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Chap 1 - Intro

The goal of a supply chain is to efficiently and effectively deliver products and services to customers. Supply chain decisions can significantly impact a firm's success. For example: - Amazon's decisions around inventory management, fulfillment centers, and delivery logistics are critical to providing customers with fast, low-cost shipping - core to its business model. Inefficient decisions in these areas could degrade the customer experience and competitiveness. - Production and sourcing decisions must balance costs and quality. Outsourcing strategies, supplier relationships, and inventory levels all shape a firm's resiliency and ability to adapt to demand changes. Missteps can lead to stockouts, excess costs, or quality issues. Managing supply chain flows well maximizes

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35 views

Chap 1 - Intro

The goal of a supply chain is to efficiently and effectively deliver products and services to customers. Supply chain decisions can significantly impact a firm's success. For example: - Amazon's decisions around inventory management, fulfillment centers, and delivery logistics are critical to providing customers with fast, low-cost shipping - core to its business model. Inefficient decisions in these areas could degrade the customer experience and competitiveness. - Production and sourcing decisions must balance costs and quality. Outsourcing strategies, supplier relationships, and inventory levels all shape a firm's resiliency and ability to adapt to demand changes. Missteps can lead to stockouts, excess costs, or quality issues. Managing supply chain flows well maximizes

Uploaded by

Quỳnh Hương
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Supply Chain Management

Nguyễn Thị Bích Trâm, PhD


Tram.ntb@ou.edu.vn
Chapter 1: Introduction to SCM

Chapter 2: Planning and forecasting in SCM


Course
outline
Chapter 3: Purchasing and supply
management
Chapter 4: Operation management

Chapter 5: Logistics and distribution

Chapter 6: Integrated SCM


Jacobs, R., & Chase, R. B.
(2018). Operations and supply
Main chain management (15th ed.).
references McGraw Hill.

Wisner, J. D., Tan, K.-C., &


Leong, G. K. (2019). Principles
of Supply Chain Management:
a balanced approach. (5th ed.).
Boston, USA: Cengage
Course assessment

• Group working
• Individual tests in
class
• Final examination
Chapter 1: Introduction to SCM
Nguyễn Thị Bích Trâm, PhD
Tram.ntb@ou.edu.vn
Key questions
• What is a supply chain?
• Why does supply chain management
matter?
• How to manage supply chain?
• What are the major challenges of supply
chain management?
APPLE’S
SUPPLY
CHAIN
A supply chain

• A network of connected and


interdependent organizations mutually
and co-operatively working together to
control, manage and improve the flow of
materials and information from suppliers
to end users (J Aitken)
Primary purposes of
supply chain
• To satisfy customer needs.
• Only one source of revenue – the customer
• Payments between parties are just fund exchanges
• Division of intra-SC payments are a function of
power, market conditions, etc.
• To maximise:

The total value generated = [What customer pays] – [Total effort expended to fulfill]
Supply Chain Management
according to the Council of Supply Chain Management Professionals

• Supply chain management encompasses the planning


and management of all activities involved in sourcing,
procurement, conversion, and logistics management
Logistics: Managing
flow of items,
information, cash
and ideas

SCM: Managing a
network consisting
of suppliers,
manufacturers,
distributors and
customers

Logistics vs Supply Chain Management


Supply chain processes
Questions

Using the figure as a model, describe the source-make-


deliver-return relationships in the following systems:
a. An airline
b. An automobile manufacturer
c. A hospital
d. An insurance company
Differences between services
and goods
• A service is an intangible process that cannot
be weighed or measured, whereas a good is a
tangible output of a process that has physical
dimensions
• A service requires some degree of interaction
with the customer
• Services are inherently heterogeneous and can
produce unpredictable outcomes
• Services as a process are perishable and time
dependent, and unlike goods, they can’t be
stored
Differences between services and goods

The specifications of a service are defined and evaluated as a package of features that
affect the five senses. These four features are:
• Supporting facility (location, decoration, layout, architectural appropriateness,
supporting equipment)
• Facilitating goods (variety, consistency, quantity of the physical goods that go with
the service; for example, the food items that accompany a meal service)
• Explicit services (training of service personnel, consistency of service performance,
availability and access to the service, and comprehensiveness of the service)
• Implicit services (attitude of the servers, atmosphere, waiting time, status, privacy
and security, and convenience)
The goods–services continuum
Efficiency, effectiveness, and value

• Efficiency: A ratio of the actual output of a process relative


to some standard. Also, being “efficient” means doing
something at the lowest possible cost.
• Effectiveness: Doing the things that will create the most
value for the customer.
• Value: The attractiveness of a product relative to its price.
How to manage supply Supply Chain Operation Reference

chain? (SCOR) framework

Supply chain council


(SCC)
Coordinating the relationships between
mutually supportive but separate
organizations
Current
Optimizing global supplier, production,
issues in and distribution networks.
supply chain
management Managing customer touch points.

Raising senior management awareness of


SCM as a significant competitive weapon
Metrics – How do you measure a system?
Why is it so • Trade-off of Breadth vs. Validity of metrics
hard to • Outcome Based Logistics - Perfect order, Perfect Shelf

manage SC? Politics and power of players

• Who wins? Retailers or distributors?

Visibility – Who can see what and how quickly?

• Data are stored separately


• All parties do not have equal access to data
• Massive data ≠ Shared & accessible information
The major challenges (cont.)
• Uncertainty - Who knows what is going to
happen?
• Variable demand of product (shorter lifecycles)
• Variable manufacturing yield
• Unreliable sourcing of raw materials
• Inconsistent transit lead times
• Increased complexity – Why is it getting harder?
• Exploding number of Stock Keeping Units (SKUs)
• Higher and diverging customer demands
• New & merging channels (Omni-Channel)
• Global operations
Discuss the goal
of a supply • Consider the purchase of a can of soda at a
convenience store. Describe the various stages
chain and in the supply chain and the different flows
explain the involved.
impact of • In what way do supply chain flows affect the
supply chain success or failure of a firm such as Amazon? List
two supply chain decisions that have a
decisions on the significant impact on supply chain profitability.
success of a
firm.

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