Supply Chain Management

1
Supply Chain Management
2
Facilities Along the Supply Chain

• Plants
• Warehouses
• Distribution centers
• Service centers
• Retail operations

3
Distribution Routes

• Rail
• Truck
• Water
• Air
• Pipeline
• Computer
• Mail
• Telephone
• In person

4
Processes within Supply Chain

• Forecasting product or service demand
• Selecting suppliers
• Ordering materials
• Inventory control
• Scheduling production
• Shipping delivery
• Information management
• Quality management
• Customer service

5

• Managing the supply chain is coordinating all of
  the operations of a company with the operations
  of its suppliers and customers

6
Uncertainty

• There is uncertainty in the supply chain at every
  stage
• Wrong forecasts
• Late deliveries
• Poor-quality materials or parts
• Machine breakdowns
• Canceled orders
• Erroneous or slow information
• Transportation breakdowns

7

• Problem Not having the product or service
  available to customers when and where they want
  it
• Companies cope with this uncertainty with
  inventory

8

• Solution good supply chain management to
  coordinate all the different activities so that
  goods can move smoothly and on time from
  suppliers to customers through the distribution
  channels, while keeping inventories low and costs
  down.

9
Effective Supply Chain Mgt

• Suppliers and customers work together in a
  coordinated manner
• Sharing communicating information
• Must have the same goals
• Need to trust one another
• Count on quality and timeliness of products and
  services from suppliers
• Must participate together in the design of the
  supply chain

10
Control Uncertainty

• Identify and understand causes of the uncertainty
• Determine how it affects other activities up and
  down the supply chain
• Formulate ways to reduce or eliminate it

11
Solutions to Uncertainty

• Apply TQM principles all along the supply chain
• Communication information flow
• Computers
• Internet
• Point-of-sale
• Telecom infrastructure
• Facility types, locations, and number

12

• Wal-Mart example
• Page 282-284 (section I) in text
• Describe 3 different ways in which Wal-Mart uses
  supply chain management to get inventory into its
  stores
• Describe how Wal-Mart keeps information flowing
  among its suppliers, distribution centers, and
  stores

13
Enterprise Resource Planning ERP

• Leading companies
• SAP
• Oracle
• PeopleSoft
• JD Edwards
• Bann

14
ERP Software

• Accounting and controlling
• Production and materials management
• Quality management
• Plant maintenance
• Sales and distribution
• Human resources management
• Project management

15

• ERP example
• Page 380-381
• Problems
• Costs
• Failures
• ERP software does everything, but nothing well

16
Internet the Supply Chain

• EDI
• Migration to Internet
• What this means for customers
• What this means for suppliers

17
Purchasing Suppliers

• Single-sourcing
• Supplier-customer relationship
• Prompt, on time delivery
• On-demand, JIT
• Continuous replenishment

18
Facilities

• Heavy manufacturing
• Light industry
• Warehouses and distribution centers
• Retail and service

19
Transportation Distribution

• Rail
• Truck
• Airfreight
• Water
• Pipeline
• Distribution Centers
• Speed location