Week One Discussion 1
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Week1b-ReviewofSCM-SCM610.pptx
SCM 610
Supply Chain Collaboration
Week 1 – Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
SCM 610 – Supply Chain Collaboration
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Overview
Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
SCM 610 – Supply Chain Collaboration
Chapter 1 Supply Chain Management
Supply Chain Management: Processes, Partnerships, Performance
4th Edition
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What Supply Chain Management Is Not
It is not another name for logistics.
It is not another name for purchasing.
It is not another name for operations.
It is not a combination of logistics, purchasing and operations.
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
Logistics Management
… is that part of Supply Chain Management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and
the point of consumption in order to meet customers’ requirements.
Council of Supply Chain Management Professionals (2010)
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Logistics adds Time and Place Utility!
Logistics Activities:
Customer service
Demand forecasting
Inventory management
Logistics communications
Material handling
Order processing
Packaging
Parts and service support
Plants and warehouse site selection
Procurement
Reverse logistics
Transportation
Warehousing and storage
Stock and Lambert,
Strategic Logistics Management, 2001
What are the BIG 3?
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The 1990s and 2000s: An Era of Terminology Explosion & Confusion
Demand Chain
Supply-Demand Chain
Value Chain
Value-added Networks
Supply Chain Management Is As Good As Any Name: WHY??
A supply chain is a network of companies.
Every company in the network gains its revenue based on demand at the points of consumption.
Thus, every organization in the network is a supplier to the end points of consumption and for this reason, supply chain management is as good a name as any other.
The network can focus on demand without changing the name to demand chain.
The network can focus on value co-creation without changing the name to value chain or value-adding network.
It is time to pick a name a get on with implementation.
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The Global Supply Chain Forum
Supply Chain Management
… is the management of relationships
in the network of organizations,
from end customers through original suppliers,
using key cross-functional business processes
to create value for customers
and other stakeholders.
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach, FL: Supply Chain Management Institute, 2014, p. 2.
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Supply Chain Management Integrating and Managing Business Processes Across the Supply Chain
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach, FL: Supply Chain Management Institute, 2014, p. 3.
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n
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3
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n
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2
n
1
End Customers
n
Tier 3 to n Suppliers
Initial Suppliers
Tier 1
Customers
Tier 2
Customers
Tier 3 to
End Customers
Tier 2
Suppliers
Tier 1
Suppliers
Tier 3 to
Initial Suppliers
n
1
n
1
n
Members of the Focal Company’s Supply Chain
Focal Company
Non-members of the Focal Company’s Supply Chain
Managed Process Links
Not-Managed Process Links
Non-Member Process Links
Monitored Process Links
Tier 3 to n Customers
1
n
Types of Inter-company Business Process Links
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach, FL: Supply Chain Management Institute, 2014, p. 264.
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n
2
3
1
2
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1
n
2
1
3
n
2
1
3
1
n
2
n
1
2
n
1
End Customers
n
Tier 3 to n Suppliers
Initial Suppliers
Tier 1 Customers
Tier 2 Customers
Tier 3 to End Customers
Tier 2 Suppliers
Tier 1 Suppliers
Tier 3 to Initial Suppliers
n
1
n
1
n
P&G
Colgate
Unilever
Managed Process Links
Not-Managed Process Links
Non-Member Process Links
Monitored Process Links
Tier 3 to n Customers
Typically Competitors Buy from the Same Suppliers and Sell to the Same Customers
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach, FL: Supply Chain Management Institute, 2014, p. 7.
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Processes Need to Be Standardized to Avoid Disconnects
Logistics
Marketing
Finance
Tier 2
Supplier
Consumer/
End
user
Manufacturer
Information Flow
Purchasing
Production
R&D
CUSTOMER RELATIONSHIP MANAGEMENT
PRODUCT DEVELOPMENT AND COMMERCIALIZATION
RETURNS MANAGEMENT
ORDER FULFILLMENT
DEMAND MANAGEMENT
CUSTOMER SERVICE MANAGEMENT
SUPPLIER RELATIONSHIP MANAGEMENT
MANUFACTURING FLOW MANAGEMENT
Tier 1
Supplier
Customer
PRODUCT FLOW
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach, FL: Supply Chain Management Institute, 2014, p. 14.
Functional Involvement in the Supply Chain Management Processes
Note: Process sponsorship and ownership must be established to drive the attainment of the supply chain vision and eliminate the functional barriers that artificially separate the process flows.
Finance
Purchasing
Production
Logistics
Research & Development
Sales
Marketing
Information Architecture, Data Base Strategy, Information Visibility
Business
Processes
Demand
Management
Forecasting
Manufacturing
Capabilities
Sourcing
Capabilities
Competitors’
Initiatives
Customer Relationship
Management
Logistics
Capabilities
Manufacturing
Capabilities
Sourcing
Capabilities
Customer
Profitability
Account
Management
Customer Service
Management
Alignment of
Logistics
Activities
Coordinated
Execution
Prioritization of Customers
Knowledge of
Customer
Operations
Manufacturing Flow
Management
Production Planning
Integrated Supply
Order Fulfillment
Network
Design
Made-to-
Order
Material
Constraints
Distribution
Cost
Role of Logistics Service in
Marketing Mix
Product Development
and Commercialization
Process Specifications
Material Specifications
R & D Cost
Product Design
Logistics
Requirements
Priority
Assessment
Cost-to-
Serve
Tradeoff
Analysis
Process
Requirements
Environmental
Requirements
Differentiation
Opportunities from
Manufacturing
Capabilities
Prioritization Criteria
Supplier Relationship Management
Integrated
Planning
Supplier
Capabilities
Total Delivered
Cost
Material Specifications
Capabilities Required for Competitive Positioning
Inbound
Material Flow
Manufacturing Cost
CUSTOMERS
SUPPLIERS
Business
Functions
Returns Management
Information Architecture, Data Base Strategy, Information Visibility
Knowledge of Marketing Programs
Product Design
Reverse Logistics
Capabilities
Re-
manufacturing
Material Specifications
Revenue & Costs
Technological
Capabilities
Marketing Plan
& Resources
Technical
Service
Customer
Knowledge
Customer
Opportunities
Product/Service
Gaps in Market
Sales Growth Opportunities
Design for
Manufacturability
Knowledge of
Customer
Requirements
Knowledge of
Customer
Requirements
Competing
Programs in
Customer Space
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach, FL: Supply Chain Management Institute, 2014, p. 15.
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Customer Relationship Management (CRM) & Supplier Relationship Management (SRM): The Critical Supply Chain Management Linkages
Supply Chain Performance = Increase in Profit for A, B, C, and D
Manufacturer
C
Retailer/
End User
A
Wholesaler/
Distributor
B
P&L for
C as supplier
P&L for
B as supplier
Revenue
Cost
Profit
Revenue
Cost
Profit
Supplier
D
P&L for
A as customer
Revenue
Cost
Profit
P&L for
B as customer
Revenue
Cost
Profit
P&L for
C as customer
Revenue
Cost
Profit
Total Cost Report
for D as supplier
Cost = Profit
CRM
SRM
SRM
SRM
CRM
CRM
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach, FL: Supply Chain Management Institute, 2014, p. 16.
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Supply Chain Management: Elements and Key Decisions
2) What processes should be
linked with each of these
key supply chain members?
1) Who are the key supply
chain members with whom
to link processes?
3) What level of integration and
management should be applied
for each process link?
Supply Chain
Management
Processes
Supply Chain
Network
Structure
Supply Chain
Management
Components
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach, FL: Supply Chain Management Institute, 2014, p. 21.
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Next up!
Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
SCM 610 – Supply Chain Collaboration
