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Learning objectives

Identify the basic tasks of SCM

Identify the causes
Basic Tasks Of Supply Chain Management
Many technologies and tools are available to improve the way supply chains work.
These range from technology implementation to nding new ways to structure
organizations from hardware technology nuts and bolts to software to methods
for organizing and motivating staff the soft side.
The basis for competition has shifted from the individual company to the s u p p l y
c h a i n . I t s t h e s u p p l y chain that poses a fundamentally new challenge to
management. The skills and tools we need to manage in this environment will have to

Task 1: Designing Supply Chains For Strategic Advantag

Ways to include Strategic choices and customer requirements into supply chain design. The scope
covers existing products and services as well as new products or customer segments. It is based on
the notion of the extended product that includes the supply chain. This con-cept maintains that, in
the longer term, physical product features will be insuf ficient for competitiveness.

A framework for building sustainable advantage based on a unique set of well-linked


Matching supply chains to product types ,recognizing that supply chains should be

designed with different objectives based on the products they support.

Techniques for coordinating new-product development and supply

chain management. The approaches cover both existing and new-product

Application of an analysis tool, Quality Function Deployment(QFD), to

supply chain design.

Task 2. Implementing Collaborative Relationships

The type of collaboration needed within the organization. The task forging

supply chain relationships refers to collaboration outside the organization.

Any change in the supply chain must be accomplished through people.
People in the organization must live with the con sequences of any changes.
Our experience is that change fails to be effective due to rejection of the
change by people in the organization. So

Organizing the change effort and functional roles in supply chain


Participative process for redesigning supply chains.

Performance measures and their role.

placing the supply chain management function within the organization

TASK 3. Forging Supply Chain Partnerships

The supply chain paradigm demands effective partnering outside the enter-prise. In
some ways this is easier than working only internally; Its easier because these partners
are probably suppliers and customers with a common stake in your success. In terms of
supply chainmanagement
1.Motivations for partnerships
2.Partnership structures

TASK 4. Managing Supply Chain Information

The role of information systems in altering supply chains shouldn

t be u n d e r e s t i m a t e d . T h e r o l e s t e c h n o l o g y w i l l p l a y i n supply chain change. It

argues that systems changes should support pro -cess changes that, in turn, support
enterprise strategies. This perspective is a m a n a g e m e n t , n o t a t e c h n i c a l , o n e .
T h e p o s s i b l e c o m p o n e n t s o f a f u l l y functioning supply chain information system
are described along with thealternatives for their implementation.

1.Elements of a supply chain system

2.Technology innovations

3.Software solutions

4.Implementation barriers

TASK 5. Removing Cost from the Supply Chain

Costs will always be a focus of supply chain improvement efforts. T h e s e efforts will be for both

strategic and tactical advantage.

It is organized around the root causes for unnecessary supply chain cost.
Six root causes:
1 .Lack of clarity regarding what is happening in the supply chain
2.Variability in operations from both external and internal factors
3.Shortcomings in product design
4.Inadequate information for decision making
5.Weak links between partners in the supply chain
6.Unintended circumstances arising from traditional mindsets