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Ch11_SCM - Management Definition,issues,logistics,EDI...

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Rev. 09/25/06 SJSU Bus 140 - David Bentley 1 Chapter 11 – Supply Chain  Management Definition, issues, logistics, EDI,  E-commerce, purchasing, make or  buy, DRP
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Rev. 10/28/01 SJSU Bus 140 - David Bentley 2 Definition of SCM Definition: chain consisting of multiple  organizations and organization units  operating as customer/supplier links Includes external suppliers and  subcontractors Involves internal manufacturing plants,  warehouses, and distribution centers Extends to final (external) customers
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04/07/06 SJSU Bus 140 - David Bentley 3 Supply Chain Example Contract manufacturer Hewlett-Packard Ingram Micro CompUSA You or me
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Rev. 10/28/01 SJSU Bus 140 - David Bentley 4 Factors Leading to SCM Globalization Competitive pressure Move to e-commerce Cost reduction opportunities Ability to share information Greater use of contract manufacturers Desire to manage vertical markets
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Rev. 10/28/01 SJSU Bus 140 - David Bentley 5 Key Elements of SCM Determine customer needs Forecast demand  Design products to meet customer needs and  minimize costs Control operations processes Minimize inventory Strengthen supplier relationships Optimize facility location Improve handling and storage of material 
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Rev. 10/28/01 SJSU Bus 140 - David Bentley 6 SCM Issues Strategic Building the chain (suppliers, manufacturing  facilities, distribution centers, customers)
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