SUPPLY CHAIN MANAGEMENT
Faculty of International Economic Relations
University of Economics and Law
‹#› Het begint met een idee
OVERVIEW
▪ This course aims to acquire basic knowledge of supply chain management.
▪ As globalization intensified and international division of labor production
spread, companies became interested in the competitiveness of the
supply chain, not individual companies.
▪ Furthermore, efforts are being made to achieve a sustainable competitive
advantage by systematically managing the flow of products, information,
and services throughout the supply chain.
▪ This course covers the basic concepts of supply chain management,
strategies, and principles for the design and management of supply chain
systems and processes.
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SUPPLY CHAIN MANAGEMENT TEACHING MATERIALS
▪ PPT Slides
▪ Sunil Chopra, Peter Meindl, Supply Chain Management:
Strategy, Planning, and Operations, 6th Edition, Pearson
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COURSE ASSESSMENT
▪ Group assignment 30%
> Case solving
> Perform in Academic writing 20%
> Apply learned knowledge to specific answer 80%
▪ Midterm exam 20%
▪ Final exam 50%
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COURSE CONTENT
▪ Week 1: Understanding the Supply Chain – Chapter 1
▪ Week 2: Supply Chain Performance – Chapter 2
▪ Week 3: Demand Forecasting – Chapter 7
▪ Week 4 - 5: Sourcing decision in Supply Chain – Chapter 15
▪ Week 6 - 7: Inventory Management – Chapter 11- 12
▪ Week 8 - 9: Distribution and transportation in Supply Chain –
Chapter 4 -14
▪ Week 10 -11: Sales and Operations planning
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CHAPTER 1 - UNDERSTANDING THE SUPPLY CHAIN
Faculty of International Economic Relations
University of Economics and Law
‹#› Het begint met een idee
CONTENTS
▪ The supply chain
▪ The objective of a supply chain
▪ The importance of supply chain decisions
▪ Decision phases of a supply chain
▪ Process view of a supply chain
▪ Logistics vs supply chain management
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THE SUPPLY CHAIN
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TYPICAL SUPPLY CHAIN STAGES
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DETERGENT SUPPLY CHAIN
Paper Packaging
Timber Company
Manufacturer Company
Retailers
FMCG
Wholesalers (Wal-Mart, Customers
(P&G, Unilever)
Carrefour)
Chemical Plastic
Manufacturer Producer
Source: Chopra and Meindl (2016)
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HOW TO ASSEMBLE A CAR?
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AUTOMOTIVE SUPPLY CHAIN
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ACTIVITY: DESIGN YOUR SUPPLY CHAIN
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TYPICAL SUPPLY CHAIN STRUCTURE
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FLOWS ON SUPPLY CHAIN
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FLOWS ON SUPPLY CHAIN
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WHAT IS SUPPLY CHAIN MANAGEMENT?
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SUPPLY CHAIN MANAGEMENT
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EVOLUTION OF SCM CONCEPTS
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EVOLUTION OF SCM CONCEPTS
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EVOLUTION OF SCM CONCEPTS
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EVOLUTION OF SCM CONCEPTS
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EVOLUTION OF SCM CONCEPTS
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EVOLUTION OF SCM CONCEPTS
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SCM CONCEPTS
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SCM CONCEPTS
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SCM CONCEPTS
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LOGISTICS VS SUPPLY CHAIN MANAGEMENT
Source: Rushton et al. (2014)
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LOGISTICS
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LOGISTICS
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LOGISTICS VS SUPPLY CHAIN MANAGEMENT
Logistics Supply chain management
Logistics basically consists of activities within SCM refers to network among organizations
an organization (intra-organization). coordinating to deliver products to markets
(inter-organization)
Logistics focuses on transport, inventory SCM consists of logistics activities, marketing,
management, warehousing, etc. new product introduction, finance, customer
service
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THE OBJECTIVES OF A SUPPLY CHAIN
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THE OBJECTIVES OF A SUPPLY CHAIN
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THE OBJECTIVES OF A SUPPLY CHAIN
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THE OBJECTIVES OF A SUPPLY CHAIN
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WHY IS SUPPLY CHAIN COMPLEX?
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DECISIONS PHASES OF A SUPPLY CHAIN
▪ Supply chain strategy or design
o How to structure the supply chain over the next several years
▪ Supply chain planning
o Decisions over the next quarter or year
▪ Supply chain operation
o Daily or weekly operational decisions
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SUPPLY CHAIN STRATEGY OR DESIGN
▪ Strategic supply chain decisions
o Locations and capacities of facilities
o Outsource or perform in house
o Products to be made or stored at various locations
o Modes of transportation
o Information systems
▪ Supply chain design must support strategic objectives
▪ Supply chain design decisions are long-term and expensive to
reverse
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SUPPLY CHAIN PLANNING
▪ Fixed by the supply configuration from previous phase that
establishes constraints for planning
▪ Supply chain planning decisions
o A forecast of demand in the coming year
o Which markets will be supplied from which locations
o Subcontracting
o Inventory policies
o Timing and size of market promotions
o Demand uncertainty, exchange rates, competition
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SUPPLY CHAIN OPERATION
▪ Decisions regarding individual customer orders
▪ Supply chain configuration is fixed and operating policies are
determined
▪ Allocate orders to inventory or production, set order due dates,
generate pick lists at a warehouse, allocate an order to a particular
shipment, set delivery schedules, place replenishment orders
▪ Uncertainty more or less?
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CONCEPTUAL FRAMEWORK OF SCM
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PROCESS VIEW OF A SUPPLY CHAIN
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CYCLE VIEW OF SUPPLY CHAINS
Customer
Customer Order Cycle
Retailer
Replenishment Cycle
Distributor
Manufacturing Cycle
Manufacturer
Procurement Cycle
Supplier
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CYCLE VIEW OF SUPPLY CHAINS
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PUSH/PULL VIEW OF SUPPLY CHAINS
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PUSH/PULL VIEW OF SUPPLY CHAINS
Source: Chopra and Meindl (2016)
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CHAPTER 1 - UNDERSTANDING THE SUPPLY CHAIN
THANK YOU!
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