Professional Documents
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Lecture Outline
Supply Chain Management SCM objectives and importance decision phases process view competitive and supply chain strategies achieving strategic fit supply chain drivers & obstacles framework facilities inventory transportation
information sourcing pricing
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mfg storageDistributor Retailer Cust
storage Supplier b
Supplier c
Supply Chain
All facilities, functions, activities, associated with flow and transformation of goods and services from raw materials to customer, as well as the associated information flows An integrated group of processes to source, make, and deliver products
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To achieve maximum supply chain profitability (total profit to be shared across all supply chain stages) To reduce supply chain cost to the minimum possible level.
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Retailer
Replenishment Cycle
Distributor
Manufacturing Cycle
Manufacturer
Procurement Cycle
Supplier
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Relationship between Facilities and Functions along the Wal-Mart Supply Chain
Source: Adapted from Garrison Wieland for Wal-Marts Supply Chain, Harvard Business Review 70(2; MarchApril 1992), pp. 6071.
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Amazon.com
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Variety of products required increases Demand per product becomes more disaggregated Number of channels increases Rate of innovation increases Required service level increases
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Total customer demand is now disaggregated over more channels New products tend to have more uncertain demand Firm now has to handle unusual surges in demand
Salt at a supermarket
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Responsiveness
High
Low High
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Low
Cost
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Information
Pricing
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Facilities
Role in the supply chain the where of the supply chain manufacturing or storage (warehouses) Role in the competitive strategy economies of scale (efficiency priority) larger number of smaller facilities (responsiveness priority)
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Inventory
Role in the supply chain Role in the competitive strategy Components of inventory decisions
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Transportation
Role in the supply chain Role in the competitive strategy Components of transportation decisions
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Information
Role in the supply chain Role in the competitive strategy Components of information decisions
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Sourcing
Role in the supply chain Role in the competitive strategy Components of sourcing decisions
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Pricing
Role in the supply chain Role in the competitive strategy Components of pricing decisions
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Thank you
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