Summary Procurement and Supply chain managment

Procurement & Supply Chain Management
Chapter 1: Supply-chain basics & introduction
1. History of SCM

o The Egyptians
 Pyramids in Egypt: Logistics
 Transport of the limestone blocks
 Food
 People
 Mules
 Equipment
o The Romans:
 Caesar conquered Gaul with 5 legions
 Supply groups
 Every soldier carried their own equipment and ration
 Organized attacks
 Romans were the first to consider logistics as a separate
division
 Roman roads were built
 Semi-paved roads
 Easily transport legions and supplies
 Network: easier to navig ate
o Other examples
 Napoleon
 World War 2
 Logistics became a key factor in winning of losing a war

2. Transport & Logistics & SCM

,3. Definitions: SCM vs Logistics

3.1 Definition SCM

o Contains the planning and management of all activities involved in
sourcing and procurement, conversion, and all logistics management
activities
o Includes coordination and collaboration with the internal/external partners
o Integrates supply and demand management within and across companies

3.2 Definition Logistics

o The part of supply chain management that plans, implement, and controls
the efficient, effective forward and reverse flow, storage of goods,
services, and related information between point of origin and point of
consumption to meet customer’s requirements

4. Transport modi

4.1 Road transport




o Stakeholders
 Manufacturer (shipper)
 Freight forwarder (FF)
 Trucking company
 Customs
 Warehouse (WHS)
 Distribution Centre (DC)
 Logistics Service Providers (LSP’s)
 Customer

, 4.2 Air Freight




o Stakeholders
 Manufacturer
 Freight forwarder
 Trucking company
 Airlines
 Ground handler (GHA)
 Tarmac transport
 Customs
 Local agent
 Warehouse
 Logistics service providers
 Customers

4.3 Sea Freight




o Stakeholders
 Manufacturer
 Freight forwarder
 Trucking company/rail operator
 Distribution centre
 Terminal handling