Presentation about Supply Chain Foundations

1. Supply Chain
Foundations
CREATED BY: BRYCE KENDALL

2. Bottom-Line
 Supply Chain matters in ALL business today.
 You wouldn’t be able to get products if not for Supply Chain.
 Supply Chains are the muscles and bones of an organization.
 In other words, they are at the core of everything a business does.

3. What is Supply Chain Management?
 Starts with Procurement: purchasing of ingredients/materials.
 Manufacturing and Operations need to happen daily and efficiently.
 Logistics and Transportation gets materials/goods to and from different
facilities.
 Supply Chain Managers coordinate all of these different parts.

4. What is Supply Chain Management?
cont.
 In today’s world, Supply Chain is a complex field
 Many materials and goods are shipped all over the world.
 Information revolves around data so there are some key fields that help us
develop effective supply chains:
 Information Technology
 Finance
 Accounting
 Engineering
 Design

5. What is Supply Chain Management?
cont.
 At the end of the day, it’s all about the customer.
 Different Supply Chains have different specific goals…but the end result (a
satisfied customer) is the ultimate goal.

6. Purchasing and Supplier Relationships
 Companies that make goods need materials to make their goods.
 It is important that they receive the raw materials in a timely manor and as
cheaply as possible.
 Purchasing is often where most of the expenses of a company are allocated to.
 Some costs included in purchasing are:
 Delivery
 Storage
 Insurance

7. Purchasing and Supplier Relationships
cont.
 Customers want consistency.
 It is important that suppliers deliver quality goods all the time.
 Ethical business practice are also a consideration when choosing a
supplier.
 The highest quality suppliers often cost more.
 It is a balancing act between speed, quality, and cost.

8. Manufacturing and Operations
 Constraints often make manufacturing and operations difficult.
 Material constraints, time to produce, and cost all factor into a manager’s
daily decisions.
 Often, manufacturing is responsive to demand.
 Therefore, this part of the supply chain must be very adaptive and flexible
based on needs.
 Relocation/Offshoring is often a decision made to take advantage of
opportunities elsewhere.

9. Logistics
 Many considerations go into choosing how to move your products.
 These include: Laws, Documentation, Method of Transport, Insurance,
Packaging, Contingency planning etc.
 Also notice cost is a reoccurring theme in many of the segments of Supply
Chain.
 Packaging is important to make sure your product is marketable and safe
during transport.
 The more times a box is touched, the greater the chance of loss, theft,
and/or damage.

10. Logistics cont.
 Containers offer many benefits like easy loading and fewer hands touching
the products.
 Many items may be packed into a single container.
 For example, a phone may be packed with clothes and groceries.
 Keeping track of all of these containers can prove to be tricky.
 Containers are measured in units called TEU’s
 One TEU is one 20ft equivalent unit.
 Ports and other logistic hubs measure their commerce in TEU’s.

11. Logistics cont.
 There are many methods of transportation…
 Planes are fast BUT are very expensive.
 Trucks are fast and reliable BUT are expensive than train and fuel prices
may greatly impact shipping rates.
 Trains are inexpensive and great for bulky items BUT are often unreliable
and can cause damage to products.
 Ships are cheap BUT they are very slow, expose items to elements, and
carry a potential for theft/damages.

12. Integration
 Supply Chain is like an orchestra. Different segments have specific roles
and need to be balanced effectively to get a good result.
 Improvisation is essential so that companies can meet consumer demands.
 The managers are the ones who are responsible for conducting the
orchestra.
 Often times risk-taking is necessary to have a great Supply Chain.

13. Integration cont.
 Effective communication between segments can make or break a Supply
Chain.
 The bullwhip effect happens when communication is less than stellar.
 It’s impossible to be 100% accurate with consumer demand; there are no
absolutes.
 Ordering too much stock is expensive, but not having enough means not
being able to meet consumer demands.

14. Common Issues in Supply Chain
Management
 Supply Chains are now global. There is no way around this.
 Employees in different areas/countries, partnerships, cultures, and
languages all need to be accounted for.
 Benefits of Global Supply Chains include: Lower costs, better employees,
better technology, ease of access to customers, and lower taxes/fees.
 Skills needed to keep up with Global Supply Chains are in these areas:
Marketing, International Finance, Trade Agreements, Language, Culture,
and the big 3 components of Supply Chain