lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN
Studocu is not sponsored or endorsed by any college or university Lecture UNDERSTANDING lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN THE SUPPLY 1 CHAIN lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN 1 THE SUPPLY CHAINUNDERSTANDING lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN Introduction lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN
¥ What do you understand when we lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN talk about supply chain (management)?
¥ Can you give an examples a of supply chain?
¥ How can you manage the supply
chain? What could be obstacles? lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN Example of a supply chain lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN
¥ A customer can go to Wal-Mart to
buy detergent, for example from
Proctor & Gamble (P&G).
¥ P&G manufactures detergent,
keeps inventory and ships to their customers like Wal-Mart.
¥ P&G plant receives different raw
materials from suppliers for example packaging from Pactiv. lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN What is a supply chain
¥ A supply chain consist of all parties involved,
directly or indirectly, in fulfilling a customer request for example detergent. lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN Timber Paper Pactive company producer packaging P&G Wal-Mart Wal-Mart (or oth Customer ) er or DC store Oil Chemical Plastic supplier producer producer lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN Stages within a supply chain lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN Supplier Manufacturer Distributor Retailer Customer Supplier Manufacturer Distributor Retailer Customer Supplier Manufacturer Distributor Retailer Customer lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN Supply chain objective
¥ Supply Chain Surplus = Customer Value — Supply Chain Cost
Supply Chain Surplus = Added value lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN Supplier Manufacturer Wholesale Retail $ costs costs costs costs costs costs costs ( total) Supply Chain Costs
Importance of supply chain decisions
¥ Responsive but no focus on supply chain costs lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN Supplier Manufacturer Wholesale Retail costs costs costs costs costs costs costs $
¥ Responsive, focus on distribution cost (Wal-mart) Supplier Manufacturer Wholesale Retail $ costs costs costs costs costs costs costs lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN
Importance of supply chain decisions
¥ Responsive, eliminating steps Supplier Manufacturer Retail X $ costs costs costs costs costs costs costs lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN Decision phases
¥ Successful supply chain management includes many
decision to be made to increase the supply chain surplus. ¥ Three levels:
1. Supply chain strategy and design 2. Supply chain planning 3. Supply chain operations lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN Typical supply chain views
¥ Two views on a supply chain: — Cycle view — Push/pull view ¥ Cycle view:
— Customer order cycle, replenishment cycle,
manufacturing cycle, procurement cycle lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN ¥ Push/Pull view:
— Response to customer need (pull) or supplier need (push)
Cycle view of supply chain process
¥ A typical supply chain consists of 5 stages and 4
cycles, cycles occurs at the interface between stages: Cycles: Stages: Customer lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN Retailer Customer order cycle Wholesaler/distributor Replenishment cycle Manufacturer Manufacturing cycle Supplier Procurement cycle lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN
Push/Pull view of supply chain process
¥ Two types of timing related to customer demand:
— Push = anticipation to customer demand
— Pull = reaction to customer demand lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN Push/Pull boundary Push process Pul process Step Step Step Step Step Step Step 1 2 3 4 5 6 7
Customer Order Decouple Point (CODP) lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN Customer Order Decouple Point lOMoARcPSD| 36782889
UNDERSTANDING THE SUPPLY CHAIN