Supply chain definitions

As companies build their strategy, they will discover an uncomfortable reality. They will learn that a supply chain is not a supply chain is not a supply chain. Effective ones are designed and built. However, most companies have inherited their supply chains. Fixing this situation will not be as easy as a "Ctrl-copy and Ctrl-paste" of a competitor s supply chain definitions. It requires thinking through the definitions in the first five chapters of this book and defining a three-year road map. 

Introduction to the Supply Chain Supply chain definitions The idea of the "Extended Product"... 

Figure 3.1 illustrates how product or process innovations feed the next SCM driver, extended product design. We introduced the idea behind extended products in Chapter 1. Our supply chain definition, also in Chapter 1, describes the supply chain as physical, information, financial, and knowledge flows for moving products and services from suppliers to end-users. This includes a lot of services, which accompany their base, or physical, products. 

Vorst J.G.AJ. van der, Dongen S. van, Nouguier S., HUhorst R., 2002, E-business Initiatives in Food Supply Chains Definition and Typology of Electronic Business Models, International Journal of Logistics Research and Applications, 5(2), pp. 119-138. 

Logistics and the supply chain definitions, structure, tiering. 

After all the answers from the interviews had been uploaded, an expert analysed each supply chain for each of the seven defined criteria for quality and safety microbial toxins and abiotic contaminants potential pathogens natural plant toxicants freshness and taste nutrient content and food additives fraud social and ethical aspects. For example, an expert on freshness and taste would check each major step in a supply chain for tomatoes to determine if it fulfilled the definition of a CCP (HACCP, Principle 2) in relation to freshness and taste for this commodity. If the step was considered to be a CCP, the answers in the questionnaire that related to relevant substeps at this step would be reviewed, to assess the control procedures that were in use for this CCP. The expert would then fill in the text field, structuring the input to consist of the following points ... 

Porter s value chain is one basis for the development of the supply chain. The term supply chain was created by consultant Keith Oliver in 1982 according to Heckmann et al. (2003). Compared to the company-internal focus of Porter s value chain, the supply chain extends the scope towards intra-company material and information flows from raw materials to the end-consumer reflected in the definition of Christopher (1992) a supply chain is a network of organizations that are involved through upstream and downstream linkages in different processes and activities that product value in the form of products and services in the hand of the ultimate consumer . Core ideas of the supply chain concept are ... 

Various illustrations and definitions for the supply chain exist as shown in fig. 4. 

Definitions for supply chain management reflect these objectives. The term supply chain management was first created by Oliver and Webber (1982). Since then, various definitions in literature can be found ... 

Kaeseler provides a more comprehensive definition of value chain management from a consumer goods industry perspective (Kaeseler 2004, pp. 228-229). Value Chain Management is an essence of Supply Chain Man-... 

Concluding, existing definitions use value chain management as alternative term for supply chain management focusing on supply volume decisions to fulfil a given demand and minimize costs. Especially, value and sales decisions are not covered in an integrated framework. 

This value chain management definition relies on a three-level structure for strategic, tactical and operative company control introduced by Anthony (1965) and used in controlling and supply chain management literature (Rohde et al. 2000). 

The value objective function is oriented at the company s profit and loss definitions. Guiding principle is to only use value parameters that can be found in the cost controlling of the company signed by controlling. Penalty costs and without currency and weighting factors being applied to steer optimization results but having no actual financial impact - as it can be often found in supply chain optimization models - do not meet this requirement. 

The only way to avoid this is by strict analysis of the supply chain from the customer order to final product delivery. Definition of the optimized (theoretical) process and sequential work towards a high service level approach allow the identification of gaps, and of opportunities which might not always be the cheapest (ship versus train versus plane) but could be the most effective way to reduce capital costs and shorten planning scope - an important aspect, especially in volatile customer markets with long production processes on the (chemical) supplier side. As in the case of CIP, this needs clear parameters, KPIs, commitment from all players, and regular tracking. The most important parameters are the lead time for all products, optimal lot sizes, replenishment points, and safety inventories. 

Automation users would like to apply the CII for automating functions that are crucial for them and for society (this is intrinsic to the definition of critical infrastructure ). The functions can be related for example to supply chains, production or financial operations. The positive side is given by the possibility to conduct fast and efficient reactions to unwanted conditions (e.g., unsafe states, security breaches). However this exposes those critical functions to the vulnerabilities and uncertainties of the CII - which can neither ensure the availability of the connection, nor the secure treatment of the data. 

The core areas of the client supply chain, involved with the formulation, material collection, production and supply of compound fragrances, are illustrated in Figure 5.2, with the key links between company departments shown. It should be emphasized that this diagram is not definitive. Each fragrance house displays a shape and structure that best suits its own marketplace, and there is a more complex interplay of communication than sketched here. 

Individually, these layers serve to separate concerns and enable the definition of tractable planning problems for which mathematical and managerial solutions can be obtained. Collectively, these layers of supply chain planning enable manufacturing enterprises more effectively and efficiently to balance supply, resources, and demand. The upper layers buffer the lower layers from sudden shifts in the market, thus allowing for smoother changes in the enterprise s plants, distribution channels, and transportation systems. 

ERP systems do not provide a complete solution for supply chain management (SCM) or electronic commerce. However, especially for manufacturers, the functionality provided by ERP is a necessary (although by no means sufficient) element of both SCM and, therefore, electronic commerce. This section provides definitions of electronic commerce and SCM and explains the relationships among... 

Definition of Supply Chain 5.4. Customer Order-Fulfillment 2121... 

The supply chain structure is the network of members and the links between members of the supply chain. Business processes are the activities that produce a specific output of value to the customer. The management components are the managerial variables by which the business processes are integrated and managed across the supply chain. In combination, the SCM definition and this new framework move the SCM philosophy to its next evolutionary stage. 

The definitions of primary and supporting members make it possible to define the point of origin and the point of consumption of the supply chain. The point of origin of the supply chain occurs where no primary suppliers exist. AU suppliers to the point of origin members are solely supporting members. The point of consumption is where no further value is added and the product and/or service is consumed. 

Organizational culture Continued) definition of, 956 dimensions of, 958 and new technology, 956-961 process-control-minded, 2002, 2003 propensity towards change in, 1705 and supply chain management, 2126, 2127 for sustaining knowledge management, 216-217... 

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