Chapter 6 - 1of2 supply-chain-management
Download
Report
Transcript Chapter 6 - 1of2 supply-chain-management
SUPPLY CHAIN
MANAGEMENT
CHAPTER 6
HISTORY
"Supply chain management is essentially the optimization of
material flows and associated information flows involved with
an organization’s operations” (p. 331)
70s: Manual data entry and primarily custom programming – no
common platform
80s: Common platforms occurred with mini -PCs. Still with
custom codes
90s: Common platforms and common codes based on Windows
End of 90s: Companies replaced o ld systems when the
corruption was too high
Start of 00s: Internet took over as the transaction medium
SOLUTIONS
The history shows that applying information systems,
companies can enhance or radically improve many aspects of
the supply chain. Such as:
Reduction in paperwork, inventory holdings and time
Lower SCM system purchase
Management costs through use of online services
Sharing of demand as a part of ECR
Supplier becomes responsible for item availability
Human error reduced
UPSTREAM/DOWNSTREAM
Upstream
Buy-side e-commerce
Downstream
Sell-side e-commerce
Supply chain network
More accurate reflection
LOGISTICS
The time-related positioning of ressource, or the strategic
management of the total supply chain
Inbound: Management of ressources entering on the buyerside
Outbound: Management of ressources entering on the
seller-side
PUSH AND PULL
Push supply chain model: A company creates a product and pushes it to
the costumers . ”This is a great product, now who shall we sell it to ?”
Modern company using push SC model Apple
Pull supply chain model: A company researches the costumers needs
and creates a product upon that.
Modern company using pull SC model custom computers (AlienWare )
VALUE CHAIN
A model that considers how supply chain activities can add
value to products and services delivered to the customer.
Benefits for the customer are created by reducing cost and
adding value to customers:
within each element of the value chain such as procurement,
manufacture, sales and distribution;
at the interface between elements of the value chain such as
between sales and distribution.
In equation form this is : Value = (Benefit of each VC activity
– Its cost) + (Benefit of each interface between VC activities
– Its cost)
VALUE CHAIN MODEL
VALUE STREAM
The set of all the specific actions required to bring a specific
product through the three critical management tasks of any
business:
1 the problem-solving task [the processes of new product
development and production launch]
2 the information management task [the processes of order taking,
scheduling to delivery]
3 the physical transformation task [the processes of transforming
raw materials to finished product delivered to customers]
VALUE NETWORK
Deise et al. (2000) describe value network management
as:
“the process of effectively deciding what to outsource in a constraint based, real-time environment based on fluctuation”
I.E. when a computer company outsources their information
systems to the delivery company (Post Danmark)
VIRTUAL ORGANIZATION
An organization which uses information and communications
technology to allow it to operate without clearly defined
physical boundaries between different functions
It provides customized services by outsourcing production
and other functions to third parties.