Hesham Logistics
LECTURE FOUR: SUPPLY CHAINS, DEMAND CHAINS AND THE VALUE CHAIN CONCEPT
Subject
Page
1. The Supply Chain
2
2. The Demand Chain
3
3. A ‘Value-Based’ Demand Chain
4
4. Value Benefits and Costs (upstream and downstream)
6
5. Demand and Supply Chain Processes: The Value Chain
7
6. The Value Chain
9
7. Summary
11
8. Discussion Questions
12
9. References / Reading List
12
1. The Supply Chain
It will be recalled that the supply chain is a concept that was covered at some length during lecture one. What we shall do here is to offer only a basic overview of the concept, to refresh the memory.
Supply chain management has been defined by members of ‘The International Centre for Competitive Excellence’ in 1994 as:
“Supply chain management is the integration of business processes from end-user through original suppliers that provide products, services and information and add value for customers”.
Cooper et al cited in Walters (2002) suggests the scope of the supply chain can be defined in terms of the number involved within the supply chain and the activities and functions involved. Initially the scope of the supply chain was across firms but now includes internal integration within organisations before expansion to other firms.
The direction in which supply chain planning and control ‘travels’ has been modified since earlier views. Keith and Webber (1982) cited in Walters (2002) offer the view that supply chain management covered the flow of goods from supplier through manufacturing and distribution to the end user. Stevens (1989) cited in Walters (2002) expanded this scope both upstream and downstream to include sources of supply and points of consumption.
2. The Demand Chain
The Demand Chain is, as one would suspect, the mirror image of the supply chain. the demand chain is a sequence of backward-reaching processes, initiated by the end-customer, that enable companies to anticipate demand characteristics within a given market. Fisher
Subject
Page
1. The Supply Chain
2
2. The Demand Chain
3
3. A ‘Value-Based’ Demand Chain
4
4. Value Benefits and Costs (upstream and downstream)
6
5. Demand and Supply Chain Processes: The Value Chain
7
6. The Value Chain
9
7. Summary
11
8. Discussion Questions
12
9. References / Reading List
12
1. The Supply Chain
It will be recalled that the supply chain is a concept that was covered at some length during lecture one. What we shall do here is to offer only a basic overview of the concept, to refresh the memory.
Supply chain management has been defined by members of ‘The International Centre for Competitive Excellence’ in 1994 as:
“Supply chain management is the integration of business processes from end-user through original suppliers that provide products, services and information and add value for customers”.
Cooper et al cited in Walters (2002) suggests the scope of the supply chain can be defined in terms of the number involved within the supply chain and the activities and functions involved. Initially the scope of the supply chain was across firms but now includes internal integration within organisations before expansion to other firms.
The direction in which supply chain planning and control ‘travels’ has been modified since earlier views. Keith and Webber (1982) cited in Walters (2002) offer the view that supply chain management covered the flow of goods from supplier through manufacturing and distribution to the end user. Stevens (1989) cited in Walters (2002) expanded this scope both upstream and downstream to include sources of supply and points of consumption.
2. The Demand Chain
The Demand Chain is, as one would suspect, the mirror image of the supply chain. the demand chain is a sequence of backward-reaching processes, initiated by the end-customer, that enable companies to anticipate demand characteristics within a given market. Fisher
References: Reading Lists Fuller, J. B., O’Conor, J., and Rawlinson, R., May-June 1993, “Tailored Logistics: The Next Advantage”, Harvard Business Review. Hutt, M. D., and Speh, T. W., 1998, “Business Marketing Management – A Strategic View of Industrial and organisational Markets”, Dryden Press. Walters, D., 2002, “Operations Strategy”, Palgrave Macmillan Pohlman, R. A., and Gardiner, G. S., 2000, “Value Driven Management – How to Create and Maximise Value Over Time for Organisational Success”, American Marketing Association. Kotler, P., 2000, “Marketing Management – The Millennium Edition”, 10th Edition, Prentice Hall.