Chapter 1
Introduction
- APICS is the association for supply chain and operations management
- Supply chain: the global network used to deliver products and services from raw
materials to customers through an engineered flow of information, physical distribution,
and cash (OR everything that happens to a product from concept to consumer)
- Supply chains are generally end to end, and company may have multiple chains
- SCOR (supply chain operations research) model is what most chains follow
- Plan → Source → Make → Deliver → [← Return], and Enable
-
- Companies PLAN what they make, SOURCE the materials, MAKE the products,
DELIVER them to the market, and handle RETURNS
- Suppliers and customers can be internal/external, and many companies have both kinds
- Supply chains are typically enabled through processes and technologies
- SCOR model is an outline to describe all functions, processes, and activities in a chain
- Plan: establishes the parameters within which the chain will operate
- Strategy for managing all resources for how products will be created and
delivered to meet the needs of the customer
- Should be efficient, cost-effective, high quality, and high value
- Source: process of identifying suppliers for the materials/services needed to make
- Reliable suppliers; build strong relationships with them
- Develop pricing, shipping, delivery, and payment terms with suppliers and
mointor the overall performance of the system
- Make: converting materials into a finished product
- Manufacture, test, package, schedule for delivery
- Measure quality levels, production output, worker productivity
- Quality management; LEAN manufacturing, Six Sigma used
- Deliver: planning and execution of forward/reverse flow of goods and related info
- Return: a.k.a. Reverse logistics, moving goods back to the point of origin
- Enable: facilitate company’s ability to manage the chain
- Systems and network operations, EDI, telecoms; spread out across SCOR
Introduction
- APICS is the association for supply chain and operations management
- Supply chain: the global network used to deliver products and services from raw
materials to customers through an engineered flow of information, physical distribution,
and cash (OR everything that happens to a product from concept to consumer)
- Supply chains are generally end to end, and company may have multiple chains
- SCOR (supply chain operations research) model is what most chains follow
- Plan → Source → Make → Deliver → [← Return], and Enable
-
- Companies PLAN what they make, SOURCE the materials, MAKE the products,
DELIVER them to the market, and handle RETURNS
- Suppliers and customers can be internal/external, and many companies have both kinds
- Supply chains are typically enabled through processes and technologies
- SCOR model is an outline to describe all functions, processes, and activities in a chain
- Plan: establishes the parameters within which the chain will operate
- Strategy for managing all resources for how products will be created and
delivered to meet the needs of the customer
- Should be efficient, cost-effective, high quality, and high value
- Source: process of identifying suppliers for the materials/services needed to make
- Reliable suppliers; build strong relationships with them
- Develop pricing, shipping, delivery, and payment terms with suppliers and
mointor the overall performance of the system
- Make: converting materials into a finished product
- Manufacture, test, package, schedule for delivery
- Measure quality levels, production output, worker productivity
- Quality management; LEAN manufacturing, Six Sigma used
- Deliver: planning and execution of forward/reverse flow of goods and related info
- Return: a.k.a. Reverse logistics, moving goods back to the point of origin
- Enable: facilitate company’s ability to manage the chain
- Systems and network operations, EDI, telecoms; spread out across SCOR
