Producing and delivering products and services requires suppliers, manufacturers and customers: all of which make up a supply chain
From Suppliers to manufacturers to customers
All supply chain links are interconnected and disruption with one will impact all
[ ] Every product that reaches and end user represents the cumulative effort of multiple organizations (Collectivity these organizations are the supply chain)
Operations Management- Managing Internal Resources
Supply Management- Involves all of the supplies and suppliers that you need to run your business
Logistics Management- Involves all of the movement and storage of products and materials within the supply chain
Integration- Involves all of the enabling systems, software packages, processes, policies, procedures, performance standards and measures, information, and risk management necessary to facilitate the complete integration of the operations supply, logistics functions
Planning establishes the strategy for managing all of the resources necessary to address how a product or service will be created and delivered to meet the needs of their customers. Planning incudes the determination of marketing and distribution channels, promotions, quantities, timing, inventory and replenishment policies, and production policies
Sourcing is the process of finding suppliers that provide the materials and services needed for the supply chain to deliver the finished products desired by the customers. Not only does this include finding reliable suppliers, but also building a strong relationship with those suppliers. Supply chain managers must also develop pricing, shipping, delivery, and payment processes with suppliers and creating metrics for monitoring and improving the performance
Make or manufacturing is the series of operations performed to convert materials to products. Finished product is manufactured, tested, packaged, and scheduled for delivery. Quality management is an important aspect of the manufacturing process. This is the most metric-intensive portion of the supply chain, where companies are able to measure quality levels, production output, and worker productivity
Deliver, is the part of the supply chain management that oversees the planning and execution of giving the product to customers. There are various points in the supply chain to meet customer requirements. Where companies coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to transport products to customers, and set up an invoicing system to receive payments
Return is the part of supply chain management that deals with planning and controlling the process of when management deals with planning and controlling the process of returning products specifically from the point of consumption of the customers for repair, reclamation, remanufacture recycling or disposal. This process goes against the normal outbound flow of products to the market and supply chain managers have to create a responsive and flexible network for receiving defective and excess products back from their customers, and also supporting customers who have questions or problems.
Demand includes trade requirements. This the demand that most people think of: the finished products that companies sell. However, there are other types of demand that impact a company’s resources and supply as well. The need to do maintenance on equipment and facilities, the need to do training and development of personnel, and the need to do research and development work on new products are all examples of activities that demand time from supply resources.
Supply includes equipment and facilities, labor, suppliers and materials, lead time, warehousing and transportation, and even money/capital-all of the resources that a company amasses to be able to support its anticipated demand.
Ideally Demand and Supply should be balanced which is the overall goal of supply chain management
Inventory is a type of shock absorber for both demand and supply variability. Businesses do not always know exactly the demands and supply hence having additional inventory can hedge against potential supply shortage
Flexibility is another shock absorber for both demand and supply variability. Flexibility might mean having extra capacity. If a company does sell more than was projected, having the flexibility to produce more may allow us to meet this unexpected demands.
General Flow of the Supply Chain. Above in the photo it shows the flow of each thing.
Tier 1 Suppliers means that you have a direct relationship with that supplier. Tier 2, 3 etc. means that you have an indirect relationship.
Every link(company) in the Supply Chain is both a Customer of their Suppliers and a Supplier to their Customer
Consumer is the person who actually consumes the product, but a Customer could be a reseller like a bodega
Goals of Supply Chain Management
1950s & 1960s
1970s & 1980s
1990s and 200s
Just in Time: Philosophy of manufacturing based in the planned elimination of all waste and continuous productivity improvement
Total Quality Management: a management approach to improve processes, goods, services, and the culture in which they work. Everyone in the organization has to take ownership for quality
Business Process Reengineering: redesigning business processes
Collaborative Planning, Forecasting and Replenishment: process where supply chain trading partners can jointly plan key supply chain activities from production to final product
Sales and Operations Planning: process where management strategically directs the business to achieve a competitive advantage
Pull Business Model is made to order
Push is the opposite
Benefits of Supply Chain
The future of Supply chain is AI and Blockchain as may things are going to computerized.
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