CHAPTER 13 Supply Chain - The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function Supply Chain Management- is to coordinate and integrate all of the activities performed by supply chain members By visualizing the entire chain, managers can maximize strengths and efficiencies at each level to balance the supply and demand needs of each chain member “PUSH TO PULL” Supply Chain Agility- strategy focused on inducing inventory velocity and operational flexibility and reducing supply chain complexity Benefits of Supply Chain Management ● Means of differentiation ● Greater supply chain flexibility ● Improved customer service ● Higher revenues ● Reduced Costs Supply Chain Integration- when multiple firms in a chain coordinate business processes so that they are seamlessly linked to one another The customer may not know where the business activities of one firm end and where those of another begins “all reading from the same script” Internal Integration- Demand Supply Chain Integration (DSI) ● Those in charge of creating demand (marketing/sales) are synchronized with those in charge of fulfilling the demand (purchasing, manufacturing) ● Enhances customer satisfaction ● Company efficient by using only those materials that lead directly to sales External Integration ● Relationship Integration -developing and maintaining a shared mental framework across companies that describes how they will depend on one another when working together ● Measurement Integration- holding businesses accountable for whole performance of supply chain and making performance transparent and measurable ● Technology and planning Integration- requires systems that can exchange information needed between suppliers, customers, and internal operational areas ● Material and Service supplier Integration - both sides need to have a common vision of the total value creation process ● Customer Integration- A firm asses their capabilities and then matches them to customers whose desires they can meet and offer a large enough sales potential long-term
Keys to Supply Chain Management ● Customer Relationship Management ● Customer Service Management ● Demand Management ● Order Fulfillment ● Manufacturing Flow Management ● Supplier Relationship Management ● Product Development & Commercialization ● Returns Management Customer Relationship Management- The prioritization of a firm’s marketing focus on different customer groups according to each group’s long-term value to the company or supply chain; designed to identify and build relationships with good customers. Customer Service Management- A multi-company, unified response system to the customer whenever complaints, concerns,questions, or comments are voiced; designed to ensure that customer relationships remain strong.
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