Supply chain management

SUPPLY CHAIN MANAGEMENTBY M. EISSA

OUTCOMES

Supply Chain Management

Value Chain & Value Network

Restructuring Options for Supply Chain

E-business & Supply Chain

Trends in SCM

OUTCOMES

Supply Chain Management

Value Chain & Value Network

Restructuring Options for Supply Chain

E-business & Supply Chain

Trends in SCM

SUPPLY CHAIN MANAGEMENT

Supply chain management (SCM) The coordination of all supply activities of an

organization from its suppliers and partners to its customers.

Upstream supply chain Transactions between an organization and its

suppliers and intermediaries, equivalent to buy-side e- commerce.

Downstream supply chain Transactions between an organization and its

customers and intermediaries, equivalent to sellside e- commerce.

SUPPLY CHAIN MANAGEMENT (CONT.)

SCM Definition (Tan, 2001) Purchasing and supply activities of manufacturers.

Transportation and logistics function of merchants and retailers.

All value-adding activities from raw materials extractor to the end users, including recycling.

Achieving Competitive Advantage through Supply Chain Integration.

SUPPLY CHAIN MANAGEMENT (CONT.)

SCM: is it New? 1960s/70s: Physical distribution

management (PDM).

1970s/80s: Logistics management.

Materials Requirement Planning (MRP).

Just-In-Time (JIT).

1980s/90s: Supply Chain Management:

Efficient Consumer Response (ECR).

Enterprise Resource Planning (ERP/MRP II), XRP.

1990s/2000s: Technological Interface Management (TIM).

Source: http://www.icc.net/en_US/export/pics/icc.net/Document_Flow.gif

SUPPLY CHAIN MANAGEMENT (CONT.)

SCM: is it New? 1960s/70s: Physical distribution

management (PDM).

1970s/80s: Logistics management.

Materials Requirement Planning (MRP).

Just-In-Time (JIT).

1980s/90s: Supply Chain Management:

Efficient Consumer Response (ECR).

Enterprise Resource Planning (ERP/MRP II), XRP.

1990s/2000s: Technological Interface Management (TIM).

Source: http://farm3.static.flickr.com/2116/2429853243_2e692ff720_m.jpg

SUPPLY CHAIN MANAGEMENT (CONT.)

SCM: is it New? 1960s/70s: Physical distribution management

(PDM).

1970s/80s: Logistics management.

Materials Requirement Planning (MRP).

Just-In-Time (JIT).

1980s/90s: Supply Chain Management:

Efficient Consumer Response (ECR).

Enterprise Resource Planning (ERP/MRP II), XRP.

1990s/2000s: Technological Interface Management (TIM).

Source: http://teamrocket2010.wordpress.com/2010/05/31/erp-is-the-future/

SUPPLY CHAIN MANAGEMENT (CONT.)

SCM: is it New? 1960s/70s: Physical distribution

management (PDM).

1970s/80s: Logistics management.

Materials Requirement Planning (MRP).

Just-In-Time (JIT).

1980s/90s: Supply Chain Management:

Efficient Consumer Response (ECR).

Enterprise Resource Planning (ERP/MRP II), XRP.

1990s/2000s: Technological Interface Management (TIM).

Source: http://www.elemica.com/wp-content/uploads/2013/04/quicklinkdisc13j.png

SUPPLY CHAIN MANAGEMENT (CONT.)

Other definitions Logistics: Broad definition

Strategic management of the total supply chain (includes procurement, manufacture, distribution, transport, storage,…)

Inbound logistics

Management of material resources entering organization from suppliers and partners

Outbound logistics

Management of resources from organization to customers and intermediaries

SUPPLY CHAIN MANAGEMENT (CONT.)

Other definitions

Source: E-Business and E-commerce management, Dave Chaffey

OUTCOMES

Supply Chain Management

Value Chain & Value Network

Restructuring Options for Supply Chain

E-business & Supply Chain

Trends in SCM

VALUE CHAIN / VALUE NETWORK

Value Chain Any element of the supply chain must add value to the product/service delivered to customers.

Can be Internal within organization boundary or External with partners.

Typical value chain

Source: E-Business and E-commerce management, Dave Chaffey

VALUE CHAIN / VALUE NETWORK

Value Network

OUTCOMES

Supply Chain Management

Value Chain & Value Network

Restructuring Options for Supply Chain

E-business & Supply Chain

Trends in SCM

RESTRUCTURING OPTIONS FOR SUPPLY CHAIN

Does Internet primarily affect SCM restructuring or only supporting tool?

RESTRUCTURING OPTIONS FOR SUPPLY CHAIN (CONT.)

Vertical integration The extent to which supply chain activities are undertaken and controlled within the organization.

Virtual integration The majority of supply chain activities are undertaken and controlled outside the organization by

third parties.

RESTRUCTURING OPTIONS FOR SUPPLY CHAIN (CONT.)

Source: E-Business and E-commerce management, Dave Chaffey

OUTCOMES

Supply Chain Management

Value Chain & Value Network

Restructuring Options for Supply Chain

E-business & Supply Chain

Trends in SCM

E-BUSINESS & SUPPLY CHAIN

Challenge? achieving standardized data formats and data exchange

Information supply chain ISC Marinos & Sun and Yen (2005): an information-centric view of physical and virtual supply chains

where each entity adds value to the chain by providing the right information to the right entity at the right time in a secure manner.

E-BUSINESS & SUPPLY CHAIN (CONT.)

Technology standards in SCM EDI: communications protocol for exchanging documents among computers.

XML: promotes a message-oriented view of e-commerce that isolates business transactions from differences in software, hardware…programming languages.

Middleware: integrate or translate requests from external systems so they are understood by internal systems.

Manual ordering emails or web portal.

E-BUSINESS & SUPPLY CHAIN (CONT.)

IS-supported upstream SCM Key activities

Procurement (Next prezi).

Upstream logistics.

IS-supported downstream SCM Key activities

Outbound logistics.

Fulfillment.

E-BUSINESS & SUPPLY CHAIN (CONT.)

Source: E-Business and E-commerce management, Dave Chaffey

Typical SCM IS infrastructure

E-BUSINESS & SUPPLY CHAIN (CONT.)

Increased efficiency of individual processes.

Reduced complexity of the supply chain.

Improved data integration between elements of the supply chain.

Reduced cost through outsourcing.

Innovation.

OUTCOMES

Supply Chain Management

Value Chain & Value Network

Restructuring Options for Supply Chain

E-business & Supply Chain

Trends in SCM

TRENDS IN SCM

Just-in-Time production Method of inventory cost management

Seeks to eliminate excess inventory to bare minimum

Lean production Set of production methods and tools

Focuses on elimination of waste throughout customer value chain, not just inventory

Supply Chain Simplification Process standardization.

Use of Technologies.

TRENDS IN SCM (CONT.)

Adaptive Supply Chains Reducing centralization.

Creating regional or product-based supply chains.

Sustainable Supply Chains Considering social and ecological interests.

Using most efficient environmental means of production, distribution, logistics.

Collaborative Commerce Use of technologies.

Moves focus from transactions to relationships among supply chain participants.

THANKSTIME FOR QUESTIONS