1. Chapter 1: 21st Century Supply Chains
Supply Chain Management:
What Is It?

2. Supply Chain Management: What Is It?
Logistics.
Supply Chain Management. =

3. Back in the day…

4. Back in the day…

5. But things began to change…$ $ $ $

6. But things began to change… . . . . . .

7. But things began to change…

8. The Value of Inventory $ $ $ $ . . .

9. The Value of Inventory $ $ $ $

10. The Value of Inventory . . .

11. The Value of Inventory . . .

12. Inventory Carrying Costs
The Value of Inventory
Inventory Carrying Costs $ $ $ $ $ . .

13. The Value of Inventory Housing the inventory (the truck trailer).
Security (trucks are hijacked).
Taxes.
Insurance.

14. The Value of Inventory Housing the inventory (the truck trailer).
Security (trucks are hijacked).
Taxes.
Insurance.
$1,000,000?
$750,000?
$500,000?

15. The Value of Inventory
The value of inventory becomes very important in supply chain management.

16. Back in the day…

17. Back in the day… .

18. Supply Chain Management: What Is It?
Logistics.
Supply Chain Management.

19. Business Logistics
Goods
Buyer
Seller
Services
Information
Money .

20. Business Logistics
Goods
Buyer
Seller
Services
Information
Money

21. Business Logistics Customer service Demand forecasting Inventory
management
Logistics
communication
Materials handling
Order processing
Plant and
warehouse site
selection
Packaging
Procurement
Reverse logistics
Traffic, transportation
Warehousing, storage
Buyer
Seller

22. Business Logistics
Goods
Buyer
Seller
Services
Information
Money

23. Supply Chain Management
Seller
Buyer
Flow of
goods, services
information,
money

24. Supply Chain Management
Supplier
Seller
Buyer
Supplier
Flow of
goods, services
information,
money
Supplier

25. Supply Chain Management
Supplier
What do we have?
Supplier
Supplier
Supplier
Seller
Buyer
Supplier
Supplier
Flow of
goods, services
information,
money
Supplier
Supplier
An integrated supply chain . .

26. Supply Chain Management
Supplier
What do we have?
Supplier
Supplier
Supplier
Seller
Buyer
Supplier
Supplier
Flow of
goods, services
information,
money
Supplier
Supplier
An integrated supply chain

27. Business Logistics
Goods
Buyer
Seller
Services
Information
Money

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

29. One More Thing…

32. End of Program. Lee Scott Wal-Mart’s Chief Executive Officer
Lee Scott
Wal-Mart’s
Chief Executive Officer