SUPPLY CHAIN MANAGEMENT a. Pull View - pull-based.

Uses production
planning based on orders received from
SUPPLY CHAIN MANAGEMENT INTRODUCTION customers.
b. Push View - based on anticipated demand for
Distribution - Manufacturing - Supply a product rather than actual demand.

Distribution facilities distributes items. SUPPLY CHAIN DRIVERS

• Inventory - raw materials
FLOWS
• Transportation - involves moving product from one
• Product Flow - moving goods from suppliers to place to another.
consumer.
• Facility - place
• Information Flow - order information/delivery
status. Order management. • Information - data and results.
• Financial Flow - payment schedules (invoice/proof • Resources - people/manpower, equipment, money,
of delivery). Reverse logistics. and time.

SUPPLY CHAIN MANAGEMENT - oversight of materials, --------------

information, and finances distributed from supplier to
consumer. DESIGNING AND PLANNING TRANSPORTATION
METHOD
Importance
TRANSPORTATION - refers to the means of distrubuting
• Reduce inventories
goods
• Share better information
• Plan in consultation TRANSPORTATION SYSTEM - network of various modes
• Inventory count of transportation. Design the network.

3 LEVELS OF ACTIVITIES FIXED FACILITIES - physical components of the system

1. Strategic - within nth years that is fixed in space.
2. Tactical - every nth week/month
3. Operational - day-to-day tasks - to reach specific FLOW ENTITIES - units that negotiate fixed facilities.
goals differences, advantages and dis

Control System
Vehicular Control - technological way in which individual
3 CATEGORIES / PHASES OF DECISIONS vehicles are guided on fixed facilities
1. Supply Chain Strategy or Design - Solutions
Design - calculates needed equipment and The flow control system - consists of the means that permit
workforces and resources in achieving targets. the efficient and smooth operation of streams of vehicles and
Structured and Configured. the reduction of conflicts between vehicles.
2. Supply Chain Planning - the time frame considered
is quarter to year. Planning establishes within which a Importance of Transportation (wo transpo, paano madedeliver
supply chain will function over a specific period of ang product sa customers) - driver, transportation is also
time considered to determine the cost of the product...
- Studies the time of product delivery.
- Inventory policies third party carriers. - malaki impact versus sa inhouse
3. Supply Chain Operations - manage product to
delivery. -Basic service for increasing national income
- Inventory management -Create new economic activity
- Handle incoming customer order in the best -Indicator of development
possible manner
- Quality control ROLE OF TRANSPORT IN SUPPLY CHAIN
- Packaging and labelling − Transport system provides the vital linkage between
- Planning and transportation production and consumption.
− Key factor to link dispersed areas.
PROCESS VIEWS − Reduces cost of production and distribution.
1. Cycle View - basic end-to-end supply chain − Helps stabilize prices
- Process involved and owners of each specify − Curbs monopoly on the trader
the roles and responsibilities of each
member and the desired outcome of each fulfill customer requirements
process. safe carrier
2. Push and Pull View
KEY PLAYERS IN TRANSPORTATION
• Shipper - requires the movement of the product between FACTORS AFFECTING TAILORING
points in the supply chain. • Customer distance and density - number of potential or
− Transpo cost existing customers in each geographic area.
− Inventory cost • Product demand and value - perceived worth of a
− Facility cost product to a customer.
• Customer order size - amount of product that a customer
• Carrier - moves or transport the product purchases in a single transaction.
(Courier/Transporter)
− Vehicle-related cost
− Fixed operating cost
DESIGN OPTIONS FOR TRANSPORTATION
− Trip-related cost
NETWORK
*Third party carriers/vendors (for big shipments)
1. Saan deliver product
2. Ganong karaming products ang need ideliver sa locaton
TRANSPORTATION MODES IN SUPPLY CHAIN
Air, Road, Sea, Rail
*Preventive Maintenance Schedule
1. Plane -Air Transportation - best choice if an expert wants
to have a fast delivery. fast track the delivery.
1. Direct Shipping Network - dgoods are shipped directly
Advantages
from the point of origin to final destination w/o any
-Speedy delivery
intermediate stops. no stops, direct to stores/branches.
-Enhanced security
Disadvantages
suppliers to retail stores (diretso)
-Cost
-Limitations
2. Direct Shipping with mil runs - multiple stops
2. Truck - Road Transportation - most used in transporting
3. Shipments via central distribution network - before
goods and products. It is used in delivering such construction
delivering to customers, sa distribution facility muna pupunta
materials, agriculture.
yung mga orders from a specific location - consolidate all the
Advantages
orders, and hub na ang bahalang mag-parte or magsegregate
-Implements
ng orders for branches.
-Allows for more accessibility
-Offers more options
4. Shipping via DC using milk runs - combination of 2 and
Disadvantages
3. idedeliver sa distriburion center, kapag dineliver na siya ni
-Time
hub, may multiple stops siya.
-Control
Comparison of Modalities
Capacity, and also Schedule/Truck Ban Schedule are Primary
considered for choosing trucks/carriers. Mode Strength Limitations
Primary
Roles
Product
Characteris
Example
Product
tics
Move
3. Ship -Marine Transportation - best in transporting such Accessible smaller
Food
heavy loads overseas or long-distance deliver. for large items Fast and Limited shipments in High value
Clothing
Truck versatile Capacity local, Finished
shipped in bulk (metals. agriculture products, building Customer High Cost regional, and goods
Electronics
Furniture
Service national
supplies, other that cannot be accommodated by plane) markets
Advantages AccessibilityIn Move large
Low value Coal/coke
High Raw Lumber/pap
-More capacity Rail Capacity
consistent
service
shipments
freight long
materials er
Low cost High Grain
-Cost less than air Damage rate distance
volume Chemical
-Enhance protection meaures for ship Move urgent ComputersP
shipments of High value eriodicals
Disadvantages Speed domestic Finished Pharmaceuti
AccessibilityH
-Speed Freight freight and goods cals
Air igh cost
protection smaller Low volume Business to
Damage rate
Flexibility shipments of Time consumer
international sensitive (B2C)
4. Train - Rail Transportation - transferring on wheeled freight deliveries
vehicles running on rails. not common in ph. Move large
shipments
Low value Crude
Raw oilOres/min
Advantages High via rivers
materials erals
capacity and canals.
-More capacity Water Low cost
Slow
Move
Bulk Farm
Accessibility commodities product
-Reduce chance of delay International
capabilities
shipments of
international
Containerize Clothing
d finished Electronics
Disadvantages freight via
goods Toys
ocean
-Transit time Move large Low volume
In-transit Crude oil
-Accessibility storage
Slow volumes of Liquid
Petroleum
Pipeline Limited domestic commodities
Efficiency Gasoline
network freight long Not time
Low cost Natural Gas
distances sensitive
Tailored transportation refers to a transportation service that
is customized to meet specific needs and requirements of a
customer.

Use of different transportation networks and mode.

RISK MANAGEMENT IN TRANSPORTATION APPLICATIONS

Three main risks to be considered in transportation are: Manufacturing Industries

1. Risk that the shipment is delayed
2. Risk of disruptions • Vegetable SC
3. Risk of hazardous material
• Poultry SC Fishing SC
Risk mitigation strategies • RMG SC
• Decrease the probability of disruptions • Textile SC
• Alternative routings • Apparel SC
• In case of hazardous materials, the use of modified
• Pharmaceuticals SC
containers, low-risk transportation models, modification of
physical and chemical properties can prove to be effective • Stationery SC

Main risks: Service Industries

-Delays
-Hazardous materials • Education SC
-Disruptions • Hospital SC
_______ • Tourism SC
• Banking SC
RISK MITIGATION • Insurance SC
Risk mitigation strategies in transportation
• Reducing the total distance, the product is transported
(for example, the number of trips per year)
• Selection of the mode of transport (rail, road, barge)
• Selection of the route of transport (for example, to
maximize the distance travelled in areas with low
accident frequency statistics) Selection of the carrier
(assessed for performance attributes)
• Training of people involved in the transportation
process (drivers, loaders, etc.)
• Maintenance and inspection of the transport
equipment Systems increasing the stability of the Evolutionary Timeline of SCM (Habib and
vehicle
Jungthirapanich, 2009)
Basic Supply Chain
3 Entities
1. Raw Materials, Finished Products
2. Suppliers, Customers
3. Flow of goods (services), information, funds

O’Brien and Kenneth (1996): Educational SC, but there was

no model.
Lau (2007): Educational SC, but case study on City University
of Hong Kong.
Habib (2009): ITESCM (Integrated Tertiary Educational
Supply Chain Management)

SUPPLY CHAIN
Distributor – bulk order The sequence of organizations - their facilities, functions, and
activities - that are involved in producing and delivering a
Reverse logistics (flow of information – customer to supplier)
product or service.
Basic Supply Chain
FACILITIES
SUPPLIER > (raw materials) - SERVICE PROVIDER> (finished product) -
CUSTOMER>CONSUMER
• Warehouses - STORAGE OF STOCKS
PRODUCED – some of the companies has their own
warehouse, while others rents one. – overflower house
– kapag Malaki ang demand ng customers –
magdadagdag ng products. Warehouse in different
regions for efficient reflenishment
• Factories - production of raw mats to finished
goods/product
• Processing centers – Production line
• Distribution centers
• Retail outlets - (E.G. PUREGOLD, WATSONS,
SAVEMORE) – Bulk orders CYCLE VIEW OF A SUPPLY CHAIN
• Offices - PROCESSES THE DOCUMENTS AND
CONDUCT TRANSACTIONS • Each cycle is at the interface between two successive
stages
FUNCTION AND ACTIVITIES - Customer order cycle (customer-retailer)
- Replenishment cycle (retailer-distributor)
• FORECASTING – very important to know what type - Manufacturing cycle (distributor-manufacturer)
and quantity of product that will be ordered for the Procurement cycle (manufacturer-supplier)
next months • Cycle view clearly defines processes involved and the
• PURCHASING – pagpili ng mga suppliers to provide owners of each process. Specifies the roles and
materials based on specifications responsibilities of each member and the desired
• INVENTORY MANAGEMENT – Inventory outcome of each process.
accuracy, ever inventory is counted. Cycle count – in
a given point in time, nagbibilang ng inventory.
• INFORMATION MANAGEMENT
PROCESS VIEW OF A SUPPLY CHAIN
• QUALITY ASSURANCE – materials/products in
good quality condition. Satisfaction of customers.
• Push/pull view: processes in a supply chain are
• SCHEDULING – planning and transportation. divided into two categories:
Preparation to replenishment. Ensure on time delivery
- Pull is executed in response to a customer order
• PRODUCTION AND DELIVERY – bawat (After Customer order)
production sched may enough raw materials. - Push in anticipation of a customer order (Before
• CUSTOMER SERVICE – Order fulfillment – Order Customer order)
Status – Receiving. Feedback
PUSH/PULL VIEW OF SUPPLY CHAIN PROCESSES

• Pull: Execution is initiated in response to a customer

order (reactive) [After Customer order] (Example:
Amazon.com, USA; Lambert Academic Publishing -
LAP, Germany)
• Push: Execution is initiated in anticipation of
customer orders (speculative/proactive) [Before
customer order] (Example: Indian Publishers, e.g.
Excel Publisher, India)
• Push/pull boundary separates push processes from pull
processes
• Example of combined the push/pull and cycle views:
Dell
INFORMATION TECHNOLOGY IN SUPPLY CHAIN

different platforms used in scm

AIM

❖ Define customer relationship management

❖ Explain the role of information in supply chain
❖ Understand the concept of supply chain IT framework
❖ Describe the supply chain management goals

Introduction

❖ Information is the driver that serves as the "glue" to create THE SUPPLY CHAIN IT FRAMEWORK
a coordinated supply chain
❖ Information must have the following characteristics to be • Any supply chain management should perform following
useful: activities:
➢ Accurate - Getting information
➢ Accessible in a timely manner - Making decisions
➢ Information must be of the right kind - Implementing decisions
➢ Provides supply chain visibility - Buffering against imperfections information,
decision-making, in or implementation
Critical sa SCM ang INFORMATION. withouth it, hindi
Hindi natatapos sa pag-process ng information sa supply chain.
magagampanan ng SCM ang puspose niya..
Once information received, that’s the time we decide and define
Baseline in producing and transforming raw materials.
countermeasures and implement them.
Flow ang supply chain – forward and reverse flow.
THE SUPPLY CHAIN IT FRAMEWORK
Maraming resources ang matatapon kapag mali ang The Supply Chain Macro Processes
information.
- Customer Relationship Management (CRM)
When information is limited, mahirap mga-decide. It should be - Internal Supply Chain Management (ISCM)
accessible. - Supplier Relationship Management (SRM)
- Transaction Management Foundation
DATA SECURITY
USE OF INFORMATION IN SUPPLY CHAIN
• Effective supply chain coordination requires a good MANAGEMENT
coordination of material, information, and cash flows.
• Information is used at all phases of decision making:
• IT involves data recognition equipment, communication
Strategic, Planning, Operational
technologies, factory automation and other hardware and
• Inventory: demand patterns, carrying costs, stockout costs,
services are included. ordering costs
• SCM is concerned with the flow of products and chain • Transportation: customer locations, shipment sizes •
members' information between supply organizations. Facility: location, capacity, schedules of a facility

1. Shared resources, equipment, and people. USE OF INFORMATION IN SUPPLY CHAIN

MANAGEMENT

• Information Technology (IT)

- Hardware, software used throughout the supply chain
to gather and analyze information
- Captures and delivers information needed to make
good decisions
• Effective use of IT in the supply chain can have a
significant impact on supply chain performance
• Allows managers to make decisions that take into account
all stages of the supply chain
• Allows performance to be optimized for the entire supply comprehensive management and an improved ability to
chain leading to higher performance for each individual effectively deal with unforeseen circumstances.
firm
THREATS TO THE INTERNET SUPPLY CHAIN
I. CUSTOMER RELATIONSHIP MANAGEMENT
(CRM) • Fluctuating customer demand
• Customer relationship management (CRM) is a technology • Machine Breakdowns
for managing all your company's relationships and • Change of technology
interactions with customers and potential customers.
• The goal is simple: Improve business relationships. III. SUPPLY RELATIONSHIP
• A CRM system helps companies stay connected to MANAGEMENTENT
customers, streamline processes, and improve profitability. • Supplier Relationship Management tackles managing
This is an application involving different interactions between relationships with vendors who provide the manufacturer
the company and its customers. with goods, materials, and/or services.
• It entails assessing each of those connections and devising
It is important dahil dito naassess kung satisfied ang customer. a plan of action to boost their efficiency in light of a
manufacturing company. T
• CRM system gives everyone from sales, customer service, • his is accomplished by evaluating each vendor that
business development, and recruiting, marketing, or any provides goods or services to the company and deciding
other line of business - a better way to manage the external which one is most crucial to the business in terms of
interactions and relationships that drive success. continuity and performance.
• Managers are able to build stronger working relationships
IMPORTANCE OF CUSTOMER RELATIONSHIP
with the suppliers they work with thanks to these
MANAGEMENT (CRM)
evaluations.
• A CRM system can give you a clear overview of your
ADVANTAGES OF SUPPLIER RELATIONSHIP
customers.
MANAGEMENT
• A CRM system provides automated workflows
• Al-enabled sales and marketing tools • Cost Savings
• Better collaboration across sales, marketing, and service • Greater Efficiency
• Less Price Fluctuation
THREE TYPES OF CRM
• Continuous Improvement
• Collaborative
SUPPLIER RELATIONSHIP MANAGEMENT (SRM)
• Analytical PROCESS
• Operational
Successful supplier relationship management must focus
II. INTERNET SUPPLY CHAIN MANAGEMENT on operational, tactical, and strategic procedures between the
• It refers to the chain of activities within a company, business and its vendors. To develop a successful SCM process,
specifically, purchasing, production, sales and distribution. these must be followed:
• The internal supply chain has a significant impact on a
company's success; operations need to run smoothly in • Supplier Segmentation
order to create a harmonized working environment and an • Set Objectives
efficient workflow. • Measure Supplier Performance
• Create a Supplier Management Strategy
IMPORTANCE OF INTERNET SUPPLY CHAIN • Continue Improving
MANAGEMENT • SRM Software
• The internal goings-on determine whether a final product
IV. TRANSACTION MANAGEMENT
is ready and good enough to sell. In-depth planning is one
• Transaction Management defined as "The supervision
of the main factors influencing the success of the internal
of essential business applications and services by
supply chain, determining how to market a product and
inspecting the individual transactions that pass
ensuring the production process is on time. This leads to
through the application infrastructure".
optimized operations, which in turn leads to success.
• In a simple term, transaction management is a
• The optimization of the internal supply chain helps ensure
technique for an e-commerce business to make sure
on-time production, happy employees through
that the sales-facilitating, transaction-related
 processes of their online business are operating as E – COMMERCE INCLUDES:
intended.
• To automate this activity and streamline the entire • Electronic funds transfer
supervisory procedure while focusing on any areas • Supply chain management
that may require improvement, transaction • Internet marketing
management software can be used. • Online transaction processing
• Electronic data interchange
WHY USE TRANSACTION MANAGEMENT?
• Inventory management systems
• To automate the process • Automated data collection systems
• Understand your site’s functionality
• Better conversion rates
• Link different processes together
• Audit the transaction

ENTERPRICE RESEARCH PLANNING (ERP)

• Enterprise resource planning (ERP) is a platform used by

businesses to coordinate and manage the key elements of
their operations.
• Numerous ERP software programs are essential to
businesses because they enable resource planning by
integrating all the operations required to manage their
operations into a single system.
• A software system for enterprise resource planning (ERP)
can also incorporate planning, inventory buying, sales,
marketing, finance, and other functions.

WHAT DOES ENTERPRICE RESEARCH PLANNING

(ERP) DO?

• The use of ERP applications also improves communication

and information sharing between the various departments
and the rest of the organization.
• It gathers data on the activity and condition of various
divisions and makes it accessible to other parts so that they
can make efficient use of it.
• By connecting data regarding manufacturing, finance,
distribution, and human resources, ERP applications can
aid the company in becoming more self-aware.

MAIN APPLICATION OF ENTERPRICE RESEARCH

PLANNING (ERP)

• SCM Application
• Logistics
• Finance Application

E-COMMERCE

• Electronic commerce or e-commerce refers to a wide range

of online business activities for products and services.
• It refers to the business transaction in which the parties
interact electronically. It creates a virtual marketplace.
• Information and communications technology (ICT) is used
in inter-business or inter-organizational transactions and in
business-to-consumer transactions.