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					SUPPLY CHAIN
MANAGEMENT




  Chris Mingledorff
     CIS 2010
  What is a Supply Chain??
“A supply chain or logistics network is the system of
      organizations, people, technology, activities,
   information and resources involved in MOVING a
     product or service from supplier to customer.”
       A Supply Chain includes…

-Procurement of raw materials, natural resources
-Component manufacturing
-Product assembly
-Distribution and delivery to consumers
 So…why is Supply Chain
MANAGEMENT so important
       today??
   SUPPLY CHAIN MANAGEMENT

“The process of planning, implementing and
   controlling the operations of the supply
   chain as efficiently as possible.”
               OPERATIONS=
                   Materials
                Transportation
                 Information
                  Financing
A brief history of modern supply
     chain management…
Creation Era- Early 20th century- assembly line
Integration Era- 1960s- Resource planning
systems and software, MRP (later ERP). Used
within a single company.
Globalization Era- late 1980s- Reducing costs
by integrating global sources into the supply
chain. Outsourcing manufacturing and assembly
operations.
Specialization Era- late 1990s to today-
Focusing on “core competencies”, greater
outsourcing of manufacturing activities,
outsourcing of supply chain operations
    SPECIALIZATION ERA
People around the world are connected as
never before due to advances in technology
and reduced barriers to international trade

Integration of business alliances and strategic
relationships necessitates systems that easily
link together to integrate processes and share
information
Supply Chain Management as a
          service??
Increasingly, companies add value by
outsourcing all activities unrelated to their
core business

Rise of the 3PL (3rd party logistics
provider)- Is able to provide complex
solutions to all or part of a company’s
supply chain.
                        3PL
In 2003, 83% of large manufacturers reported using 3PL
for at least some part of their supply chain management

77% reported “very positive” impact on overall supply
chain management costs, as well as increased service
levels

Specialization– “We can do it for less than you can do it
yourself…and we can do it better!”

Transportation – Customs – Distribution – Software
Packages “End-to-end”
Companies that utilize 3PL
A company that does not
Wal-Mart- Is it primarily a supply chain company
or a retailer?

In 1966, Sam Walton attended an IBM school in
New York. When he returned to Bentonville, he
computerized the operations of all 20 stores he
had

Wal-Mart’s supply chain management system
led to complete domination of the discount retail
sector
Supply Chain Management and
        Technology
Multiple software platforms enable companies to
synchronize entire distribution networks

What happens in an advanced fully integrated
automated supply chain system when a widget is
purchased at a retail store?

   The system can:
       Automatically update the companies financial records to reflect the
       sale
       Direct the distribution center to pick, pack, and ship another widget
       Direct the manufacturer of the widget to produce more and ship to
       the distribution center
       Alert the suppliers of materials that make up the widget to ship to
       the manufacturer
Benefits of Effective Supply Chain
Management Information Systems
 “Perpetual Inventory”

 Warehouse Management Applications
    Pick pack and ship

 “Just-in-time” shipping

 Performance measurement

 Physical plant/space requirements

 Reduction of financial liability for unneeded inventory
   Effective Supply Chain
   Management=Value to
  Company=Value to People
Decrease in costs of goods and services
Decrease in space needed to warehouse
inventory
High availability of a diverse range of
products
Reduced impact on the environment
          Sources Used
Material Handling Management
http://www.mhmonline.com/viewStory.asp
?nID=1915
Time Magazine
http://www.time.com/time/time100/builder/
profile/walton2.html
Wikipedia.org
http://en.wikipedia.org/wiki/Supply_chain_
management

				
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posted:12/19/2010
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Description: Mingledorf Cancelled Ticket Log