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Supply Chain Management

Adel Abou Heneidy

Learning objectives
To develop understanding of the following key areas and their interrelationships: * Basic concepts of logistics and supply chain management * The strategic role of a supply chain * The key strategic drivers of supply chain performance * Analytic methodologies for supply chain analysis

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Supply Chain Management Adel Abou Heneidy

Highlights:
• • • • • • • • Understanding the Supply Chain Supply Chain performance: achieving strategic fit and scope Supply Chain Drivers and obstacles Designing the distribution network in a Supply Chain Network Design in the Supply Chain Network design in uncertainty environment Total cost of SCM Aggregate planning in Supply Chain References: References: th Introduction to materials management: J.R Tony Arnold ; ;Stephen N. Chapman ––55thedition edition Introduction to materials management: J.R Tony Arnold Stephen N. Chapman Supply Chain-Logistics management: Donald J. Bowersox; David J. Closs; M. Bixby Cooper Supply Chain-Logistics management: Donald J. Bowersox; David J. Closs; M. Bixby Cooper Strategic logistics management: Lambert & Stock Strategic logistics management: Lambert & Stock Operations management: Stevenson Operations management: Stevenson Supply Chain Management: Sunil Chopra & Peter Meindl Supply Chain Management: Sunil Chopra & Peter Meindl

Supply Chain Management

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Chapter 1

Understanding the Supply Chain

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Supply Chain Management Adel Abou Heneidy

Supply-chain is a term that describes how organizations (suppliers, manufacturers, distributors, and customers) are linked together

• What is Supply Chain (Value) Management?
“ SCM is 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 systemwide costs while satisfying service level requirements”.

Supply Chain Management Adel Abou Heneidy

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Another definition of SCM
“design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally.“ As per APICS Dictionary

Supply Chain Management Adel Abou Heneidy

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The Chain from Original Supply to Final Consumption
INFORMATION FLOW

Transfer Transfer

Transfer Transfer

Transfer Transfer

Transfer Transfer

Supplier

Manufacturing

Distribution

Retail Outlet

Consumer

CASH FLOW

Supply Chain Optimization

Highest level of customer responsiveness at lowest cost
Forward Supply Chain –Supply by customer ends Chain Management  SAP AG 1998 CPSAP_e February ‘98 /13

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Adel Abou Heneidy

What’s the Supply Chain

IT

Logistics

Supply Chain Management
Supply Chain Management Adel Abou Heneidy 8

Main Functions and Activities in SC
• • • • • • • • Forecasting Purchasing Inventory management Information management Quality assurance Scheduling Production and delivery Customer service Supply Chain Management Adel Abou Heneidy 9

Difference between SCM & Logistics
• In definition, Logistics usually refers to interface activities that occur in a single organization and typically include processes such as procurement, inventory, storage and distribution. • Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw materials, work-inprocess inventory, and finished goods from point-of-origin to point-of-consumption • I would say logistics is just a part of supply chain Supply Chain Management Adel Abou Heneidy 10

The Logistics/SCM Mission
• Getting the right goods or services to the right place, at...
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