2. What it Supply Chain?
A supply chain consists of all parties involved,
directly or indirectly, in fulfilling a customer
request.
It includes Manufacturer and suppliers,
transporters, warehouses, retailers and
customers.
Within each company, the supply chain includes
all functions involved in fulfilling a customer
request (product development, marketing,
operations, distribution, finance, customer
service)
3. What it Supply Chain?
Customer is an integral part of the supply chain
Includes movement of products from suppliers
to manufacturers to distributors, but also
includes movement of information, funds, and
products in both directions
Probably more accurate to use the term “supply
network” or “supply web”
Typical supply chain stages: customers, retailers,
distributors, manufacturers, suppliers
5. Supply Chain Stages
Each stages in a supply chain is connected
through the flow of products, information and
funds.
These flows often occur in both directions
Depends upon customer needs
6. Objectives of Supply Chain
Maximise the overall value of the product
Maximise Supply Chain Profitability/supply
chain surplus
Flow of information and funds
Effective Supply Chain Management –
Management of supply chain assets, product,
information and fund flow
7. Importance of Supply Chain Decisions
Supply Chain Flow – product, information and
funds
Supply Chain design, planning and operation
decisions play a significant role in the success or
failure of a firm.
8. Decision Phases in a Supply chain
Supply Chain Strategy or Design
Marketing and pricing plans for a product
Structuring the supply chain for several years
In-House or Outsource
Decides the SC Configuration
Supply Chain Planning
Planning for quarter year to a year
Forecasting
Supply Chain Operation
Weekly or daily operation
Individual customer orders
9. Process Views of Supply Chain
Cycle View
The processes in a supply chain are divided into a
series of cycles, each performed at the interface
between two successive stages of a supply chain
Push/Pull View
Pull processes are initiated by a customer order
Push processes are initiated and performed in
anticipation of customer orders.
10. Cycle View of Supply Chain Processes
Customer order cycle
Replenishment Cycle
Manufacturing Cycle
Procurement Cycle
12. Sub Process
Supplier Stage Buyer returns
Market Product reverse flows to
supplier or third
party
Buyer Stage Places
Order Buyer Stage receives
supply
Supplier Stage
receives order Supplier Stage
supplies order
13. Push /Pull view of supply chain
processes
Pull Process
With Pull Process, execution is initiated in response
to a customer order
Also referred to as Reactive Processes
This process operate in an environment in which
customer demand is known
14. Push /Pull view of supply chain
processes
Push Process
Execution is initiated in anticipation of customer
orders
Demand is not known and must be forecast
Also known as Speculative Processes
15. Push /Pull view of supply chain
processes
Push/pull Boundary
Push Processes Pull Processes
Process Process Process Process Process Process Process
1 2 3 4 5 6 7
Customer Order Arrives
16. Supply Chain Macro Processes in a Firm
Customer Relationship Management (CRM)
All processes that focus on the interface between the
firm and its customers
Internal supply chain management (ISCM)
All processes that are internal to the firm
Supplier Relationship Management (SRM)
All processes that focus on the interface between the
firm and its suppliers
17. Supply Chain Macro Processes in a Firm
Supplier Firm Customer
SRM ISCM CRM
Source Strategic Planning Market
Negotiate Demand Planning Price
Buy Supply Planning Sell
Design Collaboration Fulfillment Call Center
Supply Collaboration Field Service Order
Management