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Supply Chain Management

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Supply Chain Management
Supply Chain Management
1 What is supply chain management?
A Supply Chain is a collection of organizations involved in the supply of products or services.

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.

It is a holistic approach to managing across company boundaries.

2 Supply chain planning and control
Supply chain planning and control is concerned with managing the flow of materials and information between a string of operations, that form the strands or ‘chains’ of a supply network
Supply network management concerns flow between operations
Supply chain management concerns flow between a string of operations

Supply chains management is concerned with the flow of information and the flow of products and services
‘Upstream’ flow of customer (Requirements)
Long-term plans and requirements
Market research information
Individual orders
Payment
Potential new products and services
‘Downstream’ flow of products and services for customer (Fulfilment)
Products and services
New products and services
Delivery information
Payment request/credit
Supply chain management coordinates all the operations on the supply side and the demand side. Purchasing and supply management deals with the operation’s interface with its supply markets. Physical distribution management may mean supplying immediate customers, while logistics is an extension that often refers to materials and information flow down through a distribution channel, to the retail store or consumers (increasingly common because of the growth of internet-based retailing). The term third-party logistics (TPL) indicates outsourcing to a specialist logistics company. Materials management is a more limited term and refers to the flow of materials and information only through the immediate supply chain. (看第五张ppt)

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