Common Learning Blocks Learning Block 1 Supply Chain Management Principles

Abstract This document, Common Learning Blocks (CLBs), prefaces each of the eight LINCS track certifications and is intended to provide an overview of SCM and the relationship of each of the functions, or tracks, in a supply chain. The supply chain functions included herein are demand planning, supply management and procurement, warehousing operations, inventory management, manufacturing and service operations, transportation operations, and customer service. The goal of the content in this Common Learning Blocks document is to prepare students to understand the principles of SCM and the sequence of those principles.

Course Agenda Supply Chain Management Principles Demand Planning Supply Management and Procurement Warehousing Operations Inventory Management Manufacturing and Service Operations Transportation Operations Customer Service Operations

Supply Chain Management Principles Learning Block 1

Learning Block Agenda Supply Chain Basics Supply Chain Strategy Modern Supply Chains

Description Defines the major functions that are necessary for operational supply chain. Defines the linkage of the functions that form the chain. How that chain is linked with process to form the basis for the management of the supply chain.

Learning Objectives Discuss the function in a supply chain. Define Supply Chain Management Explain how supply chains must be integral to an organization's strategic goals.

Unit 1: Supply Chain Basics What is a Supply Chain? A supply chain is a system of people, processes, and technology involved in moving and processing resources and services from raw materials to the end user. Today, supply chains consist of global networks of companies in which many multi-national companies work together to build products and remain competitive. (Page 7)

Unit 1: Supply Chain Basics Functions of Supply Chain: Demand Planning Supply Management and Procurement Inventory Management Warehousing Operations Manufacturing and Service Operations Transportation Operations Customer Service Operation Page 8

Unit 1: Supply Chain Basics Supply chain management takes into consideration all activities involved in confirming that products from its raw material stage are turned into finished products and delivered to customers. These include: Sourcing of raw material and parts Manufacturing and assembling Warehousing and controlling inventory Entering and managing orders Finishing, customizing, and packaging Supply chain management, therefore, coordinates and integrates all above activities into a continuous process. It links all the entities together to make sure that supply chains become competitive and satisfy customers and consumers with the right products at the right costs. (Page 12)

Unit 1: Supply Chain Basics Supply chain management activities (cont.): Distributing across all channels Delivering to final customers Managing relationships with suppliers Managing relationships with customers Maintaining information systems necessary to help monitor above activities Supply chain management, therefore, coordinates and integrates all above activities into a continuous process. It links all the entities together to make sure that supply chains become competitive and satisfy customers and consumers with the right products at the right costs. (Page 12)

Unit 2: Supply Chain Strategy Supply chains should be designed to strategically fit with competitive strategies. Understanding customers and the current supply chain capabilities is important when determining if certain supply chains will be able to support the corporate strategies. The business plan, which includes the competitive strategy, drives the demand and supply plan, which, in turn, drives the supply chain as it seeks to fill customer orders

Unit 3: Modern Supply Chain Growing companies were capturing more international market share using different strategies Rapid increases in technology and products with shorter product life cycles Intense competition in industries Strategic cost management Supplier design involvement Supplier development Long term supplier Competition (Past) Collaboration (Present)

Supply Chain Principle Supply chain management has many systems to help control and monitor the business. The industry trend is to incorporate as many as possible into an integrated (real time, information sharing) Enterprise Resource Planning (ERP). ERP Process:

Practice Questions The levels of suppliers within a supply chain are called: Ranks Supports Tiers Services For companies to be competitive, suppliers should be considered: Teammates Adversaries Unreliable Unnecessary

Practice Questions 3. A supply chain can best be described as: A network of many individual functions One or two functions working together Negotiating with suppliers Choosing the best warehouse strategy 4. Supply Chain Management can be described as a(n): Comprehensive approach to the management of the entire flow of individual functions Method to increase sales and market share Process to create adversarial relationships with suppliers Innovative process for choosing carrier modes

Practice Questions 5. The process for customers to return defective products is called: Backwards logistics Reverse logistics Forward logistics Domestic logistics