Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7 th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014 Slide 13.1 Chapter 13 Supply chain management

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7 th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014 Slide 13.2 In Chapter 13 – Supply chain management – Slack et al. identify the following key questions…  What is supply chain management?  What are the activities of supply chain management?  How can the relationship between operations in a supply chain affect the way it works?  How do supply chains behave in practice?  How can supply chains be improved? Key operations questions

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7 th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014 Slide 13.3 ‘Supply chain management is the management of the interconnection of organizations that relate to each other through upstream and downstream linkages between the processes that produce value to the ultimate consumer in the form of products and services’. What is supply chain management?

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7 th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014 Slide 13.4 First tier supplier Second tier supplier First tier customer Second tier customer End customer Demand sideSupply side Physical distribution management Logistics Materials management Supply chain management Information flow Physical flow Supply chain management (Continued) Purchasing and supply management Figure 13.3 Some of the terms used to describe the management of different parts of the supply chain

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7 th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014 Slide 13.5 FactorWeightSupplier A scoreSupplier B score Cost performance108 (8 × 10 = 80)5 (5 × 10 = 50) Quality record107 (7 × 10 = 70)9 (9 × 10 = 90) Delivery speed promised 75 (5 × 7 = 35) Delivery speed achieved 74 (4 × 7 = 28)8 (8 × 7 = 56) Dependability record86 (6 × 8 = 48)8 (8 × 8 = 64) Range provided58 (8 × 5 = 40)5 (5 × 5 = 25) Innovation capability46 (6 × 4 = 24)9 (9 × 4 = 36) Total weighted score Weighted supplier selection criteria for a hotel chain Table 13.2 Weighted supplier selection criteria for the hotel chain

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7 th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014 Slide 13.6 Orders 0 Time Sales from store Consumers Orders 0 Time Store’s orders to wholesaler Time Wholesaler’s orders to manufacturer Orders 0 Manufacturer’s orders to its suppliers Orders 0 Time Retail Store Whole saler Manufac turer Supplier The bullwhip effect (Continued) Figure 13.8 Typical supply chain dynamics

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7 th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014 Slide 13.7 Market/sales information flow Product/service flowCash flow Supply chain related activities Understanding customers’ needs Designing appropriate products/services Demand forecasting Purchasing Inventory management Throughput/waiting times Distribution Supplier payments Customer invoicing Customer receipts Beneficial effects of e- business practices Better customer relationship management Monitoring real-time demand Online customization Ability to coordinate output with demand Lower purchasing administration costs Better purchasing deals Reduced bullwhip effect Reduced inventory More efficient distribution Faster movement of cash Automated cash movement Integration of financial information with sales and operations activities Some effects of e-business on SCM practice Table 13.5 Some effects of e-business on supply chain management practice