Transcript Product Placement - Carson College of Business

SUPPLY CHAIN
MANAGEMENT
Brian Gillespie
May 19, 2010
Value Chain

Series of steps involved in designing, producing,
marketing and selling a product
 Steps
are categorized as primary and secondary
activities
 Each step can add or remove value

All activities in the value chain take place inside the
firm
Primary Value Chain Activities

Inbound logistics


Operations


The activities that get the product to the customers
Marketing and sales


The activities that transform the materials into the final product
Outbound logistics


Receiving of materials needed to manufacture its products
Handle the 4 P’s
Service

The activities that enhance or maintain the value of the product, like
installation or repair
Support Value Chain Activities

Firm Infrastructure
 Organizational
structure, control systems, company
culture

Human resources management
 Recruiting,

hiring and training of employees
Technology development
 Technologies

to support value-creating activities
Procurement
 The
purchasing of inputs like materials, supplies and
equipment
Value Chain

Margin (or profit) depends on the effectiveness in
performing these activities efficiently
Supply Chain


All activities needed to convert raw materials into
product/service and get it to the consumer
Unlike the value chain, the supply chain takes place
across multiple firms
Supply Chain
http://www.youtube.com/watch?v=ql-N3F1FhW4
Supply Chain Management

Managing and coordinating the flow of goods, and
information between partners in the supply chain in
an effort to maximize profitability
 Transportation
of goods from supply chain members to
other members
 Synchronization
of information between supply chain
members
 Procurement
 Advertising
 Logistics
information
information
(advanced shipping notices)
Hewlett-Packard’s Supply Chain
Hundreds of
suppliers
Dozens of
factories
Thousands of
retail locations
Millions
Insourcing vs. Outsourcing

Insourcing
 The
contracting of specialist firms to handle all or part
of the supply chain operations
 UPS
is responsible for ordering, scheduling and delivering
raw pizza materials for Papa John’s to individual Papa
John’s stores

Outsourcing
 The
delegation of non-essential tasks to subcontractors
 Computer
call services in India
SCM Example

In small groups, create a supply chain for the
product and describe the specific primary and
support activities in the value chain for the following
product

www.cb.wsu.edu/~bgillespie/mktg360/supplychainexamples.htm
Kitten Mittons!!!