Professional Documents
Culture Documents
Management
MGMT 30011
Course Administration
Course Administration
Lecture Times
Tutorial 1 Tuesday 01:00 PM - 3:00 PM PAR - The Spot - 2018 Srikanth Thanu
Tutorial 2 Tuesday 01:00 PM - 3:00 PM PAR – The Spot - 3012 Yanna Talpis
Tutorial 3 Tuesday 03:15 PM – 05:15 PM PAR - The Spot - 2018 Srikanth Thanu
Tutorial 4 Tuesday 03:15 PM – 05:15 PM PAR – The Spot - 3012 Yanna Talpis
Tutorial 5 Wednesday 11:00 AM – 01:00 PM PAR – The Spot - 3013 Srikanth Thanu
Tutorial 6 Wednesday 11:00 AM – 01:00 PM PAR – The Spot - 3012 Patrick Foley
Course Administration
Tutorial preparation
Use spare time on Tuesday and Wednesday to
prepare for your tute.
All groups need to schedule a one hour
meeting each week starting tis week to work
on their assignment and prepare for the exam.
Individual marks can be reduced due to low
group involvement. A group involvement rubric
will be used for this.
Readings
• Prescribed Text
– Simchi-Levi, D., Kaminsky, P. and Simchi-
Levi E., (2008), "Designing and Managing
the Supply Chain - Concepts, Strategies
and Case Studies", 3rd Edition, McGraw-
Hill Irwin
– Subject Readings can be accessed via the
LMS
– Details of other useful Journals and Books
are provided in the Unit Outline
Readings
• Electronic Book Links
• IBIS World
A Basic Introduction to IBISworld
https://youtu.be/Yhd5sUQRgjo
Definition
Supply chains are the strings that tie organisations together
Downstream flow:
• Information
• Goods
Supplier
Manufacturer
Upstream flow:
• Information Retailer
•$
Supply-Chain
Management
Figure 11.1
PC Industry Supply Chain
Cisco’s Value Network
Global Apparel Supply Chain
Globally Dispersed Manufacturing
How Li & Fung Limited Might Make a Dress
Zippers+…
[Japan+…]
Introduction to Supply Chain
Management
• SCM Encompasses firm activities at many
levels
– Strategic
• Policy, structure, alliances, financing
– Tactical
• Business model, advertising, competitive
priorities
– Operational
• Location, layouts, inventory policies,
technologies
• Why?
– SCM requires Integration at multiple levels
Why supply chain management?
Because…
• Supply chain strategies cannot be determined in
isolation
• It is challenging to design and operate a supply chain so
that total system-wide costs are minimised, and system-
wide service levels are maintained
• Uncertainty and risk are inherent in every supply chain
Why supply chain management?
Supply Chain
Business
Process
What level of integration and Who are the key supply chain members
management should be applied for each with whom to link processes?
process link?
SCM Today in the Emerging
Environment
• Global markets/industries
• Dynamic complex and unpredictable
environmental conditions
• “Integrated” solutions stretching the
boundaries of the traditional enterprise
• Technological change
• Virtual organizations
Emerging Environment -
Implications
• Structures that worked in the old environment are no longer
relevant
– Functional roles / Hierarchical structures / Task centred
• Shift of power to the customer
• “Agility” becomes a source of competitive advantage
• Focus on technology as both “Enabler” and “Transformer”
• All Assumptions underpinning established business models
reviewed – continuously
• Focus moves outside the organisation to the wider supply
Chain INDUSTRY
Automobiles
% PURCHASED
67
Costs Beverages 52
Chemical 62
Food 60
Lumber 61
Metals 65
Paper 55
Petroleum 79
Restaurants 35
Transportation 62
Hau Lee Furniture
60% of sales $ in supply chain
Current gross profit = $10,000
Increase profits to $15,000 (50%)
CURRENT SUPPLY CHAIN SALES
SITUATION STRATEGY STRATEGY
Sales $100,000 $100,000 $125,000
Cost of materials $60,000 (60%) $55,000 (55%) $75,000 (60%)
Production costs $20,000 (20%) $20,000 (20%) $25,000 (20%)
Fixed costs $10,000 (10%) $10,000 (10%) $10,000 (8%)
Profit $10,000 (10%) $15,000 (15%) $15,000 (12%)
Supply Chain Management
▶ Make-or-buy decisions
▶ Choosing between obtaining products and
services externally as opposed to producing
them internally
▶ Outsourcing
▶ Transfer traditional internal activities and
resources to outside vendors
▶ Efficiency in specialization
▶ Focus on core competencies
Six Sourcing Strategies
▶ Many suppliers
▶ Few suppliers
▶ Vertical integration
▶ Joint ventures
▶ Keiretsu networks
▶ Virtual companies
Many Suppliers
Current International
Pepsi Apple
transformation Paper
End-User Paper
Forward integration Bottling Retail stores
Conversion
Finished goods
(customers)
Figure 11.2
Vertical Integration
▶ Formal collaboration
▶ Enhance skills
▶ Secure supply
▶ Reduce costs
▶ The challenge is to cooperation without
diluting brand or conceding competitive
advantage
Keiretsu Networks
▶ A middle ground between few suppliers and
vertical integration
▶ Supplier becomes part of the company
coalition
▶ Often provide financial support for suppliers
through ownership or loans
▶ Members expect long-term relationships and
provide technical expertise and stable
deliveries
▶ May extend through several levels of the
supply chain
Virtual Companies