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Supply chain management

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Supply chain management

  1. 1. SUPPLY CHAIN MANAGEMENT BY M. EISSA
  2. 2. OUTCOMES  Supply Chain Management  Value Chain & Value Network  Restructuring Options for Supply Chain  E-business & Supply Chain  Trends in SCM
  3. 3. OUTCOMES  Supply Chain Management  Value Chain & Value Network  Restructuring Options for Supply Chain  E-business & Supply Chain  Trends in SCM
  4. 4. 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 buyside e- commerce.  Downstream supply chain  Transactions between an organization and its customers and intermediaries, equivalent to sellside e- commerce.
  5. 5. 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.
  6. 6. 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
  7. 7. 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
  8. 8. 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/
  9. 9. 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
  10. 10. SUPPLY CHAIN MANAGEMENT (CONT.)  Other definitions  Logistics: Broad definition   Inbound logistics   Strategic management of the total supply chain (includes procurement, manufacture, distribution, transport, storage,…) Management of material resources entering organization from suppliers and partners Outbound logistics  Management of resources from organization to customers and intermediaries
  11. 11. SUPPLY CHAIN MANAGEMENT (CONT.)  Other definitions Source: E-Business and E-commerce management, Dave Chaffey
  12. 12. OUTCOMES  Supply Chain Management  Value Chain & Value Network  Restructuring Options for Supply Chain  E-business & Supply Chain  Trends in SCM
  13. 13. 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
  14. 14. VALUE CHAIN / VALUE NETWORK Value Network
  15. 15. OUTCOMES  Supply Chain Management  Value Chain & Value Network  Restructuring Options for Supply Chain  E-business & Supply Chain  Trends in SCM
  16. 16. RESTRUCTURING OPTIONS FOR SUPPLY CHAIN  Does Internet primarily affect SCM restructuring or only supporting tool?
  17. 17. 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.
  18. 18. RESTRUCTURING OPTIONS FOR SUPPLY CHAIN (CONT.) Source: E-Business and E-commerce management, Dave Chaffey
  19. 19. OUTCOMES  Supply Chain Management  Value Chain & Value Network  Restructuring Options for Supply Chain  E-business & Supply Chain  Trends in SCM
  20. 20. 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.
  21. 21. 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.
  22. 22. 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.
  23. 23. E-BUSINESS & SUPPLY CHAIN (CONT.)  Typical SCM IS infrastructure Source: E-Business and E-commerce management, Dave Chaffey
  24. 24. 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.
  25. 25. OUTCOMES  Supply Chain Management  Value Chain & Value Network  Restructuring Options for Supply Chain  E-business & Supply Chain  Trends in SCM
  26. 26. 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.
  27. 27. 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.
  28. 28. THANKS TIME FOR QUESTIONS

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