Supply Chain Management

Supply Chain Management - Supply Chain Management Supply...

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Supply Chain Management Supply Chain Management
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What is a Supply Chain?
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What is a Supply Chain? A supply chain is the system of organizations, people, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform raw materials and components into a finished product that is delivered to the end customer.
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The concept of supply chain defines a series of companies interlinked together by a flow of material and information in order to serve the end customer. What is a Supply Chain?
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Supplier 1 Supplier 2 Manufacturer Material and Information Flow… Forward: Flow of material Backward: Flow of information
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A Supply Chain Example… Coke JNJ Kellog P&G GA FL AL TX Kroger Tier 1 suppliers Super market chains State distributors V. Highlands Peachtree Ocean Drive Ft. Laud. End customer Publix
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Supply Chain Story I On tracing the journey of a part Source: The Resilient Enterprise
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Supply Chain Story II Philips factory in New Mexico Nokia Ericsson Source: The Resilient Enterprise
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Supply Chain Story II Philips factory in New Mexico Nokia Ericsson Source: The Resilient Enterprise On responding to a supply chain disruption
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Supply Chain Story III In the mid-1990s, the Swedish car manufacturer  Volvo found itself with excessive stocks of green  cars. To move them along, the sales and marketing  departments began offering attractive special deals,  so green cars started to sell. But nobody had told  the manufacturing department about the  promotions. It noted the increase in sales, read it as  a sign that consumers had started to like green, and  ramped up production.  Source: Chain reaction, The Economist, Jan 31, 2002 On Internal communication and collaboration
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Supply Chain Story IV On external communication and collaboration
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Supply Chain Story V US auto man. Suppliers Suppliers Toyota “Toyota helped us dramatically improve our  production system. We started by making one  component, and as we improved, [Toyota]  rewarded us with orders for more components.  Toyota is our best customer.” -Senior executive, supplier to Ford, GM,  Chrysler, and Toyota, July 2001** “The Big Three [US automakers] set annual cost- reduction targets [for the parts they purchase]. To  realize those targets, they’ll do anything. [They’ve  unleashed] a reign of terror, and it gets worse  every year. You can’t trust anyone [in those  companies]” -Director, interior systems supplier to Ford, GM,  and Chrysler, October 1999* * And ** Source: Building Deep Supplier Relationships, HBR, December 2004 Arm’s Length Partnership On supplier management
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Supply Chain Story VI Traditional  Supply Chain Dell Supply  Chain On April 20, 2001 Dell toppled Compaq as the world’s largest PC maker* Dell’s market share was 12.8% as opposed to Compaq’s market share 12.1%
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Supply Chain Management - Supply Chain Management Supply...

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