Basic Philosophy of Supply Chain Management(Sony)

Topics: Sony, Supply chain management, Supply chain Pages: 16 (4960 words) Published: December 16, 2012

This paper describes the basic philosophy to supply chain management in order to develop and implement comprehensive supply chain strategies for Sony Corporation in global operation. Sony is committed to fulfilling its responsibility to society as a corporate citizen, including managing its supply chain in a responsible manner. To achieve this goal, Sony is working with its business partners, suppliers and subcontractors to help ensure that they adhere to the same high standards as Sony in the areas of human rights, labor conditions, health and safety, and environmental protection. After an overview of supply chain management, strategy and issues, a supply chain design decomposition is presented. It separates objectives and means methodically regarding supply chain management. On this basis, supply chain strategies can be developed, which make top-level objectives systematically operational. Hence, supply chain strategies are aligned with business strategy ensuring that all measures contribute to value creation. Furthermore, the development and implementation of supply chain strategies is framed into a decision-making process.


A Supply Chain encompasses all activities in fulfilling customer demands and requests. These activities are associated with the flow and transformation of goods from the raw materials stage, through to the end user, as well as the associated information and funds flows.

The Global Supply Chain Forum defines Supply Chain Management as “the integration of business processes from end-user through original suppliers that provides products, services, and information that add value for customers.” Another definition is provided by the APICS Dictionary when it defines SCM as 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." There are four stages in a supply chain:

* Supply network
* The internal supply chain (which are manufacturing plants) * Distribution systems
* End users
Moving up and down the stages are the four flows: material flow, service flow, information flow and funds flow.

A simple supply chain is made up of several elements that are linked by the movement of products along it. The supply chain starts and ends with the customer. * Customer: The customer starts the chain of events when they decide to purchase a product that has been offered for sale by a company. The customer contacts the sales department of the company, which enters the sales order for a specific quantity to be delivered on a specific date. If the product has to be manufactured, the sales order will include a requirement that needs to be fulfilled by the production facility. * Planning: The requirement triggered by the customer’s sales order will be combined with other orders. The planning department will create a production plan to produce the products to fulfill the customer’s orders. To manufacture the products the company will then have to purchase the raw materials needed. * Purchasing: The purchasing department receives a list of raw materials and services required by the production department to complete the customer’s orders. The purchasing department sends purchase orders to selected suppliers to deliver the necessary raw materials to the manufacturing site on the required date. * Inventory: The raw materials are received from the suppliers, checked for quality and accuracy and moved into the warehouse. The supplier will then send an invoice to the company for the items they delivered. The raw materials are stored until they are required by the production department. * Production: Based on a production plan, the raw materials are moved inventory to the...
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