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Supply Chain Management Essentials

The document discusses Order Fulfilment and Customer Service within the context of Supply Chain Management (SCM), emphasizing the importance of managing the flow of goods, services, and information among suppliers, manufacturers, and retailers. It highlights the challenges faced in SCM due to conflicting objectives among different entities and concludes that supply chains compete rather than individual companies. The document also notes that significant cost reduction and value enhancement opportunities exist at the interfaces between supply chain partners.

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s.zainabtanweer
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3 views9 pages

Supply Chain Management Essentials

The document discusses Order Fulfilment and Customer Service within the context of Supply Chain Management (SCM), emphasizing the importance of managing the flow of goods, services, and information among suppliers, manufacturers, and retailers. It highlights the challenges faced in SCM due to conflicting objectives among different entities and concludes that supply chains compete rather than individual companies. The document also notes that significant cost reduction and value enhancement opportunities exist at the interfaces between supply chain partners.

Uploaded by

s.zainabtanweer
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Order Fulfilment & Customer

Service

Introduction
Session Agenda
1) Introduction to module
2) Assessments
3) Source of information
 Text Books
Text Books
 Joel D. Wisner; [Link] Leong, “Principles Of
Supply Chain management” (A balanced
Approach). FT Prentice Hall. 7th Edition 2006
Supply Chain Management
Management of the flow of goods or services between entities in the
chain to realize delivery of end products or services, satisfying
customers at minimum cost.
OR
Set of approaches utilized to efficiently integrate suppliers,
manufacturers, warehouses and stores, so that merchandise is produced
and distributed in the right quantities, to the right locations at the right
time in order to minimize system wide costs while satisfying service
level requirements.
Returned Goods

Material Flow

Cash Flow

Supplier Factory Retailer Consumer

Supplier Distr. Center Retailer


Information Flow
Why is SCM difficult?
Different facilities may have different, conflicting
objectives
◦ Suppliers want manufacturers to commit themselves to
purchasing large quantities in stable volumes with flexible
delivery dates
◦ Manufacturers want large production runs
◦ Warehouses and Distribution Centers want to reduce
inventory
◦ Reduction in inventory levels increase transportation costs
Conclusion
 Supply chains compete, not companies
 Most of the opportunities for cost reduction and
value enhancement lie at the interface between
supply chain partners
 Supply chain integration implies process
integration
End of Topic

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