Chapter 1: 21st Century Supply Chains

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Chapter 1 21st Century Supply Chains

• Making the Supply Chain Work.

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Logistics
Moving information
Moving products and services
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Moving money
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Supply Chain Management
Supplier
Supplier
Supplier
Supplier
Seller
Buyer
Supplier
Supplier
Flow of goods, services information, money
Supplier
Supplier
An integrated supply chain
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Supply Chain Management

• The process for designing, developing,
  optimizing, and managing the internal and
  external components of the supply system,
  including material supply, transforming
  materials, and distributing finished products or
  services to customers, that is consistent with
  overall objectives and strategies.
• --Spekman,
  Kaumauff and Myhr (1998)

5
Supply Chain Management

• The process for designing, developing,
  optimizing, and managing the internal and
  external components of the supply system,
  including material supply, transforming
  materials, and distributing finished products or
  services to customers, that is consistent with
  overall objectives and strategies.
• --Spekman,
  Kaumauff and Myhr (1998)

6
Supply Chain Management

• The process for designing, developing,
  optimizing, and managing the internal and
  external components of the supply system,
  including material supply, transforming
  materials, and distributing finished products or
  services to customers, that is consistent with
  overall objectives and strategies.
• --Spekman,
  Kaumauff and Myhr (1998)

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Key Logistics Activities

• Customer service.
• Demand forecasting.
• Inventory management.
• Logistics communication.
• Materials handling.
• Order processing.

• Packaging.
• Parts and service support.
• Plant and warehouse site selection.
• Procurement.
• Reverse logistics.
• Traffic, transportation
• Warehousing, storage.

8
Supply Chain Management

• The process for designing, developing,
  optimizing, and managing the internal and
  external components of the supply system,
  including material supply, transforming
  materials, and distributing finished products or
  services to customers, that is consistent with
  overall objectives and strategies.
• --Spekman,
  Kaumauff and Myhr (1998)

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Supply Chain Management
internal and external components of the
supply system
Customers
Suppliers
Organization
Demand forecasting. Plant and warehouse site
selection. Inventory management. Materials
handling. Warehousing, storage. Packaging. Order
processing.
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Supply Chain Management
internal and external components of the supply
system
Customers
Suppliers
Organization
Procurement. Parts and service Support.
Traffic. Transportation.
Customer service Parts and service
support Reverse logistics Traffic,
transportation
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Supply Chain Management

• Supply chain management consists of firms
  collaborating to leverage strategic positioning
  and to improve operating efficiency
• Bowersox, Closs, Cooper Supply Chain Logistics
  Management (2007)

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Supply Chain Management
Supplier
Supplier
Supplier
Supplier
Seller
Buyer
Supplier
Supplier
Flow of goods, services information, money
Supplier
Supplier
An integrated supply chain
13
Supply Chain Management

• Supply chain management consists of firms
  collaborating to leverage strategic positioning
  and to improve operating efficiencyA supply
  chain strategy is a channel arrangement based on
  acknowledged dependency and collaboration
• Bowersox, Closs, Cooper Supply Chain Logistics
  Management (2007)

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Manufacturer
C H A N N E L
Wholesaler
Retailer
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Consumer
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Manufacturer
Wholesaler
Retailer
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Consumer
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Manufacturer
Wholesaler
Retailer
Consumer
Consumer
Supplier
Supplier
Factory
Retailer
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Supplier
Supplier
Factory
Retailer
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Retailer
Factory
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These are the retailers second tier suppliers.
These are the Factorys first tier suppliers
This is the retailers first tier supplier.
Tube Supplier
Taste Supplier
Retailer
Factory
2
1
Abrasive Supplier
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Metals
Tube Supplier
Plastic
Chemicals
Taste Supplier
Chemicals
Retailer
Factory
Chemicals
Abrasive Supplier
Chemicals
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These are the retailers third tier suppliers
Metals
Tube Supplier
Plastic
Chemicals
Taste Supplier
Chemicals
Retailer
Factory
2
3
1
Chemicals
Abrasive Supplier
Chemicals
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These are the factorys second tier suppliers
Metals
Tube Supplier
Plastic
Chemicals
Taste Supplier
Chemicals
Retailer
Factory
2
3
1
Chemicals
Abrasive Supplier
Chemicals
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These are the tube suppliers, the taste
supplier and the abrasive suppliers first tier
suppliers
Metals
Tube Supplier
Plastic
Chemicals
Taste Supplier
Chemicals
Retailer
Factory
2
1
Chemicals
Abrasive Supplier
Chemicals
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Metals
Tube Supplier
Plastic
Chemicals
Taste Supplier
Chemicals
Retailer
Factory
Chemicals
Abrasive Supplier
Chemicals
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Metals
Tube Supplier
Plastic
Chemicals
Taste Supplier
Chemicals
Retailer
Factory
Chemicals
Abrasive Supplier
Chemicals
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Metals
Tube Supplier
Plastic
Chemicals
Taste Supplier
Chemicals
Retailer
Factory
End of Program.
Chemicals
Abrasive Supplier
Chemicals
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• End of Program.