After studying this chapter you will be able to understand: Supply chain schematic, the supply chain, the immediate supply chain for an individual firm, evolution of supply chain management, the activity mix, a revised strategy is generating great top management interest.
Logistics Management LSM 730 Lecture Dr Khurrum S Mughal 1-1 Supply Chain Schematic 1-5 The Supply Chain • • • The process is full of Recurring activities Usually no single source point is located in one place Control of firm over its raw material source and the point of consumption for customers 1-3 The Immediate Supply Chain for an Individual Firm Transportation Warehousing Transportation Customers Information flows Factory Transportation Vendors/plants/ports Warehousing Transportation 1-2 Evolution of Supply Chain Management Activity fragmentation to 1960 2000+ Activity Integration 1960 to 2000 Demand forecasting Purchasing Requirements planning Production planning Manufacturing inventory Purchasing/ Materials Management Warehousing Logistics Material handling Packaging Finished goods inventory Distribution planning Supply Chain Supply Chain Management Management Physical Distribution Order processing Transportation Customer service Strategic planning Information services Marketing/sales Finance 1-5 The Activity Mix • The scope of Supply Chain vary from firm to firm – Organizational structure – Management’s opinion – Importance of an activity for its operations 1-6 A Revised Strategy is Generating Great Top Management Interest Historical perspective of distribution: “The last frontier of cost economies” Peter Drucker, 1962 The contemporary view: Distribution is a new frontier for demand generation—a competitive weapon Both views are now important! 1-7 ... place Control of firm over its raw material source and the point of consumption for customers 1 -3 The Immediate Supply Chain for an Individual Firm Transportation Warehousing Transportation Customers... Marketing/sales Finance 1-5 The Activity Mix • The scope of Supply Chain vary from firm to firm – Organizational structure – Management’s opinion – Importance of an activity for its operations 1-6 A Revised... Customers Information flows Factory Transportation Vendors/plants/ports Warehousing Transportation 1-2 Evolution of Supply Chain Management Activity fragmentation to 1960 2000+ Activity Integration