Customer Value Slides - PDF.pdfVIP

1Week 2 Customer Value and Customer Led Supply Chains BST137 Strategic Supply Chain Management Lecture Outline ? Supply, Demand and Value Chains ? Supply Chain Functions ? Context for Customer Led SCs ? Conclusions Value Chain ? “…the set of all the specific actions required to bring a specific product through the three critical management tasks of any business” (Womack and Jones, 1996) – Product development, order to delivery (inf. flows) and raw materials to finished products (material flows) Coca Cola Distribution Centre Retailer Value Chain for Cans Value Chain for Bottles Supply Chain for Coca Cola 2New Product Introduction Order Management Product Flow Purchasing Production Distribution Sales K e y P r o c e s s e s Both internal to the organisation and external with suppliers and customers Vertical Structures v Horizontal Processes Supply vs Demand Chains ? ‘…The supply chain encompasses every effort involved in producing and delivering a final product, from the supplier’s supplier to the customer’s customer’ (The Supply Chain Council, 2010); ? ‘…The supply chain is a sequence of events intended to satisfy the customer’ (The Chartered Institute of Logistics and Transport, 1998). Lecture Outline ? Supply, Demand and Value Chains ? Supply Chain Functions ? Context for Customer Led Supply Chains ? Conclusions 3SC Functions ? Physical function – includes converting raw materials into parts, components and finished goods and transporting them from one point in the SC to the next → ‘physical efficiency’ ? Market mediation function – ensures that the variety of products reaching the marketplace matches what customers want to buy → ‘responsiveness’ Demand Chain “…a supply chain that emphasises market mediation to a greater degree than its role of ensuring efficient physical supply of the product”. de Treville et al. (2004) Categorising Products Functional Products Innovative Products Efficient SC Responsive SC Focus on acquisition costs F