1 Supply Chain Management

2 The Supply Chain Network

3 PRODUCTION Supplier Customer Flow of products & services Information flow LOGISTICS Physical supply Planning & Manufacturing Warehousing & Distribution Scope of the Supply Chain

4 INTERNAL & EXTERNAL SUPPLY CHAIN MANUFACTUREDISTRIBUTION PURCHASINGSUPPLIER THE INTERNAL SUPPLY CHAIN THE EXTERNAL SUPPLY CHAIN Internal SC: within and control of the business External SC:outside and not under the control of the business The Total Supply Chain Scope of the Supply Chain

5 QUESTION What do you consider to be the challenges facing supply chain managers today?

6 Challenges for Supply Chain managers, today: Logistics management a key function Global activity - Global markets – Global procurement Extensive use of IT (e.g. SAP, Oracle, BAAN) Strategic in outlook (alliances) Few big players (Car industry, Pharmaceuticals) Short product life cycles Speed to market Interfacing with other managerial functions Dealing with increased rates of change (changing environments – including wide range of service environments) Increasing demanding standards, TQM; ISO 9000 Need for continuous improvement Increasing array of skills necessary Need for constant innovation.

7 CASE STUDY: TESCO

8 END