opman

• Supply Chain is the sequence of organizations- their facilities, functions and activities- that are involved in producing and delivering a product or service.
• The sequence of supply chains begins with the supplier of raw materials and extends all the way to their final customers.
• Supply chain management is the strategic coordination of business functions within a business organization and throughout its supply chain for the purpose of integrating supply and demand management.
• The main actions are plan, source, make, and deliver.
• Logistics is the part of a supply chain involved with the forward and reverse flow of goods, cash, services, and information.
• Logistic management includes management of inbound and outbound transportation, material handling, warehousing, inventory, etc.
• Reverse logistics refers to the returned goods from the customers.
• Supply chains are sometimes referred to as value chains, a term that reflects the concept that the value is added as goods and services progress through the chain.
• The supply or value chain has two components in each organization- a supply component and demand component.
• The supply component starts at the beginning of the chain and ends with the internal operations of organization.
• The demand component of the chain starts at the point where the organization's output is delivered to its immediate customer and ends with the final customer in the chain.
• The demand chain is the sales and distribution portion of the value chain.
• Supply chains are the lifeblood of each organizations.
• Managing the supply chain is the process of planning, implementing, and controlling supply chain operations.
• The basic components are strategy, procurement, supply management, demand management, and logistics.
• The goal of supply chain is to match supply to demand as effectively and efficiently as possible.
• An important aspect of supply chain is flow management.
• The three types of flow management are product and service flow, information flow, and financial flow.
• Product and service flow involves the movement of goods and services from suppliers to customers, as well as handling customer service needs and product returns.
• Information flow involves sharing forecast and sales data, transmitting orders, tracking shipments, and updating order status.
• Financial flow involves credit terms, payments, and consignment and title ownership arrangements.
• Generally speaking, corporate management responsibilities have legal, economic, and ethical aspects.
• Legal responsibilities include being knowledgeable about laws and regulations of the countries where supply chains exist, obeying the laws, and operating to conform regulations.
• Economic responsibilities include supplying products and services to meet demand as efficiently as possible.
• Ethical responsibilities include conducting business in ways that are consistent with the moral standards of society.
• Responsive/Agile. A flexible supply chain that has the ability to quick respond to changes in product requirements or volume of demand, as well as adapt to supply chain disruptions.
• Lean supply chain. Focused on eliminating non-value added activities to create an efficient, low-cost supply chain.
• Near-sourcing. Using nearby suppliers shortens the supply chain, reducing time and cost, reducing supply chain inventory, reducing the risk of disruptions, and increasing responsiveness.
• Supply chain strategy alignment: Aligning supply and distribution strategies with organizational strategy and deciding on the degree to which outsourcing will be employed.
• Network configuration: Determining the number and location of suppliers, warehouses, production/operations facilities, and distribution centers.
• Information technology: Integrating systems and processes throughout the supply chain to share information, including forecasts, inventory status, tracking of shipments, and events. This is often difficult to achieve with small supliers than with large suppliers.
• Products and services: Making decisions on new product and sevices selection design.
• Capacity planning: Assessing long-term capacity needs, including when and how much will be needed and the degree of flexibility to incorporate.
• Strategic partnerships: Partnership choices, level of partnering, and the degree of formality.
• Distribution strategy: Deciding whether to use centralized or decentralized distribution, and deciding whether to use the organization's own facilities and equipment for distribution or third-party logistics providers.
• Uncertainty and risk reduction: Identifying potential sources of risk and deciding the amount of risk that is acceptable.
• Forecasting: Prepare and evaluate forecasts.
• Sourcing: Choosing suppliers and some make-or-buy decisions.
• Operations planning: Coordinate the external supply chain and internal operations.
• Managing inventory: Jointly decide with suppliers where in the supply chain to store the various types of inventory.