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Chapter 10
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Outline
Definitions and Terminology
System Interactions
Coordination in Supply Chain
Measuring Supply Chain Performance
Structural Improvement
Improvement in Infrastructure
The Internet and Supply Chains
Virtual Supply Chains
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Irwin/McGraw-Hill
Supply Chain
The sequence of business processes and
information that provides a product or
service from suppliers through
manufacturing and distribution to the
ultimate consumer.
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Irwin/McGraw-Hill
Distribution Channel
The route from the producer forward through
the distributors to the customer
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Demand Management
Managing the demand for goods or
services along the supply chain.
Demand can be managed through such
mechanisms as products, pricing,
promotion, and distribution.
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Logistics Management
If broadly defined, it is the same as supply
chain management.
Narrowly defined, logistics management is
concerned with inbound transportation and
outbound distribution.
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Irwin/McGraw-Hill
System Interactions
(System Dynamics in Supply Chains)
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Structural Improvement
Basic Ways to Improve Supply Chain
Structure:
Change structure
Capacity, Facilities, Process technology, vertical
integration
Change infrastructure
People, Information systems, Organization,
Production and inventory control, Quality control
systems
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Improvement in Infrastructure
Cross-functional teams
Partnerships
Set-up time reduction
Information systems
Cross-docking
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Selection
Requisition
Approval
BUY
Requisition
Source
Negotiate
Contract
SUPPLY
Confirm
Process
Order
Ship
Invoice
PAYMENT
Receive
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Deliver
Match
Pay
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