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2 The Supply Chain Management encompasses all
activities involved in the transformation of goods
from the raw material stage to the final stage, when
the goods and services reach the end customer.
2 Supply Chain management involves planning, design
and control of flow of material, information and
finance along the supply chain to deliver the superior
value to the end customer in an effective and
efficient manner.
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Supply Chain stages include ʹ
1. Customers
2. Retailers
3. Wholesalers/Distributors
4. Manufacturers
5. Components/Raw material suppliers
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Decision phases in a Supply Chain

1. Supply Chain Strategy or Decision

2. Supply Chain Planning

3. Supply Chain Planning

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Process views of a Supply Chain

^ Cycle View: customer order cycle/replenishment

cycle/manufacturing cycle/procurement cycle

^ Push/Pull View
 



£chieving Strategic Fit:

1. Understanding the customer & supply chain in

uncertainty ^ lot size of product; response time for product
availability; product mix; service level required; price of the product;
innovation rate at desired pace required.
2. Understanding the supply chain capabilities ^ respond
to wide ranges of qty demanded; meet short lead times; handle a wide variety of
products; build highly innovative products; meet a high service level; handle
supply uncertainty.

3. £chieving Strategic fit ^ try & match supply chain responsiveness

with the implied uncertainty from demand & supply. The supply chain design &
all functional strategies within the firm must also support the supply chain͛s level
of responsiveness.
 



rther issues affecting strategic fit

1. Multiple products & customer segments

2. Product life cycle

3. Globalization & Competitive changes over time

 



 xpanding the Strategic Scope:

1. Intracompany intraoperationscope: the minimize

local cost view.
2. Intracompany Intrafunctional scope: the minimize
functional cost view.
3. Intracompany interfunctional scope: the maximize
company profit view.
4. Intercompany interfunctional scope: the maximize
supply chain surplus view.
 


Drivers of Supply Chain performance:

1. Facilities
2. Inventory
3. Transportation
4. Information
5. Sourcing
6. Pricing
 


Drivers of Supply Chain performance:

1. Facilities ^ role; location; capacity

2. Inventory ^ cycle inv; safety inv; seasonal inv Transportation
^ components of transportation decisions; design of
transport network; choice of transport model
3. Information ^ push vs. pull; co-ordination and info sharing;
forecasting & aggregate planning;
4. Sourcing ^ in-house or outsourcing; supplier selection;
procurement;
5. Pricing ^ pricing & eco of scale; pricing related matrix
 


rbstacles to achieving strategic fit:

1. Increasing variety of products

2. Decreasing product life cycles
3. Increasingly demanding customers
4. Fragmentation of supply chain ownership
5. Globalization
6. Difficulty executing new strategies
7. Simultaneous pursuit of responsiveness & efficiency