Chapter 1: 21st Century Supply Chains

“Making the Supply Chain Work.”

Logistics

Moving products and services

Moving information

$Moving money

Supplier

Seller

Flow ofgoods, servicesinformation,money

Supply Chain Management

An integrated supply chain

“The process for designing, developing, optimizing, and managing the internal and external components of the supply system, including material supply, transforming materials, and distributing finished products or services to customers, that is consistent with overall objectives and strategies.”

--Spekman, Kaumauff and Myhr

(1998)

--Spekman, Kaumauff and Myhr (1998)

Key Logistics Activities

• Customer service.• Demand forecasting.• Inventory

management.• Logistics

communication.• Materials handling.• Order processing.

• Packaging.• Parts and service

support.• Plant and warehouse

site selection.• Procurement.• Reverse logistics.• Traffic, transportation• Warehousing, storage.

(1998)

Organization

“…internal and external components of the supply system…”

CustomersSuppliers

Supply ChainManagement:

Demand forecasting. Plant and warehouse site selection. Inventory management. Materials handling. Warehousing, storage. Packaging. Order processing.

Organization

…internal and external components of the supply system…

CustomersSuppliers

Supply ChainManagement:

Customer service

Parts and service support

Reverse logistics

Traffic, transportation

Procurement.Parts and serviceSupport. Traffic.Transportation.

• “Supply chain management consists of firms collaborating to leverage strategic positioning and to improve operating efficiency…

Bowersox, Closs, Cooper “Supply Chain Logistics Management” (2007)

Supplier

Seller

Flow ofgoods, servicesinformation,money

An integrated supply chain

• “Supply chain management consists of firms collaborating to leverage strategic positioning and to improve operating efficiency…A supply chain strategy is a channel arrangement based on acknowledged dependency and collaboration”

Bowersox, Closs, Cooper “Supply Chain Logistics Management” (2007)

Manufacturer

Wholesaler

Retailer

Consumer

Manufacturer

Wholesaler

Retailer

Consumer

CHANNEL.

Manufacturer

Wholesaler

Retailer

Consumer

Manufacturer Wholesaler Retailer Consumer.

Supplier Supplier Factory ConsumerRetailer

Supplier Supplier Factory Retailer

Factory

Retailer

RetailerFactory

This is the retailer’sfirst tier supplier.

TubeSupplier

TasteSupplier

AbrasiveSupplier

These are the retailer’ssecond tier suppliers.

These are the Factory’s firsttier suppliers

TubeSupplier

TasteSupplier

AbrasiveSupplier

Chemicals

Metals

Plastic

RetailerFactory

TubeSupplier

TasteSupplier

AbrasiveSupplier

Chemicals

Metals

Plastic

RetailerFactory

These are the retailer’s third tier suppliers

TubeSupplier

TasteSupplier

AbrasiveSupplier

Chemicals

Metals

Plastic

RetailerFactory

These are the factory’s second tier suppliers

TubeSupplier

TasteSupplier

AbrasiveSupplier

Chemicals

Metals

Plastic

RetailerFactory

These are the tube supplier’s, the taste supplier and the abrasive supplier’s first tier suppliers

TubeSupplier

TasteSupplier

AbrasiveSupplier

Chemicals

Metals

Plastic

RetailerFactory

TubeSupplier

TasteSupplier

AbrasiveSupplier

Chemicals

Metals

Plastic

RetailerFactory

TubeSupplier

TasteSupplier

AbrasiveSupplier

Chemicals

Metals

Plastic

RetailerFactoryEnd of Program.

End of Program.

Chapter 1: 21st Century Supply Chains

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