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Integrated supply chain management: The 21st century

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The global era: Late 1970s – 1999

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Materials management comes of age: Mid-1960s – Late 1970s

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The quiet years: 1947 – Mid-1960s

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The war years: 1940 – 1946

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Growth of purchasing fundamentals: 1900 – 1939

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The early years: 1850 – 1900

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Determine if new initiatives are working

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Link critical measures to desired business outcomes

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Recognize outstanding performance

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Improve future supplier performance

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Communicate requirements throughout the supply chain

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Support fact-based decision making

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Have accessibility to the right data

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Have a process in place to measure it

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Know what to measure

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Overcoming roadblocks

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Old data

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Constantly changing metrics

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Debate over the correct metrics

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Too many metrics

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Roadblocks

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Lean supply

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Manage physical flows

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Obtain materials

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Supply chain execution software

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Improve customer service

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Cut transportation costs

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Shorten cycle times

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Reduce working capital costs

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Optimize production scheduling

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Improve forecast accuracy

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Supply chain planning software

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Responsibility

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Authority

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Control

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Coordination

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Division of labor

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Assessing and selecting structure and formal system of communication

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Need for close internal coordination

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Need for close collaboration with suppliers

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Competitive market analysis

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Supplier analysis

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Purchasing strategies

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Total cost analysis

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Supplier relationship management

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Four Enablers of Purchasing and Supply Chain Management

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Four Enablers of Purchasing and Supply Chain Management

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Production Planning, Scheduling, and Control

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Production Planning, Scheduling, and Control

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Receiving, Materials Handling, and Storage

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Receiving, Materials Handling, and Storage

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Endorses a supply chain orientation + involves proactive management of two-way movement and coordination of goods, services, information, funds from raw material through end user

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Primary + secondary support activities: lead to competitive advantage

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Subset of the value chain

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Set of 3 or more organizations linked directly by 1 or more of upstream/downstream flows of products, services, finances, information from a source to a customer

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Higher level recognition of the strategic value of managing operational activities + flows within and across a supply chain

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Suppliers as an extension of the buying company

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Sharing information

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Move across functional area boundaries

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Identifying, evaluating, selecting,managing, developing suppliers to improve performance

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A supercharged version of purchasing

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Work directly with suppliers to provide world-class performance

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Aligned with the overall mission and strategies of the firm

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Activities which have a major long-term impact on firm performance

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The identification, acquisition, access, positioning, and management of resources + related capabilities an organization needs / potentially needs in the attainment of its strategic objectives

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A strategic approach to planning for + acquiring the organization’s current + future needs through effectively managing the supply base, utilizing a process orientation in conjunction with cross-functional teams -> achieve the organizational mission.

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The Five Rights: quality + quantity + time + price + source

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A functional group + a functional activity

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Vital to furthering supply management’s impact on company strategies and competitiveness

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Requires constant focus on finding, developing, promoting individuals making significant contributions

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Talent management

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Increased number of supply managers with certifications such as CPSM

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More supply managers have earned college degrees

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Growing recognition of supply management’s contribution to firm’s profitability

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< 50: economy is contracting

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> 50: economy is expanding