Midterm test subject supply chain management topic the process of input to output

Supply chain process 1.1 Supply chain concept and diagram A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creati

NGÂN HÀNG NHÀ NƯỚC VIỆT NAM BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC NGÂN HÀNG TP HÒ CHÍ MINH

KHOA QUẢN TRỊ KINH DOANH

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Midterm test Subject: Supply chain management

Topic The process of input to output

Team 1: Nguyén Nhat Quyén

Nguyén Pham Khanh Van Nguyén Ngoc Minh Khanh

Tran Quốc Thang

Đỗ Thị Thu Thúy Lớp học phần: MAG307_2311_9_TA_L20

GVHD: Nguyễn Trọng Hưng

Supply chain process

DIMOU 12

1.2 — StEPS tO CHOOSE cha ỐẦ 12

References coi

| Introduction

1 Supply chain process

1.1 Supply chain concept and diagram

A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product A supply chain encompasses everything from the delivery of source materials from the supplier to the manufacturer

through to its eventual delivery to the end user

Supply Chain Management Template Diagram

PRODUCT

SUPPLIER MANUFACTURE DISTRIBUTOR RETAILER CONSUMER

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1.2 Green supply chain concept

A green supply chain or sustainable network could be defined as the operational management method and optimization approach to reduce the environmental impact along the life cycle of the green product, from the raw material to the end product

The goal of this model is to optimize the balance between society, economy, and the natural environment

GREENING THE

SUPPLY CHAIN

In building a child's crib, a manufac-

turer must focus on every step of the

process—from the trees used, to

transport, to ease of recycling

_ MANUFACTURING

spec

ifications that are safe for workers, consumers and the ervironment

er includes place of ori- Ws Packaged in boxes made

gin and chemicals used ~) from post-consumer

in manufacture recycled materials

1.3 Global supply chain

A global supply chain covers all the steps involved in manufacturing and delivering a product or service when those steps take place in more than one country For example, if a company sources raw materials in China, manufactures the product in India, and sells it to customers in North America, its supply chain is global

2 Supply chain management in manufacturing operations

2.1 Concept of supply chain management

Supply chain management (SCM) is the management of the flow of goods, data, and finances related to a product or service, from the procurement of raw materials to the delivery of the product at its final destination

2.2 Characteristics of effective supply chain management

e Balance

A supply chain is a succession of coordinated activities which together acquire certain complexity The complete cycle involves many human and material resources So that the entire process is successfully completed, all parties involved

must operate correctly It is therefore important that each phase or stage is well planned, detailed and simplified to minimize potential risks

e Transparency

There is a continuous flow of information throughout the process, from supply through to final delivery A supply chain that works well is a supply chain with dynamic communication

2.3 The role of supply chain management

Plays an important role in manufacturing, trading, and construction enterprises in the current situation when competition in the market is increasingly high, selling prices as well

as purchasing prices are increasingly more tightly controlled

e Reduce supply chain process time and costs (reduce transportation costs, warehousing taxes, storage and allocation of inventory, warehouse supplies and equipment, and labor)

TRADITIONAL REVERSE LOGISTICS

corporations with the best production and operating costs, bringing in 2.5 times more profit per product sold than rival Adidas

e Reduce storage costs and inventory: businesses focusing on distribution

channels to plan, forecast, replenish and manage inventory will help businesses limit risks in the supply chain

Brand Owner Distributors Retail Stores

For example, Walmart and P&G have changed their cooperation model, combining technology applications to manage inventory such as: retail connection system, ED! technology, CPFR program to maintain inventory within retail stores and set up a system linking all P&G computers with Walmart stores and warehouses

Walmart >,<

e Increase accuracy in production forecasting, including demand forecasting and planning production, transportation, and storage of goods to calculate the time between supply and demand, ensuring that goods are provided correctly and sufficiently to consumers

>_Inconclusion, supply chain managemert plays an important role in reducing product costs while improving product quality

2.4 Supply chain management activities

According to the Council of Supply Chain Management Professionals (CSCMP),

Supply Chain Management includes activities including: Planning, sourcing, purchasing

and distribution Logistics activities In there:

e Planning in Supply Chain Management: is a strategic process that includes forecasting, decision making, and coordination of activities across the entire supply chain network

Example: Supply chain planning of Apple company

- Conduct product testing

- Assemble cost

data

- Identify potential quality defects

Pre-Launch

(- Manage production ramp issues

- Provide software for new products

- Manage material purchase

commitments

- Provide proper inventory levels

- Determine launch quantity

China Elk Grove, Recycle/

Product Sourcing: is the process of finding products to sell, including researching

potential suppliers, evaluating products, negotiating prices and terms, and purchasing products to sell in the store your online store or business

Purchasing: is a function in the supply chain, referring to the activity of collecting goods or services for businesses that meet criteria such as: optimal cost, quality, quantity, and delivery time

For example: Casio watch accessories are sourced from many different countries such as: straps are made in Thailand, watches are assembled - "Cash in"

in China

Distribution Logistics activities: move goods from suppliers (manufacturers or

intermediaries) to the warehouse/distribution center of the retail enterprise through purchasing activities, then the goods will be sorted arrange transportation to retail units until it is sold and delivered to the customer

2.5 Supply chain management model

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a) Simple supply chain management model

This is a model where the manufacturing company only buys raw materials from a supplier and then produces it itself, who directly distributes products and goods to users

This model is often applied in small-scale businesses and family households

Businesses will carry out all stages themselves including:

Buy raw materials directly from a single supplier

Direct production and monitoring of stages to create finished products

Implement the process of transporting and selling products and services directly to

consumers

Some notes that businesses need to know when applying this model:

Choose a supplier of input materials that is reliable and has a reputable brand Carry out the production process carefully and scientifically and optimize all stages

of management

Monitor the production and supply process of products until they reach users regularly and closely

b) Complex supply chain management model

The complex supply chain model can be applied to every business from small to large scale This model covers many product lines, locations as well as distribution units

Businesses will implement stages including:

Purchasing raw materials from many different parties such as partners, outside suppliers, factories within the same Group system

Deploy all stages of production, supervise the working process of employees to create a system of final finished products In addition, businesses can also create raw materials for other companies in the same Group system,

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e The company directly (or indirectly} ships products and sells goods to customers

or continues through intermediary distribution units to launch products to the market

e Some of the following notes need to be followed:

e A complex supply chain model creates more challenges for businesses, so it is necessary to build a detailed, scientific and logical management process

e The product system is diverse and difficult to control using traditional methods Therefore, businesses can choose to use supply chain management software suitable for their unit

ll Key components in the supply chain

Moreover, in the world of business to business (B2B), suppliers can refer to distributors (e.g., component manufacturers), vendors (organizations that sell products or

services to customers), or contract manufacturers (organizations that manufacture products

for Original Equipment Manufacturer and Original Equipment Manufacturing)

1.2 Steps to choose supplier?

e Step 1: Identify what the business needs from suppliers (Identify what the business needs from suppliers)

In this step, businesses need to specifically identify the company's needs to make the search clearer, focusing on the materials or services the company needs

e Step 2: Compile a list of qualified suppliers (Compile a list of qualified suppliers)

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After determining the needs that the business is aiming for, through searching from relationships and internet platforms As for the internet platform, you should make full use of it to search for forums that serve the type of industry the company is looking for to easily find the right supplier

e Step 3: Develop a list of supplier selection criteria

Location: is one of the important factors to consider For example, some suppliers are chosen because of factors such as low cost, but because the distance is too far, leading to long delivery times

Reliability: Reliability is another important factor to consider when choosing a supplier A reliable supplier is a business partner that can contribute immensely to the success of a business, whereas, on the other hand, an unreliable and unpredictable supplier can cause trouble for the business company

Financial stability: this is also one of the necessary criteria because financial stability partly ensures that the supplier has stable operations, does not encounter any instability and provides raw materials for the company

e Step 4: Evaluate and choose the most suitable supplier

1.3 Supplier evaluation methods

a) Classification method

It is the most popular basic method currently chosen by businesses Provides evaluation criteria for suppliers based on previously classified criteria, for example, product quality products, prices, customer service, etc The supplier that achieves the highest score will be sought after by potential suppliers

> Advantages: Easy to implement, inexpensive

> Disadvantages: Only based on feelings to evaluate, lack of authenticity

b) Weighting method

It is based on available documents and assigned different weights depending on the importance of each individual criterion

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> Advantages: Easy to perform and quite popular, providing high accuracy

> Disadvantages: Requires a long process to form standard weights and rating scales c) Cost ratio method

Evaluate suppliers based on their cost ratio compared to other suppliers Suppliers with

lower costs will be evaluated higher

» Advantages: Helps ensure the best cost for businesses

> Disadvantages: Only consider costs but ignore other criteria

d) Analytical Hierarchy Method (AHP)

This method is make multi-condition decisions, and use expert opinions to evaluate and select appropriate options Provide weights and order of arrangement and comparison for decisions to determine and find the best final decision

> Advantages: Ability to handle complex problems, high accuracy and consistency that affects business results

> Disadvantages: It takes a lot of time to compare each pair, leading to different levels

of importance between criteria

e) Network analysis method (ANP)

This method optimizes the AHP method because the decision cannot be built hierarchically Make multi-criteria decisions, considering nonlinear interactions and dependencies between factors

> Advantages: More specific, detailed, and accurate assessment than AHP and capable of using both quantitative and qualitative criteria

> Disadvantages: It takes a lot of effort and time, requiring more comparisons than

AHP Strict about making a certain number of pairwise comparisons

1.4 Why does a business need a Supplier?

Suppliers play the role of ensuring supplies for business activities Without a strong bond with suppliers, you cannot ensure enough supply of goods to sell This causes

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production and business activities to be delayed, leading to reduced revenue and profits and loss of customers

1.5 Purchasing processes _ Procurement

e Step 1: Synthesize supplier information

e Step 2: Evaluate the supplier

e Step 3: Approve the supplier and send a quote

e Step 4: Set up contract

e Step 5: Order the product and sign the contract

e Step 6: Deliver and receive products

e Step 7: Inspect and accept products upon delivery and receipt

e Step 8: Proceed with warehousing and payment

or raw materials to serve the process manufacture Causing a shortage of goods supplied

to customers and consumers

1.7 Disadvantages of Supplier

Because supplier is only a supplier of raw materials and not directly involved in production activities, it will cause businesses to increase costs to buy raw materials and waste time transporting from supplier to intermediaries export In addition, it can make it difficult for businesses to secure product information as well as a lack of initiative for businesses when they are just an intermediary There is no guarantee that it will meet the time and product quality needs of consumers

2 Intermediaries

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