Introduction To Supply Chain Management 1

Introduction to Supply
Chain Management
By
Dr Hajar Fatorachian

Outline of lecture

 Definition of supply chain management
 Different approaches towards supply chain management  Drivers of supply chain management
 Importance of supply chain management
 New trends in supply chain management

Supply chain
 All activities concerned with receiving customer requests and meeting their demands as well as developing new products, operations, marketing, distribution, finance, and customer service (Janvier-James, 2012).
 A range of different stakeholders including: customers, retailers; distributors/wholesalers; manufacturers; and suppliers (Chopra and Meindl, 2012)
 Supply chains are dynamic.
 The integration of the whole supply chain is essential.

Supply Chain Management
(SCM)
 A process of collaboration, which integrates business processes in the supply chain (Bowersox et al., 2002).
 Known as 'supply chain integration or optimisation ': “the process of optimising a company 's internal practices in interacting with suppliers and customers in order to bring products to market more efficiently” (Leon-Pena, 2008, p.59).
 Main components of SCM: planning; sourcing; manufacturing; delivering; and returning (Koh and Maguire, 2004).

SCM (2)

‘Supply chain management is the management of the interconnection of organizations that relate to each other through upstream and downstream linkages between the processes that produce value to the ultimate consumer in the form of products and services’.
Supplier

Manufacturer Distributor

Upstream

Retailer Customer

Downstream

SCM (3)

 Supply Chain Management (SCM) is the design and management of flows of products, information, and funds throughout the supply chain SCM (4)

Second-tier supplier First-tier supplier First-tier customer Demand side

Supply side
Purchasing and
Information
flow
Physical
flow

Second-tier customer supply management Physical distribution management Logistics

Materials management

References: Ketchen, D. J. and Hult, G. T. M. (2007). Bridging organization theory and supply chain management: the case of best value supply chains 573-580 Li et al., 2006 Koh, S management within SMEs. Journal of Small Business and Enterprise Development, 11 (3), 338348. Moodley, S. (2001). E-Business and Supply Chain Management in the Automotive Industry: Preliminary Findings from the Eastern Cape and Kwazulu-Natal Benchmarking Club Pilot Surveys. Simchi D. L., Wu, S. D. and Shen, Z. M. (Eds.) (2004). Handbook of Quantitative Supply Chain Analysis: Modelling in the E-Business Era Slack, N., Chambers, S., & Johnston, R. (2009). Operations management. Pearson Education. Wu, I. L. and Chuang, C. H. (2010). Examining the diffusion of electronic supply chain management with external antecedents and firm performance: A multi-stage analysis