Supply Chain Management:

From Vision to Implementation

Chapter 1: Supply Chain
Management and
Competitive Strategy

a) Define Supply Chain

b) Understand what is SC
Management

Objectives 1

c) Understand how SC
collaboration affects
Organisational Performances

Supply Chain
Management
& Competitive
Strategies

Objective 2

Evaluate extend to which SC

Strategies are being
implemented

Objective 3

Understand how SCM

is a competitive
strategy

Objective 4

Identify steps involved in

developing &
implementing a Supply
chain strategy
2

What is a Supply Chain ?

LO 1

Supply Chain: Manufacturing Example

Supply Chain: Service Example

Supply Chain: Service Example

What is the Value of SC Collaboration?

What is a Supply Chain Management?

Supply chain management is the design and
management of seamless, value-added
processes across organizational boundaries to
meet the real needs of the end customer.
- Institute for Supply Management

Planning

Sourcing
LO 3

Making

Delivering
Returning

Question
Are the steps
taken to
manage
Supply Chain
Processes
the same as
Supply Chain
Strategy?

10

What is a
strategy?

11

Strategy
Strategy is the basis from which a consistent
allocation of resources is made to achieve
some objective.
The objective of for-profit organizations is
to make money; the best way to achieve this
objective may be to focus on satisfying the
customer.
12

Four purposes of strategic

development in SCM
context

13

Four questions used to

develop a supply chain
strategy
(pg. 20 of text)

14

The Supply Chain Road Map

15

Different Levels of Integration

(Collaboration)

collaboration with
1st-tier and 2nd-tier
(leading companies)
suppliers.

16

Internal Value Chain: Local Focus

Executive
Management

R&D

Information
Technology

Operations

Supply
Management

Logistics

Marketing

Finance

Accounting

Human
Resource
Management

17

Internal Value Chain: Company Focus

Executive
Management

R&D

Information
Technology

Upstream
Suppliers

Operations

Supply
Management

Logistics

Downstream
Customers

Marketing

Finance

Accounting

Human
Resource
Management

18

SCM: Linked Value Chains

Executive
Management

R&D

Information
Technology
Executive
Management

Executive
Management

R&D

Information
Technology

Supply
Management

Finance

Accounting

Operations

Supply
Logistics
Management

Finance
Human
Resource
Management

Executive
Management

R&D

Information
Operations
Technology

Supply
Management

Operations

Logistics

Marketing

Marketing

Accounting

Supplier

Supply

Supply
Management

Logistics
Management

Operations

Logistics

Logistics

Finance
Marketing

Finance

Human
Resource
Management

R&D

Information
Operations
Technology

Information
Technology

Accounting

Human
Resource
Management

Marketing

Accounting

Human
Resource
Management

Marketing

Finance

Suppliers
Supplier

Executive
Management

R&D

Focal
Accounting
Firm

Human
Resource
Management

Customer

Customers
Customer
19

What are some of the challenges of Supply

Chain Management?

20

Integrating SCM and Strategy

What makes Dell and Wal-Mart successful? Its
the business model, and supply chain is an
enabler.
Thats why youre seeing this growing
importance of supply chains.
People realize SCM is the weapon of the future.
- Robert W. Moffat Jr., IBM
21

What are some of the challenges of

Supply Chain Management?

22

The Bullwhip Effect

Refers to a trend of larger and larger swings in

inventory in response to changes in demand,
as one looks at firms further back in the
supply chain for a product.

23

Mitigating the Bullwhip Effect

24

Focus of Chain Strategy

25

26

Objectives Revisited
a) Define Supply Chain

b) Understand what is SC
Management

Objectives 1

c) Understand how SC
collaboration affects
Organisational Performances

Supply Chain
Management
& Competitive
Strategies

Objective 2

Evaluate extend to which SC

Strategies are being
implemented

Objective 3

Understand how SCM

is a competitive
strategy

Objective 4

Identify steps involved in

developing &
implementing a Supply
chain strategy
27

28