Scribd
Upload
119 views

Chap 1 R SCM Coyle

1) Supply chain management has evolved from focusing on internal operations to integrating processes across entire supply chains and business networks. 2) There are four stages of supply chain management evolution - from multiple internal dysfunctions to fully integrated extended enterprises with electronic information connections among all partners. 3) Modern supply chains are global, complex networks facing issues like complexity, inventory management, information sharing, costs and organizational relationships both internally and with external partners.

Uploaded by

Zeeshan Qara
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
119 views

Chap 1 R SCM Coyle

1) Supply chain management has evolved from focusing on internal operations to integrating processes across entire supply chains and business networks. 2) There are four stages of supply chain management evolution - from multiple internal dysfunctions to fully integrated extended enterprises with electronic information connections among all partners. 3) Modern supply chains are global, complex networks facing issues like complexity, inventory management, information sharing, costs and organizational relationships both internally and with external partners.

Uploaded by

Zeeshan Qara
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 27

Supply Chain Management

A Retail Perspective
John J. Coyle, C. John Langley, Robert Novack, Brian Gibson

Course Instructor
Mustafa Hanan CSCP,CLTD (APICS)
Chap – 1
Supply Chain Management – An Overview
“Change is inevitable, but growth and improvement are
optional”

“When the rate of change outside the organization is faster


than inside the end is near”
World of Global, Complex and interdependent Supply
chains
Japan Earth Quake 2011
• Quake disrupts key supply chain
• Japan is big supplier and manufacturer
• General Motors had direct impact on productions
• German Volkswagen faced medium term component shortage
• Reduced imports directly hit Asian car and electronic markets
Evolution of Supply Chain Management

• Actions taken by one in the chain affected the rest


• Previous focus was on reducing cost and internal quality
• New focus is on collaboration among supply chains
Supply chain

• According to APICS

“Global network used to deliver products and services from


raw materials to end customers through an engineered
flow of information, physical distribution and cash”
21st Century SCM
Evolution and change

• Global Expansions (Globalization)

• Economics and political risks (US-China trade war)


• Shorter product life cycles

• Technology

• Major force in changing the dynamics of marketplace


• Google, twitter and other social media sites
21st Century SCM
Evolution and change
• Organizational consolidation and Power shifts
• Power shifted to giant retailers from manufacturers
• Sharing POS data to avoid bull whip effect

• Empowered consumer
• Consumers are powered by information

• Govt. Policies and regulation


• Free markets
• De regulation of transport industry in 1970s and 80s
Development of SCM for 21st Century
• Development of the concept

• Integrated Logistics management


• Porter’s value chain
• Four flows
• Evolution of SCM
Supply chain entities
• Three basic entities

Supplier
Supplier Producer
Producer Customer
Customer

• Raw materials • Products • Retailer


• Energy • Power • Wholesaler
• Services • Professional • Distributor
services
• Components • End user
• Government
services
• Educational
services
Four Flows (APICS)

Basic Supply Chain: Four Flows


Information flow

Invoices, sales lit, specs, blueprints, receipts, orders, rules and regs, etc.

Primary cash flow

Payments for products, supplies, etc.

Primary product flow

Material, components, supplies, services, energy, finished products

Reverse product flow

Returns for repair, replacement, recycling, disposal, etc.


Generic value chain
Four Flows (Coyle 10th Ed.)
Stages of Supply chain management evolution

• Stage 1 - Multiple dysfunction


• Stage 2 - Semi functional enterprise
• Stage 3 - Integrated enterprise
• Stage 4 – Extended Enterprise
Supply chain management evolution
Stage 1 - Multiple dysfunction

• Impulsive activity
• Pep talks, threats
• No teamwork
• Little information exchange
• Forecast mostly guess work
• Low planning
• No interdepartmental harmony
Supply chain management evolution
Stage 1 - Multiple dysfunction
Supply chain management evolution
Stage 2 - Semi functional enterprise

• Mostly manual ops


• Inventory reduction in owned facilities
• New low-price purchasing strategies ( No win win )
• Some hard skills training, jobs more challenging
• Marketing may develop reliable FC
• No coordination of initiatives
• Concentrates on interdepartmental improvements
• No partnerships with customers and suppliers
Supply chain management evolution
Stage 2 - Semi functional enterprise
Supply chain management evolution
Stage 3 - Integrated enterprise
• Late 80’s early 90’s
• New focus on business processes
• Increase Internal process integration
• MRP has been upgraded to MRP II/ERP
• Intranets, etc., across functions
• Design teams
• Enhanced warehousing, logistics, forecasting, etc.
Supply chain management evolution
Stage 3 - Integrated enterprise
Supply chain management evolution
Stage 4 - Extended enterprise
• Process integration across entity boundaries
• Eventual electronic information connections among Supply chains (EDI)
• multiple partners
• ERP-to-ERP links
• Data sharing/ Collaboration (CPFR)
• E-commerce
• Supply chain vs.
• supply chain competition
Supply chain management evolution
Stage 4 - Extended enterprise

Stage 4: Extended Enterprise

Networked information flow

Suppliers’ Internal Customers’


Suppliers Customers
suppliers chain customers

Materials/products/services Payments

Reverse product flow


Major Supply chain Issues
• Supply chain Networks
• Complexity
• Inventory deployment
• Information
• Cost(efficiency) and value (effectiveness)
• Organizational relationships (internal & External)
• Performance Measurement
• Technology
Major Supply chain Issues
• Transportation management
• Supply chain security
• Talent management
Integrated Supply flows
Manufacturing Supply Chain Model

Information flow

Tier 2 materials
supplier
Tier 1 materials
Customer
supplier

Tier 2 materials Distributor


supplier

Customer

Tier 2 service Tier 1 materials


Manufacturer
supplier supplier

Customer

Tier 2 materials
supplier Distributor

Tier 1 service
supplier Customer
Tier 2 service
supplier

Primary Primary
product cash
flow flow
Services Also Have Supply Chains

Fuel supplies

Other
Electric backup utilities
power

Electric
Home
transformers Electrical Power
customers
Utility

Facility
maintenance
Commercial
customers

Programming
services

Janitorial
services

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy