Unit 4: Supply Chain Management (SCM)
Supply chain management refers to the entire process of obtaining raw goods from a supplier, converting those goods into products, shipping products, and placing them in front of customers. Operations management typically focuses on the production side of supply chain management, but a good manager is concerned with the entire process. In this unit, we will look at managing firm resources on the supply side and distributing finished goods to the consumer.
Many problems associated with supply chain management are closely related to typical operations management problems. Instead of the question "How should we make this?", it becomes "How should we get this from point A to B?" Shipping the product straight from the factory to the customer may be best, but it may be prohibitively expensive. Many firms find it easier and cheaper to ship products to distribution warehouses first and distribute them to customers on a more local level.
Completing this unit should take you approximately 3 hours.
Upon successful completion of this unit, you will be able to:
- apply the principles of supply chain management to various organizational settings;
- explain the "bullwhip effect" and evaluate strategies to limit variation;
- apply appropriate criteria in choosing suppliers; and
- describe the two main areas of distribution management.
- apply the principles of supply chain management to various organizational settings;
4.1: Fluctuations in the Supply Chain
Review this introduction to supply chain management to explore the elements of the process, including suppliers, manufacturers, distributors, and retailers. Each of these is involved in getting goods to consumers when they want them and at a cost that is agreeable to all parties.
Read these sections for an in-depth look at the supply chain management factors that affect a business' operations. These sections explore environmental factors, internal company issues, governmental factors, the role of IT, logistics, suppliers, and more.
The bullwhip effect relates to supply chain inefficiencies and changes in inventory levels as they relate to changes in consumer demand. Factors include demand forecasting, order batching, price fluctuations, rationing, and gaming.
4.2: Supply Chain Procurement
Read this real-world study to determine if a company could have lean supply chain management while having the agility needed for a small business to flourish. The relationship between a company and its suppliers is explored and considered an essential factor in the supply chain management process.
Read this section to explore the importance of managing materials from vendors to the process of manufacturing. This section is important because it focuses on the activities of an operations manager while managing the production process. Consider the questions you must answer when choosing the best supplier.
This presentation discusses the procurement of pharmaceuticals. Pay particular attention to good procurement practices, the effect of hidden procurement costs, the models of regional/country collaboration, and the common procurement challenges.
- Make forum posts: 1
After you've spent some time reviewing what you have learned so far in this unit, post about this topic on the discussion forum. Respond to your classmates' posts, as well.
Choosing suppliers for your supply chain is often a challenge. Do you put all your eggs in one basket or look to fulfill your needs through multiple vendors? Using the information provided over choosing a good supplier, apply the criteria to purchasing a new product. Discuss your answers to the following questions: Is the quality good? Is the vendor reliable? Does the vendor have a favorable reputation? Is the company easy to work with? Based on your answers, which vendor would be your choice? Why?
Click on the Unit 4 Discussion and then on 'reply' to post your response.
4.3: Supply Chain Distribution
Read this section to explore supply chain optimization. Supply chains must be fast, cheap, and reliable for a good return on investment. This section is important because it focuses on how to focus on designing a supply chain that allows for the manufacturing and distribution of products and a low cost and high profit.
Unit 4 Assessment
In this activity, you will continue working on your operations management plan. As part of the continuing development of your operations management plan, discuss the goal of supply chain management and its application within your business.
- Receive a grade
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.