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ch13ExtendingtheOrganizationAlongtheSupplyChain.pptx

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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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