Successful supply chain sustainability requires good supply chain strategy and the capability to implement it. This is a brief introductory tutorial that explains the methodologies applied in the rapidly. Supply chain management encompasses a number of key activities buy purchasing of goods and services required to make your product make producing your finished product fulfil ensuring your customer receives your product at every stage of the supply chain, goods are made or provided by a. However, a broad conceptual consensus on the notion of supply chain sc and. The most important concept in supply chain management. This will make people trust and to feel good about service. The seven principles of supply chain management identifying what needs fixing. It comprises of vendors that supply raw material, producers who convert the material into products, warehouses that store, distribution centers that deliver to the retailers, and retailers who bring the. Masters degree thesis management of the supply chain. Supply chain management is the coordination of production, inventory,location,and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served.
An overview of supply chain concepts and examples from the. A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product or. Supply chains now deal with reverse logistics to handle returned products, warranty repairs, and recycling. The 21stcentury logistics framework is a global supply chain management theory that was developed at michigan state university and was introduced to the business world in 1999. Entire network of entities, directly or indirectly interlinked and interdependent in serving the same consumer or customer. Supply chain management in supply chain education context is then the planning, implementing and controlling the networks.
Supply chain management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. Supply chain dynamics illustrates how reality can impact supply chains. Designing and managing the supply chain designing and managing the supply chain by david simchi levi pdf managing operations across the supply chain 6th managing operations across the supply chain robust supply chain strategies managing operations across the supply chain 4th edition pdf supply chain and logistics management. Explain the strategic importance of the supply chain 2. Another important attribute of supply chain management is the flow of material, information, and finance these are thing that can be found in lean manufacturing and six sigma project too.
The supply chain concept originated in what discipline. Supply chain concepts supply chain concepts coursera. Supply chain management i about the tutorial supply chain management can be defined as the management of flow of products and services, which begins from the origin of products and ends with the products consumption at the enduser. Triple bottom line supply chain sustainability, or tbl, is a measure of sustainability that includes social, environmental and financial performance measurespeople, planet and profitand helps ensure that there is a long. Stanford supply chain forum call it distribution or logistics or supply chain management. This paper describes emerging concepts for product and process design that include a supply chain perspective. Supply chain management scm is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. We begin with a discussion of value and the development of the concept of value chain. A team collaborating with your key people can produce a business case, technology roadmap, digital operating model and project plan, including resources and cost estimates. The purpose of supplychain management is to improve trust and collaboration among supply chain partners thus improving inventory visibility and the velocity of inventory movement.
Less control and more supply chain partners lead to the creation of the concept of supplychain management. Lean and agile supply chain managements, as well as the hybrid forms leagile supply chains, are popular and relatively widely discussed in literature. We introduce the idea of complexity and we identify five main drivers of supply chain complexity. The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations.
Supply chain management managing complex and dynamic supply and. Fundamentals of supply chain management kenyatta university. Over the last three decades, the concept and theory of business management have undergone profound changes and. Supply chain management is aimed at examining and managing supply chain networks. Shortly after your alarm clock goes off and the coffee maker kicks on, the aroma of your favorite coffee fills the air. Supply chain management process flow tutorialspoint. The concept of supply chain management scm is based on two core ideas. And discuss the tradeoffs involved in developing a supply chain network that. The coverage focuses on how to build a competitive supply chain using.
The primary purpose of a supply chain network design is to assess company policies and programs and to meet targets to accomplish long. A supply chain control tower is a central hub with the required technology, organization and processes to capture and use supply chain data to provide enhanced visibility for short and. Material flow includes a smooth flow of an item from the producer to the consumer. Integrated logistics concept logistics and supply chain. A customer focused definition is given by hines 2004. Christopher believes that supply chain management serves to establish links and coordination between suppliers.
Wielandwallenburg, 2011 supply chain management scm is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. An unrealistic definition of quality a userbased definition of quality a manufacturingbased definition of quality a productbased definition of quality 2. Horizontal and vertical integration try smartsheet for free to keep up with slimming margins, increasing competition, and a decreasing amount of differentiation between brands, more and more companies are integrating their supply chains. In order to understand scm it is therefore important first understand the concept of scto. Explain issues and opportunities in the supply chain 4. Considering costeffectiveness, providing extremely useful service. First introduced in the supply chain context in designing and managing the supply chain, risk pooling is a statistical concept that suggests that demand variability is reduced if one can aggregate demand, for example, across locations, across products or even across time. Evolution of the supply chain concept principles of supply.
The objective of any business firm is to create value by. Jan 18, 2017 the idea is to give you food for thought and to encourage you to explore the value chain topic further, since it is important not only to the supply chain, but also to the overall success of just about any business operating today. Supply chains encompass the companies and the business activities needed to design, make, deliver, and use a product or service. However, a system is more than just the sum of its components, but rather. In truth, supply chains require a multiplicity of relationships and numerous paths through which products and information travel. This is better reflected by the conceptual diagram of a supply chain in figure 12, in which the supply chain is a web or network of participants and resources. Supply chain concepts department of higher education. From clear explanation of fundamental concepts to insightful discussion of supply. The supply chain model which came first focuses on activities that get raw materials and subassemblies into a manufacturing operation smoothly and economically. This work is licensed under a creative commons attributionnoncommercialsharealike 4. Supply chain basics is an overview of the concepts of supply chain management and logistics. Chapter 1 supply chain integration aston university.
Masters degree thesis management of the supply chain case. There are many definitions of supply chain management. Where a supply chain typically refers to the chain of suppliers inputting to a final product, value chain also encompasses thinking about the value created by the chain, particularly for enduse customers. There is a difference between the concept of supply chain manage. Before an organization tries to focus on supply chain management, its leaders must determine what the supply chain encompasses. Supply chain concepts defining the supply chain informit. The concept of supply chain integration sci is based on documented evidence that suggests that much of the waste throughout businesses is a consequence of fragmented supply chain configurations.
The rationale for this concept is the opportunity alternative for cost savings and better customer service. Lean and agile supply chain management concepts in the aspect of risk management sylwia konecka poznan school of logistics, poznan, poland abstract. Supply chain integration is a close alignment and coordination within a supply chain, often with the use of shared management information systems. Pdf on jan 1, 2004, vorst and others published supply chain management. This introductory paper aims to start a discussion about supply chain innovation, and as a first step we propose a conceptual framework for understanding the important factors that appear. According to the manufacturingbased definition of quality. Pdf defining the concept of supply chain management and its.
Supply chain management pdf,ebook,lecture notes download for. Ae defining the concept of supply chain management and its relevance to romanian academics and practitioners 76 amfiteatru economic business market on the circuit cocacola wholesaler retailer final consumer caescu and dumitru, 2011. The issue is determining how to develop and execute a supply chain transformation plan that can move multiple, complex operating entities both internal and external in the same direction. Scm supply chain management supply chain management is a term that emerged in the late 1980s, although discussions are currently underway about whether, what it means, often scm is identified with the concept of logistics. This article throws light upon the three main concepts of global supply chain management. Defining the concept of supply chain management and its relevance to romanian academics and practitioners article pdf available in amfiteatru economic 1533. With different emphases most definitions of supply chain management, efficient consumer response and vertical marketing systems agree on the vertical cooperation aspect within the value chain e. Supply chain management pdf,ebook,lecture notes download. Pdf definition, nature and objectives of supply chain. There is a difference between the concept of supply chain. Background, concept and examples the purpose of this paper is to provide a framework that brings together the most relevant factors in the context of supply chain differentiation. Designing and managing the supply chain designing and managing the supply chain by david simchi levi pdf managing operations across the supply chain 6th managing operations across the supply chain robust supply chain strategies managing operations across the supply chain 4th edition pdf supply chain and logistics. Explain issues and opportunities in the supply chain. Music welcome back to this lesson on supply chain sustainability.
By whatever name it is the sinuous, gritty, and cumbersome process by. Introduction in the current competitive scenario supply chain management assumes a significant importance and calls for serious research attention, as companies are challenged with finding ways to meet everrising customer. Pdf the purpose of this paper is to describe an extended approach to supply chain management by exploring some of the more prevalent. Supply chain sustainability supply chain concepts coursera. Management concept learning objectives when you complete this chapter you should be able to. The term supply chain management is relatively new. James malakoff, special assistant to the president, global operations, estee lauder companies excellent explanation of the supply chain issueschallenges of todays markets. The supply chain is responsible for getting those coffee beans across the world and to your kitchen. This chapter briefly describes the term sc with the aim assistof ing the reader to gain a better understanding of it. To help managers decide how to proceed, we revisited the supply chain. With the term supply chain first being used in the 1980s, before the term supply chain was used, the individual elements of supply chain were treated as independent activities. Supply chain management is the integration of key business processes from end user through. The framework identifies six business competencies that are necessary to operate a global supply chain.
Get supply chain management pdf,ebook,lecture notes download for mba students in mba operations notes, ebooks download section at. Ae defining the concept of supply chain management and its. Supply chain management can be defined as a systematic flow of materials, goods, and related information among suppliers, companies, retailers, and consumers. Pdf on feb 1, 2012, andrzej szymonik and others published logistics and supply chain management find, read and cite all the research you need on researchgate. Integrating theory and practices of supply chain management, this book incorporates more than 15 years of supply chain and operations management research and industry consulting experience to both government and industry firms. The purpose of supply chain management is to improve trust and collaboration among supply chain partners thus improving inventory visibility and the velocity of inventory movement. While supply chain have been around since the dawn of the time. Definition of supply chain and supply chain management. The supply chain management philosophy emerged in which decade. Extremely good service, providing all the concept of warehouse in supply chain management. Demanddriven supply chain plan an easy way to get started is to engage with capgemini to develop a demanddriven supply chain plan. A supply chain consists of the flow of products and services from. Upon completing this lesson, learners should be able to describe the sources of carbon emissions in supply chains.
Supply chain management is defined as the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally. Supply chain management can be defined as the management of flow of products and services, which begins from the origin of products and ends with the. We then discuss similarities and differences of the value chain and the supply chain, and conclude with suggestions regarding the need for synchronizing. Practitioners and educators need a common definition of supply chain management, and a shared understanding of the processes. Less control and more supply chain partners lead to the creation of the concept of supply chain management. Level of integration in dh supply chain 52 figure 51. Chapter 1 key concepts of supply chain management after reading this chapter you will be able to appreciate what a supply chain is and what it does understand where your selection from essentials of supply chain management, third edition book. Supply chains and value chains have clear definitions in business literature and operational thinking. Pdf key concepts of supply chain management michael.
This network includes different activities, people, entities. Nagurney department of electrical and computer engineering university of hartford june 29, 20. We define a supply chain as a network including the procurement of raw materials, processing of intermediate and finished products, customization of the product for local market needs, and distribution of the product to customers. These organizations are referred to collectively as the supply chain. Concept of warehouse in supply chain management scm wizard. Supply chain concepts flows of material, money and information. The integrated supply chain concept is relatively new. Over the years, most firms have focused their attention on the effectiveness and efficiency of separate business functions such as purchasing, production, marketing, financing, and logistics. Baaijens, voor een commissie aangewezen door het college voor promoties, in het openbaar te verdedigen op woensdag 27 mei 2015 om 16. We recommend the definition of supply chain management developed and used by the global supply chain forum. Provides a unique overview of supply chain management scm concepts, illustrating how the methodology can help enhance construction industry project success this book provides a unique appraisal of supply chain management scm concepts brought together with lessons from industry and analysis gathered from extensive research on how supply chains are managed in the construction. A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer. However, there is also evidence to suggest that the achievement of higher levels of intra.
In todays supply chain domain, there is a lot of attention focused on the concept of supply chain innovation. Just as you cant manage what you dont measure, you cant plan and execute what you havent clearly defined. According to chopra and meindl 2001, scm engages the management of flows between and among stages in a supply chain to minimize total cost. Pdf defining the concept of supply chain management and.
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