This chapter includes contents: What is supply chain management (SCM)? boundary spanning nature of SCM, the rise of SCM, characteristics of a competitive supply chain, trends in SCM, careers in scm and professional organizations. | Chapter 1 Introduction to Supply Chain Management 1-1 Copyright 2011 John Wiley & Sons, Inc. Lecture Outline What is Supply Chain Management (SCM)? Boundary Spanning Nature of SCM The Rise of SCM Characteristics of a Competitive Supply Chain Trends in SCM Careers in SCM and Professional Organizations Review Copyright 2011 John Wiley & Sons, Inc. 1-2 What is Supply Chain Management? Supply Chain Management (SCM) is the design and management of flows of products, information, and funds throughout the supply chain Copyright 2011 John Wiley & Sons, Inc. 1-3 Supply Chain Stages A typical supply chain may involve many different trading partners, called stages Stages may include: Suppliers Producers Wholesalers/Distributors Retailers Customers Copyright 2011 John Wiley & Sons, Inc. 1-4 SCM Activities SCM activities include: Coordination coordinate the movement of goods, services, and funds through the supply chain Information Sharing share forecasts, point-of-sale data, planned promotional . | Chapter 1 Introduction to Supply Chain Management 1-1 Copyright 2011 John Wiley & Sons, Inc. Lecture Outline What is Supply Chain Management (SCM)? Boundary Spanning Nature of SCM The Rise of SCM Characteristics of a Competitive Supply Chain Trends in SCM Careers in SCM and Professional Organizations Review Copyright 2011 John Wiley & Sons, Inc. 1-2 What is Supply Chain Management? Supply Chain Management (SCM) is the design and management of flows of products, information, and funds throughout the supply chain Copyright 2011 John Wiley & Sons, Inc. 1-3 Supply Chain Stages A typical supply chain may involve many different trading partners, called stages Stages may include: Suppliers Producers Wholesalers/Distributors Retailers Customers Copyright 2011 John Wiley & Sons, Inc. 1-4 SCM Activities SCM activities include: Coordination coordinate the movement of goods, services, and funds through the supply chain Information Sharing share forecasts, point-of-sale data, planned promotional campaigns, and inventory levels Collaboration jointly plan, operate, and execute business decisions as one entity 1-5 Copyright 2011 John Wiley & Sons, Inc. Managing Flows Through the Supply Chain Managing Flows of Products, Information, and Funds: Flow of Products from the beginning to the final customer Reverse Logistics 1-6 Copyright 2011 John Wiley & Sons, Inc. 6 Managing Flows Through the Supply Chain Continued Flow of Information simplified supply chains utilize data from point-of-sale back to suppliers real time information reduces uncertainty and inventory levels Flow of Funds funds are transferred in both directions along the supply chain supply chain compression 1-7 Copyright 2011 John Wiley & Sons, Inc. The Bullwhip Effect Fluctuation and distortion of information increases as it moves up the supply chain each stage of the chain carries progressively more inventory the longer the supply chain, the greater the opportunity for the Bullwhip Effect sharing point-of sale .
