1-1Copyright©2013PearsonEducation,Inc.publishingasPrenticeHall.Copyright©2013PearsonEducation,Inc.publishingasPrenticeHall.Copyright©2013PearsonEducation,Inc.publishingasPrenticeHall.1-1Copyright©2013PearsonEducation,Inc.publishingasPrenticeHall.1-1Copyright©2013PearsonEducation,Inc.publishingasPrenticeHall.1-1UnderstandingtheSupplyChain11-2LearningObjectives1.Discussthegoalofasupplychainandexplaintheimpactofsupplychaindecisionsonthesuccessofafirm.2.Identifythethreekeysupplychaindecisionphasesandexplainthesignificanceofeachone.3.Describethecycleandpush/pullviewsofasupplychain.4.Classifythesupplychainmacroprocessesinafirm.1-3WhatisaSupplyChain?•Allstagesinvolved,directlyorindirectly,infulfillingacustomerrequest•Includesmanufacturers,suppliers,transporters,warehouses,retailers,andcustomers•Withineachcompany,thesupplychainincludesallfunctionsinvolvedinfulfillingacustomerrequest(productdevelopment,marketing,operations,distribution,finance,customerservice)1-4WhatisaSupplyChain?•Customerisanintegralpartofthesupplychain•Includesmovementofproductsfromsupplierstomanufacturerstodistributorsandinformation,funds,andproductsinbothdirections•Maybemoreaccuratetousetheterm“supplynetwork”or“supplyweb”•Typicalsupplychainstages:customers,retailers,distributors,manufacturers,suppliers•Allstagesmaynotbepresentinallsupplychains(e.g.,noretailerordistributorforDell)1-5WhatisaSupplyChain?Figure1-1Stagesofadetergentsupplychain1-6FlowsinaSupplyChainFigure1-21-77of41QuickQuiz•Whatissupplychainmanagement?Willasupplychainalwayslooklikeachain?•Supplychainmanagementisthemanagementofactivitiesfromrawmaterialstofinalproductdeliverytocustomers.Thesupplychainincludesanumberofdifferentmembers,includingbutnotlimitedtosuppliers(andmanufacturers),transporters,warehouses,retailers,andcustomers.Asupplychainwilllooklikeachainifasingleagentisinvolvedateachstage.However,inmostcases,therearemultiplesuppliersateachstageandthesupplychainbecomesanetworkandmayevenlooklikeasupplywebinsteadofachain.1-8TheObjectiveofaSupplyChain•MaximizeoverallvaluecreatedSupplyChainSurplus=CustomerValue–SupplyChainCost1-9TheObjectiveofaSupplyChain•Example:acustomerpurchasesawirelessrouterfromBestBuyfor$60(revenue)•Supplychainincurscosts(information,storage,transportation,components,assembly,etc.)•Differencebetween$60andthesumofallofthesecostsisthesupplychainprofit•Supplychainprofitabilityistotalprofittobesharedacrossallstagesofthesupplychain•Successshouldbemeasuredbytotalsupplychainprofitability,notprofitsatanindividualstage1-10TheObjectiveofaSupplyChain•Customertheonlysourceofrevenue•Sourcesofcostincludeflowsofinformation,products,orfundsbetweenstagesofthesupplychain•Effectivesupplychainmanagementisthemanagementofflowsbetweenandamongsupplychainstagestomaximizetotalsupplychainsurplus1-1111of41QuickQuiz•Shouldthemembersofasupplychainmaximizeindividualprofitsinordertoraisetheoverallsupplychainsurplus?•Supplychainsurplus=CustomerValue–SupplyChainCost.•Supplychainsurpluswillbesharedacrossallsupplychainmembers;however,focusingonindividualprofitabilitymayleadtoreductioninoverallsupplychainsurplus.Hence,membersshouldworktogethertomaximizeoverallsupplychain1-12ImportanceofSupplyChainDecisions•Wal-Mart,$1billionsalesin1980to$408billionin2010•Seven-ElevenJapan,¥1billionsalesin1974to¥3trillionin2009•Webvanfolde...
