Summary Procurement & Supply Chain (+ examples)

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




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,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


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, - 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.




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