supply chain management. definition of supply chain all the activities associated with the flow of...
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Definition of Supply Chain
All the activities associated with the flow
of goods and information from the raw
materials stage to the end users.
Materials and information flow both up
and down the supply chain.
Members of An Education Supply Chain
End Users: Employers and Society Supply Chain Members:
• Colleges and Universities
• High Schools
• Middle Schools
• Elementary Schools and Pre-Schools
• Families
Development of SCM
Pressure to increase productivity, reduce costs, and improve customer service
Increased use of outsourcing Globalization Increased transportation costs Advancement in information technology Emergence of new forms of inter-
organizational relationships
Strategic Issues
Design of Supply Chain
• Selection of supply chain members, locations, outsourcing decisions, etc
Strategic Alliance
• Alliance conceptualization
• Alliance pursuance
• Alliance confirmation
• Alliance implementation
Tactical Issues
Strategies and policies on inventories,
purchasing, transportation, quality, etc.
Design of supply chain information
systems
• Inter-organizational information systems
• Intra-organizational information system
What Are the Inter-Organizational Information Systems?
Internet
Extranet
Electronic Data Interchange (EDI)
Satellite systems
SCM software systems
What Are the Intra-Organizational Information Systems?
Intranet
Bar coding and scanners
RFID
Cable and wireless systems
ERP systems
Database and data warehouse systems
Operating Issues
External supply chain process mapping and improvement
• Business Process Reengineering
• Benchmarking Integrated logistics
• Third-party logistics
• Disintermediation
• Reverse logistics
External Process Improvement(Michael Hammer, HBR, Sept. 2001)
Scoping
• Identify the appropriate business process to redesign
• Select a partner Organizing
• Establish an executive steering committee
• Convene a design team
External Process Improvement(Michael Hammer, HBR, Sept. 2001)
Redesigning
• Design the new, integrated process in
a way that fulfills performance goals
Implementing
• Roll out the new process
• Communicate
Optimization of A Supply Chain
Inventory levels
Lot size
Lead time
Product variety
Customer service
Information
Performance Measures for SCM – SCOR (www.supply-chain.org)
Reliability
• On-time delivery, order fulfillment lead
time, fill rate, perfect order fulfillment
Flexibility
• Supply chain response time, upside
production flexibility
Performance Measures for SCM – SCOR (www.supply-chain.org)
Expenses
• Supply chain management cost, warranty cost as a percentage of revenue, value added per employee
Asset Utilization
• Total inventory days of supply, cash-to-cash cycle time, net asset turns
Trip-A Supply Chain(Hau Lee, HBR, Oct. 2004)
Agility – respond to short-term changes in demand or supply quickly; handle external disruptions smoothly
• Promote flow of information; dependable logistics system; design for postponement
Alignment – create incentives for better performance
• Equitably share risks, cost, and gain of improvement initiatives
Trip-A Supply Chain(Hau Lee, HBR, Oct. 2004)
Adaptability – adjust supply chain’s design
to meet structural shifts in markets; modify
supply network to strategies, products,
and technologies
• Spot new supply bases and markets;
create flexible product designs; develop
fresh supplies and logistics infrastructure
Strategies for Improving Supply Chain Performance
Determine the cost drivers and supply chain performance
Focus on the needs of the end users Understand trade partners’ priorities Develop a clear and focused strategy Assemble a high-performance project team Commit to long-term improvement
Software Systems for SCM
Collaborative Planning, Forecasting, and Replenishment (CPFR) - information sharing among supply chain partners
• Front-end agreement
• Joint business plan
• Sales forecast collaboration
• Order forecast collaboration
• Order generation/delivery execution