Global Supply Chain
Management
Irina V. Burlakova
Course Outline
Topic 1: Definition of supply chain management
Topic 2: Automation in supply chain
management
Topic 3: Planning demand and supply in a
supply chain
Topic 4: Supply Chain network design
Topic 5: Supply Chain business process design
Recommended books:
1. Hugos M. Essentials of Supply Chain
Management. Hoboken, New Jersey: John Wiley
& Sons, Inc., 2003.
2. Chopra S., Meindl P. Supply Chain Management:
Strategy, Planning, and Operations. Upper
Saddle River, New Jersey: Pearson Prentice-Hall,
2007.
3. Lambert D., Stock J., Ellram L. Fundamentals of
Logistics Management. Boston: MA:
Irwin/McGraw-Hill, 2002.
4. Bowersox, Donald J. Supply Chain Logistical
Management, The McGraw-Hill Irwin Series,
2002.
7 Rights of Logistics
Logistics assumes providing:
the Right product
in the Right quantity
in the Right condition
at the Right place
at the Right time
to the Right customer
at the Right price
Functional units merged into logistics
service:
Integrated
logistics
Planning Purchasing Transport Customer
Warehouse
dept dept dept service
Evolution of logistics
Rodrigue J-P, Comptois C., Slack B. The Geography of Transport Systems: 4th edition,
2017. URL: https://transportgeography.org/?page_id=4438 (дата обращения:
21.10.2019 г.)
Supply Chain Management (SCM)
- acknowledges all of
traditional logistics and also
includes activities such as:
new product development Logistics
marketing
finance Supply Chain
Management
customer service
Basic 3 supply chain entities
Supplier Producer Customer
• Raw materials • Products • Retailer
• Components • Power • Wholesaler
• Services • Professional • Distributor
• Energy services • End user
• Government
services
• Educational
services
Overview of Supply Chain
Management
Information flow
Reverse product flow
Supplier Producer Customer
Primary product flow
Primary cash flow
Basic supply chain 3 entities
Information flow
Invoices, specifications, blueprints, receipts,
orders, rules and regs, etc.
Primary cash flow
Payments for products, suppliers.
Primary product flow
Material, components, suppliers, services,
energy, finished products
Reverse product flow
Returns for repair, replacement, recycling, disposal
The objective of a supply chain
• is to maximize the overall value generated.
• Value is the difference between what the final
product is worth for the customer and what
costs the supply chain incurs in filling the
customer’s request.
• Supply chain success should be measured in
terms of Supply chain profitability, not in
terms of profits at individual stage.
Manufacturing supply chain model
Tier 2
materials
supplier Tier 1 Custom
materials er
Tier 2
supplier
materials Distributor
supplier Custo
mer
Tier 2 Tier 1
materials materials Manufacturer
supplier supplier Custo
Tier 2 mer
materials Distributor
Tier 1
supplier
service Custo
Tier 2 service supplier mer
supplier
Services also have supply chains
Fuel supplies
Other
utilities
Electric
backup
power Home
Electric power customer
Electric utility
transformers
Commercial
Facility
customers
maintenance
Programming
services
Raw materials
Vertical integration
transport
Vertically integrated
manufacturing companies serving slow-
moving mass markets
distribution once attempted to own
much of their supply
Retail chains. Today’s fast-moving
showroom
markets require more
Divisions of a flexible and responsive
Vertically Integrated supply chains.
Conglomerate
Raw materials Virtual
company
integration
Transportation
Company Fragmented,
Fast-Moving
Markets
Manufacturing
Company
Independent Independent
Distributor Retailer
Push/Pull view of supply chain
processes
PULL – execution is PUSH – execution is
initiated as a initiated in
response to the anticipation of the
customer’s order. customer’s order.
Supply chain drivers
Facilities
Inventory
Transportation
Information
Sourcing
Pricing
Supply chain 3 macro processes
• Customer Relationship Management
• Internal Supply Chain Management
• Supplier Relationship Management
SRM (supplier) ISCM (firm) CRM (customer)
• Source • Strategic planning • Market
• Negotiate • Demand Planning • Price
• Buy • Supply Planning • Sell
• Design • Fulfillment • Call Center
Collaboration • Field Service • Order Management
• Supply
collaboration
Source: SCM by Sunil Chopra
Mattel Case
https://www.nytimes.com/2007/08/02/business/02toy.html
Key point
• Supply chain design plays a significant role in a
company’s success or failure
Home task
• Describe a case of supply chain failure (success)
in a form of an essay (500-1000 words)
Discussion:
• An auto manufacturer that buys directly from
a utility company, carburetor builder, textile
company and sheet metal producer would
have how many tiers of suppliers?
• One
• Two
• Three
• Four
Discussion:
• Consider the supply chain involved when you
purchase a book.
• Describe the push/pull boundaries in a
bookstore/online shop variant.
