Designing Managing the Supply Chain （chpt1）.ppt

Supply Chain: The Potential PG’s estimated savings to retail customers of $65 million through logistics gains Dell Computer’s outperforming of the competition in terms of shareholder value growth over more than two decades by over 3,000% using: Direct business model Build-to-order strategy Wal-Mart transformation into the world’s largest retailer by changing its logistics system: highest sales per square foot, inventory turnover and operating profit of any discount retailer 1.7 Key Issues in Supply Chain Management Chain Global Optimization Managing Risk and Uncertainty Distribution Network Configuration Supply Y Inventory Control Supply Y Production Sourcing Supply Y Supply Contracts Both Y Y Distribution Strategies Supply Y Y Strategic Partnering Development Y Outsourcing and Offshoring Development Y Product Design Development Y Information Technology Supply Y Y Customer Value Both Y Y Smart Pricing Supply Y TABLE 1-1: Key supply chain management issues 1.8 Book Objectives and Overview ? Inventory management ? Logistics network planning ? Supply contracts for strategic as well as commodity components. ? The value of information and the effective use of information in the supply chain. ? Supply chain integration. ? Centralized and decentralized distribution strategies. ? Strategic alliances. ? Outsourcing, off-shoring, and procurement strategies. ? International supply chain management. ? Supply chain management and product design. ? Customer value. ? Revenue management and pricing strategies. ? Information technology and business processes. ? Technical standards and their impact on the supply chain. * * * * * * * * 1-* McGraw-Hill/Irwin Copyright ? 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 1 Introduction toSupply Chain Management What Is a Supply Chain? Flow of products and services from: Raw materials manufacturers Intermediate products manufacturers End product manufacturers Wholesalers and distributors and Retailers Connecte