Supply Chain
Zara
Centralised
Responsive
Design, manufacturing and distribution system
Orders placed twice a week. Items delivered twice a week.
Speed
Controls more manufacturing. Clothes made in nearby countries.
Definitions:
Plan, source, make, deliver, return - Supply Chain Council cited in Blanchard (2010)
'the sequence of events and processes that take a product from dirt to dirt'. - Blanchard (2010)
'Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities.' - Council of supply chain management professionals (CSCMP)
5 primary processes for a supply chain framework:
Inbound Logistics - receiving, distributing to the correct department and storing inputs.
Operations - Transforming inputs into final product
Outbound Logistics - Collecting, storing, physically distributing to customers.
Sales and Marketing - Activities to entice buyers and actually enable them to buy it.
Service - Enhance or maintain value of product.
Strategy
Horizontal
Vertical
Improves interrelationships
Reduces costs
Improves differentiation
Sharing of skills and knowledge
Coordinated set of goals across distinct but interrelated business units - Porter cited in Blanchard, 2010
Counter-productive to longterm
Bullwhip (negative) effect