Topics: Supply chain management, Supply chain, Inventory Pages: 29 (5078 words) Published: June 26, 2011
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• Second level
• Third level • Fourth level • Fifth level

Manage a Supply Chain
Diploma of Logistics

• Click to edit Master text styles • “Logistics • .....Second level is that part of the supply chain that plans, • Third level implements and controls the efficient, effective flow and • Fourth level storage of goods, services and related information, • Fifth level from the point of origin to the point of consumption in order to fulfil customer requirements” Council of Logistics Management (1999)

• Supply chain management encompasses the planning and • Click to edit Master text styles management oflevelactivities involved in sourcing and • Second all • Third level procurement, conversion and all logistics management • Fourth level activities. • Fifth level

• Coordination and collaboration with channel partners, suppliers, intermediaries, third parties service provides and customers. • Integrates supply and demand within and across companies

Traditional Supply Chain
The traditional supply chain was focused on efficiency of production gained through • Click to edit Master text styles batch manufacturing that often resulted in excess inventories throughout the supply chain.

• Second level
• Third level • Fourth level Manufacturing level Distributor • Fifth •raw materials •work in progress •finished goods. goods in transit


finished goods


Advantages • high output • efficient  production • low price.

Disadvantages • high storage costs • excess inventory.

Traditional Supply Chain
• Click to edit Master text styles PUSH • produce goods based upon efficiencies • Third level • emphasis on production and creating demand • push goods to customer • usually based on schedules. A push-based strategy works well for supply chains that focus on the immediate delivery of off-the shelf, low -cost , standardise goods • Fourth level • Fifth level

• Second level

Integrated Supply Chain
• Click to edit Master text styles PULL • produce goods based on customer needs • Third level • emphasis on responding to demand • pull production info from customers. • Fourth level • Fifth level

• Second level

Defining SCM - Some Caveats
• Click to like art SCM is edit Master text styles
• Second level their own interpretation Everyone has
• • SCM Third level is a strategy

• “It is

• Fourth level not justFifth levelmoving • about


• SCM is not a fiefdom
• It crosses organizations and functions

• SCM is not rocket science
• Or is it?

What is SCM?
Supply Chain Management - is the “art” of managing the flow of • Second level materials and products, information, and financial resources from • Third level source to user. • Fourth level • Fifth level

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There are five key participants in a supply chain

Three key items flow between  the supply chain participants

Integrated Supply Chain Management ‐ refers to the integrated set  of processes completed by supply chain participants where  technology is used to seamlessly share information from end‐to‐end.

Integrated logistics
• The conceptMaster text styles Click to edit of Integrated Logistics has been defined by Second levelBowersox (1986:33) as: • Professor ‘an system that moves inventory through a constant and consecutive chain of valueadded steps, with it arriving when needed in the proper quantity and form. Value-added means that each party involved acts to enhance the value of the product or service for those who will be receiving it.’ • Third level • Fourth integrated level logistics • Fifth level

Interpretation of Definitions
Companies must understand their • Click to edit Master text styles internal and supplier core competencies in meeting customer needs in terms of • Second level • Third level production capabilities, flexibility and overall organization • Fourth level...
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