Supply
Chain Management
Supply Chain: The connected chain of all of the business
entities both internal and external to the company that perform or support the
logistics function.
Benefits of supply chain management
· Supply
Chain oriented companies commonly report:
o
Lower inventory transportation warehousing an
packaging cost
o
Greater supply chain flexibility
o
Improved customer service
o
Higher revenues
o
Increased performance and profitability
Supply chain integration
· A
systems approach were the overall performance of the chain is greater than the
sum of its parts
· Occurs
when multiple functional areas coordinate business processes to seamlessly link
to one another
Integral Integration
· Occurs
with a management orientation toward demand-supply integration
· DSI is
a philosophy that integrates the supply management and the demand generating
functions in an organization
Supply Chain Integration
· Relationship
integration: The ability of two or more companies to develop social connections
that serve to guide their interaction when working together
· Measurement
Integration: The performance assessment of the supply chain as a whole that
also holds each individual firm or
business unit accountable for meeting its own coals
· Technology
and planning integration: The creation and maintenance of information
technology systems that connect manager across and through the firms in the
supply chain
· Material
and service supplier integration: Requires firms to link seamlessly to these
outsiders that provide goods and services to them so that they can stream line
processes and provide quality customer experiences
· Customer
integration: A competency that enables firms to offer long lasting distinctive
value added offering to those customers who represent the greatest value to the
firm or supply chain
Key Business Processes
· Customer
relationship management
· Customer
service management
· Demand
management
· Order
fulfillment
· Manufacturing
flow management
· Supplier
relationship management
· Product
development
· Product
development and commercialization
· Returns
management
