SCM - Chapter 1 - Intro To SCM Post
SCM - Chapter 1 - Intro To SCM Post
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Current Event Sources
•Freightwaves.com
•Insidelogistics.ca
•Inboundlogistics.com
•Supplychaindive.com
•Supplychainbrain.com
•Supplychain247.com
•Trucknews.com
•Dcvelocity.com
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Supply Chain Management,
11e
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Learning Outcomes:
• Describe the forces driving supply chain the rate of change: globalization,
technology, organizational consolidation, empowered consumers and policy.
• Explain basic supply chain concepts: physical distribution, integrated logistics, total
costs, value chain, integrated supply chain, efficient consumer response and bull
whip effect
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Discussion Outline
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John C. Maxwell Quote
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Leading Retailers (Sales Year)
2000 2010 2015 2019 2021
Source Figure 1.1: Center for Supply Chain Research, Penn State University.
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1. Globalization
Globalization creates more economic and political risk, shorter product life cycle, and the blurring of
traditional organizational boundaries.
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2. Technology
Technology is a facilitator of internal process and supply chain transformation. It is also a major
force in changing the dynamics of the marketplace.
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3. Organization Consolidation and Power Shifts
During the 1980s and especially the 1990s, economic power and the driving force in supply chains
shift from product manufacturers to the retail end of the supply chain.
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4. Empowered Consumers
Consumers are empowered by exponentially expanded access to product sources and related information
and increased buying power due to high income levels.
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5. Government Policy and Regulation
More competitive environment is a result of the deregulation of several important sectors in the United
States occurred in the 1980s and 1990s.
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6. Sustainability
The pursuit of sustainability is widely recognized as a key element of successful supply chain
management. This is critical to effective risk management and achieving competitive advantage.
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Evolution of Supply Chain Management Concept
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Integrated Supply Chain – Basics
SCM is the art and science of integrating the flows of products, information and financials through the entire
supply pipeline from the supplier’s supplier to the customer’s customer.
Product/Services Flow
Information Flow
Finance /Cash Flow
Demand Flow
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Integrated Supply Chain – Network
Raw
Manufacturing Manufacturing Wholesaler Retailer Retail Store
Material
Plant Warehouse Warehouse Warehouse
Supplier
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Supply Chain Flows
PRODUCT FLOW
• Physical movement of goods and materials
INFORMATION FLOW
• Enabling physical flow of products
• Decision making
• Supply chain collaborations
CASH FLOW
• Management of working capital
DEMAND FLOW
• Detect and understand demand signals
• Synchronize demand vs. supply
4 9
Transportation
Information
management
2 7
Performance
Complexity
1 5 measurement
10
Supply chain Cost and Supply chain
network value security
3 8
Inventory
Technology
deployment 11
6
Organizational Talent management
relationships
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GSCM accessible
Ch 1- 19website, in whole or in part. 19
Major Supply Chain Issues (continued)
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Major Supply Chain Issues (continued)
Organizational
Information Cost and Value
Relationships
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Major Supply Chain Issues (continued)
Transportation
Performance Measurement Technology
Management
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Major Supply Chain Issues (continued)
The challenges
Risk of disruptions, vulnerability, and The challenges
Attract, develop, and maintain the
exposure to terroristic threats exacerbated
by distance and complexity in global supply appropriate pool of talent from entry level to
chain executive level
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The rate of change has been driven by a set of external
forces including globalization, technology, organizational
consolidation and shifts in power in supply chains,
empowered consumers, and government policy and
regulations.
Supply chains are extended enterprises which require
managing four flows—products, information, financials
(cash), and demand on a collaborative basis.
The global supply chains of the best companies must be
adaptive, resilient, and responsive to meet the
challenges of the global economy and develop
mitigating strategies for disruptive forces.
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