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Introduction to Supply Chain Management - Coggle Diagram
Introduction to Supply Chain Management
Definition
Def: process of planning, implementing, and controlling the flow of goods and services from their point of origin to the point of consumption.
SCOR DS
methodology, diagnostic and benchmarking tools
improvements in supply chain processes
A typical Supply Chain
Suppliers: 1st-tier suppliers, 2nd-tier suppliers
End-product manufacturer (focal firm)
Distributors
Retailers
End-product consumers
Recycling and Return
Integrated Management
The Importance of SCM
Benefits
Decrease
Purchasing and inventory carrying costs
Bullwhip effect
Definition: Erratic/uncertain market demand -> Increase safety stocks -> production planning problems for the entire supply chain
Ex: Case Study of Vinamilk
Customer: During the COVID-19 pandemic, there was a surge in demand for milk powder as parents sought to boost their children's immunity.
Retailers: fearing stockouts, increased their orders to wholesalers.
Wholesalers: seeing increased orders from retailers, placed larger orders with distributors.
Distributors: placed even larger orders with Vinamilk.
Vinamilk overproduces: Vinamilk, facing increased demand from distributors, ramped up production.
Outcome:
Excess inventory of milk powder
Price cuts -> reduce profitability.
Lost sales opportunities
Increase
Customer service
Product quality
Career in Supply Chain
Purchasing/Procurement Department
Logistics Team
Transportation (Domestic/ International)
Warehouse
Import/ Export (Customs Procedures)
Production Planning Group
Operations Management
