SUPPLY CHAIN MANAGEMENT

Supply Chain Management-deals with the control of materials, information, and financial
flows of materials, information, and financial flows in a network consisting of suppliers,
manufacturers, distributors, and customers. It is simply the management of products from the
point of production to the point of consumption.
Sa IBANG SALITA:
Ito ay ang wastong pamamaraan kung paano maihahatid sa pinaka pinal na mamimili ang
isang produkto mula sa lugar ng produksyon, kasama na ang mga sangkap/material sa paggawa
hanggang sa lugar ng pagkonsumo nito.
The Basic Supply Chain

Hindi Basic Supply Chain (Complex Supply Chain)

Intermediaries:
1.
2.
3.
4.

Agents
Wholesalers
Distributors
Retailers

Why is supply chain management so important?

To gain efficiencies
To make outsourcing more efficient
To reduce transportation costs of inventories
To meet competitive pressures from shorter developments times, more new products, and
demand for more customization.
To meet the challenge of globalization and longer supply chains
To meet the new challenges from e-commerce
To manage the complexities of distributions
To manage the inventories

Why is supply chain management difficult?

Different organizations in the supply chain may have different, conflicting objectives.
Supply chains are dynamic they evolve and change over time.

Forward and Backward Integration

For any organization vertical integration involves either taking on more of the supplier activities
(backward) and/or taking on more of the distribution activities (forward).
An example of backward vertical integration would be a peanut butter manufacturer that decides
to start growing peanuts rather than buying peanuts from a supplier.
An example of toward vertical integration would be a peanut butter manufacturer that decides to
start marketing their peanut butter directly to grocery stores.
Key issues in supply chain management:
1. Distribution network configuration
-How many warehouses do we need?
-Where should these warehouses be located?
-What should the production levels be at each of our plants?
-What and how should the transportation flows be between plants and warehouses?
2.

Distribution strategies
-Direct shipping to customers?

-Classical distribution in which inventory is held in warehouses and then shipped as

needed?
3. Supply chain integration and strategic partnering
-Should information be shared with supply chain partners?
-What information should be shared?
-With what partners should information be shared?
-What are the benefits to be gained?
4. Product design
-Should products be redesigned to reduce logistics costs?
-Should products be redesigned to reduce lead times?
-Would delayed differentiation be helpful?
5. Information technology and decision-support systems
-What data should be shared (transferred)?
-How should the data be analyzed and used?
-What infrastructure is needed between supply chain members?

-Should e-commerce play a role?

6. Customer Value
-How is customer value created by the supply chain?
-What determines customer value? How do we measure it?
-How is information technology used to enhance customer value in the supply chain?
BULLWHIP EFFECT
The bullwhip effect is the phenomenon of orders and inventories getting progressively
larger (more variable) moving backward through the supply chain.

SCM TODAY

Outsourcing
Moving towards more web based transactions systems
Improving the information flows along the entire chain
Moving manufacturing offshore
Globalization
THE ART OF WAITING

Ang mainam na pamamaraan sa paghihintay na may kinalaman sa produksyon ng

produktong material at serbisyo.
Bakit nagkakaroon ng paghihintay?

Number of observers (channels)

Arrival and service patterns
Waiting lines tend to form even when a system is not fully loaded
Services cannot be completed ahead of time and stored for late
Population sources
1. Infinite source
-Customer arrivals are unrestricted
-The number of potential customers greatly exceeds system capacity
2. Finite source
-The number of potential customers is limited

Bakit may mga taong willing maghintay?

Curiosity
Environment
Specialization of product

Promotion

Channels and Phases

Channel
-A server is a service system
-It is assumed that each channel can handle one customer at a time
Phases
-The number of steps in a queuing system
Saan madalas maghintay?

Call centers
Banks
Post Offices
Restaurants
Theme Parks
Telecommunications systems
Traffic Management

SA PAG-ASA. SA PAG-ASANG MAPAPANSIN KA NI CRUSH

xd!

Implications of waiting lines

Cost to provide waiting space

Loss of business
-Customers leaving
-Customers refusing to wait
Loss of goodwill
Reduction in customer satisfaction
Congestion may disrupt other business operations

Waiting lines facts in BUSINESS

Waiting in lines does not add enjoyment

Waiting in lines does not generate revenue
Waiting lines are non-value added occurrences

Queuing Theory
Approach to the analysis of waiting lines.

Goals of queuing analysis is to minimize the sum of two costs

1. Customer waiting costs
2. Service capacity costs

The WAITING PROCESS

Waiting line models

Patient
-customers enter the waiting line and remain until served.
Reneging
-waiting customers grow impatient and leave the line
Jockeying
-customers may switch to another line
Balking
-upon arriving, decide the line is too long and decide not to enter the line
Ways to CHEAT WAITING
(Para hindi mo na masyadong maramdaman yung hirap at pagod ng paghihintay XD!!!)

Reduce perceived waiting time

-magazines in waiting rooms
-radio/televisions
-in-flight movies
-filling out forms
Derive benefits from waiting
-place impulse items near checkout
-advertise other goods/services

Queue Discipline
-refers to the order in which customers are processed.
Arrivals and Service Patterns

Arrival Pattern
-most commonly used models assume the arrival rate can be described by the poisson
distribution.
-arrivals per unit of time
-equivalent, inter-arrival times are assumed to follow the negative exponential
distribution
-the time between arrivals

Service Pattern
-service times are frequently assumed to follow a negative exponential distribution

Psychology of Waiting
If those waiting in line have nothing else to occupy their thoughts, they often tend to
focus on the fact they are waiting in line. They will usually perceive the waiting time to be longer
than the actual waiting line.
LAST WORDS
PATIENCE IS NOT SIMPLY THE ABILITY TO WAIT ITS HOW WE BEHAVE
EHILE WERE WAITING.