Mkt Plan
1 Supply Chain: The system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply Chain includes: -Various stages/parties (suppliers, manufacturers, transporters, warehouses, retailers, customers) - all functions involved in fulfilling a customer request within each company (product development, marketing, operations, distribution, finance, customer service) Primary Flows in a Supply Chain:
Supply Chain Management: -Management of flows between and among supply chain stages to maximize total supply chain profitability. -Ensures that the final customer receives the right product, at the right cost, at the right time, in the right condition, and in the right quantity. Supply Chain Profitability: -the total profit to be shared across all stages of the supply chain. -Supply chain success should be measured by total supply chain profitability, not profits at an individual stage. SCM relates to other areas: 1.OM, usually deals a single organization whereas SCM deals with multiple organizations. 2. Marketing: Product design, new-product introduction (NPI), promotion and production, etc are closely related. 6 Main Drivers of Supply Chain Performance: 1.Facilities: places where inventory is stored, assembled, or fabricated 2. Inventory: Raw materials, Work in Process (WIP), and finished goods within a supply chain (Time,Uncertainty,Economies of scale) balance between Inventory Cost and Customer Service) 3. Transportation: Moves the product between stages in the supply chain; Various transportation modes (air, water, rail, motor etc.) and routes; Faster transportation allows greater responsiveness but usually costs more; Also affects inventory and facilities 4. Information: Data and analysis regarding inventory, transportation, facilities throughout the supply chain; Connect the various stages in the supply chain – allows coordination between stages; Crucial to
Supply Chain Management: -Management of flows between and among supply chain stages to maximize total supply chain profitability. -Ensures that the final customer receives the right product, at the right cost, at the right time, in the right condition, and in the right quantity. Supply Chain Profitability: -the total profit to be shared across all stages of the supply chain. -Supply chain success should be measured by total supply chain profitability, not profits at an individual stage. SCM relates to other areas: 1.OM, usually deals a single organization whereas SCM deals with multiple organizations. 2. Marketing: Product design, new-product introduction (NPI), promotion and production, etc are closely related. 6 Main Drivers of Supply Chain Performance: 1.Facilities: places where inventory is stored, assembled, or fabricated 2. Inventory: Raw materials, Work in Process (WIP), and finished goods within a supply chain (Time,Uncertainty,Economies of scale) balance between Inventory Cost and Customer Service) 3. Transportation: Moves the product between stages in the supply chain; Various transportation modes (air, water, rail, motor etc.) and routes; Faster transportation allows greater responsiveness but usually costs more; Also affects inventory and facilities 4. Information: Data and analysis regarding inventory, transportation, facilities throughout the supply chain; Connect the various stages in the supply chain – allows coordination between stages; Crucial to