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Lecture 1 Slides

The supply chain for a book involves at least 4 tiers: 1) Paper/ink manufacturer 2) Book publisher 3) Book distributor 4) Bookstore/online retailer In a bookstore, the store pulls books from the distributor in response to customer demand. The distributor and publisher operate more on a push model, anticipating demand and shipping inventory to retailers. Online retailers can operate more on a hybrid push-pull model, adjusting inventory levels based on sales data.

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Stepan Rychkov
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50 views22 pages

Lecture 1 Slides

The supply chain for a book involves at least 4 tiers: 1) Paper/ink manufacturer 2) Book publisher 3) Book distributor 4) Bookstore/online retailer In a bookstore, the store pulls books from the distributor in response to customer demand. The distributor and publisher operate more on a push model, anticipating demand and shipping inventory to retailers. Online retailers can operate more on a hybrid push-pull model, adjusting inventory levels based on sales data.

Uploaded by

Stepan Rychkov
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Global Supply Chain

Management
Irina V. Burlakova
Course Outline

Topic 1: Definition of supply chain management


Topic 2: Automation in supply chain
management
Topic 3: Planning demand and supply in a
supply chain
Topic 4: Supply Chain network design
Topic 5: Supply Chain business process design
Recommended books:

1. Hugos M. Essentials of Supply Chain


Management. Hoboken, New Jersey: John Wiley
& Sons, Inc., 2003.
2. Chopra S., Meindl P. Supply Chain Management:
Strategy, Planning, and Operations. Upper
Saddle River, New Jersey: Pearson Prentice-Hall,
2007.
3. Lambert D., Stock J., Ellram L. Fundamentals of
Logistics Management. Boston: MA:
Irwin/McGraw-Hill, 2002.
4. Bowersox, Donald J. Supply Chain Logistical
Management, The McGraw-Hill Irwin Series,
2002.
7 Rights of Logistics
Logistics assumes providing:
the Right product

in the Right quantity

in the Right condition

at the Right place

at the Right time

to the Right customer

at the Right price


Functional units merged into logistics
service:

Integrated
logistics

Planning Purchasing Transport Customer


Warehouse
dept dept dept service
Evolution of logistics

Rodrigue J-P, Comptois C., Slack B. The Geography of Transport Systems: 4th edition,
2017. URL: https://transportgeography.org/?page_id=4438 (дата обращения:
21.10.2019 г.)
Supply Chain Management (SCM)

- acknowledges all of
traditional logistics and also
includes activities such as:
new product development Logistics

marketing
finance Supply Chain
Management
customer service
Basic 3 supply chain entities

Supplier Producer Customer

• Raw materials • Products • Retailer


• Components • Power • Wholesaler
• Services • Professional • Distributor
• Energy services • End user
• Government
services
• Educational
services
Overview of Supply Chain
Management

Information flow

Reverse product flow

Supplier Producer Customer

Primary product flow

Primary cash flow


Basic supply chain 3 entities

Information flow
Invoices, specifications, blueprints, receipts,
orders, rules and regs, etc.
Primary cash flow
Payments for products, suppliers.
Primary product flow
Material, components, suppliers, services,
energy, finished products
Reverse product flow
Returns for repair, replacement, recycling, disposal
The objective of a supply chain

• is to maximize the overall value generated.


• Value is the difference between what the final
product is worth for the customer and what
costs the supply chain incurs in filling the
customer’s request.
• Supply chain success should be measured in
terms of Supply chain profitability, not in
terms of profits at individual stage.
Manufacturing supply chain model
Tier 2
materials
supplier Tier 1 Custom
materials er
Tier 2
supplier
materials Distributor
supplier Custo
mer
Tier 2 Tier 1
materials materials Manufacturer
supplier supplier Custo
Tier 2 mer
materials Distributor
Tier 1
supplier
service Custo
Tier 2 service supplier mer
supplier
Services also have supply chains

Fuel supplies
Other
utilities
Electric
backup
power Home
Electric power customer
Electric utility
transformers
Commercial
Facility
customers
maintenance

Programming
services
Raw materials
Vertical integration
transport
Vertically integrated
manufacturing companies serving slow-
moving mass markets
distribution once attempted to own
much of their supply
Retail chains. Today’s fast-moving
showroom
markets require more
Divisions of a flexible and responsive
Vertically Integrated supply chains.
Conglomerate
Raw materials Virtual
company
integration
Transportation
Company Fragmented,
Fast-Moving
Markets
Manufacturing
Company

Independent Independent
Distributor Retailer
Push/Pull view of supply chain
processes

PULL – execution is PUSH – execution is


initiated as a initiated in
response to the anticipation of the
customer’s order. customer’s order.
Supply chain drivers

Facilities

Inventory

Transportation

Information

Sourcing

Pricing
Supply chain 3 macro processes

• Customer Relationship Management


• Internal Supply Chain Management
• Supplier Relationship Management

SRM (supplier) ISCM (firm) CRM (customer)

• Source • Strategic planning • Market


• Negotiate • Demand Planning • Price
• Buy • Supply Planning • Sell
• Design • Fulfillment • Call Center
Collaboration • Field Service • Order Management
• Supply
collaboration

Source: SCM by Sunil Chopra


Mattel Case

https://www.nytimes.com/2007/08/02/business/02toy.html
Key point

• Supply chain design plays a significant role in a


company’s success or failure

Home task

• Describe a case of supply chain failure (success)


in a form of an essay (500-1000 words)
Discussion:

• An auto manufacturer that buys directly from


a utility company, carburetor builder, textile
company and sheet metal producer would
have how many tiers of suppliers?
• One
• Two
• Three
• Four
Discussion:

• Consider the supply chain involved when you


purchase a book.
• Describe the push/pull boundaries in a
bookstore/online shop variant.

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