Chapter (2) The supply chain management concept Supply chain: included all activities associated with the

flow of goods from the raw material stage to the end user. Supply chain management: included the planning and management of all activities includes procurement and coordination with suppliers and customers. THERES TWO TYPES OF SUPPLY CHAIN MANAGEMENT: 1-SCOR (SUPPLY CHAIN OPERATIONS REFERENCE) Score process Definitions Plan Source Make Deliver Return Balance the demand and supply to get best sourcing, production and delivery requirement. Procure (purchasing) goods and services to meet actual demand. Transform product to finished state to meet the actual demand. Including order management, transportation management and distribution management. Process associated with receiving returned products for any reason. Definitions Provides how relationships with customers are developed. Represents the companys face to customer. Balances customer requirements with supply chain capabilities. Included all activities necessary to define customer requirements, design a network and enable a firm to meet customer requests while minimizing total delivered cost. Includes all activities necessary to obtain and implement manufacturing. Provides how relationships with suppliers are developed. The structure of working with customers and suppliers to develop products. Manages activities associated with returns, reverse logistics and gate keeping.

2- GSCF (GLOBAL SUPPLY CHAIN FORUM)

GSCF process Customer relationship management Customer service management Demand management Order fulfillment

Manufacturing flow management Supplier relationship management Product development Returns management

 Key attributes of supply chain management: 1- Customer power:

The increased power of customers has important implications for the design and management of supply chains. Fast supply chain: emphasizes a speed and time components. Agile supply chain; focuses on the ability of the company to respond to changes in demand with respect to volume and variety.

-The failure to be fast and agile can result in:1- Decreased market share. 2- Reduced profitability. 3- Dissatisfied customers.

2- long- term orientation:

This concept suggests that the supply chain should employ a long term with the various suppliers, customers, intermediaries and facilitators. A long term orientation tends to be predicated on relational exchanges (between supplier and company). A short term orientation tends to focus on transactional exchanges (between customer and company). 3- leveraging technology: ( the power of technology) There are two key factors: Computing power. Internet: it can facilitate efficiency and effectiveness by providing opportunities for supply chain to improve customer service and reduce logistics costs.

4-Enhanced communication across organization;

Because that supply chain depend on huge information, its important that this information to transmitted across organizations. It dependent on : Technological capabilities. Willingness to share information.

5-Inventory control:
The focus on reducing bullwhip effect , which is characterized by variability in demand orders among supply chain participants the end result of which is inventory lumps. There are two aspects ( )of inventory control: To move it from a pattern ( )of stops and starts to a continuous flow. A reduction in the amount of inventory in the supply chain( JAZ).

6- Interorganizational collaboration:
Because a primary objective of supply chain management is to know the performance of the supply chain as a whole rather than to know the performance of individual organizations, the collaboration is very important.

Levels of supply chain collaboration:

Relationship type Transactional Tactical information sharing Strategic Definition Integrate the flow of information to align with product flow. Share information before or after a purchase is made. Joint buyer/seller processes, decisionmaking and measurement. Examples Purchase orders, invoices. Product prices. Forecasts, fulfillment processes.

Barriers to supply chain management:( )

12345Regulatory and political considerations. Lack of top management commitment. Reluctance to share or use, relevant information. Incompatible information systems. Incompatible corporate cultures.