1. Ray Owen Ray.owen@wlv.ac.uk
Supply Chain Management Objective – to satisfy the end customer Quality – speed – dependability – flexibility - cost
Ray Owen

2. The Transformation Process

3. Some terms
Supply network – all operations related to interacting with suppliers and customers
Supply side – your suppliers
Demand side – your customers
First tier suppliers – those that supply you directly
Second tier suppliers – those that supply your first tier suppliers
First tier customers – those you supply directly
Second tier customers – those supplied by your first tier customers
Immediate supply network – your first tier suppliers and customers
Total supply network – first and second tier suppliers and customers

4. Downstream and Upstream
The key to understanding supply networks lies in identifying the parts of the network which contribute to those performance objectives valued by end customers

5. Supply Chain

6. The Vertical Integration decision
In–house or Outsource?
Do or Buy?
What are the issues?

7. Vertical Integration issues
Quality – better control in-house but supplier may have more detail specialist knowledge
Speed – internal customers might have lower priority but outside subject to delivery issue
Dependability –easier communications but see internal above, outside suppliers can be held to account contractually
Flexibility – greater closeness but outside supplier might wider capabilities to meet changing needs
Cost - low volumes v higher volumes, greater scope for economies of scale

9. Supplier selection The issues: Short term ability to supply
Long term ability to supply
Single sourcing v multi sourcing
E-procurement
Global sourcing
Corporate Social Responsibility

10. Types of supply chains Business to Business Business to Consumer
Consumer to Business
Customer to Customer

11. Reading:
Slack, N., Chamber, S., and Johnston, R. (2010) Operations Management. 6th Ed., Harlow: FT Prentice Hall. Read Chapters 6 and 13