Operations MGT Module #14

VICENTE, JUDE MICHAEL RUTOL OPERATIONS MANAGEMENT
BSBA 2A 10:30 TO 11:30 MWF MODULE # 14
LEARNING ACTIVITIES
1. Explain the term s supply chain and logistics.
A supply chain is a network of businesses and activities that takes a product from

raw material suppliers to end consumers. By definition, logistics refers to the
processes of acquiring, transporting, and storing resources along the supply chain and
logistics. A supply chain, which relies heavily on information technology, logistics and
transportation, may involve numerous different businesses that comprise the various
links along the supply chain, or a single company may oversee the majority of the
supply chain and logistics for its products.
For example, a supply chain for coffee may begin with Central American farmers. The
product (coffee) would then move along the supply chain from the farmers to the
facilities that process. Then, they package the coffee beans. Then, they would move to
distributors that transport the product to wholesalers. These wholesalers might then
deliver the product to retailers and neighborhood coffee shops for sale to end
customers.
In this example, the supply chain and logistics would be the entire network
of businesses that carry the product from its source – the coffee farmers in Central
America – to where the finished product is consumed by customers at the neighborhood
coffee shop.
Consider supply chain business processes vertical systems. A typical supply chain
consists of manufacturers, wholesalers, distributors, and retailers. A supply chain can
be seen as a system connecting the value chains of the companies within that system.
Consider the activities closest to the source of raw materials upstream activities. Then
consider the activities closest to the finished product and the end
consumer downstream activities. A company is considered upstream or downstream
in relation to other companies in the supply chain depending on its relative position in
the supply chain network.
2. Identify and describe the key aspects of supply chain management.
Key Aspects of Supply Chain Management
1. Demand Management
2. Communication Management
3. Partner Integration
4. Prediction Analytics
5. Leverage
The above key aspects of supply chain management are beyond the rather simplified
approach of daily supply-and-demand tactics. They are targeted at improving standard
approaches of supply chain management to get ahead of the curve.
1. Demand Management
Demand management isn’t solely about filling orders, it is about understanding and
anticipating your clients needs based on prior analytics. Anticipating demands and
understanding needs allows for better stocking while offering added value for the
customers.
2. Communication Management
Communication in the supply chain system isn’t about pouring communication on top of
the process, since that would be superfluous and slow everything down. Instead, it is
about managing communications in an effective way that keeps all needed members
informed without delaying the process. Proper communication management enables a
company to be more agile and prepared for changes to the pipeline and market
demands. Properly managed communication can also empower companies to release
new products more effectively.
One example of intelligent communication management is the creation of a supplier-
feedback loop. This feedback process, when executed properly and regularly, can ferret
out business viability issues further down the pipeline, uncover supplier challenges, and
identify new opportunities for growth and improvement.
3. Partner Integration
By integrating systems with suppliers and vendors you can more accurately predict
fulfillment times, bring products to market more quickly, and possibly offer more
competitive pricing to the end client. Despite having different and closed networks,
companies can integrate their supply chain systems via open internet protocols, single-
information networks, and collaborative tools.
4. Prediction Analytics
While supply chain management has always been a battle of slower fulfillment times
versus predictive guesswork, new analytics have enabled us to intelligently predict
fulfillment based on historical trends and market growth projections.
5. Leverage
With a well-oiled supply chain management system, companies, especially those that
have experienced organic growth, can better leverage their size to improve their
profitability. These savings can be used to fuel added growth through more competitive
pricing, or to grow the company. Leverage is a concept that needs to be re-evaluated
regularly, based on growth patterns.
3. What are some recent trends in supply chain management?
2019 has come and gone, and it's time to look at the latest supply chain trends for 2020.
Many exciting things are happening as supply chain executives respond to changes
arising from the availability of Big Data, supply chain digitization and omni-channel
marketing, to name just a few.
Looking forward, there's also the economy to consider, as its performance has a direct
effect on supply chain trends. While economic performance has been good, there are
signs that 2020 will be somewhat bumpy. According to Deloitte, the trade war is heating
up and the automotive industry is slowing down, but at the same time, unemployment is
at its lowest and the economy is resilient.
These and other indicators will undoubtedly have an impact on supply chain innovation,
speeding up some initiatives while slowing others. Against this backdrop, here are our
predictions for the top 11 supply chain trends in 2020.
1. Supply Chain Digitization

Digitization of the supply chain, encompassing all efforts to integrate corporate systems
into a unified whole as well as implementing new digital technologies, will continue to be
a priority. The goal of digitization, as described by PwC, is a smart, efficient supply
chain ecosystem that demolishes silos, creates transparency and enhances
responsiveness. It envisages a digital environment that does away with manual
processes and provides a single view of the organization. It encompasses initiatives for
creating paperless systems right through to techniques for modeling supply chain
networks and creating what-if scenarios.
2. Supply Chain Solutions Will Continue to Move to the Cloud

While many organizations still rely on legacy on-premise supply chain software, the
future is in the cloud. Available in many forms, including Software as a Service (SaaS),
Infrastructure as a Service (IaaS) and Platform as a Service (PaaS), supply chain cloud
computing offers flexibility, scalability and a global reach while doing away with the need
to maintain extensive, expensive on-premise computing infrastructure. According to
McKinsey, cloud -specific spending in 2020 will grow six-times faster than other IT
expenditures. Able to work with and complement on-premise supply chain software,
cloud-based supply chain applications offer a better user experience, greater
functionality and easy access to new features and releases.
3. Omnichannel Supply Chains Become the Norm

In response to customer demand, businesses will make big strides towards offering a
true omnichannel buying experience. Allowing customers to seamlessly shop online or
in brick-and-mortar stores, omnichannel supply chains place greater demands on
logistic and supply chains with the simultaneous requirements of supplying individual
customer orders as well as replenishing stock at retail outlets. The switch from single-
and multi-channel supply to omnichannel supply requires a complete rethink of supply
chain logistics.

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VICENTE, JUDE MICHAEL RUTOL OPERATIONS MANAGEMENT

BSBA 2A 10:30 TO 11:30 MWF MODULE # 14

1. Explain the term s supply chain and logistics.

A supply chain is a network of businesses and activities that takes a product from

Key Aspects of Supply Chain Management

1. Demand Management

2. Communication Management

3. Partner Integration

4. Prediction Analytics

1. Supply Chain Digitization

2. Supply Chain Solutions Will Continue to Move to the Cloud

3. Omnichannel Supply Chains Become the Norm

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