Ch. 15-Supply Chain Management

What is a Supply Chain?
-Connected chain of business entities
-Can be a competitive advantage
-Supports the logistics function
activities that focus on getting the right amount of the products to the right place at the right time at the lowest price
Supply Chain Management
-Communicator of customer demand from point of sale to supplier
-physical flow process that engineers the movement of goods
Benefits of Supply Chain Management
-Lower inventory, transportation, warehousing and packaging costs
-Greater supply chain flexibility
-Improved customer service
-Increased profitability
Marketing Channel Management
(supply chain mgmt)
-refers to a set of approaches and techniques firms employ to efficiently and effectively to integrate their suppliers
Logistics Components
*Supply chain team>>Logistics information system:
-Sourcing & Procurement
-Production Scheduling
-Order Processing
-Inventory Control
-Warehouse & Material Handling
*bw manufacturer & customer
those firms engaged in buying, taking title to, often storing and physically handling goods in large quantities, then reselling the goods (usually in smaller quantities) to retailers or industrial or business users.
Functions performed by Intermediaries
Transactional Function
-Risk Taking
Logistical Function
Facilitating Function
-Market information
Distribution Centers
a facility for a receipt, storage, and redistribution of goods to company stores or customers; may be operated by retailers, manufacturers, or distribution specialists.
Supply Chains Streamline Distribution
-Reduce number of transactions
-Increase value for customers
-More efficient and effective
Supply Chain Management Affects Marketing
-Fulfilling delivery promises
-Meeting customer expectations
-Reliant on an efficient supply chain
-Cycle time
-Easily analyzed and used
-Quality of communications
ex) checking shipping
Electronic Data Exchange
-Advanced Shipping notices–companies tracking
the company system tied in with supply chain (trucks)
Each supplier receives special data
Collaborative Planning, Forecasting and Replenishment
Vendor Managed Inventory: an approach for improving supply chain efficiency in which the manufacturer is responsible for maintaining the retailers inventory levels in each of its stores (Coca-Cola)
Advanced Supply Chain Technology
-Automatic Identification (bar coding, radio frequency technology)
-Communications technology
-Supply chain software systems
(Demand, Seasonal)
-Orders based on sales data
-More accurate inventory
-Better when demand is uncertain
(Product not sell–keep pushing it)
-Merchandise allocated based on forecast
-Does not need sophisticated IS system
-Good for steady demand items
ex) toothpaste, deodorant
Order Processing: Inventory Control System
A method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer’s or a customer’s demand
preparing a pallet to go to a specific retailer
Benefits of JIT (Just-In-Time)
-Reduces raw material inventories
-Shortens lead times
-Increases product availability
-Creates better supplier relationships
-Reduces production and storeroom costs
-Reduces paperwork
-Lowers inventory investment
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