MANAGING SUPPLY CHAINS A LOGISTICS APPROACH 9 e

Learning Objectives After reading this chapter, you should be able to do the following:

Learning Objectives, continued n Understand the contributions of a supply chain approach to organizational

Five major external forces seem to drive the rate of change and shape our

Physical supply materials management inbound logistics Physical distribution outbound logistics

Figure 1 -2 Integrated Logistics Management © 2013 Cengage Learning. All Rights Reserved. May

Figure 1 -3 Generic Value Chain © 2013 Cengage Learning. All Rights Reserved. May

Development of the Supply Chain Conc ¨ ¨ ¨ Started in the 1960 s

Figure 1 -4 Integrated Supply Chain © 2013 Cengage Learning. All Rights Reserved. May

Figure 1 -5 Comparison of Average Time © 2013 Cengage Learning. All Rights Reserved.

Figure 1 -5 Total Supply Chain Management Cost © 2013 Cengage Learning. All Rights

Figure 1 -7 Integrated Supply Chain © 2013 Cengage Learning. All Rights Reserved. May

Major Supply Chain Issues ¨ Supply Chain Networks n The network facilities and supporting

Major Supply Chain Issues ¨ Technology n challenge is to evaluate and successfully implement

Summary n Cash flow has become one of the most important measures of financial

Summary, continued n The rate of change has been driven by a set of

Summary, continued n n n Transportation management and security have become increasingly important in

Slides: 19

Download presentation

MANAGING SUPPLY CHAINS A LOGISTICS APPROACH 9 e COYLE | LANGLEY | NOVACK | GIBSON Chapter 1 SUPPLY CHAIN MANAGEMENT: An Overview © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Objectives After reading this chapter, you should be able to do the following: • Discuss the major change drivers in our economy and in the global marketplace. • Understand the rationale for the development of supply chain management in leading organizations. • Appreciate the importance and role of supply chain management among © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Objectives, continued n Understand the contributions of a supply chain approach to organizational efficiency and effectiveness. n Analyze the benefits that can accrue from implementing effective supply chain practices. n Understand the major challenges and issues facing organizations developing and implementing supply chain strategies. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Five major external forces seem to drive the rate of change and shape our economic and political landscape: qglobalization qtechnology qorganizational consolidation qthe empowered consumer qgovernment policy and regulation

Physical supply materials management inbound logistics Physical distribution outbound logistics

Development of the Supply Chain Conc ¨ ¨ ¨ Started in the 1960 s with the development of the physical distribution concept Initial focus on physical distribution or outbound logistics was logical since finished goods During the 1980 s, the logistics or integrated logistics management concept developed in a growing number of organizations The underlying logic of the systems or total cost concept was also the rationale for logistics management Supply chain management can be viewed as a pipeline or conduit for the efficient and effective flow of products/materials, services, information, and financials © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Major Supply Chain Issues ¨ Supply Chain Networks n The network facilities and supporting transportation is important n Increased complexity for organizations is a problem n Inventory Deployments ¨ inventory duplication ¨ the bullwhip effect n Collection and storage of vast amounts of data n Cost/Value ¨ efficiency (cost) and effectiveness (value) prevention of suboptimization n Organizational Relationships ¨ Tradeoffs and optimization n Performance Measurement ¨ Why and how © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Major Supply Chain Issues ¨ Technology n challenge is to evaluate and successfully implement the technology ¨ Transportation n right product, right time, right quantity, right quality, right cost, right destination ¨ Supply n Management Chain Security concern and potential challenge since 9/11 © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Summary n Cash flow has become one of the most important measures of financial viability in today’s global markets. Supply chains are an important determinant of improved cash flow since they impact order cycle time to customers. n Supply chains are an important determinant of capital consumption since they impact working capital, inventory levels, and other assets such as warehouses. n Efficient and effective supply chains can free up valuable resources and improve customer fulfillment systems so as to increase return on investment or assets and improve shareholder value. n The rate of change in our economy has accelerated the necessity of continuing changes in organizations or even transformation to remain competitive. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Summary, continued n The rate of change has been driven by a set of external forces including but not limited to globalization, technology, organizational consolidation and shifts in power in supply chains, an empowered consumer, and government policy and regulations. n The conceptual basis of the supply chain is not new. In fact, organizations have evolved from physical distribution management to logistics management to supply chain management. n Supply chains need to focus on the customers at the end of the supply chain and be flexible and responsive. n Technology is important to facilitate change, but it must follow a process and educate people to address problems and issues appropriately. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Summary, continued n n n Transportation management and security have become increasingly important in the twenty-first century because of changes that have occurred. Supply chains are boundary spanning and require managing three flows—products, information, and financials (cash). Supply chain management is a journey, not a goal, and there are no “silver bullets” since all supply chains are unique. Information is power, and collaborative relationships internally and externally are a necessary ingredient for success. The performance of supply chains must be measured in terms of overall corporate goals for success. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.