IM CHAPTER 6: ACHIEVING OPERATIONAL EXELLENCE

Organizations and processes responsible for delivering products to customers.

• Downstream supply chain

• Upstream supply chain

• Supply Chain Management Software

• Internal Supply Chain

Firm’s suppliers, suppliers’ suppliers, processes for managing relationships with them.

• Downstream supply chain

• Upstream supply chain

• Supply Chain Management Software

• Internal Supply Chain

Used for transforming materials, components, and services their suppliers furnish into finished products or intermediate products (components or parts) for their customers and for managing materials and inventory.

• Downstream supply chain

• Upstream supply chain

• Supply Chain Management Software

• Internal Supply Chain

Earlier SCM systems, Schedules based on best guesses of demand.

• Push-based model (build-to-stock)

• Pull-based model (demand-driven)

• Just-in-time strategy

• Bullwhip effect

Web-based, Customer orders trigger events in supply chain.

• Push-based model (build-to-stock)

• Pull-based model (demand-driven)

• Just-in-time strategy

• Bullwhip effect

Components arrive as they are needed, finished goods shipped after leaving assembly line

• Supply Chain

• Safety stock

• Just-in-time strategy

• Bullwhip effect

Information about product demand gets distorted as it passes from one entity to next across supply chain

• Supply Chain

• Safety stock

• Just-in-time strategy

• Bullwhip effect

A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers.

• Supply Chain

• Safety stock

• Just-in-time strategy

• Bullwhip effect

Buffer for lack of flexibility in supply chain

• Supply Chain

• Safety stock

• Just-in-time strategy

• Bullwhip effect

Buffer for lack of flexibility in supply chain

• Supply Chain

• Safety stock

• Just-in-time strategy

• Bullwhip effect