Lummus, central missouri state university, warrensburg, missouri, usa robert j. From clear explanation of fundamental concepts to insightful discussion of supply. Supply chain organizations use logistical methods that manage the entire process. The aim of this article is to provide an overview of current and future developments and challenges regarding the evolution of the concept of supply chain management. To gain maximum benefit from the supply chain, a company must dynamically draw upon its available internal. Essentials of supply chain management is the definitive guide to the field, providing both broad coverage and necessary detail from a practical, realworld perspective. From a practitioner point of view, an accenture report in cooperation with stanford and insead states that scm. As defined by the global supply chain finance forum in its standard terms and definitions, supply chain finance is defined as the use of financing and risk mitigation practices and techniques to optimize the management of the working capital and. Our aim is to focus on your needs, and that is why our logistics concept offers you flexible solutions making your business more efficient and profitable. Supply chain management has assumed a significant role in firms performance and has attracted serious research attention over the last few years.
Supply chain concepts visibility coordination optimization. Learn vocabulary, terms, and more with flashcards, games, and other study tools. This is better reflected by the conceptual diagram of a supply chain in figure 12, in which the supply chain is a web or network of participants and resources. Conceptual model of supply chain management business essay. Optimal supply chain network design and redesign at. Key concepts of supply chain management automation. Measuring service supply chain management processes. Scm concepts have been implemented successfully in the service industry like retail, financial services, transportation services and courier service, logistics providers 3. Cooper 2000 issues in supply chain management, industrial marketing.
Supply chain concepts are introduced and basic terminology emphasized, as are relationships. According to the manufacturingbased definition of quality. Supply chain management is primarily concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed in the right quantities, to the right locations and at the right time, and so as to minimize total system cost subject to satisfying. Definition, nature and objectives of supply chain management. Transportation plays a large role in making all the sc rights happen. The report findings are based on expert level workshops and data gathering throughout 2012.
Key concepts of supply chain management free download as powerpoint presentation. Understand how your performance compares to your competitors, to other industries, and to best in class. Supply chain concepts defining the supply chain informit. Introduction supply chain management scm is a concept that is gaining in popularity and importance. Note that g represents the topology of the full supply chain network possibilities as in figure 1, for example. All departments within your link and all links in your supply chain must have a common understanding of the supply chain. Building resilience in supply chains, developed during phase ii of the initiative, explores government and industry sector views on systemic supply chain risks and building a resilience framework to manage them. A supply chain involves the process of moving goods from the providers of raw materials all the way through to finished products for the end customers. Global supply chain management focuses on managing flow of information, products, and services across the network of customers, enterprises, and suppliers on a global scale. There is a difference between the concept of supply chain manage.
Basics of supply chain management bsc basics of supply chain management core competency entry module the basic concepts in managing the complete flow of materials in a supply chain from suppliers to customers are covered in the basics module. Something so common in every household, takes a great deal of planning, demand forecasting. An unrealistic definition of quality a userbased definition of quality a manufacturingbased definition of quality a productbased definition of quality 2. The supply chain is responsible for getting those coffee beans across the world and to your kitchen. Cpsm training 7 principles of supply chain management. Challenges in supply chain management by david berrios, class of 2014 thursday, march 6, 2014. The sharing of information regarding demand data should be transparent across the chain. Rising prices and shifting exchange rates are further eroding chinas cost advantages.
This book, already in its fourth edition, gives a broad and uptodate overview of the concepts underlying aps. The supply chain matrix 6 to examine how the supply chain matrix scm applies to regional food businesses, we must first establish a baseline understanding of the factors at play and the parameters of the model. The development of the concept of supply chain management. Problems of the health systems in subsaharan africa developing countries such as nigeria have several issues with an appropriate supply of medicine to health centres hc. As with continuous improvement programs, green supply chain analysis targets. Upon completion of this lesson, learners should be able to provide a definition of supply chain, and identify the core components of supply chain. Weber, two consultants in the field of logistics, introduced the concept of supply chain management scm in literature at the beginning of the 1980s. In a 2012 american chamber of commerce survey, 39% of foreigninvested enterprises ranked labour costs as the. Do you have an effective grasp on supply chain administration concepts however, do not have time to study books.
Supply chain management, enterprise resources planning erp, and advanced planning systems aps are important concepts in order to organize and optimize the flow of goods, materials, information and funds. Shortly after your alarm clock goes off and the coffee maker kicks on, the aroma of your favorite coffee fills the air. Theory versus reality tons of books and articles appear on various aspects of global supply chains and their integration to achieve perfection. Thus, global supply chain refers to global integration and management of business processes across the three major subsystems of the supply chain. One of the most cited concepts of the supply chain management literature will be tested empirically, and i am going to make an attempt to add to it. Best practices in green supply chain management final. The supply chain consists of the economic actors who own the product as it moves from the farmer to the end customer improving the flow of products and information through the supply chain will enable goods to be delivered to the customer at lower cost, meaning improved profits to the actors in the chain coffee information money. Conceptual model for supply chain and quality management. Supply chain management is the coordination of production, inventory,location,and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served. The sector is on the lookout for efficient solutions for highperformance supply networks, crossborder distribution, and adaptive omnichannel supply chains. We, the customers, are demanding innovative products at the right time and at a reasonable price.
The classical example in retail industry is walmart. Ae defining the concept of supply chain management and its. Supply chain concepts supreme product availability, highspeed deliveries, and costefficient solutions. An overview of supply chain concepts and examples from the. Thus, the use of quality management and supply chain management integrated approaches becomes necessary to accomplish and successfully fulfill all these objectives. Supply chain strategies 109 rationalising costs for multinationals in china, cost is often a top consideration and increasingly a top concern. Concept characteristics supply chain costing three cost levels need to be analyzed. Much attention has been dedicated to supply chain management concepts in recent years. Next, there is a section on each of the eight processes.
Criteria emphasizing the key concepts of supply chain and quality governed our search of articles, which we conceptually cluster and organize by thematic linkages with common and similar patterns among topics. Sound welcome to our lecture on supply chain concepts where we will introduce the various elements of supply chain, and how they work together to create the integrated supply chain model. Innovative supply chain concepts for ecommerce 4flow. This creates challenges for companies since creating both responsive and cost. About the tutorial supply chain management can be defined as the management of flow of products and services, which begins from the origin of products and ends with the products consumption at the enduser. Current supply chains are growing in complexity due to several factors. Production is an important aspect in supply chain management, as many things have to be taken into consideration such as plant capability, quality control, workload balancing, and equipment maintenance. We find inductively that this literature can be logically categorized into the. Concepts, methodologies, tools, and applications is a reference collection which highlights the major concepts and issues in the application and advancement of supply chain management. Pdf supply chain evolution theory, concepts and science.
In truth, supply chains require a multiplicity of relationships and numerous paths through which products and information travel. Pdf key concepts of supply chain management michael. The first research question is if the functional and innovative product types indicated by fisher 1997 really appear in business practice and are they separable in reality, on. Including research from leading scholars, this resource will be useful for academics, students, and practitioners interested in the. Analysis of challenges of medical supply chains in sub. This is a brief introductory tutorial that explains the methodologies applied in the rapidly growing area of supply chain management in. Innovative supply chain concepts for ecommerce as a still young and growing economic sector, ecommerce continuously faces changes and challenges. Pdf definition, nature and objectives of supply chain. The ultimate solution of the complete model will yield the optimal supply chain network design. Use should be made of the latest it tools to access information which. Green scm recognizes the disproportionate environmental impact of supply chain processes in an organization. The editable template that uses customizable graphics with metaphoric icons is compatible with all powerpoint applications regarding supply chain management. This short article will certainly detail the key principles in supply chain administration in simply less than 5 minutes. Industry agenda building resilience in supply chains.
A basic pattern is evident in supply chain management as they each have their own set of market challenges and demands. Supply chain concepts supply chain concepts coursera. New supply chains emerge and evolve for a variety of reasons. A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product or.
736 1057 532 943 28 1515 1192 1462 789 648 992 896 67 1442 1120 180 502 1601 989 1216 1065 1383 309 938 1136 624 939 1560 221 1187 374 279 215 250 1033 613 886 623 1399 837