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V. V. S. N. V. Prasad
10
Objectives of a Supply Chain
Maximize overall value created Supply chain value: difference between what the final
product is worth to the customer and the effort the supply chain expends in filling the customer’s request Value is correlated to supply chain profitability (difference between revenue generated from the customer and the overall cost across the supply chain)
Revenue: Dell receives $2000 from a customer for a
computer (revenue) Cost : Supply chain incurs costs (information, storage, transportation, components, assembly, etc.)
3/9/2013 MBA C421 Supply Chain Management Ch. V. V. S. N. V. Prasad 11
Objectives of a Supply Chain
Supply chain profitability is total profit to be shared
across all stages of the supply chain Supply chain success should be measured by total supply chain profitability, not profits at an individual stage Sources of supply chain revenue: the customer Sources of supply chain cost: flows of information, products, or funds between stages of the supply …show more content…
V. V. S. N. V. Prasad 21
Cycle View of SC Processes
Each cycle occurs at the interface between two
successive stages
Customer order cycle (customer-retailer) Replenishment cycle (retailer-distributor)
Manufacturing cycle (distributor-manufacturer)
Procurement cycle (manufacturer-supplier)
3/9/2013
MBA C421 Supply Chain Management Ch. V. V. S. N. V. Prasad
22
Cycle View of SC Processes
Customer Order Cycle Involves all processes directly involved in receiving and filling the customer’s order
Customer arrival Customer walks in to a supermarket to make purchase Open the website to give order Customer order entry Customer informing the retailer what products they want to purchase Customer order fulfillment Customer order is filled and sent to customer. (packaging and Shipping) Customer order receiving
MBA C421 Supply Chain Management Ch. V. V. S. N. V. Prasad 23
3/9/2013
Cycle View of SC Processes
Replenishment Cycle All processes involved in replenishing retailer inventories (retailer is now the customer):
…show more content…
How
many warehouses should it have and where should they be located? What advantages does selling books via the Internet provide? Are there disadvantages? Why does Amazon stock bestsellers while buying other titles from distributors? Does an Internet channel provide greater value to a bookseller like Borders or to an Internet-only company like Amazon? Should traditional booksellers like Borders integrate ecommerce into their current supply? For what products does the e-commerce channel offer the greatest benefits? What characterizes these products?
MBA C421 Supply Chain Management Ch. V. V. S. N. V. Prasad 39
3/9/2013
GopalJee
How can Gopaljee Supply and Distribution Model be
extended to other business lines in the Indian and South Asian context? Which all socio-economic features of South Asian societies can be identified as the foundations for building sustainable supply chains? How can the existing distribution channels in the South Asian region be transformed to maximize the value delivered to the customer? How can such indigenously developed SCM Models integrate with and expand into global supply
10
Objectives of a Supply Chain
Maximize overall value created Supply chain value: difference between what the final
product is worth to the customer and the effort the supply chain expends in filling the customer’s request Value is correlated to supply chain profitability (difference between revenue generated from the customer and the overall cost across the supply chain)
Revenue: Dell receives $2000 from a customer for a
computer (revenue) Cost : Supply chain incurs costs (information, storage, transportation, components, assembly, etc.)
3/9/2013 MBA C421 Supply Chain Management Ch. V. V. S. N. V. Prasad 11
Objectives of a Supply Chain
Supply chain profitability is total profit to be shared
across all stages of the supply chain Supply chain success should be measured by total supply chain profitability, not profits at an individual stage Sources of supply chain revenue: the customer Sources of supply chain cost: flows of information, products, or funds between stages of the supply …show more content…
V. V. S. N. V. Prasad 21
Cycle View of SC Processes
Each cycle occurs at the interface between two
successive stages
Customer order cycle (customer-retailer) Replenishment cycle (retailer-distributor)
Manufacturing cycle (distributor-manufacturer)
Procurement cycle (manufacturer-supplier)
3/9/2013
MBA C421 Supply Chain Management Ch. V. V. S. N. V. Prasad
22
Cycle View of SC Processes
Customer Order Cycle Involves all processes directly involved in receiving and filling the customer’s order
Customer arrival Customer walks in to a supermarket to make purchase Open the website to give order Customer order entry Customer informing the retailer what products they want to purchase Customer order fulfillment Customer order is filled and sent to customer. (packaging and Shipping) Customer order receiving
MBA C421 Supply Chain Management Ch. V. V. S. N. V. Prasad 23
3/9/2013
Cycle View of SC Processes
Replenishment Cycle All processes involved in replenishing retailer inventories (retailer is now the customer):
…show more content…
How
many warehouses should it have and where should they be located? What advantages does selling books via the Internet provide? Are there disadvantages? Why does Amazon stock bestsellers while buying other titles from distributors? Does an Internet channel provide greater value to a bookseller like Borders or to an Internet-only company like Amazon? Should traditional booksellers like Borders integrate ecommerce into their current supply? For what products does the e-commerce channel offer the greatest benefits? What characterizes these products?
MBA C421 Supply Chain Management Ch. V. V. S. N. V. Prasad 39
3/9/2013
GopalJee
How can Gopaljee Supply and Distribution Model be
extended to other business lines in the Indian and South Asian context? Which all socio-economic features of South Asian societies can be identified as the foundations for building sustainable supply chains? How can the existing distribution channels in the South Asian region be transformed to maximize the value delivered to the customer? How can such indigenously developed SCM Models integrate with and expand into global supply