Session 5- operations

Definition of supply chain

A supply chain is a sequence of business and information processes that link suppliers of products or services to operations, and which then link those operations through distribution channels to end users.

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Definition of supply chain management

Supply chain management is the planning, designing, organizing and control of the flow of information and materials in order to meet customer requirements in an efficient manner.- Organized in levels of supply and demand called ‘tiers’.

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What is on the supply side of the supply chain?

Upstream tiers - Suppliers Procurement activity- Acquiring materials, services required for the Organisation Inbound logistics- Activity of moving materials in from suppliers

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What is on the demand side of the supply chain?

Downstream tiers - Customers Sales and Distribution Management - Sales and movement of materials from the operation to customers Outbound Logistics - Activity of moving materials out to the customer

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Single sourcing

cost savings by ordering in larger quantities at one time - economies of scale. maintain confidentiality communication and administrations simpler

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Multiple sourcing

Continuity of supply is paramount. Flexibility in meeting changes in demand Cost savings through price competition

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Definition of logistics

logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations.

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How is logistics made possible?

Intermodal transport – i.e. standard sized containers to keep unit costs low. Ship .. to truck .. to train .. to truck .. to customer High technology allowing fast unloading and loading at large ports GPS tracking giving customers up to date informat

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3PL

3PL – Third Party Logistics specialist providers

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4PL

4PL – provided a combination of services, not just from them but also via a network

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7PL

7PL – combination of the two

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Definition of cross docking (flow through distribution)

When goods flow in an unbroken sequence from receiving to dispatching, therefore eliminating storage time and space. Many high street retailers, such as Supermarkets and Clothing retailers use this technique.

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Reverse Logistics

The return of goods back from the customer to the supplier for recycling or repair

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Disintermidation - defintion and example

Deduction of a consumer - e.g the producer skipping he wholesaler and retailer and going straight to the customer

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Session 5- operations

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