Chapter 1: 21st Century Supply Chains “Making the Supply Chain Work.” .

$ Logistics Moving information Moving products and services . . . $ Moving money

Supply Chain Management Supplier Supplier Supplier Supplier Seller Buyer Supplier Supplier Flow of goods, services information, money Supplier Supplier An integrated supply chain

Supply Chain Management “The process for designing, developing, optimizing, and managing the internal and external components of the supply system, including material supply, transforming materials, and distributing finished products or services to customers, that is consistent with overall objectives and strategies.” --Spekman, Kaumauff and Myhr (1998)

Supply Chain Management “The process for designing, developing, optimizing, and managing the internal and external components of the supply system, including material supply, transforming materials, and distributing finished products or services to customers, that is consistent with overall objectives and strategies.” --Spekman, Kaumauff and Myhr (1998)

Supply Chain Management “The process for designing, developing, optimizing, and managing the internal and external components of the supply system, including material supply, transforming materials, and distributing finished products or services to customers, that is consistent with overall objectives and strategies.” --Spekman, Kaumauff and Myhr (1998)

Key Logistics Activities Customer service. Demand forecasting. Inventory management. Logistics communication. Materials handling. Order processing. Packaging. Parts and service support. Plant and warehouse site selection. Procurement. Reverse logistics. Traffic, transportation Warehousing, storage.

Supply Chain Management “The process for designing, developing, optimizing, and managing the internal and external components of the supply system, including material supply, transforming materials, and distributing finished products or services to customers, that is consistent with overall objectives and strategies.” --Spekman, Kaumauff and Myhr (1998)

Supply Chain Management: “…internal and external components of the supply system…” Customers Suppliers Organization Demand forecasting. Plant and warehouse site selection. Inventory management. Materials handling. Warehousing, storage. Packaging. Order processing.

…internal and external components of the supply system… Supply Chain Management: …internal and external components of the supply system… Customers Suppliers Organization Procurement. Parts and service Support. Traffic. Transportation. Customer service Parts and service support Reverse logistics Traffic, transportation . .

Supply Chain Management “Supply chain management consists of firms collaborating to leverage strategic positioning and to improve operating efficiency… Bowersox, Closs, Cooper “Supply Chain Logistics Management” (2007)

Supply Chain Management Supplier Supplier Supplier Supplier Seller Buyer Supplier Supplier Flow of goods, services information, money Supplier Supplier An integrated supply chain

Supply Chain Management Manufacturer “Supply chain management consists of firms collaborating to leverage strategic positioning and to improve operating efficiency…A supply chain strategy is a channel arrangement based on acknowledged dependency and collaboration” Bowersox, Closs, Cooper “Supply Chain Logistics Management” (2007) Wholesaler Retailer Consumer . . .

Manufacturer C H A N E L Wholesaler Retailer . . Consumer .

Manufacturer Wholesaler Retailer . . Consumer . .

Manufacturer Wholesaler Retailer Consumer Consumer Supplier Supplier . . . . Manufacturer Wholesaler Retailer Consumer Consumer Supplier Supplier Factory Retailer .

Supplier Supplier Factory Retailer

Retailer Factory . . .

2 1 These are the retailer’s second tier suppliers. This is the Factory’s first tier suppliers This is the retailer’s first tier supplier. Tube Supplier Taste Supplier Retailer Factory 2 1 Abrasive Supplier . . . . . . .

Metals Tube Plastic Supplier Chemicals Taste Supplier Chemicals Retailer Factory Chemicals Abrasive Supplier Chemicals .

3 2 1 These are the retailer’s third tier suppliers Metals Tube Plastic Chemicals Taste Supplier Chemicals Retailer Factory 3 2 1 Chemicals Abrasive Supplier Chemicals

3 2 1 These are the factory’s second tier suppliers Metals Tube Plastic Chemicals Taste Supplier Chemicals Retailer Factory 3 2 1 Chemicals Abrasive Supplier Chemicals .

2 1 These are the tube supplier’s, the taste supplier and the abrasive supplier’s first tier suppliers Metals Tube Supplier Plastic Chemicals Taste Supplier Chemicals Retailer Factory 2 1 Chemicals Abrasive Supplier Chemicals

Metals Tube Plastic Supplier Chemicals Taste Supplier Chemicals Retailer Factory Chemicals Abrasive Supplier Chemicals

Metals Tube Plastic Supplier Chemicals Taste Supplier Chemicals Retailer Factory Chemicals Abrasive Supplier Chemicals

End of Program. Metals Tube Plastic Supplier Chemicals Taste Supplier Retailer Factory End of Program. Chemicals Abrasive Supplier Chemicals

End of Program.