Supply Chain Mgmt

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Understanding the Supply Chain

PowerPoint presentation to accompany Chopra and Meindl Supply Chain Management, 5e Global Edition

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Learning Objectives

1. Discuss the goal of a supply chain and explain the impact of supply chain decisions on the success of a firm. 2. Identify the three key supply chain decision phases and explain the significance of each one. 3. Describe the cycle and push/pull views of a supply chain. 4. Classify the supply chain macro processes in a firm.

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What is a Supply Chain?

• All stages involved, directly or indirectly, in • •

fulfilling a customer request Includes manufacturers, suppliers, transporters, warehouses, retailers, and customers Within each company, the supply chain includes all functions involved in fulfilling a customer request (product development, marketing, operations, distribution, finance, customer service)

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What is a Supply Chain?

• Customer is an integral part of the supply chain • Includes movement of products from suppliers to • • •

manufacturers to distributors and information, funds, and products in both directions May be more accurate to use the term “supply network” or “supply web” Typical supply chain stages: customers, retailers, distributors, manufacturers, suppliers All stages may not be present in all supply chains (e.g., no retailer or distributor for Dell)

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What is a Supply Chain?

Figure 1-1

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Flows in a Supply Chain

Figure 1-2

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The Objective of a Supply Chain

• Maximize overall value created

Supply Chain Surplus = Customer Value – Supply Chain Cost

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The Objective of a Supply Chain

• Example: a...