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SCM, All involved in fulfilling a customer request, Tutorial 1, Increasing…

- - - - Physical flows of materials
        
        From the original product to final customer
        
        Supplier
        
        Manufacturer
        
        Warehousing
        
        Distributor
        
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      - Flows of information that inform the supply chain
      - Resources
    - - Consists of but not limited to
        
        Material Suppliers
        
        Purchasing
        
        Production Facilities
        
        Logistics
        
        Marketing
    - - Maximising profitability through efficiency and achieving customer satisfaction
      - To grow the total supply chain surplus
    - - Customer Relationship Management
      - Internal Supply Chain Management (ISCM)
      - Supplier Relationship Management (SRM)
    - - Cycle View
        
        Customer order
        
        Replenishment cycle
        
        Manufacturing cycle
        
        Procurement cycle
        
        Each cycle occurs at the interface of 2 successive stages
      - Push/Pull
        
        Push: initiated by anticipation
        
        Pull: Initiated in response to customer
        
        Push/Pull Boundaries
        
        Useful in strategic decisions
        
        Can combine push/pull with cycle view
- - - - Source raw material and components
      - Meet potential customer demand from other nation
      - Labor advantages by locating manufacturing and distribution facilities in developing nation
        
        Many enterprises took this as an opportunity to achieve market growth and enjoy operational efficiency
      - Favorable tax laws of specific countries
  - - - Increased application of the Internet of Things, use of advanced robotics, and application of advanced analytics of big data in SCM
        
        Result in a Faster, more Flexible, more Granular, more Accurate, more Efficient Supply Chain
  - - - Integrating environmentally sustainable practices
        
        Reduce carbon footprints
        
        Eg. green transportation with biofuels or and energy-efficient warehousing
        
        Minimize waste
        
        Eg. eco-friendly packaging
        
        Optimize resource efficiency
  - - - Outsource to LSPs or 3PLs
        
        Logistics outsourcing has been increasing due to:
        
        Its potential to reduce logistics costs
        
        Its ability to improve customer service levels
  - - - JIT is to produce items only when they are needed
      - With minimal waste of human and natural resources.
      - In the smallest possible quantities
- - - - High value-to-volume products are shipped
        Eg. Processed chicken
        
        Declining product prices while minimising transport cost
        
        Lesser regulation and higher competition in the market
        
        Freights are shipped in containers and more companies are implementing technologies like RFID
        
        Companies focused on strategic inventory management while emphasizing on cost savings and timely deliveries
        
        Becoming less vertically integrated and more specialised by outsourcing and ensuring that the various functions and activities across the company are integrated more closely.
    - - Higher product prices and logistics costs
        
        Strict regulations and market are being monopolise
        
        Goods were transport through bulk vessels
        
        Companies were holding too much stock and inventory were fragmented and managed separately
        
        Emphasis on inventory reduction
        
        The silo based thinking hinder the overall performance of the company
        
        Changes in company structure
        
        Productivity improvements
        
        Deregulation of transport
        
        Falling product prices
      - Reduced transport intensity of freight
  - - - People thought that Logistics is just about vehicles and warehouses
        
        However, it’s a complex system that requires precise coordination to meet increasingly strict requirements in modern supply chains.
- - - - Logistic Management
        
        The process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods including services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. This definition includes inbound, outbound, internal, and external movements.
        
        The 8 "rights"
        
        Getting the right product
        
        In the right quantity and quality
        
        In the right way
        
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        Four types of movements
        
        Inbound
        
        Supplier and company
        
        Sourcing & purchasing from suppliers, transportation, and receiving and unloading goods
        
        Outbound
        
        Company and customer
        
        Receiving orders, packing goods from warehouse and delivering to customers
        
        Internal
        
        Intralogistics
        
        Goods movement between warehouses, departments, and production lines
        
        External
        
        Company and external parties
        
        Coordinating delivery schedule with 3PL
      - Originally for military and mathematical used
        
        Only in the latter decades of the 20th century that the term logistics entered into common non-military use.
- - - - Logistics
        
        Mainly focuses on storage and movement of goods.
      - Supply Chain Management
        
        Comprised of all the end-to-end processes like sourcing, procurement, production as well as logistics.
    - - Logistics
        
        Ensure efficient transportation, warehousing, and delivery of goods.
        
        Cost savings and efficiency through integrated, focused inventory management and reduction
        
        Enhancing logistics such as inventory reduction for competitive advantage
        
        Conforming to customer requirements
      - Supply Chain Management
        
        Coordination between all stakeholders (for e.g. sourcing,procurement,logistics) to ensure operations go as smoothly as possible
        
        To create value, enhance, efficiency and satisfy customers
    - - Traditionalist
        
        Definition
        
        SCM is a subset of Logistics
        
        Logistics covers planning, implementing, controlling efficient /effective flow and storage to meet customer requirements
      - Re-labelling
        
        Definition
        
        SCM is a new branding for Logistics
        
        Scope does not change. In practice, 'transport' is sometimes re-labelled as 'Logistics'
      - Unionist
        
        Definition
        
        Logistics sits inside SCM
        
        SCM is the wider, inter-company, boundary-spanning concept
      - Intersectionist
        
        Definition
        
        SCM is the strategic integrator, Logistics is the executor
        
        Partial overlap - some activities are treated as both Logistics and SCM such as Inventory Management, Information flow