Table of Content
Supply Chain Management.....................................................................................................................1
Chapter 1 (6 blz).................................................................................................................................1
Chapter 2 (27 blz)...............................................................................................................................4
Chapter 3 (14 blz)...............................................................................................................................6
Chapter 4 (20 blz)...............................................................................................................................9
Chapter 5 (14 blz).............................................................................................................................11
Chapter 6 (18 blz).............................................................................................................................14
Chapter 7 (12 blz).............................................................................................................................16
Chapter 9 (13 blz).............................................................................................................................18
Chapter 11 (13 blz)...........................................................................................................................20
Supply Chain Management
Chapter 1 (6 blz)
Supply Chain Management: managing the flow of information, materials and service from raw
material suppliers through factories and warehouses to the end customer. It includes manufactures,
suppliers, transporters, warehouses, retailers, and customers.
The supply chain includes all function that are involved in receiving and filling a customer request;
, - New product development
- Marketing
- Operations
- Distribution
- Finance
- Customer service
A supply chain is dynamic and includes three flows;
1. Flow of information (order confirmation or dispatch advice)
2. Flow of materials (raw materials to finished goods)
3. Reverse flow
Reverse Funds: this is the money that flows back into the supply chain. The supplier’s supplier wants
to be paid for the delivery of tea leaves.
Reverse flows:
- Goods, quality defect products or obsolete products
- Information, customer feedback
- Packaging material, outer cartons
- Transportation equipment, cages, pallets or containers
Flow of material; they range from raw materials to work in progress, all the way to finished goods.
There are two forces in this chain of products, information, and funds:
- Product supply: commodities. The supply chain starts supplying before customers come into
the store to buy it.
- Customer demand; customized goods. Have a high degree of customization, the customer
starts the chain of supply, manufacturing, and transport activities of the desired product. The
chain starts moving after the customer have expressed their wishes or set an order.
Simple supply chain players;
- Suppliers
- Own company
- Customers
- Service supplier
Service providers such as transportation, warehousing, IT, financing, market research, new product
design, information, communication. They are often capable of providing the previously mentioned
, services more efficiently than manufacturers/distributors/wholesalers because they are specialized in
a certain service.
Supply chains react to changes in their environment:
- Customer demand
- Product supply
- Exchange rates
- Temperature
Constant balance supply with demand. Inventory plays an important role in balancing demand and
supply
The following processes take place in every stage of the supply chain;
- Plan process: balance demand and supply
- Source process: selecting suppliers
- Make process: setting up manufacturing
- Deliver Process: order management, logistics
- Return process: post-delivery customer support
The Supply Chain Counsel (SCC) developed the Supply Chain Operations Reference (SCOR) that
displays the functional processes in the supply chain.
A model that depicts the broad spectrum of generic functional processes in the supply chain
A famous simulation of dynamics in the supply chain is the beer game. The setup is simple: there are
four players (factory, distributor, wholesaler and retailer) that source, produce and move beer within
the supply chain. The aim is to minimise total supply chain costs, which can be achieved through
holding little (but not too little!) inventory. Then it happens: the bullwhip effect! A small change in
real customer demand leads to a huge amplification of the upstream demand signal and increased
volatility of orders through to suppliers. The initial out of stock situation soon becomes a massive
excess stock problem. In order to improve the situation, we need to communicate, share a demand
forecast between the different players and reduce information and product flow lead-times.
Supply Chain Management.....................................................................................................................1
Chapter 1 (6 blz).................................................................................................................................1
Chapter 2 (27 blz)...............................................................................................................................4
Chapter 3 (14 blz)...............................................................................................................................6
Chapter 4 (20 blz)...............................................................................................................................9
Chapter 5 (14 blz).............................................................................................................................11
Chapter 6 (18 blz).............................................................................................................................14
Chapter 7 (12 blz).............................................................................................................................16
Chapter 9 (13 blz).............................................................................................................................18
Chapter 11 (13 blz)...........................................................................................................................20
Supply Chain Management
Chapter 1 (6 blz)
Supply Chain Management: managing the flow of information, materials and service from raw
material suppliers through factories and warehouses to the end customer. It includes manufactures,
suppliers, transporters, warehouses, retailers, and customers.
The supply chain includes all function that are involved in receiving and filling a customer request;
, - New product development
- Marketing
- Operations
- Distribution
- Finance
- Customer service
A supply chain is dynamic and includes three flows;
1. Flow of information (order confirmation or dispatch advice)
2. Flow of materials (raw materials to finished goods)
3. Reverse flow
Reverse Funds: this is the money that flows back into the supply chain. The supplier’s supplier wants
to be paid for the delivery of tea leaves.
Reverse flows:
- Goods, quality defect products or obsolete products
- Information, customer feedback
- Packaging material, outer cartons
- Transportation equipment, cages, pallets or containers
Flow of material; they range from raw materials to work in progress, all the way to finished goods.
There are two forces in this chain of products, information, and funds:
- Product supply: commodities. The supply chain starts supplying before customers come into
the store to buy it.
- Customer demand; customized goods. Have a high degree of customization, the customer
starts the chain of supply, manufacturing, and transport activities of the desired product. The
chain starts moving after the customer have expressed their wishes or set an order.
Simple supply chain players;
- Suppliers
- Own company
- Customers
- Service supplier
Service providers such as transportation, warehousing, IT, financing, market research, new product
design, information, communication. They are often capable of providing the previously mentioned
, services more efficiently than manufacturers/distributors/wholesalers because they are specialized in
a certain service.
Supply chains react to changes in their environment:
- Customer demand
- Product supply
- Exchange rates
- Temperature
Constant balance supply with demand. Inventory plays an important role in balancing demand and
supply
The following processes take place in every stage of the supply chain;
- Plan process: balance demand and supply
- Source process: selecting suppliers
- Make process: setting up manufacturing
- Deliver Process: order management, logistics
- Return process: post-delivery customer support
The Supply Chain Counsel (SCC) developed the Supply Chain Operations Reference (SCOR) that
displays the functional processes in the supply chain.
A model that depicts the broad spectrum of generic functional processes in the supply chain
A famous simulation of dynamics in the supply chain is the beer game. The setup is simple: there are
four players (factory, distributor, wholesaler and retailer) that source, produce and move beer within
the supply chain. The aim is to minimise total supply chain costs, which can be achieved through
holding little (but not too little!) inventory. Then it happens: the bullwhip effect! A small change in
real customer demand leads to a huge amplification of the upstream demand signal and increased
volatility of orders through to suppliers. The initial out of stock situation soon becomes a massive
excess stock problem. In order to improve the situation, we need to communicate, share a demand
forecast between the different players and reduce information and product flow lead-times.
