Supply Chain Management

Topics: Supply chain management, Supply chain, Management Pages: 5 (2608 words) Published: January 11, 2015
Supply Chain Management
1 What is supply chain management?
A Supply Chain is a collection of organizations involved in the supply of products or services.

Supply chain management is the management of the interconnection of organizations that relate to each other through upstream and downstream linkages between the processes that produce value to the ultimate consumer in the form of products and services.

It is a holistic approach to managing across company boundaries.

2 Supply chain planning and control
Supply chain planning and control is concerned with managing the flow of materials and information between a string of operations, that form the strands or ‘chains’ of a supply network Supply network management concerns flow between operations

Supply chain management concerns flow between a string of operations

Supply chains management is concerned with the flow of information and the flow of products and services ‘Upstream’ flow of customer (Requirements)
Long-term plans and requirements
Market research information
Individual orders
Potential new products and services
‘Downstream’ flow of products and services for customer (Fulfilment) Products and services
New products and services
Delivery information
Payment request/credit
Supply chain management coordinates all the operations on the supply side and the demand side. Purchasing and supply management deals with the operation’s interface with its supply markets. Physical distribution management may mean supplying immediate customers, while logistics is an extension that often refers to materials and information flow down through a distribution channel, to the retail store or consumers (increasingly common because of the growth of internet-based retailing). The term third-party logistics (TPL) indicates outsourcing to a specialist logistics company. Materials management is a more limited term and refers to the flow of materials and information only through the immediate supply chain. (看第五张ppt)

3 benefits
Supply chain compete – not individual companies
Better co-ordination:
Reduced cost
Lower inventories
Improved quality and delivery performance
Better market intelligence

4 SCM aspects and objectives
Manage the physical flow of goods
Manage information and information systems which drive flow of goods Management systems and organisational structure to control the supply chain

Meet customer requirements
Minimise use of resources
Responsive to market

Supply chain management objectives
All supply chain management shares one common, and central, objective – to satisfy the end customer. All stages in a chain must eventually include consideration of the final customer, no matter how far an individual operation is from the end-customer. Each operation in the chain should be satisfying its own customer, but also making sure that eventually the end-customer is also satisfied. Supply chain objectives

Meeting the requirements of end-customers requires the supply chain to achieve appropriate levels of the five operations performance objectives: quality, speed, dependability, flexibility and cost. Quality – the quality of a product or service when it reaches the customer is a function of the quality performance of every operation in the chain that supplied it. Errors in each stage of the chain can multiply in their effect on end-customer service. Speed has two meanings in a supply chain context. The first is how fast customers can be served, an important element in any business’s ability to compete. However, fast customer response can be achieved simply by over-resourcing or over-stocking within the supply chain. Dependability – like speed, one can almost guarantee ‘on-time’ delivery by keeping excessive resources, such as inventory, within the chain. However, dependability of throughput time is a much more desirable aim because it reduces uncertainty within the chain. Flexibility – in a supply chain context is usually...
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