Professional Documents
Culture Documents
Information Product
Customer
Funds
What is Knowledge?
A collection of data is not information. A collection of information is not knowledge. A collection of knowledge is not wisdom. A collection of wisdom is not truth.
In the first half of the twentieth century industry replaced agriculture, in the second half of the twentieth century service has replaced manufacturing and right now, the knowledge industry is beginning to replace the others.
George Kotzmetzk
Chapter Outline
* Introduction * What is Supply Chain Management? * Why is Supply Chain Management important? * The origins of Supply Chain Management * Important Elements of Supply Chain Management: - Purchasing - Operations - Distribution - Integration * Strategies for Supply Chain Management * Future Trends in Supply Chain Management * The Beer Game
Supply
Inventory & warehousing costs Production/ purchase costs Transportation costs Inventory & warehousing costs
Transportation costs
End customers
Wholesalers, distributors
Retailers
Supplier
Supplier
Storage
Mfg.
Storage
Dist.
Retailer
Customer
Supplier
Storage
Service
Customer
Supplier
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
* Benefits
- Lower purchasing/inventory costs, higher quality/customer service
Operations-
Distribution-
Integration-
Optimization
Global Optimization
What is it? Why is it different/better than local optimization? What are conflicting supply chain objectives? What tools and approaches help with global optimization?
Procurement Planning
Manufacturing Planning
Distribution Planning
Demand Planning
Global Optimization
Supply Contracts/Collaboration/Information Systems and DSS
Procurement Planning
Manufacturing Planning
Distribution Planning
Demand Planning
The supply chain is complex Different facilities have conflicting objectives The supply chain is a dynamic system The power structure changes The system varies over time
Uncertainty
What is variation? What is randomness? What tools and approaches help us to deal with these issues?
Volumes
Retailer Orders
Time
Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998
Volumes
Consumer Demand
Production Plan
Time
Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998
Volumes
Time
Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998
Third party logistics services grew in 1998 by 15% to nearly $40 billion
A typical new car spends 15 days traveling from the factory to the dealership, although actual travel time is 5 days.
Whats New?
Global competition Shorter product life cycle New, low-cost distribution channels More powerful well-informed customers Internet and E-Business strategies
Technology/Logistics