned
assets to the firms in the supply chain.
Chapter 14 Supply Chain Management
1414Logistical Components of the Supply
ChainSupplyChainTeamSourcing & ProcurementProduction
SchedulingOrder ProcessingInventory ControlWarehouse &
Materials HandlingTransportationLogistics Information SystemChapter
14 Supply Chain Management
15Sourcing and ProcurementPlan purchasing strategies
Develop specifications
Select suppliers
Negotiate price and service levels
Reduce costsThe Role of Purchasing:Chapter 14 Supply Chain
Management
16Production SchedulingPush / Pull StrategyTraditional Focus
PushStart of ProductionManufacturingInventory-BasedMass
ProductionCustomer Focus PullCustomer-Order BasedMass
CustomizationChapter 14 Supply Chain Management
17Just-in-Time Manufacturing
A process that redefines and simplifies manufacturing by
reducing inventory levels and delivering raw materials just when
they are needed on the production line.JITChapter 14 Supply Chain
Management
18Benefits of JITReduces raw material inventoriesShortens lead
timesCreates better supplier relationshipsReduces production and
storeroom costsReduces paperworkChapter 14 Supply Chain
Management
19Order Processing
Information technology that replaces paper documents that
accompany business transactions with electronic transmission of the
information.ElectronicDataInterchangeChapter 14 Supply Chain
Management
20Order Processing
A method of developing and maintaining an adequate assortment of
materials or products to meet a manufacturers or a customers
demand.InventoryControlSystemChapter 14 Supply Chain Management
21Order ProcessingMaterialsRequirementPlanning(MRP)An inventory
control system that manages the replenishment of raw materials,
supplies, and components from the supplier to the
manufacturer.DistributionResourcePlanning(DRP)An inventory control
system that manages the replenishment of goods from the
manufacturer to the final consumer.Chapter 14 Supply Chain
Management
22MaterialsHandling FunctionsReceive goods into
warehouseDispatch the goods totemporary storage Recall, select, or
pick the goods for shipment Identify, sort, and label goodsChapter
14 Supply Chain Management
23TransportationAirwaysWaterPipelinesMotor
CarriersRailroadsChapter 14 Supply Chain Management
24Transportation Mode Choice25CostTransit
timeReliabilityCapabilityAccessibilityTraceabilityChapter 14 Supply
Chain Management
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