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Chapter Objectives Understand the concept of the supply chain, its importance, and management. Describe the problems of managing the supply chain and some innovative solutions. Trace the evolution of software that supports activities along the supply chain and describe the need for software integration Describe ERP and understand the relationships between ERP and SCM software. Describe order fulfillment problems and solutions in e-commerce and how EC solves other supply chain problems. Describe the process and activities of partner relationship management. Understand the process and issues of global supply chain management.

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Supply and Value Chains Supply Chain Flows Materials flows are all physical products, new materials, and supplies that flow along the chain. Information flows relates to all data associated with demand, shipments, orders, returns and schedules. Financial flows include all transfers of money, payments, credit card information, payment schedules, e-payments and credit-related data.

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Supply and Value Chains

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Supply Chains Components The supply chain involves three segments: Upstream, where sourcing or procurement from external suppliers occur Internal, where packaging, assembly, or manufacturing take place Downstream, where distribution or dispersal take place, frequently by external distributors. It also includes the movement of information and money and the procedures that support the movement of a product or a service. Organizations and individuals are also part of the chain.

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Supply Chains Classifications There are several major types of supply chain Integrated make-to-stock Continuous replenishment Build-to-order Channel assembly.