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BA 320 Lecture 13 Supply Chain Management Guest Lecture

BA 320 Lecture 13 Supply Chain Management Guest Lecture -...

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SUPPLY CHAIN MANAGEMENT: GUEST LECTURE/ PROF. PALEKAR BA 320 FALL 2010 Oct. 21, 2010 1
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ANNOUNCEMENTS: Pricing Connect Assn. DUE TUES. 8:30 a.m. Only 10 out of 13 in-class quizzes count; designed to cover interviews, illness, other reasons for missing class. If you miss more than 3, do extra credit on experimetrix! 2
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Supply Chain Management University of Illinois at Urbana-Champaign www.business.uiuc.edu/idm 3
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Supply Chain Management University of Illinois at Urbana-Champaign www.business.uiuc.edu/idm
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Supply Chain Management University of Illinois at Urbana-Champaign www.business.uiuc.edu/idm QC & Shipping [Hong Kong] Product Design [Hong Kong] Zippers+… [Japan+…] Stitching [Indonesia] Weaving [Taiwan] Yarn Spinning [Korea] An Illustration: How Li & Fung Limited Might Make a Dress Globally Dispersed Manufacturing
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Supply Chain Management University of Illinois at Urbana-Champaign www.business.uiuc.edu/idm Global Apparel Value Chain Tracing back the dress you are wearing
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Supply Chain Management University of Illinois at Urbana-Champaign www.business.uiuc.edu/idm What Is a Supply Chain? Flow of products and services from: Raw materials manufacturers Intermediate products manufacturers End product manufacturers Wholesalers and distributors and Retailers Connected by transportation and storage activities Integrated through information, planning, and integration activities
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Supply Chain Management University of Illinois at Urbana-Champaign www.business.uiuc.edu/idm 8 What is Supply Chain Management? Source Make Deliver Purchasing Management Materials Management Business Process Management Manufacturing Management Inventory Management Business Marketing Logistics Management Marketing Research The planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. It also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. Logistics – Governance - Information
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Supply Chain Management University of Illinois at Urbana-Champaign www.business.uiuc.edu/idm Why is this important? U.S. companies spend more than $1 trillion in supply- related activities (10-15% of Gross Domestic Product) Transportation 58% Inventory 38% Management 4% The grocery industry could save $30 billion (10% of operating cost) by using effective logistics strategies A typical box of cereal spends 104 days getting from factory to supermarket.
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