Professional Documents
Culture Documents
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Marketing Cost
Marketing Cost
Manufacturing Cost
27%
48%
Manufacturing Cost
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Laura Ashley turns its inventory 10 times a year, five times faster than 3 years ago
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Supply Chain Management Definition The integration of key business processes from end user through original suppliers, that provides products, services, and information that add value for customers and other stakeholders.
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Managing supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer The Supply Chain Council
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Plastic Producer
Tenneco Packaging
Paper Manufacturer
Timber Industry
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Supply Chain
What Drives a Supply Chain? What Runs a Supply Chain? What Makes a Supply Chain function?
REPEAT ORDERS
2007 Pearson Education 1-15
Customer
Funds
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Supply chain design must support strategic objectives Supply chain design decisions are long-term and expensive to reverse must take into account market uncertainty
2007 Pearson Education 1-24
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Must consider in planning decisions demand uncertainty, exchange rates, competition over the time horizon
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Retailer
Replenishment Cycle
Distributor
Manufacturing Cycle
Manufacturer
Procurement Cycle
Supplier
2007 Pearson Education 1-29
PUSH PROCESSES
PULL PROCESSES
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The relative proportion of push and pull processes can have an impact on supply chain performance
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Integration among the above three macro processes is critical for effective and successful supply chain management
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