Definition of Supply Chain – It is a relationship between a company and supplier to
produce goods. It also includes people, information of the product and resources (stock
of materials)
Another definition of Supply Chain – converting raw materials into finished
goods/ the quality of the product is also important, a collection of suppliers
required to create one specific product for a company.
Selecting a product -> trace the flow of materials and information from the final
customer -> distribution system -> manufacturer -> suppliers -> source of
materials
A large company will have several supply chains to bring their products to market /
Some use direct distribution - / Some use outside manufacturing - / Some use in-
house manufacturing –
Distribution Channel – producers -> distributors -> end customer
Supply Chain Management functions: purchasing, operations, logistics
System Dynamics – retailer, wholesale, factory
Sudden change in demand will apply to this system
Interactive – decisions in each part that affect the other parts / changing parts without
changing the rules that govern the interactions may not lead to improvements
Improvements can only be made if there’s an increase in firms
Coordination in Supply Chain/ Channel Coordination – all stages of the chain take
actions that are aligned and increase total supply chain surplus. It requires each stage
to share information and take into account the effects of its actions on the other stages.
The lack of coordination may results when the objectives of different stages have a
conflict. The information moving between stages is delayed or distorted.
Dito naman po papasok si bullwhip effect!
Bullwhip Effect – caused by demand forecast updating, order batching, price
fluctuation and rationing and gaming.
Evaluation and measurement in Supply Chain – Supply chain needs to be evaluated
based on its performance of how efficient and effective it is. I think it is based on the
quality of the products. Zero defects on the components and parts that meet the
customers’ needs are important for the quality of the final products.
Structural improvement and improvement in infrastructure in Supply Chain –
Internet, e-business – ss sa phone
Miscellaneous notes of Supply Chain –
The central idea of Supply Chain Management – it is the flow of goods and services
and includes all processes of raw materials turned into final products. Designing,
monitoring and altering supply chains to make them as efficient as possible.
Productivity measurement – refers to the measurement of total outputs, and inputs
used in the production of goods and services. The Qualitative Measures refers to the
customer satisfaction and product quality. While the Quantitative Measures refers to the
order-to-delivery lead time, supply chain response time, and delivery performance.
Associated risks/ risk management framework/mitigation strategies – can lead to
misunderstood customer or end-customer demand
How companies identify their supply chains – companies identify their supply chains
by prioritizing their resources to protect the value they offer to their profitable customers,
they are looking forward to perform better than their competitors.
The typical range of supply chains for large companies –
Direct distribution/ in house manufacturing/ outside manufacturing and examples
– direct distribution = producer to customer
- In house manufacturing = refers to conducting an operation within a company,
instead of relying on outsourcing / outsourning can obtain from an outside
supplier
- Outside manufacturing = the manufacturer owns the product design that it sells
and manages the supply chain. Determining which manufacturing are internal
and which can be outsourced to suppliers.
Differentiating between upstream and downstream – upstream refers to the
materials needed for production, while downstream is where the products get produced
and distributed. Upstream po sa pagkakaintindi ko, dito palang po mangyayari yung
production, sa downstream po dito naman po yung naibenta mo na po yung product sa
customers.
Refers to Slide 2, Supply Chain for Entity Z; the essentials that should be
provided by each supplier in the supply chain of Entity Z – the flow of materials and
information about the product.
In the context of the Supply Chain, the purpose of strategies and problem
resolutions –
In the context of the Supply Chain, the importance of a system approach – to
analyze supply chains and improving their performance -> requires of good practice and
knows the techniques to perform the required analysis -> systems approach can result
in significant improvements in supply chain performance.
The bullwhip effect and examples – The bullwhip effect is an outcome of the lack of
supply chain coordination which the fluctuations in orders increase as they move up to
the supply chain from retailers to wholesalers to manufacturers to supplier.
Ishikawa Model – it is the product design and quality defect prevention
Made-To-Order - the customer customize the product they want to buy. Order first and
the company manufactures it, buyer design the product.
Made-To-Stock – the company makes finished products before orders come in.
Just in Time – inventory strategy in which the company keeps stock levels to an
absolute minimum.
External and internal customer!
External customer – employee
