supply chain management

1. supply management
2. operations
3. distribution
4. integration

1. geographically dispersed complex network
   1. complexity: the Magnitude
   2. magnitude of SC costs
2. uncertainty and risk factors
   1. hurricane, earthquake.....
   2. strike
3. conflicting objectives across the supply chain
4. information distortion (bullwhip effect)

Nota:

• strategic, Tactical and Operational Decision Making matrix is in week 2 and week 3 PPT

1. Strategic or design

   Nota:

   • Years
   • 1. supply chain network design (how many plants? Location and capacities of plants and warehouses?) 2. supply chain strategies (Sell direct or through retailers? Outsource or in-house? Focus on cost or customer service?) 3. product mix at each plant
   1. a plan for achieving organizational goals
2. Tactical or planning

   Nota:

   • 3 mo. - 1 year
   • 1. Workforce & Production planning 2. Inventory policies (safety stock level) 3. Which locations supply which markets 4. Transportation strategies
   1. the actions taken to accomplish strategies
3. Opreation

   Nota:

   • daily
   • 1. Production scheduling 2. Decisions regarding individual orders 3. Place replenishment orders
   1. day to day decisions to support tactics
4. Mission, Mission statement
   1. the reason for existence of an organizaion

Nota:

• week 2

1. Upstream

   Nota:

   • include the set of firms that supply raw material, components, parts, information, finances, and expertise to create a product or service
2. Downstream

   Nota:

   • include the marketing channels or distribution channels that look forward toward the customer
3. Supply and Demand
   1. Demand management

      Nota:

      • Week 4
      1. Demand management objectives
      2. Forecasting demand
         1. Forecasting approaches
            1. Qualitative Methods

               Nota:

               • week 4
            2. Quantitative Methods

               Nota:

               • week 4
         2. some general characteristics of forecasts
            1. forecasts are always wrong
            2. forecasts are more accurate for groups or families of items
            3. forecasts are more accurate for shorter time periods
            4. every forecast should include an error estimate
            5. forecasts are no substitute for calculated demand
            6. only as good as the information included in the forecast (past data)
            7. history is not a perfect predictor of the future (i.e.: there is no such thing as a perfect forecast)
            8. think carefully whether or not the past is strongly related to what you expect to see in the futre
         3. forecasting process

            Nota:

            • week 4
   2. Collaborative Planning, Forecasting, and Replenishment (CPFR)
   3. Collaborative Planning, CPFR, and Collaborative Design
4. Role of Marketing in the SC
   1. identify what customers need and want

      Nota:

      • 1. Group customers into homogenous segments 2. Gap constructed three supply chains in order to deliver three distinct product brands: 1) Old Navy (for price sensitive customers) 2) GAP (for trend-conscious customers) 3) Banana Republic (for high quality, luxury apparels) 3. How do you accurately determine needs?
      1. Surveys
      2. Focus groups
      3. Product sampling
      4. Secondary data
   2. create demand for a company's current and new products
   3. continue to identify market opportunities

Nota:

• week 5

1. Channels
   1. Direct Distribution
   2. Distribution Channels Using Marketing Intermediaries
      1. Wholesalers
      2. Retailers
         1. Non-store
            1. Direct response retailing
            2. Internet retailing
            3. Automatic merchandising
            4. Direct selling
         2. Store
            1. specialty store
            2. convenience store
            3. discount store
            4. warehouse club
            5. factory outlet
            6. supermarket
            7. supercenter
            8. department store
      3. Role of intermediaries
         1. information
         2. promotion
         3. contact
         4. matching
         5. negotiation
         6. physical distribution
         7. financing
         8. risk taking
   3. Alternative Arrangements
      1. Multiple channels
      2. Nontraditioal channels
      3. Strategic channel alliances
2. Disagreement between Retailers and Manufacturers
   1. control over channel
   2. profit allocation
   3. number of competing retailers
   4. product displays
   5. promotional supports
   6. payment terms
   7. operating flecibility
3. Distribution Intensity
   1. Exclusive
   2. Intensive
   3. Selective
4. Distribution Strategy
5. Comparison of Transportation Modes
   1. Rail
   2. Truck
   3. Water
   4. Air
   5. Pipeline

Nota:

• week 6

1. process design

   Nota:

   • design the internal processes and external supplier networks that create efficient manufacture and delivery of its products and services
2. process types

   Nota:

   • design of process types depend on the volume and variety of products and services
   1. Manufacturing process types
      1. project (new building)

         Nota:

         • high variety/ low repetition, one-off, complex, customised. Define start and end, quality, timescale and cost, coordination of complex skills. E.g.: personal investment service, construction project
      2. jobbing print layout

         Nota:

         • very small quantity, high variety/low repetition, customised, skilled jobber or team. E.g.: typesetting for a print run of company brochures; development chef creating and cooking new dishes
      3. batch (catering)

         Nota:

         • Higher volumes/lower variety, standard products, repeating demand, but can make specials. Specialised narrower skills. Set-ups (changeovers) at each stage of production e.g.: restaurant making pasta, sauce, toppings, side dishes
      4. mass (line) (packing items)

         Nota:

         • high volume/ low variety, standard/repeat products, low and/or narrow skills, few or no set-ups or changeovers. e.g.: biscuit factory: small range of standard lines and production of many thousands per week. Call Centre: handling thousands of calls
      5. continuous (bottling plant)

         Nota:

         • extremely high volume/lowest variety, usually single product, high capital set-up, automated, difficult and expensive to stop process. e.g.: oil refinery, gas pipelines
   2. service process types
      1. professional service
      2. service shop
      3. mass service
3. influenced by process positioning
   1. Flow (Layout)
      1. Basic layout types

         Nota:

         • more details on week 6
         1. Fixed-position
         2. Functional
         3. Cell
         4. product
         5. Mixed
      2. advantages and disadvantages of the basic layout types
      3. Manufacturing
         1. Critical Success Factors for Manufacturers
            1. CSFs are those things a company must do well to be successful
            2. Cost and Efficiency
            3. Quality
            4. Responsiveness - Timing of delivery
            5. Responsiveness - Product/Service Mix
            6. Flexibility
            7. Agility
            8. Information Technology
         2. Manufacturing Strategies
            1. Make to stock (MTS)
            2. Assemble to order (ATO) - e.g. sandwiches, Dell
            3. Make to order (MTO)
            4. Activity - what are the advantages and disadvantages of each of these strategies?
      4. Make or Buy strategies

         Nota:

         • 1. Broad change from vertical integration to looser connected supply chains (via outsourcing) 2. Decision whether to do something yourself (i.e. within your own company) or pass the work to another (different) company
         1. such as outsourcing
   2. technology
   3. job design

Nota:

• week 7