PROCUREMENT AND SUPPLY CHAIN 2020
CHAPTER 01 : Supply-chain Basics
TERMS:
WIP = work in progress
DMAIC = Define, measure, analyze, implement , control
TEU = container 1950
RFID= radio frequency identification
EDI= electronic data interchange
E2ESCM = end to end supply chain management
Subsystem = a self-contained system within a larger system
BOM = bill of material (table of content) : telling u everything that contains a finished product (example ;
Ikea)
MHA : material handling equipment : all electrical stuff, even automated stuff , lift something to put in a
rack
SOP : standard operation planning / standard operating procedures
SLA : Service level agreement
Not important
1PL: everything by yourself (one party)
2PL: I produce but with a carrier, (outsource is second party)
3PL: you as company producing logistic and transportation activities + Sub-contractors ( most common)
4PL: no own activities but managing own supply chain
5PL: leveraging the supply chain for different customers under one umbrella
1
,SUPPLY CHAIN CIRCLE:
HISTORY:
1) The Pyramides in EGYPT : LOGISTICS
- Transport of limestone blocks, food, people, mules, equipment, ….
- Via the Nile River + Channel to port of Gizeh
2) ROMANS: Caesar conquered Gaul with 5 legions
- Supply group with 500-550 mules/guides
- Organised attacks + every soldier carried his own equipment
- Romans were first to consider logistics as a seperate division
Roman Roads
- Semi- paved roads
- Easily transport legions and supplies
- Were designed for people, but also carriages
- Optimize communication between different regions
- Network : easier to navigate
- Well protected and patrolled
3) WW2
- Logistics became a key factor in winning and losing a war
TRANSPORT & LOGISTICS & SCM :
Information FLOW
- Example: Flair subscription , you get back information flow (thank u, pay this much)
Cash FLOW
- Sending money to the company
Product FLOW
2
, - The guy that puts it in your mailbox
Retour FLOW
- Sending back a product
DEFINITION
SCM:
- Supply chain management contains the planning and management of all activities involved
in sourcing and procurement, conversion, and all logistics management activities.
- It, also includes coordination and collaboration with the internal/external partners, which
can be suppliers, third-party service providers and customers.
- Essence : SCM integrates supply and demand management within and across companies.
LOGISTICS:
- Logistic management is the part of SCM that plans, implements, 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 requirement.
3
CHAPTER 01 : Supply-chain Basics
TERMS:
WIP = work in progress
DMAIC = Define, measure, analyze, implement , control
TEU = container 1950
RFID= radio frequency identification
EDI= electronic data interchange
E2ESCM = end to end supply chain management
Subsystem = a self-contained system within a larger system
BOM = bill of material (table of content) : telling u everything that contains a finished product (example ;
Ikea)
MHA : material handling equipment : all electrical stuff, even automated stuff , lift something to put in a
rack
SOP : standard operation planning / standard operating procedures
SLA : Service level agreement
Not important
1PL: everything by yourself (one party)
2PL: I produce but with a carrier, (outsource is second party)
3PL: you as company producing logistic and transportation activities + Sub-contractors ( most common)
4PL: no own activities but managing own supply chain
5PL: leveraging the supply chain for different customers under one umbrella
1
,SUPPLY CHAIN CIRCLE:
HISTORY:
1) The Pyramides in EGYPT : LOGISTICS
- Transport of limestone blocks, food, people, mules, equipment, ….
- Via the Nile River + Channel to port of Gizeh
2) ROMANS: Caesar conquered Gaul with 5 legions
- Supply group with 500-550 mules/guides
- Organised attacks + every soldier carried his own equipment
- Romans were first to consider logistics as a seperate division
Roman Roads
- Semi- paved roads
- Easily transport legions and supplies
- Were designed for people, but also carriages
- Optimize communication between different regions
- Network : easier to navigate
- Well protected and patrolled
3) WW2
- Logistics became a key factor in winning and losing a war
TRANSPORT & LOGISTICS & SCM :
Information FLOW
- Example: Flair subscription , you get back information flow (thank u, pay this much)
Cash FLOW
- Sending money to the company
Product FLOW
2
, - The guy that puts it in your mailbox
Retour FLOW
- Sending back a product
DEFINITION
SCM:
- Supply chain management contains the planning and management of all activities involved
in sourcing and procurement, conversion, and all logistics management activities.
- It, also includes coordination and collaboration with the internal/external partners, which
can be suppliers, third-party service providers and customers.
- Essence : SCM integrates supply and demand management within and across companies.
LOGISTICS:
- Logistic management is the part of SCM that plans, implements, 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 requirement.
3
