firm_theory__supply_chain_management.pptVIP

Firm TheoryKim Valbum – RUC – MEA Supply Chain Management - In a Management Perspective SCM - Definition SCM is ’managing of integrated business processes across the chain of supply to the final customer’. Three clue words are essential: Management planning, organising etc. Integration overcoming cultural barriers Business processes: handling orders, time-to-market, customer service, product development, supply Model of a Supply Chain Example of a Supply Network Flow in the Chain of Supply Flows of Materials, Information Economy Flow of Materials Commodities: Control includes the whole chain of supply from raw materials through production to final customer Flow of Information includes systems of planning for sales, production, capacity etc. Flow of Economy includes terms of payment, routines for invoicing etc. Example: Wal-Mart pays their suppliers when the articles leave the mart! The difference between SCM Logistics SCM has many similarities with Logistics In SCM focus is on external relations Point of departure is in the final customer’s/the market’s need and demand The view on the whole supply chain is holistic SCM is a strategic concept Competition advantage through SCM – some examples The Double Helix – structure is the key to supply chain strategy SCM model Components in a SCM Strategy LEGO – characterization - the change process from product to market orientation SCM Drivers Strategies of action – proaction vs. reaction The competition Triangle Solutions to the challenge of distribution Barriers - 1 Like in warfare, the value of a barrier is the product of height and position Height exclusivity represents the needed time and investments a competitor must spend to establish a similar position Protected against horizontal and vertical integration Hard to imitate and control and not fast to buy Value of the position represents what it takes the customer to prefer other solutions Position must be essential and make value to the product Barriers