Definitions of Supply Chain
.... a set of three or more companies directly linked by one or more of the upstream and
downstream flows of products, services, finance and information from a source to a customer”
Mentzer
“......all organizations and activities associated with the flow and transformation of goods from
raw materials, through to the end user, as well as the associated information and monetary
flows” Handfield and Nichols
‘’Supply chain management encompasses the planning and management of all activities involved
in sourcing and procurement, conversion, and all logistics management activities. Importantly,
it also includes coordination and collaboration with channel partners, which can be suppliers,
intermediaries, third party service providers, and customers. In essence, supply chain
management integrates supply and demand management within and across companies.’’ CSCMP
Why Walmart beat Kmart:
1) Walmart focused on managing uncertainty (supply & demand) rather than traditional retailing
2) Focus on managing customers’ needs
3) The way the company replenished inventory being the centerpiece of its strategy
4) Use of ‘’cross-docking’’ : goods are continuously delivered to warehouses where they are
dispatched to stores without ever sitting in inventory. This way cost of sales reduced
significantly and made it possible to offer everyday low prices to their customers.
Yeng(2008, p. 490) defines strategic supply management as:
“a long-term, planned effort to create a capable supplier base and leverage the benefit of
supply management.”
Cousins et al. (2008) conclude that are three concepts central to strategic SCM:
“1) it affects the scale and scope of an organization’s activities over the long term,
2) it is about being responsive to changes in the external environment,
3) it is about aligning activities with strategic resources and capabilities. “
ARTICLE 1. Best Value supply chain (Ketchen and Hult)
The purpose of the article is to define best value SC, how they are different from traditional SC
and how key organizational theories help to distinguish best value supply chains from traditional
supply chains.
The effectiveness SSCM (triple A):
1) Agility refers to the ability of a supply chain to react quickly to unexpected or rapid shifts in
supply and demand. One way to create agility is to develop ‘‘cultural competitiveness’’ in the
supply chain. (filling the gap of what the customer wants and what is offered,)
2) Adaptability refers to a willingness to reshape supply chains when necessary, without ties to
legacy issues or the way the chain has been operated previously. Adaptable supply chains rely
on information systems to identify shifts in the market, and then take appropriate actions such
as moving facilities, changing suppliers, and outsourcing
3) Alignment refers to ensuring that the interests of all participants in a supply chain are
consistent. Alignment of information is also vital-participants must have access to needed data
on flows and forecasts in order to fulfill their responsibilities.
.... a set of three or more companies directly linked by one or more of the upstream and
downstream flows of products, services, finance and information from a source to a customer”
Mentzer
“......all organizations and activities associated with the flow and transformation of goods from
raw materials, through to the end user, as well as the associated information and monetary
flows” Handfield and Nichols
‘’Supply chain management encompasses the planning and management of all activities involved
in sourcing and procurement, conversion, and all logistics management activities. Importantly,
it also includes coordination and collaboration with channel partners, which can be suppliers,
intermediaries, third party service providers, and customers. In essence, supply chain
management integrates supply and demand management within and across companies.’’ CSCMP
Why Walmart beat Kmart:
1) Walmart focused on managing uncertainty (supply & demand) rather than traditional retailing
2) Focus on managing customers’ needs
3) The way the company replenished inventory being the centerpiece of its strategy
4) Use of ‘’cross-docking’’ : goods are continuously delivered to warehouses where they are
dispatched to stores without ever sitting in inventory. This way cost of sales reduced
significantly and made it possible to offer everyday low prices to their customers.
Yeng(2008, p. 490) defines strategic supply management as:
“a long-term, planned effort to create a capable supplier base and leverage the benefit of
supply management.”
Cousins et al. (2008) conclude that are three concepts central to strategic SCM:
“1) it affects the scale and scope of an organization’s activities over the long term,
2) it is about being responsive to changes in the external environment,
3) it is about aligning activities with strategic resources and capabilities. “
ARTICLE 1. Best Value supply chain (Ketchen and Hult)
The purpose of the article is to define best value SC, how they are different from traditional SC
and how key organizational theories help to distinguish best value supply chains from traditional
supply chains.
The effectiveness SSCM (triple A):
1) Agility refers to the ability of a supply chain to react quickly to unexpected or rapid shifts in
supply and demand. One way to create agility is to develop ‘‘cultural competitiveness’’ in the
supply chain. (filling the gap of what the customer wants and what is offered,)
2) Adaptability refers to a willingness to reshape supply chains when necessary, without ties to
legacy issues or the way the chain has been operated previously. Adaptable supply chains rely
on information systems to identify shifts in the market, and then take appropriate actions such
as moving facilities, changing suppliers, and outsourcing
3) Alignment refers to ensuring that the interests of all participants in a supply chain are
consistent. Alignment of information is also vital-participants must have access to needed data
on flows and forecasts in order to fulfill their responsibilities.
