An Introduction

to Supply Chain
Presentor: Horlina D. Aungon
Subject Teacher
 Supply Chain
the organizations, processes, activities and
resources in the flow of products from supplier
to consumer
- integrates value chain that are responsible
fror the delivery of a valuable service or
product for the market.
 Typical Supply Chain
1) ecological, biological and political of natural
resources
2) human extraction of raw materials
3) production links ( component construction,
assembly and merging)
4) several layers of storage facilities
5) reaching the customers
Typical Supply Chain
Omnichannel Supply Chain
- the latest terms used in retail
= how customers can shop any time,
anywhere, any place
 Supply Chain Diagram
a) the initial supplier
b) a supplier
c) a manufacturer ( production)
d) a customer and
e) final customer
 Primary Objective of
Supply Chain Management
( SCM)
- to customer demands through the most
efficient use of resources including distribution
capacity, inventory and labor.
 Value Chain
is a set of activities that a firm operating in a
specific industry performs in order to deliver a
valuable product or service for the market
Michael Porter's Value Chain
 Bottom Line
The primary activities within Michael Porter's value chain
are used to provide a company with a competitive
advantage in any one of the five activities so it has an
advantage in the industry in which it operates.
In general, the analysis was meant for companies that
manufacture goods. But almost any company can use the
value chain analysis laid out by Porter even if they don’t
have all the components.
 What Is Competitive Advantage?
Competitive advantages are conditions that
allow a company or country to produce a good
or service of equal value at a lower price or in a
more desirable fashion.
These conditions allow the productive entity to
generate more sales or superior margins
compared to its market rivals.
 What Is a Distribution Network?
• In a supply chain, a distribution network is an
interconnected group of storage facilities and
transportation systems that receive inventories of goods
and then deliver them to customers.
• It is an intermediate point to get products from the
manufacturer to the end customer, either directly or
through a retail network. A fast and reliable distribution
network is essential in today's instant gratification society
of consumers.
 What Is a Distribution Network?

• Distribution networks come at the post-manufacturing part

of a supply chain—the flow of goods and services and
includes all processes that transform raw materials into
final products and into the hands of consumers.
 Supply Management (Procurement)
• - describes the methods and processes or modern
corporate or institutional buying.
1. Indirect goods and services - purchasing of supplies for
internal use
• 2.Purchasing raw materials for the consumption during
the manufacturing process
• 3.Purchasing of goods for inventory to be resold as
products in the distribution and retail process
 Supply Management (Procurement)

• Contracting - acquisition or buying of services

• Purchasing or procurement - acquisition or buying of

goods
 Supply Chain Management
• - the design, planning, execution, control and
monitoring of supply chain activities with the
objective of creating net value, building a
competitive infrastructure, leveraging
worldwide logistics, synchronizing supply with
demand and measuring performance globally.
 Supply Chain Sustainability
- a business issue affecting an organization’s supply chain
or logictics network in terms of environment, risk and water
costs.

• Three Tiers of Sustainability:

• 1. Getting the Basics Right,
• 2. Learning to think sustainably
• 3. The science of Sustainability
 Supply Chain Network
• a more complex structure involving a higher level of
 Supply Chain Sustainability

• Application of Sustainability:
Company can use its purchasing power to get its supplier in
compliance in its green supply chain standards
- high quality supplies
the usage of water is minimized leading to less pollution
defects, and over production