College 1a
Supply chain management is described as a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying service level requirements.
It is important to understand the basic issues underlying SCM and the challenges facing companies to achieve effective management of their supply chains. Various issues and factors are described in this part of the lecture. Specifically, the concept of managing risk and uncertainty, global optimization, relationship of the supply chain to the development chain are discussed. This part of the lecture also discussed how the area evolved through the years. The primary purpose of this part of the lecture is to establish a context for SCM in the realm of globalization and to instill this sense of importance.
WHAT IS SUPPLY CHAIN MANAGEMENT?
-Manage the flow of products and services from:
Raw materials manufacturers→Intermediate products manufacturers→End product manufacturers→Wholesalers and distributors and→Retailers
-Connected by transportation and storage activities
-Integrated through information and planning
-In order to fulfill final customer demand for minimal total costs
Niet alleen min. kosten maar ook steeds meer verhogen van de opbrengsten
Elke schakel in de SC speelt een rol. Daarnaast kosten optimaliseren gegeven behoeftes.
De ontwikkeling van SCM vond uiteraard ook voor 1950 plaats. SCM was bijv. ook al in tijden van de 1e WO van groot belang. Na de 2e WO ontwikkelde SCM zich van traditionele productie tot JIT & total SCM.
PRODUCT VERSUS SERVICE SCM
Similar objectives: to provide what is needed while minimizing system wide costs
Differences: - No or hardly no flow of physical products in a service SC Transportation and inventory more