lOMoARcPSD|15793120
Global supply chain management
Lecture 1
Supply chain
- Set of organizations, customers. Includes movement of information, goods,
and funds.
- Stages of supply chain: customers, retailers, distributors, manufacturers,
suppliers
Supply chain management
- Set of approaches, tools, and techniques to integrate and coordinate
suppliers, manufacturers, warehouses, and stores
- To guarantee customer satisfaction
- Maximizing profit or service level
Direct sale: for corporate clients -> dell, they sell via their
website Indirect sale: through retailers FE mediamarkt
Objective of the supply chain: maximize supply chain
surplus
- Supply chain surplus: consumer value - supply chain cost
- Consumer value: the maximum price a consumer is willing to pay
- The costs the supply chain incurs in filling the consumer's request
Decision stages of the supply
chain
- Supply chain strategy/design
- How to structure the supply chain for the next several years
- Supply chain planning
- Decisions over the next quarter or year
- Supply chain operation
- Daily or weekly operational decisions
Supply chain strategy/design:
- Long-term and expensive to reverse, take into account market uncertainty
- Whether to outsource or perform in-house
- Locations and capabilities of facilities
- Modes of transportation
- Information systems
,Supply chain planning:
- Demand uncertainty, exchange rates, and competition have to be
considerate, the goal is to maximize supply chain surplus
- Which markets will be supplied from which locations
- Subcontracting, backup locations
- Inventory locations
- Timing and size of market promotions
Supply chain operations:
- Horizon is weekly or daily, supply chain configurations is fixed and operating
policies are determined
- Allocate orders to inventory or production
- Set delivery schedules
Supply chain processes:
- Cycle view
- push/pull view
Cyle view:
Push pull view:
- Pull: execution is initiated in response to a customer order, less inventory
of the final product
- Push: execution is initiated in anticipation of customer orders, it is forecasted
rather, than actual demand -> grocery store
- Push pull boundary: separates push process from pull process; to
identify an appropriate push/pull boundary to match supply and
demand effectively
, FE h&m; the pile up stuff, everything is push untill the customer order will be push
Lecture 2:
Competitive strategy: company defines, relative to its competitors, the set of
customer needs that it seeks to satisfy through its products and services, it
specifies one or more customer segment to focus on
- Walmart: high availability of a variety of products with reasonable quality at
low prices
Value chain:
- New product development
- Marketing and sales
- Operations
- Distributions
- Service
Supply chain strategy; defines the nature of all functions, it actually specifies what
each function should do particularly well FE directly sell to customers, or use
contract manufacturers
- Also includes decisions about, design, inventory, transportation,
operating facilities, information flows
Achieving strategic fit; competitive strategy and supply chain strategy should be
aligned
- There is always uncertainty
Demand uncertainty
- Low uncertainty: functional items, stable demand
- Differs for quantity in each lot
- Response time (emergency order vs regular order)
- Product variety
- Service level
- Price
- Desired rate of
innovation Implied demand
uncertainty: ??
Supply chain responsiveness includes ability to
- Respond to a wide range of quantities demanded
- Meet short lead times
- Handle a large variety of products
- Build highly innovative products
- Meet a high service level
- Handle supply uncertainty
It comes at a cost
Global supply chain management
Lecture 1
Supply chain
- Set of organizations, customers. Includes movement of information, goods,
and funds.
- Stages of supply chain: customers, retailers, distributors, manufacturers,
suppliers
Supply chain management
- Set of approaches, tools, and techniques to integrate and coordinate
suppliers, manufacturers, warehouses, and stores
- To guarantee customer satisfaction
- Maximizing profit or service level
Direct sale: for corporate clients -> dell, they sell via their
website Indirect sale: through retailers FE mediamarkt
Objective of the supply chain: maximize supply chain
surplus
- Supply chain surplus: consumer value - supply chain cost
- Consumer value: the maximum price a consumer is willing to pay
- The costs the supply chain incurs in filling the consumer's request
Decision stages of the supply
chain
- Supply chain strategy/design
- How to structure the supply chain for the next several years
- Supply chain planning
- Decisions over the next quarter or year
- Supply chain operation
- Daily or weekly operational decisions
Supply chain strategy/design:
- Long-term and expensive to reverse, take into account market uncertainty
- Whether to outsource or perform in-house
- Locations and capabilities of facilities
- Modes of transportation
- Information systems
,Supply chain planning:
- Demand uncertainty, exchange rates, and competition have to be
considerate, the goal is to maximize supply chain surplus
- Which markets will be supplied from which locations
- Subcontracting, backup locations
- Inventory locations
- Timing and size of market promotions
Supply chain operations:
- Horizon is weekly or daily, supply chain configurations is fixed and operating
policies are determined
- Allocate orders to inventory or production
- Set delivery schedules
Supply chain processes:
- Cycle view
- push/pull view
Cyle view:
Push pull view:
- Pull: execution is initiated in response to a customer order, less inventory
of the final product
- Push: execution is initiated in anticipation of customer orders, it is forecasted
rather, than actual demand -> grocery store
- Push pull boundary: separates push process from pull process; to
identify an appropriate push/pull boundary to match supply and
demand effectively
, FE h&m; the pile up stuff, everything is push untill the customer order will be push
Lecture 2:
Competitive strategy: company defines, relative to its competitors, the set of
customer needs that it seeks to satisfy through its products and services, it
specifies one or more customer segment to focus on
- Walmart: high availability of a variety of products with reasonable quality at
low prices
Value chain:
- New product development
- Marketing and sales
- Operations
- Distributions
- Service
Supply chain strategy; defines the nature of all functions, it actually specifies what
each function should do particularly well FE directly sell to customers, or use
contract manufacturers
- Also includes decisions about, design, inventory, transportation,
operating facilities, information flows
Achieving strategic fit; competitive strategy and supply chain strategy should be
aligned
- There is always uncertainty
Demand uncertainty
- Low uncertainty: functional items, stable demand
- Differs for quantity in each lot
- Response time (emergency order vs regular order)
- Product variety
- Service level
- Price
- Desired rate of
innovation Implied demand
uncertainty: ??
Supply chain responsiveness includes ability to
- Respond to a wide range of quantities demanded
- Meet short lead times
- Handle a large variety of products
- Build highly innovative products
- Meet a high service level
- Handle supply uncertainty
It comes at a cost
