Summary Supply Chain
Management
UNIVERSITY OF APPLIED SCIENCES Y3Q1
SIMONE SNEPVANGERS
,Table of Contents
Principles of the Supply Chain................................................................................................................2
Chapter 1 Introduction to Supply Chain Management...........................................................................2
Chapter 5 The value of information........................................................................................................3
Chapter 6 Supply Chain Integration........................................................................................................4
Chapter 9 Procurement and outsourcing strategies...............................................................................5
Chapter 11 Coordinated Product and Supply Chain Design....................................................................9
Chapter 2 Inventory Management and Risk Pooling..............................................................................9
Chapter 3 Network Planning.................................................................................................................14
Chapter 7 Designing and Manging the Supply Chain............................................................................17
Chapter 8 Strategic Alliances................................................................................................................18
Chapter 10 Designing and Managing the Supply Chain........................................................................21
Chapter 11 Coordinated Products and Supply Chain Design................................................................23
1
, Principles of the Supply Chain
Principle 1 = Segment customers based on the service needs of distinct groups and adapt the supply
chain to serve these segments profitably
Principle 2 = Customize the logistics network to the service requirements and profitability of
customer segments
Principle 3 = Listen to market signals and align demand planning accordingly across the supply chain,
ensuring consistent forecasts and optimal resource allocation
Principle 4 = Differentiate product closer to the customer and speed conversion across the supply
chain
Principle 5 = Manage sources of supply strategically to reduce the total cost of owning materials and
services
Principle 6 = Develop a supply chain-wide technology strategy that supports multiple levels of
decision making and gives a clear view of the flow of products, services and information
Principle 7 = Adopt channel-spanning performance measures to gauge collective success in reaching
the end-user effectively and efficiently
Chapter 1 Introduction to Supply Chain Management
Supply Chain Management = a set of approaches utilized to efficiently integrate suppliers,
manufacturers, warehouses, and stores , so that merchandise is produced and distributed at the
right quantities, to the right locations and at the right time, in order to minimize systemwide costs
while satisfying service level requirements
- Supply chain takes into consideration every facility that has an impact on cost and plays a
role in making the product conform to the customer requirements
- Objective = to be efficient and cost-effective across the entire system
- Emphasis is on taking a system approach to supply chain management
- It affects many levels; strategic level, tactical and operational
The difficulty of supply chain management
- Supply chain strategies cannot be determined in isolation. They are directly affected by
another chain that most organizations have the development chain
- It is challenging to design and operate a supply chain so that total systemwide costs are
minimized, and systemwide service levels are maintained
- Uncertainty and risk are inherent in every supply chain
The development chain = the set of activities and processes associated with new product
introduction (product design, associated capabilities and knowledge that is needed to develop,
sourcing decisions and production plans
The difficulty of finding the best global optimization/integration
- The supply chain is a complex network
- Different facilities in the supply chain frequently have different, conflicting objectives
- The supply chain is a dynamic system
- System variations over time
2
Management
UNIVERSITY OF APPLIED SCIENCES Y3Q1
SIMONE SNEPVANGERS
,Table of Contents
Principles of the Supply Chain................................................................................................................2
Chapter 1 Introduction to Supply Chain Management...........................................................................2
Chapter 5 The value of information........................................................................................................3
Chapter 6 Supply Chain Integration........................................................................................................4
Chapter 9 Procurement and outsourcing strategies...............................................................................5
Chapter 11 Coordinated Product and Supply Chain Design....................................................................9
Chapter 2 Inventory Management and Risk Pooling..............................................................................9
Chapter 3 Network Planning.................................................................................................................14
Chapter 7 Designing and Manging the Supply Chain............................................................................17
Chapter 8 Strategic Alliances................................................................................................................18
Chapter 10 Designing and Managing the Supply Chain........................................................................21
Chapter 11 Coordinated Products and Supply Chain Design................................................................23
1
, Principles of the Supply Chain
Principle 1 = Segment customers based on the service needs of distinct groups and adapt the supply
chain to serve these segments profitably
Principle 2 = Customize the logistics network to the service requirements and profitability of
customer segments
Principle 3 = Listen to market signals and align demand planning accordingly across the supply chain,
ensuring consistent forecasts and optimal resource allocation
Principle 4 = Differentiate product closer to the customer and speed conversion across the supply
chain
Principle 5 = Manage sources of supply strategically to reduce the total cost of owning materials and
services
Principle 6 = Develop a supply chain-wide technology strategy that supports multiple levels of
decision making and gives a clear view of the flow of products, services and information
Principle 7 = Adopt channel-spanning performance measures to gauge collective success in reaching
the end-user effectively and efficiently
Chapter 1 Introduction to Supply Chain Management
Supply Chain Management = a set of approaches utilized to efficiently integrate suppliers,
manufacturers, warehouses, and stores , so that merchandise is produced and distributed at the
right quantities, to the right locations and at the right time, in order to minimize systemwide costs
while satisfying service level requirements
- Supply chain takes into consideration every facility that has an impact on cost and plays a
role in making the product conform to the customer requirements
- Objective = to be efficient and cost-effective across the entire system
- Emphasis is on taking a system approach to supply chain management
- It affects many levels; strategic level, tactical and operational
The difficulty of supply chain management
- Supply chain strategies cannot be determined in isolation. They are directly affected by
another chain that most organizations have the development chain
- It is challenging to design and operate a supply chain so that total systemwide costs are
minimized, and systemwide service levels are maintained
- Uncertainty and risk are inherent in every supply chain
The development chain = the set of activities and processes associated with new product
introduction (product design, associated capabilities and knowledge that is needed to develop,
sourcing decisions and production plans
The difficulty of finding the best global optimization/integration
- The supply chain is a complex network
- Different facilities in the supply chain frequently have different, conflicting objectives
- The supply chain is a dynamic system
- System variations over time
2
