Introduction to Supply
Dr Hajar Fatorachian
Outline of lecture
Definition of supply chain management
Different approaches towards supply chain
Drivers of supply chain management
Importance of supply chain management
New trends in supply chain management
All activities concerned with receiving customer requests and meeting their demands as well as developing new
products, operations, marketing, distribution, finance, and
customer service (Janvier-James, 2012).
A range of different stakeholders including: customers,
retailers; distributors/wholesalers; manufacturers; and
suppliers (Chopra and Meindl, 2012)
Supply chains are dynamic.
The integration of the whole supply chain is essential.
Supply Chain Management
A process of collaboration, which integrates business
processes in the supply chain (Bowersox et al., 2002).
Known as 'supply chain integration or optimisation': “the process of optimising a company's internal practices in
interacting with suppliers and customers in order to bring
products to market more efficiently” (Leon-Pena, 2008, p.59). Main components of SCM: planning; sourcing; manufacturing; delivering; and returning (Koh and Maguire, 2004).
‘Supply chain management is the management of the
interconnection of organizations that relate to each other
through upstream and downstream linkages between the
processes that produce value to the ultimate consumer in
the form of products and services’.
Supply Chain Management (SCM) is the design and management of flows of products, information, and funds throughout the supply chain
Supply chain management
The Boundary-Spanning Nature
SCM spans and integrates functions within and between enterprises of the supply chain through:
Intra – Organizational
Cross – Enterprise Integration
The SCM Network
Operations network for a plastic
Operations network for a
Global Apparel Value Chain
Drivers of SCM
Competition is based on supply chains/networks (Ketchen and Hult, 2007) A significant source of providing competitive advantage (Li et al., 2006) One of the main strategic challenges for organisations (Croom, 2005) The speed of change and the uncertainty about market (Koh and Maguire, 2004) Emphasis on quality of products (customer centric approach/customer satisfaction) (Hugos, 2006; Cegielski et al., 2012)
Cost reduction and price pressure (Croom, 2005)
Globalization (Moodley, 2001)
Appearance of ICT (Haug et al., 2011)
Compliance with environmental and governmental regulations (Handfield and Nichols,1999)
Why supply chain
management is important?
In 2000, the US companies spent $1 trillion (10% of GNP) on supply-related activities (movement, storage, and control of...
References: Ketchen, D. J. and Hult, G. T. M. (2007). Bridging organization theory and supply chain
management: the case of best value supply chains
573-580 Li et al., 2006
management within SMEs. Journal of Small Business and Enterprise Development, 11 (3), 338348.
Moodley, S. (2001). E-Business and Supply Chain Management in the Automotive Industry:
Preliminary Findings from the Eastern Cape and Kwazulu-Natal Benchmarking Club Pilot Surveys.
Simchi D. L., Wu, S. D. and Shen, Z. M. (Eds.) (2004). Handbook of Quantitative Supply Chain
Analysis: Modelling in the E-Business Era
Slack, N., Chambers, S., & Johnston, R. (2009). Operations management. Pearson Education.
Wu, I. L. and Chuang, C. H. (2010). Examining the diffusion of electronic supply chain management
with external antecedents and firm performance: A multi-stage analysis
Please join StudyMode to read the full document