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Supply Chain Management

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Supply Chain Management Definition an integrative approach, consists of all stages involved, directly or indirectly, in fulfilling customer requests – PowerPoint PPT presentation

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Title: Supply Chain Management


1
Supply Chain Management
  • Definition
  • an integrative approach, consists of all stages
    involved, directly or indirectly, in fulfilling
    customer requests
  • It functions include not only to manufacturing
    and suppliers, but also transporters, warehouses,
    retailers, and customers themselves
  • Its efficiency deals with the enforcement of
    driving components on their new product
    development, marketing, operations, distribution,
    finance and customer services

(to p2)
(to p3)
2
Capacity, inventory level, delivery schedule,
payment terms
Supplier
Manufacturing
Distributor
Customer
Retail Outlet
Order, return requests, repair and service
requests, payments
Supply Chain Management major entities
3
Supply Chain Management
  • What makes SCM success?
  • Driving forces
  • Traditional IS for SCM
  • Based on Intranet, whereby it still highly
    dependent on the EDI technology for information
    interchange
  • Obstacles
  • Solutions to the problems

(to p4)
(to p6)
(to p7)
(to p8)
4
Driving Forces of SCM
  • It driving forces
  • inventory (raw materials sourcing, WIP, and its
    finished goods)
  • transportation (logistic of good transferring)
  • facilities (hardware of storage facilities)
  • information (IS systems)
  • These forces are adopted interactively in a
    decision making process for SCM

(to p5)
5
Supply Chain Decision-making Framework
Competitive Strategy
Supply Chain Strategy
Responsibilities
Efficiency
Supply Chain Structure
(to p3)
Information
Inventory
Transportation
Facilities
Driving Forces
6
SUPPLY-CHAIN MANAGEMENT
(to p3)
An integrative system for an SCM firm
7
Obstacles to achieving strategic fitness of SCM
  • 1. Increasing variety of products
  • 2. decreasing product life cycles
  • increase the uncertainty in supplying of goods
  • 3. increasingly demanding customers
  • 4. fragmentation of supply chain ownership
  • due to less vertical integrated
  • 5. Globalization - increase competition
  • 6. difficulty executing new strategies

(to p3)
8
Changing facet of SCM
  • 1. Adopting E-business concept
  • Overcome the restriction of EDI application
    (how?)
  • Expansion of worldwide operations
  • Benefits
  • 2. Adopting third party logistics
  • Such as services of outsourcing firms
  • Now most jobs such as distribution logistic,
    manufacturing, and assemblies may be rendered by
    TPL firms
  • The IS dependency of SCM firms

(to p9)
(to p14)
(to p15)
(to p16)
9
Revenue Impact of e-Business
  • E-B enhancing the following advantages
  • offering direct sales to customers
  • providing 24-hour access of information from any
    location
  • aggregating personalization and customization of
    information
  • speeding up time to market
  • implementing flexible pricing
  • allowing price and service discrimination
  • facilitating efficient funds transfer
  • Example 1 Dell
  • Example 2 Amazon

(to p10)
(to p8)
(to p12)
10
Example 1 SCM for Dell
Customer
Customer
Pull
Pull
Retail Store
Dell
PC Manufacturing
(direct process)
Supplier
Supplier
(to p11)
Conventional PC supply chain
Dell Supply Chain
11
Impact of E-B on Dell Performance
(to p9)
12
Example 2Amazon.com
Customer
Customer
Pull
Pull
Retail Store
Amazon
Warehouse
Distributor
Cut short process
Publisher
Publisher
Conventional bookstore supply chain
(to p13)
Amazon supply chain
13
Impact of E-B on Amazon.com Performance
(to p9)
14
Concept of TPL
  • Third party logistics, also known as outsourcing
    logistics, is a concept of which supply chains
    firms hiring outsource agents to take care of
    their non-core business activities so they could
    concentrate on their core-businesses and
    re-engineering.
  • The adoption of third party logistics has an
    advantage that outsourcing agents could take
    charge of daily operations of non-core businesses
    such as transportation, inventory, assembly, and
    distribution. Offering value-added services to
    their clients are also known as some of
    distinctive features render by third party
    logistics firms that may otherwise be neglected
    by supply chains firms.

(to p8)
15
IS in SCM
  • Without the TPL
  • - Could be based on the Enterprise Information
    System that implement through Intranet or
    e-Business (by internet technology)
  • With TPL
  • Now based on two systems
  • The one on the right hand side
  • The e-business system provided by the TPL
  • (reason is that now partial information, such as
    inventory, delivery status, are controlled by
    them)
  • (read it from the paper by Chow in my web site)

(to p8)
16
SCM in HK
  • Established a logistic center
  • Logistics park
  • Near airport island, allocated total of 1,255
    hectares
  • Third party logistics park
  • Two logistics centers (south and east commercial
    district in the about site)
  • e-commerce logistic center by SEAL (South East
    Asia Logistics limited)
  • Reserved 30000 sq meter site Tseung Kwan O
  • Major/other obstacles?

(to p17)
17
Future researches
  • Topics
  • What is the strategic impact of e-B technologies
    on the supply chain
  • How has the Internet impacted supply chain
    operations, from the procurement of raw materials
    to productions and distribution of finished goods
  • What performance enhancements and challenges can
    firms expect by using IT
  • How have online exchanges impacted procurement
  • How has the presence of information brokers
    impacted information flows
  • How do collaborative ideas and technologies
    improve supply chain visibility
  • What are the challenges of integrating e-Business
    technologies into supply chain operations

(to p18)
18
Sample References
  • Kajita, H. and Ohta, T., Third party logistics
    function for constructing virtual company study
    of assignments in Japanese business, Journal of
    Business Logistics, 2, 2001, 131-138.
  • Vakharia, A.J., e-Business and supply chain
    management, Decision Sciences, 33(4), 2002,
    495-504.
  • Frohlich, M.T. e-Integration in the supply chain
    Barriers and Performance, Decision Sciences,
    33(4), 2002, 537-556.
  • Narasimhan, R. and Kim S.W., Information system
    utilization strategy for supply chain
    integration, Journal of Business Logistics,
    22(2), 2001, 51-75.
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