Introduction to Supply Chain Management: The Complete Training Course

Introduction

Overview

Supply Chain management is a complex discipline that's also very exciting. There's a lot to learn about it, and that's what we cover in today's training. My name is Eric Kimberling, and I'm the CEO of Third Stage Consulting, an independent consulting firm that helps clients throughout the world reach their third stage of digital transformation success. We work closely with clients to automate or improve their supply chains as part of a broader digital or business transformation. I personally love Supply Chain management, having studied it extensively and focused on it during my master's program.

Agenda

This training is divided into several modules:

What is Supply Chain management? - Understanding how supply chains work, the nomenclature, terms, and definitions.
Why Are Supply Chains Broken? - Strategies to improve supply chains.
Case Studies - Lessons from some successful supply chains and those that have struggled.

Supplementary Reading

I encourage you to read our guide to Supply Chain management, which you can download for free on our website. It expands on today’s training and helps you understand Supply Chain management more deeply. You can read that guide by scanning the QR code or visiting the links provided.

What is Supply Chain Management?

Definition and Scope

Supply Chain management refers to the entire process from a customer order to procurement, production, storage, shipment, and cash collection. It includes forecasting future demands and managing the entire cycle efficiently.

Business Processes in a Digital Supply Chain

To create a digital supply chain:

Define your business processes - Establish what you want for your future state processes.
Improve Process - Identify and implement processes like diversifying vendor base and tracking supplier scorecards.
Human Aspect - Train and adapt the organization to use new processes and technologies effectively.

Technologies for Supply Chains

Several technology options are available:

Supply Chain management specific vendors like Manhattan Associates and Blue Yonder
Procurement software like Ariba
Logistics and transportation management software
Broad enterprise-wide ERP systems

Use these technologies to automate and improve your supply chain.

Organizational Change Management

The most crucial part of the transition is managing human performance and ensuring people adapt to new processes and technologies. This involves a clear adoption and change strategy.

Data and Analytics

Ensure accurate data and good visibility into your supply chain. This involves cleaning up data and preserving it to maintain its accuracy for effective decision-making.

Key Concepts and Definitions in Supply Chain Management

Procurement

Direct Procurement - Acquiring raw materials for production.
Indirect Procurement - Acquiring office supplies and other materials not directly related to production.

Supplier Management

Manage and track supplier base, quality, and cost ratings, and ensure diversification to mitigate risks.

Inventory Management

Track inventory levels, locations, and trigger reorders when needed.

EDI (Electronic Data Interface)

An electronic means to communicate with vendors, suppliers, and customers.

Logistics and Freight Management

Manage the movement of raw materials, semi-finished goods, and finished products throughout the supply chain.

Warehouse Management

Handle the storage, picking, packing, and shipping processes within the warehouse.

Total Landed Cost

Understand the complete cost from procurement to delivery to ensure effective pricing and margin management.

How Supply Chains Work

From customer demand forecasts to procurement, production, warehousing, and logistics, this section breaks down each component of the supply chain in detail.

Strategies to Improve Supply Chains

Cost Efficiency and Visibility - Using technologies to drive down cost, increase efficiency, and improve visibility.
Supplier Diversification - Ensuring no over-dependency on any single supplier.
Proactive Quality and Performance Measures - Using predictive analytics to anticipate risks.
Sustainability - Ensuring suppliers meet sustainability goals.
Integrated Customer Experience - Aligning supply chain strategies with customer expectations.
Human Capital Management - Essential for effective supply chain management.
Data and Analytics - Provide better insights for improved decision-making.

Case Study: Target Retailer

A practical example involving a visit to a Target store, explaining how supply chains and technologies work in real-life scenarios.

Best Supply Chains in the World

Top companies with efficient supply chains: Schneider Electric, Intel, Alibaba, Walmart, Johnson & Johnson, Colgate-Palmolive, McDonald's, Unilever, Apple, and Amazon.

Future of Supply Chain Management

Future trends and strategies include:

Supplier Diversification
Leveraging Data and Visibility
Human Capital Management
Compliance with Emerging Regulations
Technology Integration and Business Intelligence

In the future, efficient supply chains will involve integrated technologies and comprehensive strategies to manage emerging challenges and opportunities.

Keywords

Supply Chain Management
Procurement
Inventory Management
Supplier Management
Logistics
Warehouse Management
Digital Supply Chain
Business Processes
Organizational Change Management
Data Analytics
Total Landed Cost

FAQ

What is Supply Chain Management?

Supply Chain Management involves managing the entire process from customer orders, procurement of raw materials, production, storage, shipment, and cash collection.

Why are Supply Chains Broken?

Supply chains are often broken due to disruptions in supplier operations, labor shortages, and inadequate visibility and planning.

What Technologies Can Improve Supply Chain Management?

Technologies such as Supply Chain management specific software, ERP systems, procurement software, and logistics management systems can automate and improve supply chains.

How Important is Data in Supply Chain Management?

Data is crucial for providing visibility, improving decision-making, and ensuring accurate demand forecasts and inventory management.

What are the Best Strategies for Future Supply Chain Management?

Key strategies include supplier diversification, leveraging data and visibility, focusing on human capital management, preparing for potential regulations, and integrating advanced technologies.

What Examples of Successful Supply Chains Can We Learn From?

Top companies with efficient supply chains include Schneider Electric, Intel, Alibaba, Walmart, Johnson & Johnson, Colgate-Palmolive, McDonald's, Unilever, Apple, and Amazon. These companies have implemented innovative strategies and technologies to enhance their supply chain efficiency.