Introduction to Supply Chain Manajement

What is the Supply Chain Management and What Role in Business Strategy?

          Supply Chain Management is a systematic and strategic coordination of the traditional business functions within a company and across businesses within the supply chain for purposes of improving long-term performance of the company
                                                                                                                     
Scope of Supply Chain Manajemen

The main activities included in the classification of supply Chain Management

1. product development
2.  procurement
3.  planning and control
4.  production
5. distribution

Component Supply Chain Management

1. Upstream Supply Chain
2. Internal Supply Chain
3. Downstream supply chain

Supply Chain Strategy

Many Supplier 
Few Supplier
Vertical Integration
Kairetsu Network
Virtual Company



Objectives Strategic Supply Chain Management

The purpose of supply chain management is to align demand and supply as effectively and efficiently as possible. The key issues in the supply chain manajemen

Determining the appropriate level of outsourcing
Managing the purchase / procurement of goods
Managing suppliers 
Manage relationships with customers 
Identify problems and respond to problems
quickly 
Managing the risks

To be able to win the market competition the supply chain should be able to provide products,

Cheap 
Quality 
Timely 
Varies


Process Supply Chain Management


          The process of supply chain management is the process when the product is made from raw, semi-finished products and finished products obtained, modified and sold through a wide range of facilities that are connected by a chain along the flow of products and materials. 




Model Supply Chain Management


          Indrajit and Djokopranoto (2002) explain the main actors who have an interest in the flow of goods can be developed a supply chain model, which is a plastic picture of the relationship chain of actorsthat can be shaped like a chain connected to one another


          James A. and Mona J. Fitzsimmons (2006), the physical form of a product in the supply chain can be seen as a stage of materials processing value-added network, each of which is defined by the input supply, transformation and output material demand. The following chart given supply chain for goods




Challenges in Managing Supply Chain Management


According to Nyoman Pujawan (2005), there are challenges to be faced in managing their supply chains, namely:
1. The complexity of the structure of the supply chain

It involves many parties with different interests
Differences in language, time zone and culture among companies


2. Uncertaint

A. Uncertainty request
B. The uncertainty of supply: lead time delivery, price and quality of raw materials, etc.
C. Internal damage to the machine, the machine performance is not perfect, the uncertainty of the quality of production etc



Measuring Performance of Supply Chain Management




          Schroeder said that measuring the performance of the supply chain is the first step towards improvement. An initial stages tha need to be defined and determined in order to achieve such improvements. Schroeder pointed out that in general, there are five important points that can be measured in performance of supply chain management, namely (Shcroeder, 2007):

Delivery 
Quality 
Time 
Flexibility 
Costs


Fueling Supply Chain




1. Inventory is all raw materials, in-process and items that have been completed. 

Cycle inventory 
Safety Inventory 
Seasonal Inventory 


2. Transportation is moving inventory from point to point within the supply chain.

3. The facilities are places in the supply chain network where inventory is stored, 

Location 
Capacity
Operation methodology 


4. The information consists of data and analysis relating to inventory, transportation, facilities and customers throughout the supply chain. Information management presents a chance to make the supply chain more responsive and efficient. Information