Session 1, Introduction and overview of SC.pptVIP

Prepared by Zlatko Muhvic MKTG-7217L Manage the Supply Chain Thought of the day A minute of thought is worth more than an hour of talk. Session no. 1Introduction and Overview of the Supply Chain Introduction Learning outcome At the end of this session you will be able to define the Supply Chain Topics Changing business landscape Development of Supply Chain concept Characteristics of Supply Chain Changing Business Landscape (1) Empowered Customer Informed customer - have more sources of information - have the opportunities to compare price/quality/service Changing demographics - More two-career families and single-parent households Importance of logistics and supply chains - Widely adopted to serve the empowered customers today Changing Business Landscape (1) 2. Power shift in the Supply Chain Larger retailers - Manufacturers are traditionally the dominant force in the supply chain. - In 1980s, giant retailers emerge, such as Wal-Mart, and gradually became the new dominant force in the supply chain. Focus on distribution costs - The basic competetive strategy is low price. - sale price= buy price + distribution costs + profit Changing strategies (customization) - Better customer service through customization Changing Business Landscape (2) 3. Deregulation Changing economic controls Changes in transportation Change in financial institutions Change in communication industry Utility industry Changing Business Landscape (3) 4. Globalization Globalization Opportunities - Global marketplace - Global alternatives - New supply sources Globalization Threats - Global operation - Global network management - Global competetion - Culture difference Changing Business Landscape (3) 4. Globalization Changing Business Landscape (3) 5. Technology Information age IS Computer Network: Internet Operation Automation - Barcode - RFID -