Session 1 A Functional Areas of the Firm SCM 301 Exam 1 Study Guide a need good communication between departments and company and work together in order to succeed B Functional Area Problems a loyalty to the functional group i not to customer and not to company b processes span multiple functional areas c no single functional group has a complete view or complete control of the supply chain process C SCM DEFINITION THE TRANSFORMATION PROCESS know for exam a b A business transformation process is an organized grouping of activities that together convert inputs into outputs that have value to the end user c Summation of total parts working together individually working d The supply chain transformation includes all business processes associated with the flow and transformation of goods from the raw materials stage through the end user D Common Business Processes a new customer recruitment b customer order cycle replenishment cycle c d hiring employees e manufacturing and assembly cycle f procurement cycle g inbound outbound logistics h production planning and control i j development of the strategic plan customer service and after sale support E The Cycle View of Supply Chains a b ex Dell used to be direct ship to house i monitor and other parts shipped separately but within same hour of each other directly to consumer s household ii now consumers able to buy Dell s in stores F Supply Chain Definition Flows a b the supply chain can be viewed as a series of Integrated enterprises which must share information and coordinate physical execution to ensure a smooth integrated flow of goods services information and cash throughout the pipeline first tier supplier c d second tier supplier supplier to first tier supplier immediate supplier G Supply Chain Managers Activities and Information a supply chain managers are able to make decisions about the characteristics of products services the combination of inputs and the appropriate process technology when they understand their customer i create products services customers desire ii make process choices how do I make it iii Manage the sourcing of raw materials vertical virtual integration make outsource decisions iv Integrate planning and scheduling of the production sourcing customer fulfillment process v Manage warehousing receiving inventory levels shipments to customers vi Provide transportation logistical support across the supply chain b typical salaries 65k to 225k i inventory planner logistics manager production planner Session 2 A BUSINESS PROCESS SCOR MODEL know for exam a b plan always required B Business Processes Supply Chain a Plan i demand supply planning and management ii Balance supply demand iii Balance resources with requirements iv Establish communicate plans with entire supply chain v Align supply chain with financial plan vi Manage SC performance data collection inventory capital assets transportation etc b Source i sourcing stocked make to order and engineer to order products ii Identify select supply sources iii Procure schedule raw materials receive verify transfer pay for it iv Assess supplier performance v Manage inventory capital assets capital assets anything of high value ex buildings to depreciate over time vi Manage supplier networks agreements vii Vertical virtual integration vertical integration buy up the suppliers to control them GOOD highly stable reduces costs don t need to share sensitive info reduces risk keeps cash flow internal can adapt to changes easier BAD one mistake screws it all up less specialized less flexible technology is constantly changing viii Make buy decisions c Make i make to stock make to order and engineer to order production execution make to stock make finished goods in anticipation for customers ii Select manufacturing process iii Schedule production activities iv Manufacture test product v Package stage product vi Release product to deliver vii Manage WIP inventories viii Manage performance equipment facilities production network ix Manage regulatory requirements d Deliver i order warehouse transportation and installation management for stocked make to order and engineer to order products ii All order management steps from customer inquiries quotes to shipments transportation selection iii Warehouse management receive pick product to load ship iv Receive verify product at customer site install if necessary v Invoicing vi Manage deliver business performance FG inventories capital assets transportation etc e Return i return of raw materials to supplier and receipt of returns of finished goods from customers including defective products excess products MRO products ii All return defective product steps from authorization to disposition replacement or credit iii Ditto MRO s excess products MRO Maintenance Repair and Operating Supplies iv Reverse supply chains v Manage return business performance returned inventory transportation network configuration capital assets etc C Supply Chain Model Technology a b plan over all of process c source upstream suppliers d make manufacturing e deliver to customers f info tech both ways on SCOR model upstream and downstream D Supply Chain Structure a Session 3 A SCM Measures Dimensions of Success a Implication used as a means for competitive advantage 1 quality 2 on time delivery i lateness or early arrival EARLY ARRIVAL when early arrival not enough shelf space expiration plan ahead for regular scheduling and then screwed over financials costly to storage disrupt inventory turnover costs money to sit on shelf 3 cost 4 flexibility i minimize costs 5 after sales support 6 predictability 7 safety and environment i difficult to measure ii make changes easily adapt to unanticipated events b Companies must design their supply chain strategy so that it aligns with the overall corporate strategy of the firm c Firms cannot competitively distinguish themselves on all 7 criteria above 1 3 MOST IMPORTANT for supplier selection and performance i ex Wal Mart s supply chain focuses on low cost operations not on having the fastest on time delivery B SC Strategies Efficient vs Responsive SC s a Supply Chain Efficiency relates to costs b Supply Chain Responsiveness ability of SC to i respond to wide range of quantities demanded ii meet short lead times iii handle wide variety of products higher service level iv respond to demand supply uncertainty C Efficient vs Responsive SC Strategies a efficiency is cost sensitive b low efficiency increase cost increase