case study
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Supply Chain Management
CHAPTER
Supply Chains
Supply Chain Management
Information Technology Support for Supply Chain Management
Describe the three components and the three flows of a supply chain.
Identify popular strategies to solving different challenges of supply chains.
Explain the utility of each of the three major technologies that support supply chain management.
Munchery
How does Munchery’s supply chain benefit from the simple decision to off er chilled rather than hot meals?
What role do information systems play in the communication of information from the ingredients to the table?
Opening Case
Supply Chains
13.1
The Structure and Components of Supply Chains
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Figure 13.1: Generic Supply Chain
The Structure and Components of Supply Chains
Three Segments of the Supply Chain
Tiers of Suppliers
The Flows of the Supply Chain
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Three Segments of the Supply Chain
Upstream
Internal
Downstream
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Three Flows of the Supply Chain
Material Flows
Reverse Flows
Information Flows
Financial Flows
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Supply Chain Management (SCM)
13.2
Five Basic Components of SCM
Supply Chain Management Systems
The Push Model Versus the Pull Model
Problems Along the Supply Chain
Solutions to Supply Chain Problems
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Five Basic Components of SCM
Plan
Source
Make
Deliver
Return
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Apple Deals with Supply Chain Strain and Faulty Parts
Discuss the importance of forecasting demand for supply chain planning.
Explain how a defective component can disrupt the flow of materials through a supply chain and the impact that disruption will have on various entities upstream and downstream along the supply chain.
ABOUT BUSINESS 13.1
Push versus Pull Model
Problems Along the Supply Chain
Two Primary Sources of Problems Along the Supply Chain:
Uncertainties
The need to coordinate multiple activities, internal units, and business partners.
Demand Forecast
Bullwhip Effect
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Figure 13.2: The Bullwhip Effect
Solutions to Supply Chain Problems
Using Inventories to Solve Supply Chain Problems
Vertical Integration
Just-In-Time Inventory
Information Sharing
Vendor-Managed Inventory (VMI)
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IT Support for Supply Chain Management
13.3
Electronic Data Interchange (EDI)
Extranets
Portals and Exchanges
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Figure 13.3: Purchase Order Fulfillment without EDI
Figure 13.3: Purchase Order Fulfillment with EDI
Electronic Data Interchange (EDI): Benefits
Minimizes data entry errors
Length of the message can be shorter
Messages are secured
Reduces cycle time
Increases productivity
Enhances customer service
Minimizes paper usage and storage
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Electronic Data Interchange (EDI): Disadvantages
Business processes sometimes must be restructured to fit EDI requirements
Many EDI standards in use today
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Extranet
A Company and Its Dealers, Customers, or Suppliers
Industry Extranet
Joint Ventures and Other Business Partnerships
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Figure 13.4: The Structure of an Extranet
Caribou Coffee Brews a Strong Supply Chain
Discuss the diff iculties involved in the supply chain for any perishable item.
Describe the complex issues Caribou Coff ee dealt with to ensure their supply chain was not only Rainforest Alliance Certified but also meeting their business needs.
ABOUT BUSINESS 13.2
Portals and Exchanges
Procurement Portal
Distribution Portal
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