Operations management by stevenson 9th student slides chapter 11

All Rights Reserved.Chapter 11 Supply Chain Management... Chapter 11: Learning Objectives • You should be able to: – Discuss the key issues of supply chain management SCM – State the goa

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Chapter 11

Supply Chain Management

Chapter 11: Learning Objectives

• You should be able to:

– Discuss the key issues of supply chain management (SCM)

– State the goal of SCM

– List the components of SCM

– List four recent trends in SCM

– State some of the complexities of global SCM

– List some of the strategic, tactical and operational responsibilities

of SMC

– List some advantages of e-business

– Explain the motivations and risks of outsourcing as a strategy

Chapter 11: Learning Objectives (contd.)

– Explain the importance of supplier partnerships

– List some key issues relative to managing supply chain

inventories

– Explain the importance of logistics management

– Discuss the issues involved in managing returns

– List the requirements of an effective supply chain

– Explain some of the challenges in creating an effective supply

chain

Supply Chain

– the sequence of organizations - their facilities,

functions, and activities - that are involved in producing and delivering a product or service

– Sometimes referred to as value chains

Typical Supply Chains

Supply Chain Management

a business organization and throughout its supply

chain for the purpose of integrating supply and

demand management

Key SCM Issues

effectively and efficiently as possible

– Determining appropriate levels of outsourcing

– Being able to quickly identify problems and respond to them

– Managing risk

Trends in SCM

• Trends affecting supply chain design and

management:

– Sustainability

Procurement

• The purchasing department is responsible for

obtaining the materials, parts, and supplies and services needed to produce a product or provide

a service.

• The goal of procurement

– Develop and implement purchasing plans for products

and services that support operations strategies

E-Business

• E-business

– the use of electronic technology to facilitate business transactions – Applications include

• Internet buying and selling

• E-mail

• Order and shipment tracking

• Electronic data interchange

• Product and service promotion

• Provide information about products and services

Contrasting Supplier Relationships

The Bullwhip Effect

Supply Chain Performance Metrics

• Financial

– Return on assets

– Cost – Cash flow – Profits

• Suppliers

– Quality

– On-time delivery

– Cooperation

– Flexibility

• Operations

– Productivity

– Quality

• Inventory

• Order fulfillment

• Customers

Challenges

• Barriers to integration of organizations

• Getting top management on board

• Dealing with trade-offs

• Small businesses

• Variability and uncertainty

• Response time

Operations Strategy

• Effective supply chains are necessary for

organizational success

supply chain strategy

improve supply chain success