Môn học: Quản trị chuỗi cung ứng

(supply chain Management)

Ngành: LOGISTICS VÀ QUẢN LÝ CHUỖI CUNG ỨNG

Lecturer: Pham Thi Trang, Ph.D. 1

.
 Principles of
Supply Chain Management
A Balanced Approach
5th Edition

2
CONTENT of the COURSE
Part 1: Supply Chain Management: An Overview
Chapter 1 - Introduction to Supply Chain Management
Part 2: Supply Issues in Supply Chain Management
Chapter 2 - Purchasing Management
Chapter 3 - Creating and Managing Supplier Relationships
Chapter 5 - Demand Forecasting
Part 3 Operations Issues in Supply Chain Management
Chapter 6 - Resource Planning Systems
Chapter 8 - Process Management—Lean and Six Sigma
Part 4 Distribution Issues in Supply Chain Management
Chapter 10 - Customer Relationship Management
Chapter 12 - Service Response Logistics
Part 5 Integration Issues in Supply Chain Management
Chapter 14 - Performance Measurement Along
Supply Chains 3
Chapter 1
INTRODUCTION
TO SUPPLY CHAIN MANAGEMENT

Supply Chain Humor.mp4

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 LEARNING OBJECTIVES
After completing this chapter, you should be able to:
• Describe a supply chain and define supply chain
management.
• Describe the objectives and elements of supply chain
management.
• Describe local, regional and global supply chain
management activities.
• Describe a brief history and current trends in supply
chain management.
• Understand the bullwhip effect and how it impacts the
supply chain. 5
 OUTLINE
I. Introduction
II. “Supply Chain Management” Is Defined
III. The Importance of Supply Chain Management
IV. The Origins of Supply Chain Management in the
U.S.
V. The Foundations of Supply Chain Management
VI. Current Trends in Supply Chain Management

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 MAJOR TERMS of CHAPER 1
- big data - material requirements - supply chain
- bullwhip effect planning - supply chain analytics
- business process – - process integration - supply chain
reengineering - radio frequency management
- customer relationship identification - supply chain
management - Reengineering performance
- demand management - second-tier customers measurement
- distribution network - second-tier suppliers - supply chain
- enterprise resource - Six Sigma quality sustainability
planning management - supply chain visibility
- ethical and sustainable - strategic partnerships - supply management
sourcing - supplier certification - sustainability
- global supply chains - supplier evaluation - third-party logistics
- inventory visibility - supplier management providers
- lean production system - supplier relationship - third-party logistics
management services
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Introduction to Supply Chains
• For every business transaction,
there is a supplier and a customer
and there are activities, facilities
and processes linking the supplier
to the customer.
• Supply chain management (SCM):
The management process of
Supply chains in some balancing these links to deliver
shape or form are best value to the customer at
required to deliver minimum cost and effort for the
products and services supplier
we, or our organization
need, or think is
needed. 8
 Introduction to Supply Chains

materials equipment

supplier customer

• inventory & facilities management

• demand forecasting
• capacity management
• scheduling and quality management
facilities  minimize customer queues
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 Introduction to Supply Chains

airline airport airline service agency traveler

company • inventory & facilities management
• demand forecasting
• capacity management
• scheduling and quality management
The key objective of supply chain
management is to provide best value to the
customer by measuring, planning and
managing all the links in the chain. 10
 What is supply chain management?

Supply chain management is a set of approaches utilized to efficiently

integrate suppliers, manufacturers, warehouses, and stores, so that
merchandise is produced and distributed at the right quantities, to the
right locations, and at the right time, in order to minimize system
wide costs while satisfying service level requirements.
- Simchi-Levi et al. (2003) -
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 Supply chain in manufacturing

materials suppliers manufacturers warehouse

Supply chain of bottled
water

end users retailers distribution

center
12
 Supply chain in manufacturing:
Example

potato farms traders potato chips

Supply chain of potato factory

chips

customers supermarkets/ distributors

grocery stores/
convenient stores
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 Supply chain in manufacturing:
Practice
 TOPIC: Research and determine the supply chain of fabrics in
Vietnam (noting that Vietnamese fabrics are one of the main exporting
products).

.REQUIREMENTS:
Can be presented in any form
Indicate specifically the
activities in every stage

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 Supply chain in manufacturing:
Practice

cotton farms farmers: cotton traders

harvesting, classifying
and drying out

textile companies

prepare to markets warehouse

export
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Supply chain of fabrics in
Vietnam
 Supply chain in services

Supplier Manufacturer Warehouse Retailers Consumer

Distributor

Buy Make Move Sell Service

things things things things things

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 Supply chain in services: Example
Buy Make Move Sell Service
things things things things things

• Lodgment • Tickets
• Furniture
• Swimming
• Staffs
pool
• Technology
• Reservations
• Restaurants
• Local • Wake-up
tours calls
• Breakfasts
• Wi-Fi
• Events • Views
organizing
Supply chain17of hotel
8/29/2022

service
 Supply chain in services: Example
Buy Make Move Sell Service
things things things things things

• Plane + • Flights • Passengers (shuttle bus) • Business • Check-ins

related • In-flight city airport class • Blankets/
equipment services platform airplane • In-flight pillows
• Aeronautical • Shipping • Meals shopping • Newspapers
staffs services kitchen airplane • Souvenir gifts • Wheelchairs
• Airfield airplane passengers • Guiding helps • Special care
• Checkpoint • Luggage • TVs/ music
• Technology airplane passengers Luggage
arrangement
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Supply chain of airline service

Supply chain in services: Practice

 TOPIC: Research and determine the supply chain in cinema

service.

 REQUIREMENTS:
 Can be presented in any
form

 List down at least 3 activities

in every stage

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 Supply chain in services: Practice
Buy Make Move Sell Service
things things things things things

• Tickets • Customers • Food/drinks • Reservations

• Furniture • Event places seats doors • Souvenirs • Photo
• Staffs • Copyright • Food/drinks • 3D services backdrop
• Technology DVDs kitchen customers • High-class • 3D glasses
• Copyrights • Films/files seats • Student
movies producers theater discounts
• Marketing • Garbage
activities seats  out

Supply chain in cinema

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service
 Flows in a supply chain
Information flow
Reverse product
flow

Supplier Manufacturer Warehouse Retailers Consumer

Distributor
Primary Secondary Secondary Secondary
product product product product
flow flow flow flow

Cash flow
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 UK National Health Service: Excellence in supply chain management
The NHS in the United Kingdom spends £ 15 billion annually on purchased goods and
services. It was determined that there was enormous potential for NHS organizations to save
money through effective purchasing. As a result, the NHS Purchasing and Supply Agency (PASA)
was established in 2000 as a significant part of the government’s modernization of NHS
procurement activities to act as a strategic adviser to the NHS on all supply issues. The primary
goal of PASA is to improve the performance of the NHS purchasing and supply system and
become the center of expertise, knowledge and excellence in purchasing and supply matters of the
NHS for the benefit of patients and the public.
Some of the achievements of PASA include:
• Achieved savings for the NHS totaling £ 580 million over the 3-year period of April 2000–
2003.
• Implemented pilot supply ‘confederations’ as recommended in the May 2002 policy document
‘Modernizing Supply in the NHS’ to develop a middle tier between national (PASA) and local
(individual NHS trust) level purchasing.
• Produced an e-commerce strategy for the NHS through the development of an e-procurement
toolkit, which provides a framework to help NHS trusts and confederations understand the
benefits of e-procurement and plan its implementation in a structured way.
• Developed a national set of purchasing and supply performance management measures to
better assess the performance of NHS trusts with respect to supply chain activities through
benchmarking analysis and strategic assessment of trust and confederation spending.
Source: National Health Service, UK (2004). 22
 Logistics and Supply Chain
Management

Supplier Manufacturer Warehouse Retailers Consumer

Distributor
Buy Make Move Sell Service
things things things things things
Procurement Production Transportation
or Purchasing Inventory
Warehousing
Operations Distribution Marketing
management Logistics management
management 23
 Inbound and Outbound Logistics

Upstream processes Downstream processes

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 Inbound and Outbound Logistics
Basis for
Inbound logistics Outbound logistics
comparison
The influx of raw material The outward movement of
Meaning and parts, from suppliers to final goods, from the
the manufacturing plant company to the end user
Material management and Customer service and
Related to
procurement channel of distribution
Deployment of resources and Movement of finished
Focuses on raw materials, within the goods or product from the
manufacturing plant. business to final customer.
Between firm and
Interaction Between supplier and the firm 25
customers
Inbound and Outbound Logistics

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 How do you balance the voice of customer
and voice of business in supply chain
management?
Voice of customer – VOC Voice of business – VOB
• Specification • Reduce costs
• Cost (or price) • Make effective use of
• Timing resources
Operations objectives chart

Resource utilization – RU Customer service – CS

Machines Materials Labor Specification Cost Time
Operation
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How do you deliver value in supply chain
management?

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 The process views of a supply chain
Planning and
Demand cycle procurement Supply cycle
cycle
Simplified process cycles in supply chain

Push process in supply chain Pull process in supply chain

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The process views of a supply chain

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 The process views of a supply chain
PUSH PULL

vs.
Make what’s needed when we
Make all we can just in case
need it
• Production approximation
• Production precision
• Based on forecasting
• Based on actual demand
• High production cost
• Waste reduction
• High inventory cost
• Low inventory cost
• Poor communication
• Better communication

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 The Foundations of Supply Chain
Management
Supply base reduction, supplier alliances, SRM-
Supply supplier relationship management, global sourcing,
ethical and sustainable sourcing (Ch. 2-4 of textbook)
Demand management, CPFR-Collaborative planning,
forecasting, and replenishment, inventory
Operations management, MRP-material requirements planning,
ERP-enterprise resource planning, lean systems, Six
Sigma quality systems (Ch. 5-8 of textbook)
Logistics management, customer relationship
management, network design, c, global supply chains,
Logistics
sustainability, service response logistics (Ch. 9-12 of
textbook)
Barriers to integration, risk and security management,
Integration performance measurement, green supply chains (Ch.
13,14 of textbook)
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 The Foundations of Supply Chain
Management (continued)
Supply Elements:
• Supplier management - improve performance through
• Supplier evaluation- Đánh giá nhà cung cấp (determining supplier
capabilities)
• Supplier certification- Chứng nhận nhà cung cấp
(third party or internal certification to assure product quality and service
requirements)
• Strategic partnerships - successful and trusting relationships with top-
performing suppliers
• Ethics and sustainability – recognizing suppliers’ impact on reputation
and carbon footprint

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 The Foundations of Supply Chain
Management (continued)

Operations Elements:
• Demand management - match demand to available capacity
• Linking buyers & suppliers via MRP and ERP systems
• Use lean systems to improve the flow of materials to reduce inventory
levels
• Employ Six Sigma to improve quality compliance among suppliers

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 The Foundations of Supply Chain
Management (continued)
Logistics Elements:
• Transportation management - tradeoff decisions between cost &
timing of delivery / customer service via trucks, rail, water & air
• Customer relationship management - strategies to ensure
deliveries, resolve complaints, improve communications, & determine
service requirements
• Network design - creating distribution networks based on tradeoff
decisions between cost & sophistication of distribution system

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 The Foundations of Supply Chain
Management (continued)
Integration Elements:
• Supply Chain Process Integration - when supply chain participants
work for common goals. Requires intra-firm functional integration,
with efforts to change attitudes & adversarial relationships
• Supply Chain Performance Measurement - Crucial for firms to
know if procedures are working as expected
• High level supply chain performance will occur when strategies at each
firm fit well with overall supply chain strategies

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 Current Trends in Supply Chain
Management
Contracting the Supply Chain
• U.S. firms are considering moving their foreign production back home.
This is referred to as back-shoring, near-shoring, or right-shoring.
• Contributions to this trend include:
• Volatile fuel costs
• Decreasing labor costs differentials
• Desire to reduce delivery times

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 Current Trends in Supply Chain
Management (continued)
Managing Supply Chain Risk
• Risk includes disruptions (internal or external) causing potential
reductions in service levels, product quality, and sales

• Firms must take a proactive approach to supply chain risk management.

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 Current Trends in Supply Chain
Management (continued)

Increasing Supply Chain Visibility

• Knowing exactly where products are, at any point in the supply chain
• Inventory visibility is made easier by technology
• Sophisticated software applications for tracking orders, inventories,
deliveries, returned goods, and even employee attendance

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 SUMMARY
• Supply chain management is the integration of key business processes from
initial raw material extraction to the final or end customer, including all
intermediate processing, transportation, storage activities, along with the final
sale to the end-product customer and eventually product returns.

• Today, the practice of supply chain management is becoming extremely

important to reduce costs and improve quality and customer service, with the
end objective of improving competitiveness  Many firms are today
becoming adept at managing at least some part of their supply chains.

• Supply chain management is an outgrowth and expansion of lean and Six

Sigma activities and has grown in popularity since the 1980s.

• The foundations of supply chain management can be found in the areas of

purchasing, production, logistics, and collaboration between trading partners.

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 REVIEW QUESTIONS
1. Define the term supply chain management in your own words, and list its
most important activities.
2. Describe and draw a supply chain for a bicycle repair shop, and list the
important supply chain members.
3. What roles do “collaboration” and “trust” play in the practice of supply
chain management?
4. Why don’t firms just become more vertically integrated (e.g., buy out
suppliers and customers), instead of trying to manage their supply
chains?
5. What types of organizations would benefit the most from practicing
supply chain management? What sorts of improvements could be
expected?
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 REVIEW QUESTIONS continued
6. What are the benefits of supply chain management?
7. What does the term, “third-tier supplier” mean? What about “third-
tier customer”? What about the “focal firm”? Provide examples.
8. What is the bullwhip effect and what causes it? How would you try to
reduce the bullwhip effect?
9. How has technology impacted supply chain management?
10. What is the difference between supply chain management and
logistics?

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 The END
• Please read Chapter 1 of the text book “Joel D. Wisner -
Principles of Supply Chain Management_ A Balanced
Approach 5th Edition.”
• Please read Chapter 2 of the text book before attending my
next class.

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