SUPPLY CHAIN MANAGEMENT

Click to edit Master subtitle style Supply Chain Management Trends

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Learning Outcomes

By the end of the Unit participants will be able to: Describe the key trends in the management of supply chains Discuss the major issues in green purchasing and SCM Identify ways of creating Lean Supply Chains
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Session 1 - Key Trends in SCM

Appreciation that SCM is dynamic Obligation of SC Managers is to keep abreast of dynamism to achieve maximum efficiencies at the least cost and ultimately deliver better to the customer Whats out and whats in For Manufacturers common challenges include ; growing global competition, shortened product life-spans, outsourced operations, more volatile demand etc all of which impact on a Companys success
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Key Trends in SCM (contd)

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At the organisation level uncertainities attributed to the factors below have to be mitigated on a regular basis; Legislation issues More demanding customers that have rendered product cycles shorter because of substitutes & more variety Concentration on globalisation characterised by relocation of production locations & sales outlets in order to reap EOS

Key Trends in SCM (contd)

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Dependency on ICT and E-Commerce Integration and Outsourcing Thus the only sure way to ensure security of the supply chain is to stay in control

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Key Trends in SCM (contd)

Six major trends in the evolution of SCM studies ; Creation Era Characteristic of this era of SCM was the need for large scale changes, re-engineering, downsizing to cut costs with emphasis on Japanese practices of management. Integration Era Attributed with the advent of the Electronic Data 5/13/12

Key Trends in SCM (contd)

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Specialisation Era Phase One Outsourced Manufacturing and Distribution The focus on core competences and a specialisation model gained prominence. The supply chains were extended beyond company walls to accommodate more specialised supply chain partnerships. Awareness of the need to control the entire supply chain from above grew. The model creates specific manufacturing and distribution networks specific to products, suppliers and customers who work together to design, manufacture, distribute, market, sell and service a product. 5/13/12

Key Trends in SCM (contd)

5. Specialisation Era Phase Two; Supply Chain Management as a Service Focus on core competencies and assemble networks of specific partners that contribute to the overall value chain itself and thus increase performance & efficiency The ability to quickly obtain and deploy supply chain expertise without developing and maintaining an entire and complex competency in house is the reason for the 5/13/12 increasing popularity.

Key Trends in SCM (contd)

6. Supply Chain Management 2.0 (SCM 2.0) Builds on the changes in the supply chain as well as the evolution of processes, methods and tools that manage it in the World Wide Web. Characteristic of this era the 5/13/12 navigation of the