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US (480,000)
Rutgers (10,000)
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A Taitt (20)
Lecture 3

33:799:301 Lecture 3: Week 2 - 01_30_2019


Department
Supply Chain Management
Course Code
33:799:301
Professor
A Taitt
Lecture
3

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What is Supply Chain Management?
ASU Video Series
Bottle Water Scenario”
Many materials needed to package, transport, and contain water
bottles
Insurance, employees, energy, and other utility bills
Costs of returning and replacing bottles
Call Center/Customer Support
Buildings
Everything costs money
Employees at water company finance, accounting, etc. also cost
money
Supply Chain manager manages all of these things while still making
a profit
Every product/service generally has a supply chain
Hotels provide a service
Purchase furniture and toiletries
Give away tickets to events
Cleaning pressing clothes
Hosting events
Manufacturing of service experience
Supply Chains in the Service Industry
It is not just products bt services also
Service firms offer intangible products (can’t be touched)
Customers are paying for labor and intellectual property of the service
provider
The service supply chain is more about managing the relationships between the
trading partners than about managing the chain of supply
Customers are also much more directly involved in the delivery of services than they
are in the supply of a physical product
While the service itself is not tangible, it frequently involves work/products that are
tangible
Service products in general can’t be produced in advanced
Services are typically produced and consumed simultaneously
Many services require the use of facilitating goods which are tangible elements that
are used along with service provided
Rutgers has multiple supply chains
Produces student talent that is created through educational programs and
then acquired by companies

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Consulting, Financial, and Insurance companies also have supply chains
Create and deliver advisory services, accounting, tax, and insurance services
that are used by a range of clients
Supply Chain Management
Integrates all partners within the end-to-end supply chain
Supply chain described as spanning from end-to-end
All supply chains follow basic model of suppliers → Manufacturers → Customers
Each part plans, sources, makes, and delivers and is enabled by different
factors in each
Planning establishes the parameters within which supply chain will operate
Companies need strategy for managing all of their resources
Planning encompasses all function
Sourcing is the process of identifying the suppliers that provide the materials and
services
Involves building a strong relationship with those suppliers
Also develop pricing, shipping, delivery, and payment processes
Make or manufacturing is the series of operations performed to convert materials
into a finished product
Finished product is manufactured, tested, packaged, and scheduled for
delivery
Quality management is an important aspect of the manufacturing process
Deliver also known as the Logistics phase oversees the planning and execution of
the forward flow of goods to meet customer requirements
Coordinate receipt of orders from customers, develop network of
warehouses, carriers for transport, and invoicing system to receive payments
The last mile in supply chain is most expensive with tangible product,
process of delivering to retail - Amazon has eliminated this
In service industry, the most expensive cost is the make portion because all
of the facilitated goods have to be in place for the service to be performed
Return known as Reverse Logistics deals with planning and controlling process of
moving goods from place of consumption back to the point of origin for repair,
reclamation, remanufacture, recycling, or disposal
Enabling processes facilitate a company’s ability to manage the supply chain and are
spread throughout every stage
Plan → Source → Make → Deliver ← Return (Enable)
Logistics vs. Supply Chain Management
Logistics
Refers to activities within single organization
Focuses on inventory management
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