MKTG 301 1st Edition Lecture 20 MKTG CHAPTER 13 13 1 Define the terms supply chain and supply chain management and discuss the benefits of supply chain management Management coordinates and integrates all of the activities performed by supply chain members into a seamless process from the source to the point of consumption The benefits of supply chain management include reduced inventory transportation warehousing and packaging costs improved customer service and higher revenues 13 2 Discuss the concept of internal and external supply chain integration and explain why each of these types of integration is important In the modern supply chain integration can be either internal or external Internally the very best companies develop a managerial orientation toward demand supply integration Companies operating under a DSI philosophy are better at their business because all of the different divisions within the company play from the same sheet of music Externally five types of integration are sought by firms interested in providing top level service to customers relationship integration measurement integration technology and planning integration material and service supplier integration and customer integration 13 3 Identify the eight key processes of excellent supply chain management and discuss how each of these processes impacts the end customer The key processes that leading supply chain companies focus on are 1 customer relationship management 2 customer service management 3 demand management 4 order fulfillment 5 manufacturing flow management 6 supplier relationship management 7 product development and commercialization and 8 returns management When firms practice excellent supply chain management each of these processes is integrated from end to end in the supply chain These processes are made up of bundles of interconnected activities that supply chain partners are constantly focused on when delivering value to the customer 13 4 Understand which supply chain functions affect business success and how The supply chain team in concert with the logistics information system orchestrates the movement of goods services and information from the source to the consumer Supply chain teams typically cut across organizational boundaries embracing all parties who participate in moving product to market The supply chain consists of several interrelated and integrated logistical components 1 supply management 2 inventory control 3 order processing 4 production 5 warehousing and materials handling 6 transportation and 7 maintaining supply chain technology The logistics information system integrates and links all of the logistics functions of the supply chain These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute 13 5 Understand the importance of sustainable supply chain management to modern business operations Sustainable supply chain management involves the integration and balancing of environmental social and economic thinking into all phases of the supply chain management process In doing so the organization both better addresses current business needs and develops long term initiatives that allow it to mitigate risks and avail itself of future opportunities in ways that preserve resources for future generations and ensure long term viability 13 6 Discuss new technology and emerging trends in supply chain management Several emerging trends are changing the job of today s supply chain manager Some of the business trends affecting supply chain management include outsourcing logistics maintaining a secure supply chain and minimizing supply chain risk and maintaining a sustainable supply chain While these changes exert pressure on managers to change the way their supply chains function electronic distribution is being used and changed frequently to help make supply chain management more integrated and easier to track