MIS 2101 Lecture Notes - Lecture 6: Supply Chain, Inventory Control, Business Process
Supply Chain Management (Wikipedia)
• The management of the flow of goods and services
• Involves the movement and storage of raw materials, of work-in-process inventory, and of
finished goods from point of origin to point of consumption
• Defined as: design, planning, execution, control, and monitoring of supply chain activities
• Objective: creating net value, building a competitive infrastructure, leveraging worldwide
logistics, synchronizing supply with demand and measuring performance globally
• Marketing channels play an important role
• Current research concerned with sustainability ad risk management
• Supply chain is a set of organizations directly linked by one or more upstream and downstream
flows of products, services, finances, or information from a source to a customer
• SCM software includes tools or modules to execute supply chain transactions, manage supplier
relationships, and control associated business processes
• Supply chain event management considers all possible events and factors that can disrupt a
supply chain
• Functions:
o Reduce ownership of raw materials sources and distribution channels to become more
flexible
o Need to increase the number of organizations involved in satisfying customer demand
while reducing managerial control of daily logistics operations
o Improve trust and collaboration among supply chain partners to improve inventory
visibility and velocity of inventory movement
• Importance:
o Organizations must rely on effective supply chains, or networks, to complete in the
global market and networked economy
o Globalization, outsourcing, and information technology have enabled many
organizations to successfully operate collaborative supply networks in which each
specialized business partner focuses on only a few key strategic activities
o Impacts on firms not clear; little is known about coordination conditions and trade-offs
among players
• Historical developments
o Creation
o Integration
o Globalization
o Specialization phases one and two
o SCM 2.0
• Business process integration
o Customer service management process
o Procurement process
o Product development and commercialization
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o Manufacturing flow management process
o Physical distribution
o Outsourcing/partnerships
o Performance measurement
o Warehousing management
o Workflow management
• Centroid is a location that has a high proportio of a outrys populatio ad a high proportio
of its manufacturing
Supply Chain Futurists Predict the Impact of Digital Transformation
• Can have a serious impact on your organization
• Can lower procurement by 20%
• Can reduce supply chain process costs by 50%
• Increase revenue by 10%
• Can better enable customer-centricity
• Holds promise to sense demand, drive innovation, reduce cost, and deliver the customer the
right product at the right time and price
• Digitized processes and operations are transforming R&D, manufacturing and logistics
• Itegrate data fro softare roots that are ale to gra data fro oe syste, lea it up,
the deploy it to others in a way that is usable going forward across our systems
• 3D printing is changing how digital technology is used to create and produce products
• Greater efficiency speed, quality control, and customer satisfaction are essential to the bottom
line
• Can improve the management of demand, people, technology, and risk
• Ability to collect and make effective use of Big Data is essential to the success of a business and
a supply chain
Integrated Planning – Optimization for the entire internal supply chain
• Optimal planning is only possible with an integrated approach
• Internal supply chain consists of purchasing, manufacturing, distribution, and sales
• Goal is all the same: happy customers
• Incoming market data and business strategy plans must be incorporated in all processes
• Inventory cost control is a common challenge
• Field testing forecasting methods are used to prevent too much inventory
• Companies are provided with
o Exact demand planning figures
o Optimized inventory levels
o High service levels
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find more resources at oneclass.com