Supply Chain Management

REGIONAL TRADE

U.S EXPORTS AND IMPORTS

LEGISLATION

Demand Management is the science of understanding, coordinating and controlling all sources of demand so that business operations can deliver products or services on time to customers.

Demand for products can be either independent or dependent.

Dependent demand of a product or service is when the demand of one product is caused by the demand for other products or services.

Independent Demand is not caused by a demand for another product or service.

Forecasting is the scientific process of estimating without having all the necessary information.

Estimating information over time (tie series, cross-sectional, or longitudinal data)

Demand forecasting or supply chain forecasting is the practice of estimating how much of a product or service customers will purchase using calculations based on sales data or test marketing and making educated guesses.

https://www.youtube.com/watch?v=4rY00QwsPJA&feature=emb_title

These are the Top Five Caveats one can encounter when enrolled in Amazon FBA.

The monthly subscription costs $40 plus fees and commissions on whatever you sell.

The Top Five caveats are in no particular order

Seller Restrictions

Lost Inventory

Automated Returns

Lack of Good Customer Service

Shipping Costs

In this part, we will discuss better management concepts.

What is Management?

What are the different levels of Management?

Lastly, we will look into Home Depot and elucidate how the organization has built an effective management system.

LEAN management refers to a technique developed with the aim of minimizing the process waste and maximizing the value of the product or service to the customer, without compromising the quality.

It is coined by Toyota Production System , which is a part of lean thinking

ALSO SEE

EPA The Lean and Environmental Toolkit 2007 presents practical experience collected by the EPA and partner companies who coordinated Lean implementation and environmental management.

Link: https://www.epa.gov/sites/default/files/2013-10/documents/leanenvirotoolkit.pdf

Six Sigma is a data-driven approach and methodology for eliminating defects by utilizing statistical analysis rather than guesswork.

Just-in-Time Approach- An approach to achieving excellence in manufacturing company based on the elimination of waste (not essential to the product)

Taiichi Ohno from the Toyota company is credited with inventing the JIT manufacturing method in the 1970s.

Inventory management is a systematic approach to sourcing, storing, and selling inventory—both raw materials and finished goods products.

Risk management is the continual process of conducting risk assessments through identifying, analyzing, evaluating potential hazards and then treating those loss exposures.

Enterprise Resource Planning

Normally associated with business management software —typically a suite of integrated applications —that an organization can use to collect, store, manage, and interpret data from many business activities.

Metrics for BTS

On time delivery rate (prompt delivery)

Value or total back orders and number frequency and duration of back orders.

Complete order fill rate and order line item fill rate

Line item return rate

Metrics for BTO include

Quoted customer response time and on time completion rate (24hrs)

On time delivery rate (prompt delivery)

Value of late orders and number of late orders

Frequency and duration of late orders (How often are your orders late?)

Number of warranty returns/repairs (Product Recall)

Metrics for Measuring SCM:

Collect

Store

Present

Enable SCM Performance:

Plan

Source

Make

Deliver

Joint Replenishment

Simultaneous purchase of several out of stock items.

Q$* = Square root 2(S+ Esi) A/K

QS*= optimal lot size in dollars

K= carrying cost rate (proportion)

A= annual dollar volume of all items

Si= marginal cost of adding item I to the order

S= cost of placing an order

Smart Technology and Automation

AI- Robotics

Brand Management and Reputation

Status-Brand

Lowering Costs

Customer Demand Forecasts

Leadtime Manufacturing

IKEA is a multinational home furniture retailer from Sweden.

In this short video we will take a brief look at the supply chain of IKEA and understand their competitive advantage in the home furniture industry.

FEDEX is an American multinational shipping company.

3PL- "Third Party Logistics" can be used in Supply Chain Management to outsource elements of distribution, warehousing and order fulfillment.

Corporate Social Responsibility includes operating a business in a manner that accounts for the social and environmental impact created by business.

Global Green Initiatives

THE EPA developed guidance for Environmentally preferable Purchasing

www.epa.gove/oppt/epp/index.htm

Japan enacted the Green Purchasing Law in 2000

www.env.go.jp/en/laws/policy/green/1.pdf

International Green Purchasing Network was founded in 2005

www.igpn.org

India started the Green Purchasing Network India

www.gpni.emcentre.com

EU three regulatory dynamics

Liberty Coca Cola

Founder: Dr. John Pemberton

Location: Atlanta Georgia

Date: May. 8, 1886

Think Globally and Act Locally

Mission, Vision, and Values

US Market 28 Million

48% of market population resides in four U.S Cities

Business $1.2 Billion revenue

90 million physical cases

150,000 pieces of cold drink equipment (CDE) installed

8 Distribution centers

3 production centers

3,800 workers

Market share Total 25% of total beverages

50% of sparkling soda drinks

15% still beverage market

SUPPLY CHAIN NETWORK

3 production centers

9 sales centers

8 distribution centers

Case Inca Kola

see commercial for Inca Kola: https://www.youtube.com/watch?v=-6x0KxmTNfE

Case I Lohas

see commercial for I Lohas Japan: https://www.youtube.com/watch?v=U-TvkUR3dpc

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