SUPPLY CHAIN MANAGEMENT
Learning outcomes of the course unit
The course aims to provide students with the foundations of supply chain evaluation in manufacturing industry and service companies.
Course contents summary
The supply chain: business players and roles, definitions, the role of the customer in the supply chain, supply network, breadth and depth, supply chain flows: products, information, economic and financial flows. Objectives of the supply chain, profitability, sources of revenue and cost, definition of supply chain management.
Case studies: Dell supply chain, Wal-Mart.
Decision phases in a supply chain: strategic, planning and operational. Process view. Cycle view – customer order process, replenishment process, manufacturing process, procurement process. Push/pull view – push processes and pull processes, demand penetration point, characteristics of the push-and-pull supply chain.
Supply chain resilience: definitions: robustness, resilience, risk. Creating a risk management culture. Agility – definitions, attributes of agility, visibility and velocity, agility and leanness, attributes of an agile supply chain: virtual, market-sensitive, network-based, process integration.
Competitive strategies and supply chain strategies, the concept of strategic coherence: understanding the customer’s needs, the concept of demand uncertainty and implied demand uncertainty, implied demand uncertainty due to changes in product/level of service, implied demand uncertainty as metric for understanding the customer, functional and innovative products according to Fisher. Achieving strategic coherence, factors influencing strategic coherence: multiple products/channels, product life-cycle, contextual competitive conditions.
Expanding strategic coherence: internal and external integration. Levels of integration: intracompany/intraoperational, intracompany/intrafunctional, intracompany/interfunctional, downstream and upstream intercompany integration, flexible intercompany integration.
Customer service and customer needs, customer service and supply chain responsiveness. Reasons for and objectives of measuring customer service (CS), measuring customer loyalty as indirect measurements of CS, customer retention rate, average customer seniority, service delivered and service perceived, rating system managed by buyer or by vendor, organisation of rating system, external analytical factors, marketing and sales support factors, breadth of range, quantitative indicators of performance, influence on customers and revenues, breadth of range and market share, other qualitative marketing support factors. Sales support factor: definitions, pre- and post-transaction factors, transaction factors. Cycle time, supplier cycle time and cycle time “seen” by customer. Level of inventory coverage, definitions, horizontal and vertical dimension, measuring performance of commercial and technical approach, concept of lead-time gap, tools for “closing” the lead-time gap.
Frequency of delivery, definitions, performance indicators, choosing the optimal delivery frequency. Punctuality of delivery, definitions, performance indicators. Accuracy, definitions, the aspects of accuracy, quantity, product mix, status, documentation, performance indicators. Flexibility, definitions, aspects of flexibility, performance evaluation.
Measuring service provided, static and dynamic benchmarking. Perceived service, conceptual differences compared with service provided, evaluation framework. Questionnaire analysis, structure, attribution of numerical values to judgements, constant-step scales, ascending or descending scales, ordinal methods, determining priority vector by customer or through comparative evaluation.
Exercises: analysis of lead-time performance and level of inventory coverage.
Service and operating framework strategy, ABC-analysis of customers, evaluation of perceived service and repositioning of level of service. Service-revenue curve, logistic cost of service provided, profit maximisation.
Drivers of supply chai
Chopra, Meindl, Supply Chain Management, Prentice Hall.
Christopher, Peck, Creating the resilient Supply Chain.
Christopher, The Agile Supply Chain: Competing in Volatile Markets.
Chandran, “Wal-Mart’s Supply Chain Management Strategies”, ICMR Case Collection.
Fisher, “What is the Right Supply Chain for your Product?” Harvard Business Review.
Fugate B., Menzer J., 2004, “Dell’s Supply Chain DNA”, Supply Chain Management Review.